[Federal Register: February 5, 2007 (Volume 72, Number 23)]
[Rules and Regulations]
[Page 5169-5171]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05fe07-7]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 061005256-7017-02]
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: Final rule.
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SUMMARY: This final 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
survey replaces 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 will 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. The BE-125 survey will be
conducted quarterly beginning with the first quarter of 2007.
The BE-125 survey data will be 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: This final rule will be effective March 7, 2007.
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: In the November 20, 2006 Federal Register,
71 FR 67086, BEA published a notice of proposed rulemaking setting
forth reporting requirements for the BE-125, Quarterly Survey of
Transactions in Selected Services and Intangible Assets with Foreign
Persons. No comments were received on the proposed rule. Thus, the
proposed rule is adopted without change. This final rule amends 15 CFR
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.
Description of Changes
The BE-125 survey is a mandatory survey and will 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 will send the survey to potential respondents in March of
2007; responses will be due by May 15, 2007.
The BE-125 will collect information now reported on the BE-25,
Quarterly Survey of Transactions Between U.S. and Unaffiliated Foreign
Persons in Selected Services and in Intangible Assets, and will 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 will 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
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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 will now be collected on
the BE-125 instead. In addition, the BE-125 will combine several
services into one ``other selected services'' category, which includes
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,
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 (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 will 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 its 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 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 Federal 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.
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 OMB control number for the BE-125 is 0608-0067; the
collection will display this number.
The BE-125 quarterly survey 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 will 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 regarding this 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 0608-0067, Attention PRA Desk
Officer for BEA, via e-mail at * * * 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 rule will not have a significant economic
impact on a substantial number of small entities. The factual basis for
this certification was published with the proposed rule. No comments
were received regarding the economic impact of this rule. As a result,
no final regulatory flexibility analysis was prepared.
List of Subjects in 15 CFR Part 801
International transactions, Economic statistics, Foreign trade,
Penalties, Reporting and recordkeeping requirements.
Dated: January 30, 2007.
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;
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.
0
2. Amend Sec. 801.9 by removing and reserving paragraph (b)(2) and
revising paragraph (c)(6) 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
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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. E7-1786 Filed 2-2-07; 8:45 am]
BILLING CODE 3510-07-P