[Federal Register Volume 66, Number 238 (Tuesday, December 11, 2001)]
[Rules and Regulations]
[Pages 63916-63918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30509]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 010607148-1277-02]
RIN 0691-AA42


International Services Surveys: BE-48, Annual Survey of 
Reinsurance and Other Insurance Transactions by U.S. Insurance 
Companies With Foreign Persons

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule revises regulations for the BE-48, Annual 
Survey of Reinsurance and Other Insurance Transactions by U.S. 
Insurance Companies with Foreign Persons.
    The BE-48 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. international transactions, 
national income and product, and input-output accounts; assess U.S. 
competitiveness in international trade in services; and improve the 
ability of U.S. businesses to identify and evaluate market 
opportunities.
    The revised rule raises the exemption level for the 2001 annual 
survey to $2 million in either reinsurance premiums, received or paid; 
reinsurance losses, paid or recovered; primary insurance premiums 
received; or primary insurance losses paid, from $1 million on the 
previous (2000) survey. Raising the exemption level will reduce 
respondent burden, particularly for small companies.

EFFECTIVE DATE: This final rule will be effective January 10, 2002.

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 5, 2001, Federal Register, 
volume 66, No. 172, 66 FR 46407-46408, BEA published a notice of 
proposed rulemaking setting forth revised reporting requirements for 
the BE-48, Annual Survey of Reinsurance and Other Insurance 
Transactions by U.S. Insurance Companies with Foreign Persons. No 
comments on the proposed

[[Page 63917]]

rule were received. Thus, this final rule is the same as the proposed 
rule.
    This final rule amends 15 CFR part 801 by revising Section 
801.9(b)(4)(ii) to set forth revised reporting requirements for the BE-
48 Annual Survey of Reinsurance and Other Insurance Transactions by 
U.S. Insurance Companies with Foreign Persons. The Bureau of Economic 
Analysis (BEA), U.S. Department of Commerce, will conduct the survey 
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 authority granted under the Act as concerns 
international trade in services to the Secretary of Commerce, who has 
redelegated it to BEA.
    The major purposes of the survey are to monitor trade in services; 
to support U.S. trade policy initiatives; compile the U.S. 
international transactions, national income and product, and input-
output accounts; assess U.S. competitiveness in international trade in 
services; and improve the ability of U.S. businesses to identify and 
evaluate market opportunities.
    BEA will conduct the BE-48 annual survey for the reporting year 
2001. The BE-48 estimates will cover the universe of reinsurance and 
other insurance transactions covered by the survey. Reporting is 
required from U.S. persons with reinsurance premiums, received or paid; 
reinsurance losses, paid or recovered; primary insurance premiums 
received; or primary insurance losses paid, in excess of $2 million 
during the reporting year. Respondents meeting these criteria must 
supply data on the amount of their reinsurance premiums, received or 
paid; reinsurance losses, paid or recovered; primary insurance premiums 
received; or primary insurance losses paid, disaggregated by county. 
Respondents that have covered transactions of $2 million or less during 
the reporting year are asked to provide voluntary estimates of their 
total premiums or losses of reinsurance and other insurance 
transactions.

Executive Order 12866

    This final rule is not significant for purposes of E.O. 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
assessment under E.O. 13132.

Paperwork Reduction Act

    The collection of information required in this final rule has been 
approved by the Office of Management and Budget under 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 OMB Control Number; such a 
Control Number (0608-0016) has been displayed.
    The survey is expected to result in the filing of reports, 
containing mandatory or voluntary data, from about 325 respondents. The 
average burden for completing the BE-48--both the mandatory and 
voluntary sections--is estimated to be 4 hours. thus, the total 
respondent burden of the survey is estimated at 1,300 hours (325 
respondents times 4 hours average burden). The actual burden will vary 
from reporter to reporter, depending upon the number of their 
reinsurance and other insurance transactions and the ease of assembling 
the data. Thus, it may range from 1 hour for a reporter that has a 
small number of reinsurance and other insurance transactions and easily 
accessible data, or that reports only in the voluntary section of the 
form, to 20 hours for a very large reporter that engages in a large 
number of reinsurance and other insurance transactions and has 
difficulty in locating and assembling the required data. This estimate 
includes time for reviewing instructions, searching existing data 
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 0608-0016, Washington, DC 20503 (Attention PRA Desk 
Officer for BEA).

Regulatory Flexibility Act

    The Chief Counsel for 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 final rule will not have a significant 
economic impact on a substantial number of small entities. The 
information collection excludes most small businesses from mandatory 
reporting. The reporting threshold for this survey is set at a level 
that will exempt most small businesses from reporting. The BE-48 annual 
survey will be required only from reporting threshold for this survey 
is set at a level that will exempt most small businesses from 
reporting. The BE-20 benchmark survey will be required only from U.S. 
persons with sales to, or purchases from, unaffiliated foreign persons 
in excess of $1 million during the reporting year, in a covered 
service; the exemption level for the previous benchmark survey, 
covering 1996, was $500,000. Thus, the exemption level will exclude 
most small businesses from mandatory coverage. Of those smaller 
businesses that must report, most will tend to have specialized 
operations and activities, so they will likely report only one type of 
transaction, often with a single partner country; 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: November 13, 2001.
J. Steven Landefeld,
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, 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, Comp., p. 348).


    2. Section 801.9(b)(4)(ii) is revised to read as follows:


Sec. 801.9  Reports required.

    (b) * * *
    (4) * * *
    (ii) Exemption. A. U.S. person otherwise required to report is 
exempt if, with respect to transactions with foreign persons, each of 
the following

[[Page 63918]]

six items were $2 million or less in the reporting period: Reinsurance 
premiums received, reinsurance premiums paid, reinsurance losses paid, 
reinsurance losses recovered, primary insurance premiums received, and 
primary insurance losses paid. If any one of these items is greater 
than $2 million in the reporting period, a report must be filed.
[FR Doc. 01-30509 Filed 12-10-01; 8:45 am]
BILLING CODE 3510-06-M