[Federal Register: August 29, 2003 (Volume 68, Number 168)]
[Proposed Rules]
[Page 51939-51941]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29au03-20]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 030815201-3201-01]
RIN 0691-AA50
International Services Surveys: BE-85, Quarterly Survey of
Financial Services Transactions Between U.S. Financial Services
Providers and Unaffiliated Foreign Persons
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document sets forth a proposed rule to institute a new
survey, BE-85, Quarterly Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Unaffiliated Foreign
Persons, to be conducted by the Bureau of Economic Analysis (BEA), U.S.
Department of Commerce.
The proposed survey is mandatory and will be conducted under the
International Investment and Trade in Services Survey Act and under
Section 5408 of the Omnibus Trade and Competitiveness Act of 1988. The
first survey conducted under this proposed rule will cover transactions
in the first quarter of 2004. Data from the proposed BE-85 survey are
needed to monitor
[[Page 51940]]
trade in financial services, analyze its impact on the U.S. and foreign
economies, compile and improve the U.S. economic accounts, support U.S.
commercial policy on financial services, conduct trade promotion,
improve the ability of U.S. businesses to identify and evaluate market
opportunities, and for other Government uses.
The proposed survey will cover the same financial services
presently covered by the BE-82, Annual Survey of Financial Service
Transactions Between U.S. Financial Services Providers and Unaffiliated
Foreign Persons, which the proposed quarterly survey would replace,
following a final annual data collection for 2003.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before October 28, 2003.
ADDRESSES: Direct all written comments to the Office of the Chief,
International Investment Division (BE-50), Bureau of Economic Analysis,
U.S. Department of Commerce, Washington DC 20230. Because of slow mail,
and to assure that comments are received in a timely manner, please
consider using one of the following delivery methods: (1) Fax to (202)
606-5318, (2) deliver by courier to U.S. Department of Commerce, Bureau
of Economic Analysis, BE-50, Shipping and Receiving Section M100, 1441
L Street, NW., Washington, DC 20005, or (3) e-mail to
Obie.Whichard@bea.gov. Comments will be available for public inspection
in room 7006, 1441 L Street, NW., between 8:30 a.m. and 4:30 p.m.,
Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Assistant Chief,
International Investment Division (BE-50), Bureau of Economic Analysis,
U.S. Department of Commerce, Washington, DC 20230; or via the Internet
at Obie.Whichard@bea.gov (Telephone (202) 606-9890).
SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR 801.9
to set forth the reporting requirements for the BE-85, Quarterly Survey
of Financial Services Transactions Between Financial Services Providers
and Unaffiliated Foreign Persons. The Bureau of Economic Analysis
(BEA), U.S. Department of Commerce, will conduct the survey under the
International Investment and Trade in Services Survey Act (22 U.S.C.
3101-3108), and under Section 5408 of the Omnibus Trade and
Competitiveness Act of 1988 (15 U.S.C. 4908). Section 4(a) of the Act
(22 U.S.C. 3103(a)) provides that the President shall, to the extent he
deems necessary and feasible, conduct a regular data collection program
to secure current information related to international investment and
trade in services and publish for the use of the general public and
United States Government agencies periodic, regular, and comprehensive
statistical information collected pursuant to this subsection. In
section 3 of Executive Order 11961, as amended by Executive Order
12518, the President delegated authority granted under the Act as
concerns international trade in services to the Secretary of Commerce,
who has redelegated that authority to BEA.
The major purposes of the survey are to monitor trade in financial
services, analyze its impact on the U.S. and foreign economies, compile
and improve the U.S. economic accounts, support U.S. commercial policy
on financial services, conduct trade promotion, and improve the ability
of U.S. businesses to identify and evaluate market opportunities.
