[Federal Register Volume 64, Number 9 (Thursday, January 14, 1999)]
[Proposed Rules]
[Pages 2454-2455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-797]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

RIN 0691-AA32


Direct Investment Surveys: Raising Exemption Level for Annual 
Survey of Foreign Direct Investment in the United States

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document sets forth proposed rules to amend its 
regulation by raising the exemption level for reporting in the annual 
survey of foreign direct investment in the United States. The survey is 
a mandatory survey conducted by the Bureau of Economic Analysis (BEA), 
U.S. Department of Commerce, under the authority of the International 
Investment and Trade in Services Survey Act.

DATES: Comments on the proposed rule will receive consideration if 
submitted in writing on or before February 16, 1999.

ADDRESSES: Mail comments 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 deliver them to 
Room M-100, 1441 L Street NW, Washington, DC 20005. Comments received 
will be available for public inspection in Room 7005, 1441 L Street NW, 
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: The Annual Survey of Foreign Direct 
Investment in the United States (Form BE-15) is part of BEA's regular 
data collection program for foreign direct investment in the United 
States. The surveys are mandatory and are conducted pursuant to the 
International Investment and Trade in Services Survey Act (22 U.S.C. 
3101-3108, as amended). The annual survey is necessary to provide 
reliable, useful, and timely measures of foreign direct investment in 
the United States. The survey covers all affiliates above a size-
exemption level and collects annual data on the financial structure and 
operations of nonbank U.S. affiliates of foreign companies needed to 
update similar data for the universe of U.S. affiliates collected once 
every 5 years in the BE-12 benchmark survey. The data are used to 
derive annual estimates of the operations of U.S. affiliates of foreign 
companies, including their balance sheets; income statements; property, 
plant, and equipment; external financing; employment and employee 
compensation; merchandise trade; sales of goods and services; taxes; 
and research and development (R&D) activity. The data will also be used 
to measure the economic significance of foreign direct investment in 
the United States and to analyze its effect on the U.S. economy. 
Finally, they will be used in formulating, and assessing the impact of, 
U.S. policy on foreign direct investment.
    Several revisions to the survey are being proposed to bring it into 
conformity with the BE-12 Benchmark Survey of Foreign Direct Investment 
in the United States--1997. The BE-12 is BEA's quinquennial census of 
foreign direct investment in the United States; it collects annual data 
and is intended to cover the universe of U.S. affiliates. (A U.S. 
affiliate is a U.S. business enterprise in which a foreign person

[[Page 2455]]

owns or controls ten percent or more of the voting stock, or an 
equivalent interest in an unincorporated business enterprise.) Key 
changes proposed by BEA for the BE-15 survey will raise the exemption 
level for the survey to $30 million on the BE-15(SF) short form, up 
from $10 million (measured by the company's total assets, sales, or net 
income or loss), and increasing the exemption level at which the long 
form will be required to $100 million, up from $50 million. Both 
changes reduce respondent burden for smaller companies. In addition, 
BEA proposes several other changes that do not require a rule change. 
The revised forms will base industry coding on the North American 
Industry Classification System (NAICS) in place of the U.S. Standard 
Industrial Classification system, and will modify the detail collected 
on the composition of external financing of the reporting enterprise, 
on research and development expenditures, and on the operations of 
foreign-owned businesses in individual States.
    A copy of the proposed survey forms may be obtained from: Chief, 
Direct Investment in the United States Branch, International Investment 
Division, BE-49, Bureau of Economic Analysis, U.S. Department of 
Commerce, Washington, DC 20230; phone (202) 606-5577.

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. The collection of 
information requirement contained in the proposed rule has been 
submitted to the Office of Management and Budget for review under 
section 3507 of the Paperwork Reduction Act.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any 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 Office of Management and Budget Control 
Number. Such a Control Number (0608-0034) has been displayed.
    Public reporting burden for this collection of information is 
estimated to vary from 2 to 550 hours per response, with an average of 
26 hours per response. This includes time for reviewing 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 0608-0034, 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 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. Most small businesses are not 
foreign owned, and many that are will not be required to report in the 
survey because their assets, sales, and net income are each below the 
exemption level at which reporting is required. In addition, the 
proposed rule changes increase the exemption level at which reporting 
will be required, thereby eliminating the reporting requirement for a 
number of companies. In addition, the exemption level at which the long 
form version of the survey is required is being raised from $50 million 
to $100 million, thus minimizing the reporting requirements for many 
companies who previously filed the long form. These provisions are 
intended to reduce the reporting burden on smaller companies.

List of Subjects in 15 CFR Part 806

    Economic statistics, Foreign investment in the United States, 
Reporting and recordkeeping requirements.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

    For the reasons set forth in the preamble, BEA proposes to amend 15 
CFR part 806 as follows:

PART 806--DIRECT INVESTMENT SURVEYS

    1. The authority citation for 15 CFR part 806 continues to read as 
follows:

    Authority: 5 U.S.C. 301, 22 U.S.C. 3101-3108, and E.O. 11961 (3 
CFR, 1977 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).


Sec. 806.15   [Amended]

    2. Section 806.15(i) is amended as follows:
    The exemption level of $10,000,000 in the first sentence is revised 
to read ``$30,000,000''; in the second sentence, the long form 
exemption level of $50,000,000 is revised to read ``$100,000,000''; and 
the short form exemption level ``at least one of the three items 
exceeds $10,000,000 but no one item exceeds $50,000,000 (positive or 
negative)'' is revised to read ``at least one of the three items 
exceeds $30,000,000 but no one item exceeds $100,000,000 (positive or 
negative).''
[FR Doc. 99-797 Filed 1-13-99; 8:45 am]
BILLING CODE 3510-06-M