NAICS 423690

Overview

The North American Industry Classification System (NAICS) is the common framework federal statistical programs use to group establishments for measuring the U.S. economy. Developed with Canada and Mexico under the Office of Management and Budget, NAICS replaced SIC in 1997 and is revised on a five-year cycle; the current vintage is 2022. ¹
U.S. Industry 423690 covers merchant wholesale distribution of electronic parts and equipment not elsewhere classified. Official cross-references exclude communications equipment, electrical construction materials and power equipment, and household consumer electronics, which are assigned to other industries. Agencies apply this code across surveys and the Economic Census to tabulate wholesale trade statistics. ²

What this NAICS covers

• Merchant wholesaling of electronic parts and equipment, excluding communications equipment. ²
• Distribution performed as part of wholesale trade activities (selling goods without transformation, with incidental services such as sorting, packaging, and labeling). ³
• Business-to-business sales from warehouses or offices rather than storefronts oriented to the general public. ³
• Excludes electrical construction materials, wiring supplies, light fixtures, and electrical power equipment (classified under 423610). ²
• Excludes radios, televisions, and household sound or video equipment (classified under 423620). ⁴
• Excludes computers and computer peripheral equipment wholesaling (classified under 423430). ⁵
• Agents and brokers that arrange sales on behalf of others are classified in Wholesale Electronic Markets and Agents and Brokers (e.g., 425120), not in 423690. ²

Related NAICS and PSC codes

Small business size standard (SBA)

• The SBA small business size standard for NAICS 423690 is 250 employees. Effective March 17, 2023. ⁶
• For wholesale/retail firms offering supplies, the SBA nonmanufacturer rule deems a concern small at 500 or fewer employees if it meets 13 CFR 121.406 requirements; Sector 42 notes in SBA’s table apply. ⁷

Classification boundaries and cross-references

• Electrical construction materials, wiring supplies, light fixtures, and electrical power equipment are classified in 423610, not 423690. ²
• Radios, televisions, and household consumer electronics are classified in 423620. ²
• Computers and computer peripherals are classified in 423430. ⁵

Frequently asked questions

• What activities are included under NAICS 423690?
  Merchant wholesaling of other electronic parts and equipment not elsewhere classified, excluding communications equipment. Establishments sell goods without transformation to business customers from warehouses or offices, with incidental services such as sorting or labeling. This is a wholesale trade industry used in Economic Census tabulations. ²

• How does 423690 differ from 423610 and 423620?
  423690 covers “other” electronic parts and equipment. Electrical apparatus and wiring-related items are in 423610, while consumer electronics/appliances are in 423620. These boundaries are defined in NAICS cross-references. ²

• What is the SBA small business size standard for 423690?
  The SBA size standard is 250 employees for this NAICS. This employee-based standard applies to many wholesale trade industries and took effect March 17, 2023, aligning with SBA’s size standards modernization. Always verify the latest table for updates before applying. ⁶

• Are brokers or agents included under 423690?
  No. Agents and brokers that facilitate sales for others are classified in Wholesale Electronic Markets and Agents and Brokers (e.g., 425120), not in 423690. NAICS distinguishes merchant wholesalers from agents/brokers that do not take title to goods. ²

• How often is NAICS updated, and what is the current vintage in use?
  NAICS is reviewed and revised every five years by OMB’s Economic Classification Policy Committee. Federal programs have transitioned to the 2022 vintage per the Census implementation timeline; users should ensure they reference the correct vintage for their data. ¹

Useful resources

• G2X — NAICS 423690 overview
• Census NAICS search: 2022 definition for 423690
• Census NAICS: Sector 42 — Wholesale Trade overview (2022) https://www.census.gov/naics/?input=42&year=2022
• SBA: Table of Small Business Size Standards (effective March 17, 2023) https://www.sba.gov/sites/default/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf
• eCFR: 13 CFR 121.406 — Nonmanufacturer rule https://www.ecfr.gov/current/title-13/part-121/section-121.406
• Census: Implementation of the 2022 NAICS (timeline) https://www.census.gov/library/reference/code-lists/naics/2022/implementation-timeline.html

References

1. U.S. Census Bureau — Implementation of the 2022 North American Industry Classification System (NAICS). https://www.census.gov/library/reference/code-lists/naics/2022/implementation-timeline.html
2. U.S. Census Bureau — NAICS 2022 Search: 423690 (Other Electronic Parts and Equipment Merchant Wholesalers). https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=423690&search=2022
3. U.S. Census Bureau — NAICS 2022: Sector 42 Wholesale Trade (definition and scope). https://www.census.gov/naics/?input=42&year=2022
4. U.S. Census Bureau — NAICS 2022 Search: 423620 (Household Appliances, Electric Housewares, and Consumer Electronics). https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=423620&search=2022
5. U.S. Census Bureau — NAICS 2022 Search: 423430 (Computer and Computer Peripheral Equipment and Software). https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=423430&search=2022
6. U.S. Small Business Administration — Table of Small Business Size Standards (effective March 17, 2023). https://www.sba.gov/sites/default/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf
7. Electronic Code of Federal Regulations — 13 CFR 121.406 (Nonmanufacturer rule). https://www.ecfr.gov/current/title-13/part-121/section-121.406