As proposed, BEA will conduct the BE-85 survey on a quarterly basis
beginning with the first quarter of 2004. BEA will send the survey to
potential respondents in March of 2004, responses will be due by May
15, 2004. The survey will update the data provided on the universe of
financial services transactions between U.S. financial services
providers and unaffiliated foreign persons. Reporting is required from
U.S. financial services providers whose sales of covered services to
unaffiliated foreign persons exceeded $20 million for the previous
fiscal year or that expect such sales to exceed that amount during the
current fiscal year, or whose purchases of covered services from
unaffiliated foreign persons exceeded $15 million for the previous
fiscal year or that expect such purchases to exceed that amount during
the current fiscal year. Financial services providers meeting any of
these criteria must supply data on the amount of their sales or
purchases for each covered type of service, disaggregated by country.
U.S. financial services providers that do not meet the mandatory
reporting requirements are requested to provide voluntary estimates of
their total sales or purchases of each type of financial service.
Executive Order 12866
This proposed rule is not significant for purposes of E.O. 12866.
Executive Order 13132
This proposed rule does not contain policies with Federalism
implications as that term is defined in E.O. 13132.
Paperwork Reduction Act
This proposed rule contains a collection of information requirement
subject to the Paperwork Reduction Act (PRA) and has been submitted to
the Office of Management and Budget for review under the PRA.
Notwithstanding any other provisions of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act unless that collection
displays a currently valid Office of Management and Budget Control
Number.
The BE-85 survey, as proposed, is expected to result in the filing
of reports containing mandatory data from about 55 respondents on a
quarterly basis, or 220 responses annually. The average burden for
completing the BE-85 is estimated to be 10 hours. Thus, the total
respondent burden of the survey is estimated at 2,200 hours (220
responses times 10 hours average burden). The actual burden will vary
from reporter to reporter, depending upon the number and variety of
their financial services transactions and the ease of assembling the
data. Thus, for each quarter it may range from 4 hours for a reporter
that has a small number and variety of transactions and easily
accessible data to 100 hours for a very large reporter that engages in
a large number and variety of financial services transactions and has
difficulty in locating and assembling the required data. This estimate
includes time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information.
Comments are requested concerning: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the burden estimate; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on the respondents, including the use of automated
collection techniques or other forms of information technology.
Comments should be addressed to: Director, Bureau of Economic Analysis
(BE-1), U.S. Department of Commerce, Washington, DC 20230; or faxed
(202-395-7245) or e-mailed (pbugg@omb.eop.gov) to the Office of
Management and Budget, O.I.R.A., (Attention PRA Desk Officer for BEA).
[[Page 51941]]
Regulatory Flexibility Act
The Chief Counsel for Regulation, Department of Commerce, has
certified to the Chief Counsel for Advocacy, Small Business
Administration, under provisions of the Regulatory Flexibility Act (5
U.S.C. 605(b)), that this proposed rulemaking, if adopted, will not
have a significant economic impact on a substantial number of small
entities. The information collection excludes most small businesses
from mandatory reporting. Companies that engage in international
financial services transactions tend to be quite large. In addition,
the reporting threshold for this survey is set at a level that will
exempt most small businesses from reporting. The proposed BE-85
quarterly survey will be required from U.S. financial services
providers whose sales of covered services to unaffiliated foreign
persons exceeded $20 million for the previous fiscal year or that
expect such sales to exceed that amount during the current fiscal year,
or whose purchases of covered services from unaffiliated foreign
persons exceeded $15 million for the previous fiscal year or that
expect such purchases to exceed that amount during the current fiscal
year. Thus, the exemption level will exclude most small businesses from
mandatory coverage. Of those smaller businesses that must report, most
will tend to have specialized operations and activities, so they will
likely report only one type of transaction; therefore, the burden on
them should be small.
List of Subjects in 15 CFR Part 801
Economic statistics, Foreign trade, International transactions,
Penalties, Reporting and recordkeeping requirements.
Rosemary D. Marcuss,
Deputy Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA proposes to amend 15
CFR Part 801, as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S.
AND FOREIGN PERSONS
1. The authority citation for 15 CFR Part 801 continues to read as
follows:
Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108;
E.O. 11961, 3 CFR, 1977 Comp., p. 86 as amended by E.O. 12013, 3
CFR, 1977 Comp., p. 147, E.O. 12318, 3 CFR, 1981 Comp., p. 173, and
E.O. 12518 3 CFR, 1985 Comp., p. 348.
