[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Proposed Rules]
[Pages 50529-50531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25613]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 970903222-7222-01]
RIN 0691-AA28


International Services Surveys: BE-93 Annual Survey of Royalties, 
License Fees, and Other Receipts and Payments for Intangible Rights 
Between U.S. and Unaffiliated Foreign Persons

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document sets forth proposed rules to amend the reporting 
requirements for the BE-93, Annual Survey of Royalties, License Fees, 
and Other Receipts and Payments Between U.S. and Unaffiliated Foreign 
Persons.
    The BE-93 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. 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 international 
trade in services, and improve the ability of U.S. businesses to

[[Page 50530]]

identify and evaluate market opportunities.
    The change to the BE-93 annual survey contained in these proposed 
rules is to add coverage of general use computer software royalties and 
license fees. This change will consolidate on one form all transactions 
in intangible rights between U.S. and unaffiliated foreign persons. 
Previously, royalties and license fees related to general use computer 
software were included on the BE-22, Annual Survey of Selected Services 
Transactions with Unaffiliated Foreign Persons, and all other royalties 
and license fees were included on the BE-93. Placing general use 
computer software royalties and license fees together with other 
royalties and license fees on the BE-93 will eliminate the possibility 
that some respondents would have to examine their accounting records on 
royalties and license fees for purposes of responding to two separate 
surveys. In addition, the consolidation will improve consistency with 
current international standards for the compilation of balance of 
payments accounts, which include general use computer software 
royalties and license fees in the same category as all other royalties 
and license fees.

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) 6060-9800.

SUPPLEMENTARY INFORMATION: These proposed rules amend 15 CFR Part 801 
by revising paragraph 801.9(b)(5)(i) to set forth revised reporting 
requirements for the BE-93, Annual Survey of Royalties, License Fees, 
and Other Receipts and Payments Between U.S. and 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-93 is an annual survey of U.S. royalty and license fee 
transactions for intangible rights with unaffiliated foreign persons. 
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 international trade in services, and improve 
the ability of U.S. businesses to identify and evaluate market 
opportunities.
    The change to the BE-93 annual survey contained in these proposed 
rules is to add coverage of general use computer software royalties and 
license fees. 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, Annual Survey of Selected Services 
Transactions with Unaffiliated Foreign Persons, 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 software royalties and 
license fees be classified in ``royalties and license fees'' in the 
balance of payments, rather than in ``other services''.) Thus, BEA is 
moving coverage of general use computer software royalties and license 
fees from the BE-22 to the BE-93. To effect this change, this proposed 
rulemaking strikes language that previously excluded coverage of 
copyrights and other intellectual property rights related to computer 
software from the BE-93 rules. Separately, a proposed rulemaking for 
the BE-22 survey will add language to exclude coverage of computer 
software royalties and license fees.
    Reporting in the BE-93 annual survey is required from all U.S. 
persons whose total receipts from, or total payments to, unaffiliated 
foreign persons for intangible rights equaled or exceeded $500,000 
during the reporting year. The data are disaggregated by country and by 
type of intangible right.

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 (0608-0017) has been 
displayed.
    Public reporting burden for this collection of information is 
estimated to vary from less than one hour to 25 hours, with an overall 
average burden of 4 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 0608-0017, Washington, DC 
20503.

[[Page 50531]]

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 receipts from, or total payments to 
unaffiliated foreign persons for intangible rights equaled or exceeded 
$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 royalty or license transaction; 
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, 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 (b)(5)(i) to read 
as follows:


Sec. 801.9  Reports required.

* * * * *
    (b) * * *
    (5) * * *
    (i) Who must report. Reports on Form BE-93 are required from U.S. 
persons who have entered into agreements with unaffiliated foreign 
persons to buy, sell, or use intangible assets or proprietary rights, 
excluding oil royalties and other natural resources (mining) royalties.
* * * * *
[FR Doc. 97-25613 Filed 9-25-97; 8:45 am]
BILLING CODE 3510-EA-M