[Federal Register Volume 87, Number 173 (Thursday, September 8, 2022)]
[Rules and Regulations]
[Pages 54885-54890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19436]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 220901-0181]
RIN 0691-AA91


International Services Surveys: Renewal of and Changes to BE-120 
Benchmark Survey of Transactions in Selected Services and Intellectual 
Property With Foreign Persons, and Clarifying When BE-140 and BE-180 
Benchmark Surveys Are Conducted

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends regulations of the Department of 
Commerce's Bureau of Economic Analysis (BEA) to renew reporting 
requirements for the BE-120 Benchmark Survey of Transactions in 
Selected Services and Intellectual Property with Foreign Persons. This 
final rule also amends the regulations for BEA's two other 
international services benchmark surveys, the BE-140 Benchmark Survey 
of Insurance Transactions by U.S. Insurance Companies with Foreign 
Persons and the BE-180 Benchmark Survey of Financial Services 
Transactions between U.S. Financial Services Providers and Foreign 
Persons, to clarify when the surveys will be conducted.

DATES: This final rule is effective October 11, 2022.

FOR FURTHER INFORMATION CONTACT: Christopher Stein, Chief, Services 
Surveys Branch (BE-50), Balance of Payments Division, Bureau of 
Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Rd., 
Washington, DC 20233; email [email protected] or phone (301) 
278-9189.

SUPPLEMENTARY INFORMATION: On June 15, 2022, BEA published a notice of 
proposed rulemaking that set forth the

[[Page 54886]]

revised reporting criteria for the BE-120 Benchmark Survey of 
Transactions in Selected Services and Intellectual Property with 
Foreign Persons and that clarified when BEA's two other international 
services benchmark surveys, the BE-140 Benchmark Survey of Insurance 
Transactions by U.S. Insurance Companies with Foreign Persons and the 
BE-180 Benchmark Survey of Financial Services Transactions between U.S. 
Financial Services Providers and Foreign Persons, will be conducted (87 
FR 36091). No public comments were received. This final rule amends 15 
CFR part 801 to set forth the reporting requirements for the BE-120 
benchmark survey and clarify when the BE-140 and BE-180 benchmark 
surveys will be conducted.
    The BE-120 Benchmark Survey of Transactions in Selected Services 
and Intellectual Property with Foreign Persons is a mandatory survey 
and is conducted once every five years by BEA under the authority of 
the International Investment and Trade in Services Survey Act (22 
U.S.C. 3101-3108). The data reported to BEA through this survey are 
confidential and may be used only for analytical and statistical 
purposes. A response is required from persons subject to the reporting 
requirements of the BE-120, whether or not they are contacted by BEA.
    The BE-120 benchmark survey covers the universe of selected 
services and intellectual property transactions of U.S. companies with 
foreign persons and is BEA's most comprehensive survey of such 
transactions. The data collected through the BE-120 are needed to 
monitor U.S. trade in services and intellectual property, to analyze 
the impact of U.S. trade in these services on the U.S. economy and on 
foreign economies, to compile and improve the U.S. economic accounts, 
to support U.S. commercial policy on trade in services, to conduct 
trade promotion activities, and to improve the ability of U.S. 
businesses to identify and evaluate market opportunities. The benchmark 
data will be used, in conjunction with data collected from a sample of 
respondents on the companion BE-125 Quarterly Survey of Transactions in 
Selected Services and Intellectual Property with Foreign Persons, to 
produce quarterly estimates of selected services and intellectual 
property components for BEA's international transactions accounts, 
national income and product accounts, and industry accounts.

