[Federal Register: January 27, 2003 (Volume 68, Number 17)]
[Rules and Regulations]
[Page 3811-3813]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ja03-6]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 806
[Docket No. 020913215-3002-01]
RIN 0691--AA45
Direct Investment Surveys: BE-605, Transactions of U.S.
Affiliate, Except a U.S. Banking Affiliate, With Foreign Parent, and
BE-605 Bank, Transactions of U.S. Banking Affiliate With Foreign Parent
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Final rule.
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[[Page 3812]]
SUMMARY: This final rule revises regulations for the quarterly survey
of foreign direct investment in the United States, which is comprised
of two forms--the BE-605, Transactions of U.S. Affiliate, Except a U.S.
Banking Affiliate, With Foreign Parent, and BE-605 Bank, Transactions
of U.S. Banking Affiliate With Foreign Parent. This final rule amends
15 CFR part 806.15 to set forth revised reporting requirements for the
BE-605, Transactions of U.S. Affiliate, Except a U.S. Banking
Affiliate, With Foreign Parent, and BE-605 Bank, Transactions of U.S.
Banking Affiliate With Foreign Parent. BEA believes that these changes
should result in no change in the overall respondent burden. Any
increase in burden due to the addition of questions on the BE-605 Bank
form will be offset by a reduction in burden for BHC's, because
reporting for these entities will be more consistent with the filing of
regulatory reports and annual reports to stockholders.
DATES: This final rule will be effective February 26, 2003.
FOR FURTHER INFORMATION CONTACT: R. David Belli, Chief, International
Investment Division (BE-50), Bureau of Economic Analysis, U.S.
Department of Commerce, Washington, DC 20230; phone (202) 606-9800.
SUPPLEMENTARY INFORMATION: On October 16, 2002 the Bureau of Economic
Analysis (BEA), U.S. Department of Commerce, published in the Federal
Register, (67 FR 63860-63861), a notice of proposed rulemaking setting
forth revised reporting requirements for the BE-605, Transactions of
U.S. Affiliate, Except a U.S. Banking Affiliate, With Foreign Parent,
and BE-605 Bank, Transactions of U.S. Banking Affiliate With Foreign
Parent. No comments on the proposed rule were received. Thus, this
final rule is the same as the proposed rule.
Description of Revisions
The BE-605 and BE-605 Bank are mandatory surveys and are conducted
quarterly by the Bureau of Economic Analysis (BEA), U.S. Department of
Commerce, under the International Investment and Trade in Services
Survey Act. BEA will send 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. These surveys are cut-off sample
surveys that cover all U.S. affiliates above a size-exemption level and
seek to obtain data on transactions and positions between U.S.
affiliates and their affiliated foreign groups.
This final rule directs bank holding companies (BHC's) to file a
fully consolidated report, including all banking and nonbanking
operations, on the BE-605 Bank form. Previously, the banking and
nonbanking operations of a BHC filed separate reports: the nonbank
operations of the BHC filed on the BE-605 form, and the BHC itself and
its banking operations filed on the BE-605 Bank form. To reduce
respondent burden, BHC's are now directed to file a single, fully
consolidated, report to include both the banking and nonbanking
operations on the BE-605 Bank form. However, separate reports still
must be filed in those special instances where a U.S. affiliate's
primary line of business is not in banking (or related financial
activities), such as a manufacturer or retailer, but the affiliate also
has a direct or indirect ownership in a BHC (or other banking
activities such as U.S. wholesale or limited purpose banks). In these
instances, the BHC, including all of its subsidiaries or units, must
file on the BE-605 Bank form and the nonbanking operations not owned by
the BHC must file on the BE-605 form. Questions have been added to the
BE-605 Bank form to collect data on loans from or to the foreign parent
group by nonbanking subsidiaries, included in the consolidated report,
with operations in insurance, real estate, and leasing, to maintain
consistency of the U.S. international transactions accounts with
international statistical standards and avoid gaps in coverage. In
addition, questions have been added to the BE-605 Bank form to collect
detail on intercompany premiums earned and claims payable for insurance
companies included in the consolidated report.
Survey Background
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) hereinafter, ``the Act.''
