[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

[[Page 50533]]

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