[Federal Register Volume 59, Number 207 (Thursday, October 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26596]
[[Page Unknown]]
[Federal Register: October 27, 1994]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 940797-4294]
RIN 0691-AA24
International Services Surveys: BE-80 Benchmark Survey of
Financial Services Transactions Between U.S. Financial Services
Providers and Unaffiliated Foreign Persons
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Final rule.
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SUMMARY: These final rules institute a new international services
survey, the BE-80, Benchmark Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Unaffiliated Foreign
Persons, to be conducted by the Bureau of Economic Analysis (BEA), U.S.
Department of Commerce. The survey will, for the first time, collect
comprehensive information on trade in financial services between U.S.
financial services providers and unaffiliated foreign persons. It is
intended to cover the universe of such transactions by type and by
country. The information is needed to support trade policy initiatives,
including trade negotiations, on financial services and to compile the
U.S. balance of payments and national income and product accounts. The
survey will be conducted once every 5 years under the International
Investment and Trade in Services Survey Act and the Omnibus Trade and
Competitiveness Act of 1988. The first survey will cover 1994.
DATES: These rules will be effective November 28, 1994.
FOR FURTHER INFORMATION CONTACT:
Betty L. Baker, Chief, International Investment Division (BE-50),
Bureau of Economic Analysis, U.S. Department of Commerce, Washington,
DC 20230; phone (202) 606-9805.
SUPPLEMENTARY INFORMATION: In the July 28, 1994 Federal Register,
volume 59, No. 144, 59 FR 38387, BEA published a notice of proposed
rulemaking setting forth reporting requirements for a new survey, the
BE-80, Benchmark Survey of Financial Services Transactions Between U.S.
Financial Services Providers and Unaffiliated Foreign Persons. No
comments on the proposed rules were received. As a result, the final
rules are the same as the proposed rules.
These final rules amend existing 15 CFR 801.9 and add new 15 CFR
801.11 to implement the new survey. The survey will be conducted by BEA
under the International Investment and Trade in Services Survey Act
(P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended) and the
Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418, 15 U.S.C.
4908(b)). Section 4(a) of the International Investment and Trade in
Services Survey Act provides that ``The President shall, to the extent
he deems necessary and feasible--* * *(4) conduct * * * benchmark
surveys with respect to trade in services between unaffiliated United
States persons and foreign persons * * * '' In Section 3 of Executive
Order 11961, as amended by Executive Order 12518, the President
delegated the authority under the Act as concerns international trade
in services to the Secretary of Commerce, who has redelegated it to
BEA.
The Omnibus Trade and Competitiveness Act of 1988 directs that
``The Secretary (of Commerce) shall ensure that * * * there is included
in the Data Bank information on service sector activity that is as
complete and timely as information on economic activity in the
merchandise sector. The Secretary shall undertake a new benchmark
survey of services transactions, including transactions with respect to
* * * banking services; (and) brokerage services.''
The major purposes of the survey are to provide the information on
financial services needed in monitoring U.S. services trade, analyzing
its effects on the U.S. economy, formulating U.S. international trade
policy, supporting bilateral and multilateral trade negotiations,
compiling the U.S. balance of payments and national income and product
accounts, developing U.S. international price indexes for services,
assessing U.S. competitiveness in international trade in services, and
improving the ability of U.S. businesses to identify and evaluate
market opportunities.
The BE-80 survey will be conducted once every 5 years, and the
first survey will be for 1994. The survey covers the universe of
financial services transactions between U.S. financial services
providers and unaffiliated foreign persons. Reporting is required from
U.S. financial services providers who have sales to or purchases from
unaffiliated foreign persons in all covered financial services combined
in excess of $1 million during the reporting year. Those financial
services providers meeting this criteria must supply data on the amount
of their sales or purchases of each covered type of service,
disaggregated by country. U.S. financial services providers that have
covered transactions of less than $1 million during the reporting year
are asked to provide, on a voluntary basis, estimates only of their
total sales or purchases of each type of financial service. The survey
is scheduled to be mailed to potential respondents in February 1995,
and completed reports are due May 31.
It is anticipated that the information from the benchmark survey
will be updated in nonbenchmark years by an annual follow-on survey
that is more limited in scope and that will cover only a sample of the
companies reporting in the BE-80 survey.
Executive Order 12612
These final rules do not contain policies with Federalism
implications sufficient to warrant preparation of a Federalism
assessment under E.O. 12612.
Executive Order 12866
These final rules have been determined to be not significant for
purposes of E.O. 12866.
Paperwork Reduction Act
The collection of information requirement in these final rules has
been approved by OMB (OMB No. 0608-0062).
Public reporting burden for this collection of information is
estimated to vary from 4 to 150 hours, with an overall average burden
of 7.5 hours. This includes time for reviewing the instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information.
Comments from the public 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 20503; and to the Office of Management and
Budget, Washington, DC 20503, Attention: Desk Officer for the
Department of Commerce.
Regulatory Flexibility Act
The General Counsel, 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
these final rules will not have a significant economic impact on a
substantial number of small entities. The exemption level for the
survey excludes most small businesses from mandatory reporting.
Reporting is required only if total sales or total purchases
transactions in financial services with unaffiliated foreign persons by
U.S. persons who are financial services providers, or by U.S. persons
whose consolidated enterprise includes a separately organized
subsidiary or part that is a financial services provider, exceed $1
million during the year. In addition, international business tends to
be conducted mainly by the larger companies in a given industry; in the
financial services industry, this is particularly true, because of the
high degree of consolidation occurring in that industry in the United
States during the past several years. In any event, small businesses
tend to have specialized operations and activities, so those with
reportable transactions will likely not have significant amounts of
data to report; therefore, the burden on them will be relatively small.
