[Federal Register: November 20, 2006 (Volume 71, Number 223)]
[Proposed Rules]
[Page 67086-67088]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20no06-22]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 061005856-6256-01]
RIN 0691-AA61
International Services Surveys: BE-125, Quarterly Survey of
Transactions in Selected Services and Intangible Assets With Foreign
Persons
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This proposed rule amends regulations of the Bureau of
Economic Analysis, Department of Commerce (BEA) to set forth the
reporting requirements for the BE-125, Quarterly Survey of Transactions
in Selected Services and Intangible Assets with Foreign Persons. This
rule would replace the rule for a similar but more limited survey, the
BE-25, Quarterly Survey of Transactions with Unaffiliated Foreign
Persons in Selected Services and in Intangible Assets. A new agency
form number and survey title are being introduced because the survey
program is being reconfigured to begin collection of data on
transactions with affiliated foreigners using the same survey
instruments as are used to collect information on transactions with
unaffiliated foreigners and because services once collected on an
annual basis would now be collected quarterly. This change will allow
respondents to report transactions in services and intangible assets
with foreign persons on one quarterly survey, rather than on as many as
three different quarterly surveys and one annual survey. If adopted the
BE-125 survey would be conducted quarterly beginning with the first
quarter of 2007.
The proposed BE-125 survey data are used to update universe
estimates from similar data reported on the BE-120, Benchmark Survey of
Transactions in Selected Services and Intangible Assets with Foreign
Persons and on the benchmark and quarterly direct investment surveys
that were administered to collect data on transactions with affiliated
foreign persons.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before 5 p.m. January 19, 2007.
ADDRESSES: You may submit comments, identified by RIN 0691-AA61, and
referencing the agency name (Bureau of Economic Analysis), by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. For agency, select
``Commerce Department--all.''
E-mail: Obie.Whichard@bea.gov.
Fax: Office of the Chief, International Investment
Division, (202) 606-5318.
Mail: Office of the Chief, International Investment
Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE-
50, Washington, DC 20230.
Hand Delivery/Courier: Office of the Chief, International
Investment Division, U.S. Department of Commerce, Bureau of Economic
Analysis, BE-50, Shipping and Receiving, Section M100, 1441 L Street,
NW., Washington, DC 20005.
Public Inspection: Comments may be inspected at BEA's
offices, 1441 L Street, NW., Room 7006, between 8:30 a.m. and 5 p.m.,
Eastern Time 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; e-mail
Obie.Whichard@bea.gov.; or phone (202) 606-9890.
SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR part
801.9 to replace the reporting requirements for the BE-25, Quarterly
Survey of Transactions with Unaffiliated Foreign Persons in Selected
Services and in Intangible Assets, with requirements for the BE-125,
Quarterly Survey of Transactions in Selected Services and Intangible
Assets with Foreign Persons. 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.
Description of Changes
The proposed BE-125 survey would be a mandatory survey and would be
conducted, beginning with transactions for the first quarter of 2007,
by BEA under the International Investment and Trade in Services Survey
Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' For the initial
quarter of coverage, BEA would send the survey to potential respondents
in March of 2007; responses would be due by May 15, 2007.
BEA maintains a continuing dialogue with respondents and with data
users, including its own internal users, to ensure that, as far as
possible, the required data serve their intended purposes and are
available from existing records, that instructions are clear, and that
unreasonable burdens are not imposed. In reaching decisions on what
questions to include in the survey, BEA considered the Government's
need for the data, the burden imposed on respondents, the quality of
the likely responses (for example, whether the data are available on
respondents' books), and BEA's experience in previous related annual
and quarterly surveys.
If implemented, the BE-125 would collect all the same information
as the BE-25, Quarterly Survey of
[[Page 67087]]
Transactions Between U.S. and Unaffiliated Foreign Persons in Selected
Services and in Intangible Assets, but it would also include services
transactions that BEA is currently collecting on the BE-22, Annual
Survey of Selected Services Transactions Between U.S. and Unaffiliated
Foreign Persons, and services transactions with affiliated parties
(i.e., with foreign affiliates, foreign parents, and foreign affiliates
of foreign parents). In addition to discontinuing the BE-25, BEA also
proposes to discontinue the BE-22 at the time the BE-125 is
implemented. BEA is currently collecting information on the
transactions with affiliated parties on its quarterly direct investment
surveys (the BE-577, Direct Transactions of U.S. Reporter with Foreign
Affiliate, the BE-605, Transactions of U.S. Affiliate, except a U.S.
Banking Affiliate, with Foreign Parent, and the BE-605 Bank,
Transactions of U.S. Banking Affiliate with Foreign Parent). These
transactions with affiliated parties that are collected on BEA's
quarterly direct investment surveys would now be collected on the BE-
125. In addition, the BE-125 would combine several services into one
``other selected services category'', which would include any services
not individually covered by the survey or available from other sources.
Survey Background
The Bureau of Economic Analysis (BEA), U.S. Department of Commerce,
would conduct the survey under the International Investment and Trade
in Services Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.''
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
Orders 12318 and 12518, the President delegated the responsibilities
under the Act for performing functions concerning international trade
in services to the Secretary of Commerce, who has redelegated them to
BEA. The survey would provide a basis for updating estimates of the
universe of transactions between U.S. and foreign persons in selected
services and intangible assets. The data are needed to monitor trade in
services and intangible assets; analyze their impact on the U.S. and
foreign economies; compile and improve the U.S. international
transactions, national income and product, and input-output accounts;
support U.S. commercial policy on services and intangible assets;
assess and promote U.S. competitiveness in international trade in
services; and improve the ability of U.S. businesses to identify and
evaluate market opportunities.
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of E.O. 12866.
