[Federal Register Volume 61, Number 202 (Thursday, October 17, 1996)]
[Proposed Rules]
[Pages 54109-54111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26646]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 960918263-6263-01]
RIN 0691-AA27


International Services Surveys: BE-20 Benchmark 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 notice sets forth proposed rules to amend the reporting 
requirements for the BE-20, Benchmark Survey of Selected Services 
Transactions with Unaffiliated Foreign Persons.
    The BE-20 benchmark 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 taken once every 
five years. The last survey was conducted for 1991, and the next survey 
will be conducted for 1996. The BE-20 is a benchmark survey that is 
intended to cover the universe of selected U.S. services transactions 
with unaffiliated foreign persons. In nonbenchmark years, universe 
estimates of these transactions are derived from reported sample data 
by extrapolating forward the universe data collected in the BE-20 
survey. The data are needed to support U.S. trade policy initiatives on 
international services and to compile the U.S. balance of payments and 
the national income and product accounts.
    The major change to the BE-20 benchmark survey contained in these 
proposed rules is to expand its coverage to obtain data on additional 
types of services. Transactions in the following types of services 
would be covered on the BE-20 for the first time: Merchanting services 
(sales only), financial services by firms that are not financial 
services providers (purchases only), operational leasing services, 
selling agent services, and ``other'' private services. ``Other'' 
private services consists of transactions in satellite photography, 
security, actuarial, salvage, oil spill and toxic waste cleanup, 
language translation, and account collection services.

DATES: Comments on these proposed rules will receive consideration if 
submitted in writing on or before November 18, 1996.

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, NW., Washington, DC 20005. Comments will be 
available for public inspection in Room 7006, 1441 L Street, NW., 
between 8:30 a.m. and 4:30 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT:
R. David Belli, Assistant 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 Sec. 801.10 to set forth revised reporting requirements for 
the BE-20, Benchmark 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--* * * (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 BE-20 benchmark survey is conducted once every five years. The 
next survey will cover 1996; the last survey was conducted for 1991. 
The survey is intended to cover the universe of selected U.S. services 
transactions with unaffiliated foreign persons. In nonbenchmark years, 
universe estimates of these transactions are derived from reported 
sample data by extrapolating forward the universe data collected in the 
BE-20 benchmark survey. The data are needed to support U.S. trade 
policy initiatives on international services; compile the U.S. balance 
of payments and national income and product accounts; develop U.S. 
international price indexes for services; assess U.S. competitiveness 
in, and promote, international trade in services; and improve the 
ability of U.S. businesses to identify and evaluate market 
opportunities for services trade.
    The major change to the BE-20 benchmark survey contained in these 
proposed rules is to expand coverage to obtain data on additional types 
of services. The expanded coverage will fill several of the remaining 
major gaps in Government statistics on international services 
transactions in new, growing, and volatile services categories. 
Transactions in the following types of services would be covered on the 
BE-20 for the first time: Merchanting services (sales only), financial 
services by firms that are not financial services providers (purchases 
only), operational leasing services, selling agent services, and 
``other'' private services. ``Other'' private services consists of 
transactions in satellite photography, security, actuarial, salvage, 
oil spill and toxic waste cleanup, language translation, and account 
collection services.
    Reporting in the BE-20 benchmark survey is required from U.S. 
persons with sales to, or purchases from, unaffiliated foreign persons 
in excess of $500,000 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 also must

[[Page 54110]]

be disaggregated by country; for sales of merchanting services, data 
are required to be reported only for all foreign countries combined. 
U.S. persons with purchases or sales during the reporting year of 
$500,000 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.
    To reduce respondent burden, BEA is eliminating several questions 
in the U.S. reporter identification section of the survey. 
Specifically, a requirement to disaggregate sales or gross operating 
revenues by individual detailed (3-digit) industry has been eliminated, 
and only a single industry for the consolidated enterprise is to be 
reported. In addition, a question on the respondent's total number of 
full-time and part-time U.S. employees at the end of its fiscal year 
has been eliminated.

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 3504(h) of the 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 unless that collection displays a 
currently valid OMB Control Number: such a Control Number (0608-0058) 
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 12 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. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden, 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 0608-0058, 
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 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 with unaffiliated foreign persons in a covered type of 
service exceed $500,000 during the year. Of those smaller businesses 
that must report, most will tend to have specialized operations and 
activities and will likely report only one type of service; therefore, 
the burden on them should be small.

List of Subjects in 15 CFR Part 801

    Balance of payments, Economic statistics, Foreign trade, Penalties, 
Reporting and recordkeeping requirements.