Section 4(a) of the Act requires that with respect to foreign direct
investment in the United States, the President shall, to the extent he
deems necessary and feasible, conduct a regular data collection program
to secure current information on international capital flows and other
information related to international investment and trade in services,
including (but not limited to) such information as 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 is a cut-off sample survey that covers all
U.S. affiliates above a size-exemption level and obtains data on
transactions and positions between U.S. affiliates and their affiliated
foreign groups. (The affiliated foreign group is (i) the foreign
parent, (ii) any foreign person, proceeding up the foreign parent's
ownership chain, which owns more than 50 percent of the person below it
up to and including that person which is not more than 50 percent owned
by another foreign person, and (iii) any foreign person, proceeding
down the ownership chain(s) of each of these members, which is owned
more than 50 percent by the person above it.) The sample data are used
to derive universe estimates in nonbenchmark years by extrapolating
forward similar data reported in the BE-12, Benchmark Survey of Foreign
Direct Investment in the United States, which is taken every five
years. The data are used in the preparation of the U.S. international
transactions accounts, the input-output accounts, and the national
income and product accounts. The data are needed to measure the size
and economic significance of foreign direct investment in the United
States, measure changes in such investment, and assess its impact on
the U.S. economy. The data are disaggregated by industry of U.S.
affiliate, by country of foreign parent, and, for selected items, by
country of each member of the affiliated foreign group.
Executive Order 13132
This final rule does not contain policies with Federalism
implications, as that term is defined in E.O. 13132.
Executive Order 12866
This final rule has been determined to be not significant for
purposes of E.O. 12866.
Paperwork Reduction Act
Notwithstanding any other provisions of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA) unless that collection of
information displays a currently valid Office of Management
[[Page 3813]]
and Budget (OMB) Control Number. This rule covers collections of
information subject to the provisions of the PRA. The OMB has approved
this collection and assigned to it OMB Control Number 0608-0009. The
collection will display this control number.
An estimated 3,950 U.S. affiliates are expected to file responses
quarterly, or 15,800 responses annually. The average burden for
completing the BE-605 and BE-605 Bank remains unchanged at 1.25 hours
per response, per quarter (five hours per year); the total annual
respondent burden, from the current OMB inventory, also remains
unchanged at 19,750 hours (15,800 responses times 1.25 hours average
burden). This estimate covers the amount of 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. The burden estimates used in this submission are based
upon experience with the same quarterly survey forms for several years
and upon the burden estimates developed at the time of the benchmark
survey.
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; and to the Office of Management and Budget, O.I.R.A., Paperwork
Reduction Project 0608-0009, Washington, DC 20503 (Attention PRA Desk
Officer for BEA).
Regulatory Flexibility Act
The Chief Counsel for Regulation, Department of Commerce, certified
to the Chief Counsel for Advocacy, Small Business Administration, under
the provisions of the Regulatory Flexibility Act (RFA) (5 U.S.C.
605(b)), that this final rule will not have a significant economic
impact on a substantial number of small entities. Few, if any, small
U.S. businesses are subject to the reporting requirements of this
survey. Most small businesses are not foreign owned; those that are and
have total assets, sales or gross operating revenues, and net income
each equal to or less than $30 million are not required to report on
the BE-605 or BE-605 Bank form. Accordingly, this action will relieve
reporting burdens on small entities.
List of Subjects in 15 CFR Part 806
International transactions, economic statistics, foreign investment
in the United States, penalties, reporting and recordkeeping
requirements.
Dated: January 3, 2003.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA amends 15 CFR part
806 as follows:
PART 806--DIRECT INVESTMENT SURVEYS
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; and 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 806.15(h)(1) and (2) are revised to read as follows:
Sec. 806.15 Foreign direct investment in the United States.
* * * * *
(h) * * *
(1) BE-605--Transactions of U.S. Affiliate, Except a U.S. Banking
Affiliate, With Foreign Parent: One report is required for each U.S.
affiliate exceeding an exemption level of $30,000,000, that does not
qualify for reporting on form BE-605 Bank.
(2) BE-605 Bank--Transactions of U.S. Banking Affiliate with
Foreign Parent: One report is required for each U.S. banking affiliate
or U.S. bank holding company affiliate, including all of the
subsidiaries and units of the bank holding company, exceeding an
exemption level of $30,000,000.
* * * * *
[FR Doc. 03-1770 Filed 1-24-03; 8:45 am]
BILLING CODE 3510-06-P