[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Proposed Rules]
[Pages 50531-50533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25614]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 970903223-7223-01]
RIN 0691-AA30
International Services Surveys: BE-22 Annual Survey of Selected
Services Transactions With Unaffiliated Foreign Persons
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document sets forth proposed rules to amend the reporting
requirements for the BE-22, Annual Survey of Selected Services
Transactions With Unaffiliated Foreign Persons.
The BE-22 survey is conducted by the Bureau of Economic Analysis
(BEA), U.S. Department of Commerce, under the International Investment
and Trade in Services Survey Act. It is the annual follow-on survey to
the quinquennial BE-22, Benchmark Survey of Selected Services
Transactions With Unaffiliated Foreign Persons, which was last
conducted for 1996. Together, the two surveys produce a continuous
annual time series of data on major types of services that are out of
the scope of other international services surveys. In nonbenchmark
years, universe estimates of these transactions are derived by adding
to annually reported sample data extrapolations of data reported in the
benchmark survey by companies exempt from annual reporting. The data
are needed to support U.S. trade policy initiatives, compile the U.S.
balance of payments and the national income and product accounts,
develop U.S. international price indexes for services, assess U.S.
competitiveness in services, and improve the ability of U.S. businesses
to identify and evaluate market opportunities.
Two major changes to the BE-22 annual survey are contained in these
proposed rules: Coverage of the BE-22 annual survey is expanded to
conform with the most recent BE-20 benchmark survey, which covered
1996, and coverage of general use computer software royalties and
license fees is dropped. To consolidate on one form all transactions in
intangible rights between U.S. and unaffiliated foreign persons,
coverage of general use computer software royalties and license fees is
being moved from the BE-22 to the BE-93, Annual Survey Royalties,
License Fees, and Other Receipts and Payments for Intangible Rights
Between U.S. and Unaffiliated Foreign Persons.
DATES: Comments on these proposed rules will receive consideration if
submitted in writing on or before November 10, 1997.
ADDRESSES: Comments may be mailed 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 delivered to
room M-100, 1441 L Street, N.W., Washington, DC 20005. Comments will be
available for public inspection in room 7005, 1441 L Street, N.W.,
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: These proposed rules amend 15 CFR Part 801
by revising paragraph 801.9(b)(6)(ii) to set forth revised reporting
requirements for the BE-22, Annual Survey of Selected Services
Transactions With Unaffiliated Foreign Persons. The survey is conducted
by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce,
under the International Investment and Trade in Services Survey Act
(Pub. L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended).
Section 3103(a) of the Act provides that ``The President shall, to the
extent he deems necessary and feasible--* * * (1) conduct a regular
data collection program to secure current information * * * related to
international investment and trade in services * * *'' 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 BE-22 survey is an annual survey of selected U.S. services
transactions with unaffiliated foreign persons. It is intended to
update the results of the BE-20 benchmark survey, which covers the
universe of such transactions. In nonbenchmark years, universe
estimates of these transactions are derived by adding to annually
reported sample data extrapolations of data reported in the benchmark
survey by companies exempt from annual reporting. The data are needed
to support U.S. trade policy initiatives, compile the U.S. balance of
payments and the national income and product accounts, develop U.S.
international price indexes for services, assess U.S. competitiveness
in, and
[[Page 50532]]
promote, international trade in services, and improve the ability of
U.S. businesses to identify and evaluate market opportunities for
services trade.
In order to bring the BE-22 annual survey into conformity with the
1996 BE-20 benchmark survey, coverage of the BE-22 is expanded to
include, for the first time, data on merchanting services (sales only),
operational leasing services, selling agent services, and a variety of
services included in a new ``other'' selected services category. This
category covers satellite photography services, security services,
actuarial services, salvage services, oil spill and toxic waste cleanup
services, language translation services, and account collection
services.
These proposed rules also drop coverage of general use computer
software royalties and license fees from the BE-22. In the past, annual
data on such fees and royalties were collected as part of an all-
inclusive computer and data processing services category on the BE-22,
and classified in ``other services'' in the U.S. balance of payments.
However, this required some respondents to examine their accounting
records on royalties and license fees for purposes of responding to two
separate surveys and also made it impossible to classify these
transactions in the most appropriate balance of payments category.
(Current international standards recommend that computer royalties and
license fees be classified in ``royalties and license fees'' rather
than ``other services'' in the balance of payments.) Thus, BEA is
moving coverage of general use computer software royalties and license
fees from the BE-22 to the BE-93, Annual Survey of Royalties, License
Fees, and Other Receipts and Payments for Intangible Rights Between
U.S. and Unaffiliated Foreign Persons. To effect this change, this
proposed rulemaking strikes language that previously included coverage
of copyrights and other intellectual property rights related to
computer software on the BE-22. Separately, a proposed rulemaking for
the BE-93 survey will add language to include coverage of computer
software royalties and license fees.
Reporting in the BE-22 annual survey is required from U.S. persons
with sales to, or purchases from, unaffiliated foreign persons in
excess of $1,000,000 in any of the services covered during the
reporting year. Those meeting this criterion must supply data on the
amount of their total sales or total purchases of each type of service
in which their transactions exceeded this threshold amount. Except for
sales of merchanting services, the data are also disaggregated by
country. U.S. persons with purchases or sales during the reporting year
of $1,000,000 or less in a given type of covered service are asked to
provide, on a voluntary basis, estimates only of their total purchases
or total sales, as appropriate, for the given type of service.
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. A request for
review of the forms has been submitted to the Office of Management and
Budget under section 3507 of the Paperwork Reduction Act.
Notwithstanding any other provision 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 unless that collection displays a currently
valid OMB control Number; such a Control Number (0608-0060) has been
displayed.
Public reporting burden for this collection of information is
estimated to vary from 4 to 500 hours, with an overall average burden
of 11.5 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 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 0608-0060, 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 the provisions of the
Regulatory Flexibility Act (5 U.S.C. 605(b)), that this proposed
rulemaking, if adopted, will not have 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 it total sales or purchases transactions
with unaffiliated foreign persons in a covered type of service exceed
$1,000,000 during the year. Of those smaller businesses that must
report, most will tend to have specialized operations and activities
and will likely report only type of service; therefore, the burden on
them should be small.
List of Subjects in 15 CFR Part 801
Economic statistics, balance of payments, foreign trade, penalties,
reporting and recordkeeping requirements.
Dated: August 26, 1997.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA proposes to amend 15
CFR Part 801, as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S.
AND FOREIGN PERSONS
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. 860 as amended by E.O. 12013
(3 CFR 1997 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 (b)(6)(ii) to
read as follows:
Sec. 801.9 Reports required.
* * * * *
(b) * * *
(6) * * *
(ii) Covered services. With the exceptions given below, the
services covered by this survey are the same as those covered by the
BE-20, Benchmark Survey of Selected Services Transactions With
Unaffiliated Foreign Persons--1996, as listed in Sec. 801.10(c) of this
part. The exceptions are elimination of coverage of general use
computer software royalties and license fees from computer and data
processing
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services, and the elimination of coverage of four small types of
services--agricultural services; management of health care facilities;
mailing, reproduction, and commercial art; and temporary help supply
services.
* * * * *
[FR Doc. 97-25614 Filed 9-25-97; 8:45 am]
BILLING CODE 3510-EA-M