Executive Order 13132
This proposed rule does not contain policies with Federalism
implications sufficient to warrant preparation of a Federal assessment
under E.O. 13132.
Paperwork Reduction Act
This proposed rule contains a collection-of-information requirement
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act. The requirement will be
submitted to OMB as a request for a revision of a currently approved
collection under OMB control number 0608-0067.
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-125 quarterly survey, as proposed, is expected to result in
the filing of reports containing mandatory data from approximately
1,000 respondents on a quarterly basis, or 4,000 annually. The
respondent burden for this collection of information would vary from
one respondent to another, but is estimated to average 16 hours per
response (64 hours annually), including time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. Thus, the total respondent burden for the
BE-125 survey is estimated at 64,000 hours, compared to 35,200 hours
estimated for the previous BE-25 survey. The increase in burden is a
result of three factors: More U.S. persons with transactions in
international services, the addition of selected services transactions
that were previously covered by the BE-22, annual survey of selected
services transactions (9,200 burden hours), and the inclusion of
transactions with affiliated foreign persons.
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, fax: 202-
606-5311; and the Office of Management and Budget, O.I.R.A., Paperwork
Reduction Project 0608-0058, Attention PRA Desk Officer for BEA, via e-
mail at pbugg@omb.eop.gov or by fax at 202-395-7245.
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
relatively large, thereby excluding them from the definition of small
entity. In addition, the reporting threshold for this survey is set at
a level that will exempt most small businesses from reporting. The
proposed BE-125 quarterly survey will be required from U.S. persons
whose sales of covered services or intangible assets to foreign persons
exceeded $6 million for the previous fiscal year or are expected to
exceed of that amount during the current fiscal year, or whose
purchases of covered services or intangible assets from foreign persons
exceeded $4 million for the previous fiscal year or are expected to
exceed that amount during the current fiscal year. This amount is
applied separately to each of the individual types of transactions
covered by the survey. 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,
often limited to
[[Page 67088]]
transactions with a single partner country; therefore, the burden on
them should be small. In addition, BEA services surveys mailings are
targeted mailings. Thus, since small businesses tend not to be involved
in the transactions to be covered by the BE-125 survey, few small
businesses should receive the survey. However, those receiving the
survey are expected to incur a minimal burden in completing the
exemption form.
List of Subjects in 15 CFR Part 801
International transactions, Economic statistics, Foreign trade,
Penalties, Reporting and recordkeeping requirements.
Dated: November 8, 2006.
Rosemary D. Marcuss,
Acting 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;
and E.O. 11961, 3 CFR, 1977 Comp., p. 86, as amended by E.O. 12318,
3 CFR, 1981 Comp., p. 173, and E.O. 12518, 3 CFR, 1985 Comp., p.
348.
2. Amend Sec. 801.9 by revising paragraph (c)(6) and removing and
reserving paragraph (b)(2) to read as follows:
Sec. 801.9 Reports required.
(c) Quarterly surveys. * * *
(6) BE-125, Quarterly Survey of Transactions in Selected Services
and Intangible Assets with Foreign Persons:
(i) A BE-125, Quarterly Survey of Transactions in Selected Services
and Intangible Assets with Foreign Persons, will be conducted covering
the first quarter of the 2007 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 or
intangible assets to 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 or
intangible assets from 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 or intangible assets to
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 or
intangible assets from 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. Because these thresholds apply
separately to sales and purchases, voluntary reporting may apply only
to sales, only to purchases, or to both.
(B) Any person receiving a BE-125 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)(1) of this section and is not filing information
on a voluntary basis must complete Parts 1 and 2 of the survey. This
requirement is necessary to ensure compliance with the reporting
requirements and efficient administration of the survey by eliminating
unnecessary follow-up contact.
(C) Covered services and intangible assets. The BE-125 survey is
intended to collect information on U.S. international trade in all
types of services and intangible assets for which information is not
collected in other BEA surveys and is not available to BEA from other
sources. The major types of services transactions not covered by the
BE-125 survey are travel, transportation, insurance (except for
purchases of primary insurance), financial services (except for
purchases by non-financial firms), and expenditures by students and
medical patients who are studying or seeking treatment in a country
different from their country of residence. Covered services are:
Advertising services; accounting, auditing, and bookkeeping services;
auxiliary insurance services; computer and data processing services;
construction services; data base and other information services;
educational and training services; engineering, architectural, and
surveying services; financial services (purchases only, by companies or
parts of companies that are not financial services providers);
industrial engineering services; industrial-type maintenance,
installation, alteration, and training services; legal services;
management, consulting, and public relations services (including
allocated expenses); merchanting services (sales only); mining
services; operational leasing services; other trade-related services;
performing arts, sports, and other live performances, presentations,
and events; premiums paid on purchases of primary insurance; losses
recovered on purchases of primary insurance; research, development, and
testing services; telecommunications services; and other selected
services. ``Other selected services'' includes, but is not limited to:
Agricultural services; account collection services; disbursements to
fund news-gathering costs of broadcasters; disbursements to fund news-
gathering costs of print media; disbursements to fund production costs
of motion pictures; disbursements to fund production costs of broadcast
program material other than news; disbursements to maintain government
tourism and business promotion offices; disbursements for sales
promotion and representation; disbursements to participate in foreign
trade shows (purchases only); employment agencies and temporary help
supply services; language translation services; mailing, reproduction,
and commercial art; management of health care facilities; salvage
services; satellite photography and remote sensing/satellite imagery
services; security services; space transport (includes satellite
launches, transport of goods and people for scientific experiments, and
space passenger transport); transcription services; and waste treatment
and depollution services. The intangible assets covered by the BE-125
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. E6-19565 Filed 11-17-06; 8:45 am]
BILLING CODE 3510-06-P