Description of Changes

    This final rule amends the regulation at 15 CFR part 801 by 
modifying Sec.  801.3 and 801.11 through 801.13 and removing Sec.  
801.9 to clarify the timing of the three international services 
benchmark surveys: the BE-120 Benchmark Survey of Transactions in 
Selected Services and Intellectual Property with Foreign Persons, the 
BE-140 Benchmark Survey of Insurance Transactions by U.S. Insurance 
Companies with Foreign Persons, and the BE-180 Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons. The next BE-120 survey will apply to the 
2022 fiscal reporting year, and will be conducted once every five 
years, for reporting years ending in 2 and 7, thereafter. Additionally, 
the next BE-140 survey and BE-180 survey will be collected for the 2023 
and 2024 reporting years, respectively, and will continue to be 
conducted every five years thereafter. The BE-140 will be collected for 
reporting years ending in 3 and 8, and the BE-140 will be collected for 
reporting years ending in 4 and 9. See the most recent versions of the 
BE-120, BE-140, and BE-180 benchmark surveys at www.bea.gov for a more 
detailed description of covered transactions and definitions.
    Each time a benchmark survey is to be conducted, BEA will describe 
any proposed changes to the information collected through the survey 
(including the addition, deletion, and/or modification of existing 
questions and definitions) in a public notice and will solicit comments 
as part of the requirements of the Paperwork Reduction Act (PRA). Any 
changes to reporting requirements or significant expansions in scope of 
the surveys will be conducted by rulemaking.
    This final rule amends the regulation at 15 CFR part 801.11 to set 
forth the reporting requirements for the BE-120 benchmark survey, and 
amends the survey form for the BE-120 benchmark in response to 
suggestions from data users and to allow BEA to more closely align its 
statistics with international guidelines and publish more information 
on U.S. trade in services. The amendments include several changes in 
data items collected and the design of the survey form relative to the 
2017 benchmark survey.
    BEA adds the following to the BE-120 benchmark survey form:
    (1) Questions to collect information on the largest U.S. states (up 
to three) for sales (exports) and purchases (imports) of services. 
Respondents that meet the thresholds ($2 million in combined sales, 
and/or $1 million in combined purchases) for filing on the mandatory 
schedules will be required to report information for up to three U.S. 
states that accounted for the largest shares of their sales and 
purchases activity. Reporters will be instructed to consider all of 
their cross-border sales and purchases of services (in aggregate for 
all transaction types and affiliation categories) and report the U.S. 
states that represented the largest share of their sales and 
(separately) their purchases. After identifying the states, reporters 
will provide an estimate of the percentage of their sales and purchases 
that were transacted from each state.
    (2) Questions to collect information on digital intermediation 
platforms. BEA will ask if the reporters operated a digital 
intermediation platform, and if so, the value of their digital 
intermediation sales and associated transaction categories. All BE-120 
respondents that meet the thresholds for filing on the mandatory 
schedules will be required to respond to these questions. Survey 
instructions and definitions will be modified to ensure fees and 
commissions for sales and purchases made through digital intermediation 
platforms are reported in the correct transaction categories.
    (3) Question on employment size class. BEA will add a question 
asking for the employment size class of the consolidated U.S. company. 
The question will ask all respondents to check a box indicating their 
employment size class: 0--(e.g., Sole Proprietorship), 1-19, 20-49, 50-
99, 100-249, 250-499, 500-999, 1,000-9,999, greater than 10,000. BEA 
has modified the size categories that were in the proposed rule to 
enhance the utility of the data collected.
    Additionally, BEA will modify the remote services schedules 
(Schedules D and E) to better capture trade in digitally delivered 
services. Survey instructions will direct reporters to provide an 
estimate of the percentage of services that were provided remotely from 
the U.S. Reporter's domestic offices to foreign persons and to the U.S. 
Reporter's domestic offices from foreign persons via information and 
communications technology networks (via the internet, mobile device, 
extranet, telephone, fax, video conference, or other comparable online 
system). Services provided via in-person meetings, or postal or private 
delivery will be excluded. The percentage reported should reflect all 
interactions with the customer, not just the delivery of the final 
product.
    BEA will delete the following two items from the BE-120 benchmark 
survey:
    (1) Transaction categories for ``Other intellectual property'' will 
be

[[Page 54887]]

eliminated. Rights to use other intellectual property (code 8.1), 
rights to reproduce and/or distribute other intellectual property (code 
8.2), and outright sales or purchases of proprietary rights related to 
other intellectual property (code 8.3) will no longer be collected. 
Reporters will be instructed to reclassify transactions in these 
categories to research and development (R&D) services (transaction code 
29.1, the provision of customized and non-customized R&D services; and, 
transaction code 29.2, other R&D services, including testing) and to 
other selected services (transaction code 42).
    (2) Questions on ``Contract manufacturing services'' will be 
eliminated. Details regarding the material inputs, as well as the 
output product of the contract manufacturing services activity, for 
both sales and purchases activities will no longer be collected.
    BEA will also redesign the format and wording of the survey. The 
new survey design will incorporate improvements that have been made to 
other BEA surveys. BE-120 benchmark survey instructions and data item 
descriptions will be changed to improve clarity and ensure that the 
survey form is consistent with other BEA surveys.

