[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Rules and Regulations]
[Pages 68161-68163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34031]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 970903222-7299-02]
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: Final rule.
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SUMMARY: These final rules 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, input-
output, and 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 final
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
[[Page 68162]]
fees in the same category as all other royalties and license fees.
EFFECTIVE DATE: These rules will be effective January 30, 1998.
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: In the September 26, 1997 Federal Register,
volume 62, No. 187, 62 FR 40529-50531, BEA published a notice of
proposed rulemaking setting forth revised reporting requirements for
the BE-93, Annual Survey of Royalties, License Fees, and Other Receipts
and Payments for Intangible Rights Between U.S. and Unaffiliated
Foreign Persons. No comments on the proposed rules were received. Thus,
these final rules are the same as the proposed rules.
These final 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 (P.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, input-output, and 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 final
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 make 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, these final
rules strike language that previously excluded coverage of copyrights
and other intellectual property rights related to computer software
from the BE-93 rules. Separately, a final rule 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 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 required in these final rules has
been approved by OMB (OMB No. 0608-0017) under 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 sources, gathering and maintaining the
data needed, and completing and reviewing the collection of
information.
Comments 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
20230; and to the Office of Management and Budget, O.I.R.A. Paperwork
Reduction Project 0608-17, Washington, DC 20530.
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 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 receipts from, or total payments to, unaffiliated foreign persons
for intangible rights equaled or exceeded $500,000 during the year. Of
those smaller business 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: December 2, 1997.
J. Steven Landefled,
Director, Bureau of Economic Analysis.
For the reasons set forth in the preamble, BEA amends 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,
[[Page 68163]]
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. 97-34031 Filed 12-30-97; 8:45 am]
BILLING CODE 3510-06-M