2. Section 801.9 is amended by adding new paragraph (c)(4) to read
as follows:
Sec. 801.9 Reports required.
(c) Quarterly surveys. * * *
(4) BE-85, Quarterly Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Unaffiliated Foreign
Persons:
(i) A BE-85, Quarterly Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Unaffiliated Foreign
Persons, will be conducted covering the first quarter of the 2004
calendar year and every quarter thereafter.
(A) Who must report--(1) Mandatory reporting. Reports are required
from each U.S. person who is a financial services provider or
intermediary, or whose consolidated U.S. enterprise includes a
separately organized subsidiary or part that is a financial services
provider or intermediary, and that had sales of covered services to
unaffiliated foreign persons that exceeded $20 million for the previous
fiscal year or expects sales to exceed that amount during the current
fiscal year, or had purchases of covered services from unaffiliated
foreign persons that exceeded $15 million for the previous fiscal year
or expects purchases to exceed that amount during the current fiscal
year. These thresholds should be applied to financial services
transactions with unaffiliated foreign persons by all parts of the
consolidated U.S. enterprise combined that are financial services
providers or intermediaries. Because the thresholds are applied
separately to sales and purchases, the mandatory reporting requirement
may apply only to sales, only to purchases, or to both sales and
purchases.
(i) The determination of whether a U.S. financial services provider
or intermediary is subject to this mandatary reporting requirement may
be based on the judgement of knowledgeable persons in a company who can
identify reportable transactions on a recall basis, with a reasonable
degree of certainty, without conducting a detailed manual records
search.
(ii) Reporters who file pursuant to this mandatory reporting
requirement must provide data on total sales and/or purchases of each
of the covered types of financial services transactions and must
disaggregate the totals by country.
(2) Voluntary reporting. If a financial services provider or
intermediary, or all of a firm's subsidiaries or parts combined that
are financial services providers or intermediaries, had covered sales
of $20 million or less, or covered purchases of $15 million or less
during the previous fiscal year, and if covered sales or purchases are
not expected to exceed these amounts in the current fiscal year, a
person is requested to provide an estimate of the total for each type
of service for the most recent quarter. Provision of this information
is voluntary. The estimates may be based on the reasoned judgement of
the reporting entity. Because these thresholds apply separately to
sales and purchases, voluntary reporting may apply only to sales, only
to purchases, or to both.
(B) BE-85 definition of financial services provider. The definition
of financial services provider used for this survey is identical in
coverage to Sector 52--Finance and Insurance--of the North American
Industry Classification System, United States, 2002. For example,
companies and/or subsidiaries and other separable parts of companies in
the following industries are defined as financial services providers:
Depository credit intermediation and related activities (including
commercial banking, holding companies, savings institutions, check
cashing, and debit card issuing); nondepository credit intermediation
(including credit card issuing, sales financing, and consumer lending);
securities, commodity contracts, and other financial investments and
related activities (including security and commodity futures brokers,
dealers, exchanges, traders, underwriters, investment bankers, and
providers of securities custody services); insurance carriers and
related activities (including agents, brokers, and services providers);
investment advisors and managers and funds, trusts, and other financial
vehicles (including mutual funds, pension funds, real estate investment
trusts, investors, stock quotation services, etc.).
(C) Covered types of services. The BE-85 survey covers the
following types of financial services transactions (purchases and/or
sales) between U.S. financial services providers and unaffiliated
foreign persons: Brokerage services, including foreign exchange
brokerage services; underwriting and private placement services;
financial management services; credit-related services, except credit
card services; credit card services; financial advisory and custody
services; security lending services; electronic funds transfers; and
other financial services.
(ii) [Reserved]
* * * * *
[FR Doc. 03-22140 Filed 8-28-03; 8:45 am]
BILLING CODE 3510-06-P