Change to the Survey Additions From the Proposed Rule

    BEA made a change to the proposed question on employment size class 
(addition 3 above) to adjust the check box ranges to enhance the 
usefulness of the data collected. The modifications from the initial 
proposal do not impact the reporter's burden associated with the 
question; reporters will still only be required to check a single box 
when responding.
    Additionally, BEA made a minor modification to the originally 
proposed ``exclusions'' in defining which digitally delivered services 
are to be reported on Schedules D and E. The original text in the 
proposed rule indicated that services provided by manually-typed email, 
telephone, or fax would be excluded. In this final rule, BEA has 
removed these exclusions to better align BEA statistics with new 
developments in international guidelines. Specifically, subsequent to 
publication of the proposed rule, an expert group organized by the 
Organisation for Economic Co-operation and Development (OECD) adopted a 
final definition of digital trade for the forthcoming Handbook on 
Measuring Digital Trade that only excludes services provided via in-
person meetings, or postal or private delivery.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.

Executive Order 13132

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

Paperwork Reduction Act

    The collection-of-information in this final rule was submitted to 
the Office of Management and Budget (OMB) under the Paperwork Reduction 
Act of 1995, 44 U.S.C. 3501-3520 (PRA). OMB approved the reinstatement, 
with change, of the information collection under OMB control number 
0608-0058.
    Notwithstanding any other provisions of 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 PRA unless that collection displays a currently valid OMB 
control number.
    The BE-120 survey is expected to result in the filing of reports 
from approximately 15,000 respondents. Approximately 11,000 respondents 
will complete the survey, and approximately 4,000 will file exemption 
claims. The respondent burden for this collection of information will 
vary from one respondent to another, but is estimated to average (1) 24 
hours for the 5,000 respondents that report data by transaction type, 
country, and affiliation; (2) 4 hours for the 6,000 respondents that 
report data by transaction type only; and (3) 1 hour for the 4,000 that 
file an exemption claim. These burden-hour estimates consider time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Thus, the total respondent burden for this 
survey is estimated at 148,000 hours, or approximately 10 hours per 
response (148,000 hours/15,000 respondents), compared to 145,000 hours, 
or about 9.5 hours per response (145,000 hours/15,500 respondents) for 
the 2017 BE-120 benchmark survey. The increase in burden hours is due 
to estimated changes in the expected quantity of survey responses, the 
composition of the respondent universe (those filing full schedule 
detail vs. totals by transaction type only) from 2017 to 2022, as well 
as modifications to the content of the survey for those filing schedule 
detail.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
final rule should be sent to both BEA via email at 
[email protected], and OMB, OIRA, Paperwork Reduction Project 
0608-0058, Attention PRA Desk Officer for BEA, via email at 
[email protected].

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, certified 
to the Chief Counsel for Advocacy, Small Business Administration, at 
the proposed rule stage that this action will not have a significant 
impact on a substantial number of small entities. No comments were 
received on that certification or on the economic impacts of this rule 
more generally. Therefore, no regulatory flexibility analysis is 
required and none has been prepared.

List of Subjects in 15 CFR Part 801

    Economic statistics, Foreign trade, International transactions, 
Penalties, Reporting and recordkeeping requirements.

    Dated: September 2, 2022.
Paul W. Farello,
Associate Director of International Economics, Bureau of Economic 
Analysis.

    For 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 AND SURVEYS OF DIRECT INVESTMENT

0
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; 
E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 
CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348).


0
2. Amend Sec.  801.3 by revising the introductory text to read as 
follows:


Sec.  801.3  Reporting requirements.

    Except for surveys subject to rulemaking in Sec. Sec.  801.7, 
801.8, 801.10, 801.11, 801.12, and 801.13, reporting requirements for 
all other surveys conducted by the Bureau of Economic Analysis shall be 
as follows:
* * * * *


Sec.  801.9  [Removed and Reserved]

0
3. Section 801.9 is removed and reserved.

