[Federal Register: December 31, 2003 (Volume 68, Number 250)]
[Rules and Regulations]
[Page 75408-75409]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de03-13]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 030910227-3318-02]
RIN 0691-AA53
International Services Surveys: BE-45, Quarterly Survey of
Insurance Transactions by U.S. Insurance Companies with Foreign Persons
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends regulations that set forth the
reporting requirements for the BE-45, Quarterly Survey of Insurance
Transactions by U.S. Insurance Companies with Foreign Persons.
The survey is mandatory and will be conducted by the Bureau of
Economic Analysis (BEA), U.S. Department of Commerce, under the
International Investment and Trade in Services Survey Act. The first
survey conducted under this rule will cover transactions in the first
quarter of 2004. Data from the BE-45 survey are needed to monitor trade
in insurance 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 survey will cover the same insurance services presently covered
by the BE-48, Annual Survey of Reinsurance and Other Insurance
Transactions by U.S. Insurance Companies with Foreign Persons, and
auxiliary insurance services presently covered by the Benchmark and
Annual Surveys of Selected Services Transactions with Unaffiliated
Foreign Persons (Forms BE-20 and BE-22).
EFFECTIVE DATE: This final rule will be effective January 30, 2004.
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 the Internet at
obie.whichard@bea.gov (telephone (202) 606-9890).
SUPPLEMENTARY INFORMATION: In the September 23, 2003, Federal Register,
(68 FR 55202-55204), BEA published a notice of proposed rulemaking
setting forth reporting requirements for the BE-45, Quarterly Survey of
Insurance Transactions by U.S. Insurance Companies with Foreign
Persons. No comments on the proposed rule were received. Thus, the
proposed rule is adopted without change.
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 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 insurance
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 insurance services, conduct trade promotion, and improve the ability
of U.S. businesses to identify and evaluate market opportunities.
The first survey conducted under this 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 30, 2004.
The survey will update the data provided on the universe of insurance
services transactions between U.S. insurance companies and foreign
persons. Reporting is required from U.S. insurance companies whose
covered transactions with foreign persons exceeded $8 million for the
previous fiscal year, or are expected to exceed that amount during the
current fiscal year. In addition, the reporting threshold for this
survey is applied separately to each of the eight individual types of
transactions covered by the survey rather than to the sum of the data
for all eight types combined. Insurance companies meeting these
criteria must supply data on the amount of their insurance transactions
for each type of insurance category, disaggregated by country. U.S.
insurance companies that do not meet the mandatory reporting
requirements are requested to provide voluntary estimates of their
covered insurance transactions.
[[Page 75409]]
The transactions covered by this survey are: reinsurance premiums
received, reinsurance premiums paid, reinsurance losses paid,
reinsurance losses recovered, primary insurance premiums received,
primary insurance losses paid, auxiliary insurance services receipts,
and auxiliary insurance services payments. (Auxiliary insurance
services include agent's commissions, insurance brokering and agency
services, insurance consulting services, evaluation and adjustment
services, actuarial services, salvage administration services, and
regulatory and monitoring services on indemnities and recovery
services.)
Executive Order 12866
This final rule is not significant for purposes of E.O. 12866.
Executive Order 13132
This final rule does not contain policies with federalism
implications as that term is defined in E.O. 13132.
Paperwork Reduction Act
The collection of information required in this final rule has been
approved by the Office of Management and Budget under the Paperwork
Reduction Act. 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 OMB Control Number; such a
Control Number (0608-0066) will be displayed.
The BE-45 survey is expected to result in the filing of
approximately 210 reports on a quarterly basis, or 840 responses
annually, and the average respondent burden for completing the survey
is estimated at 8 hours. Thus, the total respondent burden of the
survey is estimated at about 6,720 hours (840 responses times 8 hours
average burden). The actual burden will vary from reporter to reporter,
depending upon the number and variety of their insurance transactions
and the ease of assembling the data. This estimate includes time for
respondents to review the instructions, search existing data sources,
gather and maintain the data needed, and complete and review the
collection of information.
Comments regarding the burden estimate or any aspect of this
collection of information 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).
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 rule will not have a significant economic
impact on a substantial number of small entities as that term is
defined in the Regulatory Flexibility Act. The factual basis for the
certification was published with the proposed rule. No comments were
received regarding the economic impact of the rule. As a result, no
final regulatory flexibility analysis was prepared.
List of Subjects in 15 CFR Part 801
Economic statistics, International transactions, Foreign trade,
Penalties, Reporting and recordkeeping requirements.
Dated: December 10, 2003.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
0
For the reasons set forth in the preamble, BEA amends 15 CFR part 801,
as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S.
AND FOREIGN PERSONS
0
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.
0
2. Section 801.9 is amended by adding new paragraph (c)(5) to read as
follows:
Sec. 801.9 Reports required.
(c) Quarterly surveys. * * *
(5) BE-45, Quarterly Survey of Insurance Transactions by U.S.
Insurance Companies with Foreign Persons:
(i) A BE-45, Quarterly Survey of Insurance Transactions by U.S.
Insurance Companies with 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. insurance company whose covered transactions with
foreign persons exceeded $8 million for the previous fiscal year or are
expected to exceed that amount during the current fiscal year. This
threshold is applied separately to each of the eight individual types
of transactions covered by the survey rather than to the sum of the
data for all eight types combined. 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.
insurance company whose covered transactions with foreign persons were
$8 million or less for the previous fiscal year and are not expected to
exceed the $8 million 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-45 survey form from BEA must complete
all relevant parts of the form and return the form to BEA. A person not
subject to the mandatory reporting requirement in paragraph
(c)(5)(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 ensure compliance with the reporting
requirements and efficient administration of the survey by eliminating
unnecessary followup contact.
(C) Covered insurance transactions. The transactions covered by
this survey are: reinsurance premiums received, reinsurance premiums
paid, reinsurance losses paid, reinsurance losses recovered, primary
insurance premiums received, primary insurance losses paid, auxiliary
insurance services receipts, and auxiliary insurance services payments.
(Auxiliary insurance services include agent's commissions, insurance
brokering and agency services, insurance consulting services,
evaluation and adjustment services, actuarial services, salvage
administration services, and regulatory and monitoring services on
indemnities and recovery services.)
(ii) [Reserved]
* * * * *
[FR Doc. 03-32123 Filed 12-30-03; 8:45 am]
BILLING CODE 3510-06-P