[Federal Register Volume 64, Number 9 (Thursday, January 14, 1999)]
[Proposed Rules]
[Pages 2454-2455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-797]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 806
RIN 0691-AA32
Direct Investment Surveys: Raising Exemption Level for Annual
Survey of Foreign Direct Investment in the United States
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document sets forth proposed rules to amend its
regulation by raising the exemption level for reporting in the annual
survey of foreign direct investment in the United States. The survey is
a mandatory survey conducted by the Bureau of Economic Analysis (BEA),
U.S. Department of Commerce, under the authority of the International
Investment and Trade in Services Survey Act.
DATES: Comments on the proposed rule will receive consideration if
submitted in writing on or before February 16, 1999.
ADDRESSES: Mail comments to the Office of the Chief, International
Investment Division (BE-50), Bureau of Economic Analysis, U.S.
Department of Commerce, Washington, DC 20230, or hand deliver them to
Room M-100, 1441 L Street NW, Washington, DC 20005. Comments received
will be available for public inspection in Room 7005, 1441 L Street NW,
between 8:30 a.m. and 4:30 p.m., Monday through Friday.
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: The Annual Survey of Foreign Direct
Investment in the United States (Form BE-15) is part of BEA's regular
data collection program for foreign direct investment in the United
States. The surveys are mandatory and are conducted pursuant to the
International Investment and Trade in Services Survey Act (22 U.S.C.
3101-3108, as amended). The annual survey is necessary to provide
reliable, useful, and timely measures of foreign direct investment in
the United States. The survey covers all affiliates above a size-
exemption level and collects annual data on the financial structure and
operations of nonbank U.S. affiliates of foreign companies needed to
update similar data for the universe of U.S. affiliates collected once
every 5 years in the BE-12 benchmark survey. The data are used to
derive annual estimates of the operations of U.S. affiliates of foreign
companies, including their balance sheets; income statements; property,
plant, and equipment; external financing; employment and employee
compensation; merchandise trade; sales of goods and services; taxes;
and research and development (R&D) activity. The data will also be used
to measure the economic significance of foreign direct investment in
the United States and to analyze its effect on the U.S. economy.
Finally, they will be used in formulating, and assessing the impact of,
U.S. policy on foreign direct investment.
Several revisions to the survey are being proposed to bring it into
conformity with the BE-12 Benchmark Survey of Foreign Direct Investment
in the United States--1997. The BE-12 is BEA's quinquennial census of
foreign direct investment in the United States; it collects annual data
and is intended to cover the universe of U.S. affiliates. (A U.S.
affiliate is a U.S. business enterprise in which a foreign person
[[Page 2455]]
owns or controls ten percent or more of the voting stock, or an
equivalent interest in an unincorporated business enterprise.) Key
changes proposed by BEA for the BE-15 survey will raise the exemption
level for the survey to $30 million on the BE-15(SF) short form, up
from $10 million (measured by the company's total assets, sales, or net
income or loss), and increasing the exemption level at which the long
form will be required to $100 million, up from $50 million. Both
changes reduce respondent burden for smaller companies. In addition,
BEA proposes several other changes that do not require a rule change.
The revised forms will base industry coding on the North American
Industry Classification System (NAICS) in place of the U.S. Standard
Industrial Classification system, and will modify the detail collected
on the composition of external financing of the reporting enterprise,
on research and development expenditures, and on the operations of
foreign-owned businesses in individual States.
A copy of the proposed survey forms may be obtained from: Chief,
Direct Investment in the United States Branch, International Investment
Division, BE-49, Bureau of Economic Analysis, U.S. Department of
Commerce, Washington, DC 20230; phone (202) 606-5577.
Executive Order 12612
These proposed rules do not contain policies with Federalism
implications sufficient to warrant preparation of a Federalism
assessment under E.O. 12612.
Executive Order 12866
These proposed rules have been determined to be not significant for
purposes of E.O. 12866.
Paperwork Reduction Act
These proposed rules contain a collection of information
requirement subject to the Paperwork Reduction Act. The collection of
information requirement contained in the proposed rule has been
submitted to the Office of Management and Budget for review under
section 3507 of 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. Such a Control Number (0608-0034) has been displayed.
Public reporting burden for this collection of information is
estimated to vary from 2 to 550 hours per response, with an average of
26 hours per response. This includes time for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information.
Comments are requested concerning: (a) Whether the proposed
collection of information is necessary for the proper performance 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; and to the Office of Management and
Budget, O.I.R.A., Paperwork Reduction Project 0608-0034, Washington, DC
20503.
Regulatory Flexibility Act
The Assistant General Counsel for Legislation and 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. Most small businesses are not
foreign owned, and many that are will not be required to report in the
survey because their assets, sales, and net income are each below the
exemption level at which reporting is required. In addition, the
proposed rule changes increase the exemption level at which reporting
will be required, thereby eliminating the reporting requirement for a
number of companies. In addition, the exemption level at which the long
form version of the survey is required is being raised from $50 million
to $100 million, thus minimizing the reporting requirements for many
companies who previously filed the long form. These provisions are
intended to reduce the reporting burden on smaller companies.
List of Subjects in 15 CFR Part 806
Economic statistics, Foreign investment in the United States,
Reporting and recordkeeping requirements.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA proposes to amend 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).
Sec. 806.15 [Amended]
2. Section 806.15(i) is amended as follows:
The exemption level of $10,000,000 in the first sentence is revised
to read ``$30,000,000''; in the second sentence, the long form
exemption level of $50,000,000 is revised to read ``$100,000,000''; and
the short form exemption level ``at least one of the three items
exceeds $10,000,000 but no one item exceeds $50,000,000 (positive or
negative)'' is revised to read ``at least one of the three items
exceeds $30,000,000 but no one item exceeds $100,000,000 (positive or
negative).''
[FR Doc. 99-797 Filed 1-13-99; 8:45 am]
BILLING CODE 3510-06-M