0
4. Section 801.11 is revised to read as follows:

[[Page 54888]]

Sec.  801.11  Rules and regulations for the BE-120 Benchmark Survey of 
Transactions in Selected Services and Intellectual Property with 
Foreign Persons.

    The BE-120 Benchmark Survey of Transactions in Selected Services 
and Intellectual Property with Foreign Persons will be conducted once 
every five years and covers years ending in 2 and 7. BEA will describe 
the proposed information collection in a public notice and will solicit 
comments according to the requirements of the Paperwork Reduction Act 
(44 U.S.C. 3501-3520).
    All legal authorities, provisions, definitions, and requirements 
contained in Sec. Sec.  801.1 through 801.2 and 801.4 through 801.6 are 
applicable to this survey. Specific additional rules and regulations 
for the BE-120 survey are given in this section. More detailed 
instructions are given on the report form and in instructions 
accompanying the report form.
    (a) Response required. A response is required, every fifth year, 
from persons subject to the reporting requirements of the BE-120 
Benchmark Survey of Transactions in Selected Services and Intellectual 
Property with Foreign Persons, contained in this section, whether or 
not they are contacted by BEA. Also, a person, or its agent, that is 
contacted by BEA about reporting on this survey, either by sending a 
report form or by written inquiry, must respond in writing pursuant to 
this section. This may be accomplished by:
    (1) Completing and returning the BE-120 by the due date of the 
survey; or
    (2) If exempt, by completing the determination of reporting status 
section of the BE-120 survey and returning it to BEA by the due date of 
the survey.
    (b) Who must report. A BE-120 report is required of each U.S. 
person that had transactions with foreign persons in the categories 
covered by the survey during the fiscal year covered by the survey.
    (c) What must be reported. (1) A U.S. person that had combined 
sales to foreign persons that exceeded $2 million, and/or combined 
purchases from foreign persons that exceeded $1 million in the services 
and intellectual property categories covered by the survey during its 
fiscal year, on an accrual basis, is required to provide data on total 
sales and/or purchases of each of the covered types of transactions and 
must disaggregate the totals by country and by relationship to the 
foreign transactor (foreign affiliate, foreign parent group, or 
unaffiliated). The $2 million threshold for sales and the $1 million 
threshold for purchases should be applied to the covered transactions 
categories with foreign persons by all parts of the consolidated 
domestic U.S. Reporter. Because the $2 million and $1 million 
thresholds apply separately to sales and purchases, the mandatory 
reporting requirement may apply to sales only, to purchases only, or to 
both. The determination of whether a U.S. services provider is subject 
to this reporting requirement can be based on the judgment of 
knowledgeable persons in a company who can identify reportable 
transactions on a recall basis, with a reasonable degree of certainty, 
without conducting a detailed manual records search.
    (2) A U.S. person that had combined sales to foreign persons that 
were $2 million or less, and combined purchases from foreign persons 
that were $1 million or less in the transaction categories covered by 
the survey during its fiscal year, on an accrual basis, is required to 
provide the total sales and/or purchases for each type of transaction 
in which they engaged. The $2 million threshold for sales and the $1 
million threshold for purchases should be applied to the covered 
transactions categories with foreign persons by all parts of the 
consolidated domestic U.S. Reporter. Because the $2 million and $1 
million thresholds apply separately to sales and purchases, the 
mandatory reporting requirement may apply to sales only, to purchases 
only, or to both.
    (i) Voluntary reporting of transactions. If, during the reporter's 
fiscal year, combined sales were $2 million or less, and combined 
purchases were $1 million or less, on an accrual basis, the U.S. person 
may, in addition to providing the required total for each type of 
transaction, report sales at a country and affiliation level of detail 
on the applicable mandatory schedule(s). The estimates can be 
judgmental, that is, based on recall, without conducting a detailed 
records search.
    (ii) [Reserved]
    (3) Exemption claims: Any U.S. person that receives the BE-120 
survey form from BEA, but is not subject to the reporting requirements, 
must file an exemption claim by completing the determination of 
reporting status section of the BE-120 survey and returning it to BEA 
by the due date of the survey. This requirement is necessary to ensure 
compliance with reporting requirements and efficient administration of 
the Act by eliminating unnecessary follow-up contact.
    (d) Covered types of services and intellectual property. Services 
transactions covered by this survey consist of: Advertising and related 
services; Architectural, engineering, scientific, and other technical 
services; Computer services; Construction; Financial services (for 
reporters who are not a financial services providers); Franchises and 
trademarks licensing fees; Information services; Legal, accounting, 
management consulting, and public relations services; Licenses for the 
use of outcomes of research and development; Licenses to reproduce and/
or distribute computer software; Licenses to reproduce and/or 
distribute audiovisual products; Maintenance and repair services; 
Manufacturing services; Operating leasing services; Other business 
services; Personal, cultural, and recreational services; Research and 
development services; Primary insurance premiums and losses (for 
reporters who are not a U.S. insurance company); Space transport 
services; Telecommunications services; Trade-related services; Waste 
treatment and de-pollution, agricultural, and mining services.
    (e) Types of transactions excluded from the scope of this survey. 
(1) Financial services transactions conducted by a U.S. financial 
services provider, all insurance services conducted by a U.S. insurance 
company, and all travel and transport activities that are not space 
transport services.
    (2) Sales and purchases of goods. Trade in goods involves products 
that have a physical form, and includes payments or receipts for 
electricity.
    (3) Sales and purchases of financial instruments, including stocks, 
bonds, financial derivatives, loans, mutual fund shares, and negotiable 
CDs. (However, securities brokerage is a service).
    (4) Income on financial instruments (interest, dividends, capital 
gain distributions, etc.).
    (5) Compensation paid to, or received by, employees.
    (6) Penalties and fines and gifts or grants in the form of goods 
and cash (sometimes called ``transfers'').
    (f) Due date. A fully completed and certified BE-120 report, or 
qualifying exemption claim with the determination of reporting status 
section completed, is due to be filed with BEA by July 31 of the year 
after the year covered by the survey.