    Dated: September 16, 1996.
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--[AMENDED]

    1. The authority citation for 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, 1997 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 801.10 is revised to read as follows:


Sec. 801.10  Rules and regulations for the BE-20, Benchmark Survey of 
Selected Services Transactions with Unaffiliated Foreign Persons.

    The BE-20, Benchmark Survey of Selected Services Transactions with 
Unaffiliated Foreign Persons, will be conducted covering companies' 
1996 fiscal year and every fifth year thereafter. All legal 
authorities, provisions, definitions, and requirements contained in 
Sec. 801.1 through Sec. 801.9(a) are applicable to this survey. 
Additional rules and regulations for the BE-20 survey are given below. 
More detailed instructions and descriptions of the individual types of 
services covered are given on the report form itself.
    (a) The BE-20 survey consists of two parts and eight schedules. 
Part I requests information needed to determine whether a report is 
required and which schedules apply. Part II requests information about 
the reporting entity. Each of the eight schedules covers one or more 
types of services and is to be completed only if the U.S. Reporter has 
transactions of the type(s) covered by the particular schedule.
    (b) Who must report. (1) Mandatory reporting. A BE-20 report is 
required from each U.S. person who had transactions (either sales or 
purchases) in excess of $500,000 with unaffiliated foreign persons in 
any of the services listed in paragraph (c) of this section during its 
fiscal year covered by the survey.
    (i) The determination of whether a U.S. person 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. Because 
the $500,000 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.
    (ii) Reporters who file pursuant to this mandatory reporting 
requirement must complete Parts I and II of Form BE-20 and all 
applicable schedules. The total amounts of transactions applicable to a 
particular schedule are to be entered in the appropriate column(s) on 
line 1 of the schedule. In addition, except for sales of merchanting 
services, these amounts must be distributed below line 1 to the 
country(ies) involved in the transaction(s). For sales of merchanting 
services, the data by individual foreign Country are not required to be 
reported, although these data may be reported voluntarily.
    (iii) Application of the $500,000 exemption level to each covered 
service is indicated on the schedule for that particular service. It 
should be noted that an item other than sales or purchases may be used 
as the measure of a given service for purposes of determining whether 
the threshold for mandatory reporting of the service is exceeded.
    (2) Voluntary reporting. If, during the fiscal year covered, the 
U.S. person's

[[Page 54111]]

total transactions (either sales or purchases) in any of the types of 
services listed in paragraph (c) of this section are $500,000 or less, 
the U.S. person is requested to provide an estimate of the total for 
each type of service.
    (i) Provision of this information is voluntary. The estimates may 
be judgmental, that is, based on recall, without conducting a detailed 
manual records search. Because the $500,000 threshold applies 
separately to sales and purchases, the voluntary reporting option may 
apply only to sales, only to purchases, or to both sales and purchases.
    (ii) The amounts of transactions reportable on a particular 
schedule are to be entered in the appropriate column(s) in the 
voluntary reporting section of the schedule: they are not required to 
be disagregated by country. Reporters filing voluntary information only 
should also complete Parts I and II of the form.
    (3) Any U.S. person that receives the BE-20 survey form from BEA, 
but is not reporting data in neither the mandatory or voluntary section 
of the form, must nevertheless complete and return the Exemption Claim 
included with the form to BEA. This requirement is necessary to ensure 
compliance with reporting requirements and efficient administration of 
the Act by eliminating unnecessary followup contact.
    (c) Covered types of services. Only the services listed below are 
covered by the BE-20 survey. Other services, such as transportation and 
reinsurance, are NOT covered. Covered services are: Agricultural 
services; research, development, and testing services; management, 
consulting, and public relations services; management of health care 
facilities; accounting, auditing, and bookkeeping services; legal 
services; educational and training services; mailing, reproduction, and 
commercial art; employment agencies and temporary help supply services; 
industrial engineering services; industrial-type maintenance, 
installation, alteration, and training services; performing arts, 
sports, and other live performances, presentations, and events; sale or 
purchase of rights to natural resources, and lease bonus payments; use 
or lease of rights to natural resources, excluding lease bonus 
payments; 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); premiums paid on purchases of primary insurance; 
losses recovered on purchases of primary insurance; construction, 
engineering, architectural, and mining services (purchases only); 
merchanting services (sales only); financial services (purchases only, 
by companies or parts of companies that are not financial services 
providers); advertising services; computer and data processing 
services; data base and other information services; telecommunications 
services; operational leasing services; and ``other'' private services. 
``Other'' private services covers transactions in the following types 
of services: Satellite photography services, security services, 
actuarial services, salvage services, oil spill and toxic waster 
cleanup services, language translation services, and account collection 
services.

[FR Doc. 96-26646 Filed 10-16-96; 8:45 am]
BILLING CODE 3510-EA-M