List of Subjects in 15 CFR Part 801
Economic statistics, Balance of payments, Foreign trade, Penalties,
Reporting and recordkeeping requirements.
Dated: October 11, 1994.
Carol S. Carson,
Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA amends 15 CFR Part
801 as follows:
PART 801--[AMENDED]
1. The authority citation for 15 CFR Part 801 is revised to read as
follows:
Authority: 5 U.S.C. 301, 15 U.S.C. 4908(b), 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 801.9 is amended by revising paragraph (a) to read as
follows:
Sec. 801.9 Reports required.
(a) Benchmark surveys. Section 4(a)(4) of the Act (22 U.S.C. 3103)
provides that benchmark surveys of trade in services between U.S. and
unaffiliated foreign persons be conducted, but not more frequently than
every 5 years. General reporting requirements, exemption levels, and
the year of coverage of the BE-20 survey may be found in Sec. 801.10,
and general reporting requirements, exemption levels, and the year of
coverage of the BE-80 survey may be found in Sec. 801.11. More detailed
instructions are given on the forms themselves.
* * * * *
3. Section 801.11 is added to read as follows:
Sec. 801.11 Rules and regulations for the BE-80, Benchmark Survey of
Financial Services Transactions Between U.S. Financial Services
Providers and Unaffiliated Foreign Persons.
A BE-80, Benchmark Survey of Financial Services Transactions
Between U.S. Financial Services Providers and Unaffiliated Foreign
Persons, will be conducted covering companies' 1994 fiscal year and
every fifth year thereafter. All legal authorities, provisions,
definitions, and requirements contained in Sec. 801.1 through
Sec. 801.9 are applicable to this survey. Additional rules and
regulations for the BE-80 survey are given in paragraphs (a) through
(d) of this section. More detailed instructions are given on the report
form itself.
(a) Who must report.--(1) Mandatory reporting. Reports are required
from each U.S. person who is a financial services provider or
intermediary, or whose consolidated U.S. enterprise includes a
separately organized subsidiary or part that is a financial services
provider or intermediary, and who had transactions (either sales or
purchases) directly with unaffiliated foreign persons in all financial
services combined in excess of $1,000,000 during its fiscal year
covered by the survey. The $1,000,000 threshold should be applied to
financial services transactions with unaffiliated foreign persons by
all parts of the consolidated U.S. enterprise combined that are
financial services providers or intermediaries. Because the $1,000,000
threshold applies separately to sales and purchases, the mandatory
reporting requirement may apply only to sales, only to purchases, or to
both sales and purchases.
(i) The determination of whether a U.S. financial services provider
or intermediary is subject to this mandatory reporting requirement may
be judgmental, that is, based on the judgment of knowledgeable persons
in a company who can identify reportable transactions on a recall
basis, with a reasonable degree of certainty, without conducting a
detailed manual records search.
(ii) Reporters who file pursuant to this mandatory reporting
requirement must provide data on total sales and/or purchases of each
of the covered types of financial services transactions and must
disaggregate the totals by country.
(2) Voluntary reporting. If, during the fiscal year covered, sales
or purchases of financial services by a firm that is a financial
services provider or intermediary, or by a firm's subsidiaries or parts
combined that are financial services providers or intermediaries, are
$1,000,000 or less, the U.S. person is requested to provide an estimate
of the total for each type of service. Provision of this information is
voluntary. Because the $1,000,000 threshold applies separately to sales
and purchases, this voluntary reporting option may apply only to sales,
only to purchases, or to both sales and purchases.
(b) BE-80 definition of financial services provider. The definition
of financial services provider used for this survey is analogous in
coverage to the finance and insurance part of Division H of the 1987
Standard Industrial Classification Manual (SIC major groups 60 through
64, and major group 67). More specifically, companies and/or
subsidiaries and other separable parts of companies in the following
industries are defined as financial services providers: Depository
institutions (including commercial banks and thrifts); nondepository
credit institutions; security and commodity futures brokers, dealers,
exchanges, traders, underwriters, and services providers (including
investment bankers and providers of securities custody services);
credit card companies, insurance carriers, agents, brokers and services
providers; investment advisors and managers; mutual funds; pension
funds; trusts; holding companies; investors; oil royalty traders; etc.
(c) Covered types of services. The BE-80 survey covers the
following types of financial services transactions (purchases and/or
sales) between U.S. financial services providers and unaffiliated
foreign persons: Brokerage, except foreign exchange brokerage services;
private placement services; underwriting services; financial management
services; credit-related services, except credit card services; credit
card services; financial advisory and custody services; securities
lending services; foreign exchange brokerage services; and other
financial services.
(d) What to file. (1) The BE-80 survey consists of Forms BE-80(A)
and BE-80(B). Before completing a Form BE-80(B), a consolidated U.S.
enterprise (including the top parent and all of its subsidiaries and
parts combined) must complete Form BE-80(A) to determine its reporting
status. If the enterprise is subject to the mandatory reporting
requirement, or if it is exempt from the mandatory reporting
requirement but chooses to report data voluntarily, either a separate
Form BE-80(B) may be filed for each separately organized financial
services subsidiary or part of the consolidated U.S. enterprise, or a
single BE-80(B) may be filed, representing the sum of covered
transactions by all financial services subsidiaries or parts of the
enterprise combined.
(2) Reporters that receive the BE-80 survey from BEA, but that are
not reporting data in either the mandatory or voluntary section of any
Form BE-80(B), must return the Exemption Claim, attached to Form BE-
80(A), to BEA.
[FR Doc. 94-26596 Filed 10-26-94; 8:45 am]
BILLING CODE 3510-EA-M
