[Federal Register: September 23, 2003 (Volume 68, Number 184)]
[Proposed Rules]
[Page 55204-55206]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23se03-9]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 030910228-3228-01]
RIN 0691-AA54
International Services Surveys: BE-25, Quarterly Survey of
Transactions With Unaffiliated Foreign Persons in Selected Services and
in Intangible Assets
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-25, Quarterly Survey of Transactions with Unaffiliated
Foreign Persons in Selected Services and in Intangible Assets, to be
conducted by the Bureau of Economic Analysis (BEA), U.S. Department of
Commerce.
The Department of Commerce, as part of its continuing effort to
reduce paperwork and respondent burden, invites the general public and
other Federal agencies to comment on proposed and/or continuing
information collections, as required by the Paperwork Reduction Act of
1995. The proposed survey is mandatory and will be conducted under the
International Investment and Trade in Services Survey Act. Data from
the proposed BE-25 survey are needed to monitor trade in services and
intangible assets, 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 and public uses.
The proposed survey will cover some of the selected services
presently covered by the BE-22, Annual Survey of Selected Services
Transactions with Unaffiliated Foreign Persons. The selected services
covered by the BE-25 survey will be removed from the BE-22 survey after
the survey for 2003 is conducted. The BE-22 survey will continue to be
conducted for those services that were not moved to the BE-25 survey.
The proposed survey will also cover construction, engineering,
architectural, and surveying services presently covered by the BE-47,
Annual Survey of Construction, Engineering, Architectural, and Mining
Services Provided by U.S. Firms to Unaffiliated Foreign Persons, and
will cover the same transactions in intangible assets presently covered
by the BE-93, Annual Survey of Royalties, License Fees, and Other
Receipts and Payments for Intangible Rights Between U.S. and
Unaffiliated Foreign Persons; both of these annual surveys would be
discontinued, following a final data collection for 2003.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before November 24, 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. To ensure 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, Chief, International
Investment Division (BE-50), Bureau of Economic Analysis, U.S.
Department of Commerce, Washington, DC 20230; or via e-mail at
Obie.Whichard@bea.gov (Telephone (202) 606-9800).
SUPPLEMENTARY INFORMATION: This proposed rule amends 15 CFR Part 801.9
to set forth the reporting requirements for the BE-25, Quarterly Survey
of Transactions with Unaffiliated Foreign Persons in Selected Services
and in Intangible Assets. 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).
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 his authority granted
under the Act as concerns international trade in services to the
Secretary of Commerce, who has redelegated it to BEA.
The major purposes of the survey are to monitor trade in services
and in intangible assets, analyze the impact of this trade on the U.S.
and foreign economies, compile and improve the U.S. economic accounts,
support U.S. commercial policy on services and intangible assets,
conduct trade promotion, and improve the ability of U.S. businesses to
identify and evaluate market opportunities.
As proposed, BEA will conduct the BE-25 survey beginning with the
first quarter of 2004. The survey will update the data provided on the
universe of transactions between U.S. and unaffiliated foreign persons
in selected services and in intangible assets. Reporting is required
from U.S. persons whose sales of covered services to unaffiliated
foreign persons exceeded $6 million for the previous fiscal year or are
expected to exceed that amount during the current fiscal year, or whose
purchases of covered services from unaffiliated foreign persons
exceeded $4 million for the previous fiscal year or are expected to
exceed that amount during the current fiscal year. U.S. persons meeting
any of these criteria must supply data on the amount of their sales or
purchases for each type of covered service, disaggregated by country.
U.S. persons that do not meet the mandatory reporting requirements are
requested to provide voluntary estimates of their total sales and
purchases of each type of covered service or intangible asset.
The proposed survey will also cover construction, engineering,
architectural, and surveying services presently covered by the BE-47,
Annual Survey of Construction, Engineering, Architectural, and Mining
Services Provided by U.S. Firms to Unaffiliated Foreign Persons, and
will cover the same transactions in intangible rights presently covered
by the BE-93, Annual Survey of Royalties, License Fees, and Other
Receipts and Payments for Intangible Rights Between U.S. and
Unaffiliated Foreign Persons; both of these annual surveys would be
discontinued, following a final data collection for 2003.
