[Federal Register: June 20, 2006 (Volume 71, Number 118)]
[Rules and Regulations]
[Page 35388-35389]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jn06-7]
[[Page 35388]]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 806
[Docket No. 060131020-6152-02]
RIN 0691-AA57
Direct Investment Surveys: BE-577, Direct Transactions of U.S.
Reporter With Foreign Affiliate
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends regulations of the Department of
Commerce, Bureau of Economic Analysis (BEA), for the quarterly BE-577,
Direct Transactions of U.S. Reporter With Foreign Affiliate.
The BE-577 survey is conducted quarterly and is a sample survey
that obtains data on transactions and positions between U.S.-owned
foreign business enterprises and their U.S. parents. To address the
current needs of data users while at the same time keeping the
respondent burden as low as possible, BEA is modifying, adding, or
deleting items on the survey form and in the reporting criteria. The
changes will bring the BE-577 form and related instructions into
conformity with the 2004 BE-10, Benchmark Survey of U.S. Direct
Investment Abroad and will exclude data that have recently begun to be
collected on other Government surveys.
DATES: This final rule will be effective July 20, 2006.
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; phone (202) 606-9890 or
e-mail (obie.whichard@bea.gov).
SUPPLEMENTARY INFORMATION: In the March 1, 2006, Federal Register, 71
FR 10454, BEA published a notice of proposed rulemaking setting forth
revised reporting requirements for the BE-577, Direct Transactions of
U.S. Reporter With Foreign Affiliate. No comments on the proposed rule
were received. Thus, the proposed rule is adopted without change. This
final rule amends 15 CFR 806.14 to set forth the reporting requirements
for the BE-577, Direct Transactions of U.S. Reporter With Foreign
Affiliate.
Description of Changes
The BE-577, Direct Transactions Of U.S. Reporter With Foreign
Affiliate, is a mandatory survey and is conducted quarterly by BEA
under the International Investment and Trade in Services Survey Act (22
U.S.C. 3101-3108). BEA will send BE-577 survey forms to potential
respondents each quarter; responses will be due within 30 days after
the close of each fiscal quarter, except for the final quarter of the
fiscal year, when reports will be due within 45 days.
The final rule increases the exemption level for reporting on the
BE-577 from $30 million to $40 million. The exemption level is stated
in terms of the foreign affiliate's assets, sales, and net income.
In addition to the change in the reporting criteria mentioned
above, BEA is introducing a few changes to the survey form and
instructions. BEA is: (1) Revising the survey form and instructions to
bring them into conformity with the most recent BE-10 benchmark survey
instructions for reporting capital gains and losses; (2) collecting
information on payments to and receipts from foreign affiliates for
interest, royalties and license fees and other private services gross
of any taxes withheld to align reporting of these items with current
international statistical standards for balance of payments accounts
(previously, this information was collected net of taxes withheld); (3)
modifying the survey instructions to indicate that positions and
transactions in financial derivatives contracts that are reported on or
derived from the Treasury Department's recently instituted
International Capital Form D, Report of Holdings of, and Transactions
in, Financial Derivatives Contracts with Foreign Residents should be
excluded from BE-577 reports; and (4) removing the requirement for
reporting certain affiliated insurance transactions that have been
problematic to collect on the BE-577. BEA plans to move the reporting
requirement for these transactions to specialized services surveys that
BEA conducts in the near future.
Survey Background
BEA will conduct the survey under the International Investment and
Trade in Services Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the
Act.'' Title 22 United States Code, Section 3103(a)(1) of the Act
requires that with respect to United States direct investment abroad,
the President shall conduct a data collection program to obtain current
information on international capital flows and other information
related to international investment and trade in services including
information that may be necessary for computing and analyzing the
United States balance of payments, the employment and taxes of United
States parents and affiliates, and the international investment and
trade in services position of the United States.
In Section 3 of Executive Order 11961, the President delegated
authority granted under the Act as concerns direct investment to the
Secretary of Commerce, who has redelegated it to BEA. The quarterly
survey of U.S. direct investment abroad is a sample survey that covers
all foreign affiliates above a size-exemption level. The survey
collects data on transactions and positions between U.S.-owned foreign
business enterprises and their U.S. parents. The sample data are used
to derive quarterly universe estimates from similar data reported in
the BE-10, Benchmark Survey of U.S. Direct Investment Abroad, which is
taken every five years. The data are used in the preparation of the
U.S. international transactions accounts, input-output accounts, and
national income and product accounts. The data are needed to measure
the size and economic significance of U.S. direct investment abroad,
measure changes in such investment, and assess its impact on the U.S.
and foreign economies. The data are disaggregated by country and
industry of foreign affiliate.
Executive Order 12866
This final rule has been determined to be not significant for
purposes of E. O. 12866.
Executive Order 13132
This final rule does not contain policies with federalism
implications sufficient to warrant preparation of a federalism
assessment under E.O. 13132.
Paperwork Reduction Act
The collection-of-information in this final rule has been approved
by the Office of Management and Budget (OMB) under the Paperwork
Reduction Act (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 OMB control number. The OMB control number
for the BE-577 is 0608-0004; the collection will display the number.
The survey is expected to result in the filing of about 13,500
foreign affiliate reports by an estimated 1,500 U.S. parent companies.
The respondent burden for this collection of information
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is estimated to vary from 0.5 hour to 4 hours per response, with an
average of 1.25 hours per response, including time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. Because reports are filed 4 times per year,
54,000 responses annually are expected. Thus, the total annual
respondent burden of the survey is estimated at 67,500 hours (13,500
respondents times 4 times 1.25 hours average burden). This estimate is
the same as the burden hours currently carried for this collection in
the OMB inventory.
Comments regarding the burden estimate or any other 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, fax: 202-606-5311; and the Office of Management and Budget,
O.I.R.A., Paperwork Reduction Project 0608-0004, Attention PRA Desk
Officer for BEA, via the Internet 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 the 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. The factual basis for
the certification was published in the proposed rule and is not
repeated here. 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 806
International transactions, Economic statistics, U.S. investment
abroad, Penalties, Reporting and recordkeeping requirements.
Dated: May 26, 2006.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
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For the reasons set forth in the preamble, BEA is amending 15 CFR part
806 as follows:
PART 806--DIRECT INVESTMENT SURVEYS
0
1. The authority citation for 15 CFR part 806 continues to read as
follows:
Authority: 5 U.S.C. 301; 22 U.S.C. 3101-3108; E.O. 11961 (3 CFR,
1977 Comp., p. 86), as amended by E.O. 12318 (3 CFR, 1981 Comp., p.
173); E.O. 12518 (3 CFR, 1985 Comp., p. 348).
Sec. 806.14 [Amended]
0
2. Section 806.14 (e) is amended by removing ``$30,000,000'' and adding
``$40,000,000'' in its place.
[FR Doc. E6-9608 Filed 6-19-06; 8:45 am]
BILLING CODE 3510-06-P