12 nsta code

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NSTA Code (IMTQ-NSTA(1))

The “NSTA” (pronounced “NISS-tuh”) code is a six-byte field appearing in positions 698 through 703 of the IMT record. This field is treated differently in the IMT record than it is in the Micro File record. The reason is that the NAICS and NSTA codes have had a convoluted and confused history. “NSTA” is a now-defunct field, called the “North American Industry Classification System Code with a Standard Industrial Classification Code Treatment of Auxiliary Establishments.” As such, it is one of the finest examples of a super-acronym, compressing a 42-syllable phrase into the “Nista” in a 4-letter group. However, the usage of this field is not nearly as nifty as its super-compressed name. The reason for its demise in micro data is that auxiliary codes were dropped in Version 9; thus, there is no need for auxiliary-based industry coding either. However, some States may use the NSTA field instead of the NAICS field, so special provisions have been made to move it where needed. This will be discussed shortly.


When this field was first introduced in 1997, it was called “IMTQ-NAICS.” The NAICS code offered a structure that could cross between the 4-digit SIC and the 6-digit ISIC (International Standard Industrial Classification) codes (in fact ISIC and NAICS match each other down to at least the sub-sector level). Instead of SIC major industry divisions (listed as letter codes), NAICS uses sectors, which are recognized by the first two digits of the code (sometimes with multiple values comprising a sector).


When NAICS codes first appeared, it was anticipated that an SIC-like NAICS would be the preferred industrial coding standard. SIC codes show the type of business that the company is involved with, even though the specific worksite may be used for a utilitarian purpose (such as a warehouse, accounting or data processing, etc.). Even though there are specific industry codes for utility (or “auxiliary”) functions, the SIC code for a computer manufacturer’s warehouse would still be assigned as computer manufacturing, rather than warehousing.


The other industry code under NAICS (listed later as IMTQ-NAICS(1)) was originally called “IMTQ-AUX-NAICS,” and was referred to as the auxiliary NAICS (or “Aux. NAICS”). This alternate field would match the NSTA (then called NAICS) field for all records except for auxiliary establishments (the warehouses, corporate headquarters, etc.). Auxiliaries would use the NAICS code associated with the auxiliary function (e.g., 541116 for a corporate headquarters). Aggregation of data was to be based on the non-auxiliary industry coding.


All of this changed when it was decided that the “auxiliary NAICS” (noting the establishment’s purpose rather than the corporation’s) code would become the “true” NAICS, while the other “NAICS” code would be relegated to the “NSTA” name with its complicated 42-syllable pronunciation. It may well have been easier if this field were called the “SIC-based NAICS code” (a more succinct definition) with the acronym listed as “SNAICS”.


The difference between IMT and Micro File treatment of the NSTA field is caused by the change in hierarchy over the years. Since NSTA (originally “NAICS”) was once the primary industry coding standard, many of the States developed their extract programs around this field rather than the “Aux NAICS” (now called “NAICS”). Therefore, if only a single NAICS code is specified, using this NSTA field (with the IMTQ-NAICS field left as low-values), the system will assume that the NSTA is actually the NAICS code. When both the NAICS and NSTA are listed, however, the NAICS code will be accepted, but this NSTA code will be ignored.


The Micro File’s NSTA code has become a shell of its former self. Generally, all of the NSTA codes have been blank for several years now. In essence an SIC-based NAICS has become a non-entity in QCEW processing.


However, NSTA will have a temporary revitalization during the 2007 NAICS revision, when the 2002 NAICS code will be placed into the NSTA field so that 2007 NAICS codes can populate the regular NAICS field. The precise mechanics of this transfer will be made known in the fall of 2006.


Any State that has already developed the NSTA field as the primary NAICS code should not need to make any changes to their State-specific extract program. However, any new development of IMT extracts should ignore the IMT NSTA code.


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