The proposed survey is mandatory and will be conducted under the
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International Investment and Trade in Services Survey Act. The first
survey conducted under this proposed rule will cover transactions in
the first quarter 2004. BEA will send the survey to potential
respondents in March of 2004; responses will be due by May 15, 2004.
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-25 survey, as proposed, is expected to result in the filing
of reports containing mandatory data from about 700 respondents on a
quarterly basis, or 2,800 responses annually. The average burden for
completing the BE-25 is estimated to be 16 hours. Thus, the total
respondent burden of the survey is estimated at 44,800 hours (2,800
responses times 16 hours average burden). The actual burden will vary
from reporter to reporter, depending upon the number and variety of
their covered services transactions and the ease of assembling the
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, and either
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).
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
transactions in covered services or intangible assets 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-25 quarterly survey will be required from U.S. persons
whose sales of covered services to unaffiliated foreign persons
exceeded $6 million for the previous fiscal year or are expected to
exceed that amount during the current fiscal year, or whose purchases
of covered services from unaffiliated foreign persons exceeded $4
million for the previous fiscal year or are expected 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
International transactions, Economic statistics, Foreign trade,
Penalties, Reporting and recordkeeping requirements.
Dated: August 18, 2003.
J. Steven Landefeld,
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 revising paragraph (c)(6) to read as
follows:
Sec. 801.9 Reports required.
(c) Quarterly surveys. * * *
(6) BE-25, Quarterly Survey of Transactions with Unaffiliated
Foreign Persons in Selected Services and in Intangible Assets:
(i) A BE-25, Quarterly Survey of Transactions with Unaffiliated
Foreign Persons in Selected Services and in Intangible Assets, 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 that: (a) had sales of covered services to
unaffiliated foreign persons that exceeded $6 million for the previous
fiscal year or are expected to exceed that amount during the current
fiscal year; or (b) had purchases of covered services from unaffiliated
foreign persons that exceeded $4 million for the previous fiscal year
or are expected to exceed that amount during the current fiscal year.
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. Quarterly reports for a year
may be required retroactively when it is determined that the exemption
level has been exceeded.
(2) Voluntary reporting. Reports are requested from each U.S.
person that had sales of covered services to unaffiliated foreign
persons that were $6 million or less for the previous fiscal year and
are expected to be less than or equal to that amount during the current
fiscal year, or had purchases of covered services from unaffiliated
foreign persons that were $4 million or less for the previous fiscal
year and are expected to be less than or equal to that amount during
the current fiscal year. Provision of this information is voluntary.
The estimates may be based on recall, without conducting a detailed
records search.
(B) Any person receiving a BE-25 survey form from BEA must complete
all relevant parts of the form and return the form to BEA. A person
that is not subject to the mandatory reporting requirement in paragraph
(c)(6)(i)(A) of this section and is not filing information on a
voluntary basis must only complete the ``Determination of reporting
status'' and the ``Certification'' sections of the survey. This
requirement is necessary to
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ensure compliance with the reporting requirements and efficient
administration of the survey by eliminating unnecessary followup
contact.
(C) Covered services and intangible assets. The services covered by
this survey are: Accounting, auditing, and bookkeeping services;
computer and data processing services; construction services; foreign
expenses related to construction projects; data base and other
information services; engineering, architectural, and surveying
services; industrial engineering services; industrial-type maintenance,
installation, alteration, and training services; legal services;
management, consulting, and public relations services; operational
leasing services; research, development, and testing services; and
telecommunication services. The intangible assets covered by this
survey are rights related to: industrial processes and products; books,
compact discs, audio tapes and other copyrighted material and
intellectual property; trademarks, brand names, and signatures;
performances and events pre-recorded on motion picture film and
television tape, including digital recording; broadcast and recording
of live performances and events; general use computer software;
business format franchising fees; and other intangible assets,
including indefeasible rights of users.
(ii) [Reserved]
* * * * *
[FR Doc. 03-24129 Filed 9-22-03; 8:45 am]
BILLING CODE 3510-06-P