0
5. Section Sec.  801.12 is revised to read as follows:


Sec.  801.12  Rules and regulations for the BE-140 Benchmark Survey of 
Insurance Transactions by U.S. Insurance Companies with Foreign 
Persons.

    The BE-140 Benchmark Survey of Insurance Transactions by U.S. 
Insurance Companies with Foreign Persons will be conducted once every 
five calendar years and covers years ending in 3 and 8. BEA will 
describe the proposed information collection in a

[[Page 54889]]

public notice and will solicit comments according to the requirements 
of the Paperwork Reduction Act (44 U.S.C. 3501-3520). All legal 
authorities, provisions, definitions, and requirements contained in 
Sec. Sec.  801.1 through 801.2 and 801.4 through 801.6 are applicable 
to this survey. Specific additional rules and regulations for the BE-
140 survey are given in this section. More detailed instructions are 
given on the report form and in instructions accompanying the report 
form.
    (a) Response required. A response is required from U.S. insurance 
companies subject to the reporting requirements of the BE-140 Benchmark 
Survey of Insurance Transactions by U.S. Insurance Companies with 
Foreign Persons, contained in this section, whether or not they are 
contacted by BEA. Also, a U.S. insurance company, or its agent, that is 
contacted by BEA about reporting on this survey, either by transmission 
of a report form or by written inquiry, must respond in writing 
pursuant to this section. This may be accomplished by:
    (1) Completing and returning the BE-140 by the due date of the 
survey; or
    (2) If exempt, by completing the determination of reporting status 
section of the BE-140 survey and returning it to BEA by the due date of 
the survey.
    (b) Who must report. A BE-140 report is required of each U.S. 
insurance company that had insurance transactions with foreign persons 
in the categories covered by the survey during the calendar year 
covered by the survey.
    (c) What must be reported. (1) A U.S. insurance company that had 
transactions with foreign persons that exceeded $2 million in the 
insurance categories covered by the survey during its calendar year, on 
an accrual basis, is required to provide data on the total transactions 
of each of the covered types of insurance transactions and must 
disaggregate the totals by country and by relationship to the foreign 
counterparty (foreign affiliate, foreign parent group, or 
unaffiliated). The $2 million threshold should be applied to insurance 
services transactions with foreign persons by all parts of the 
consolidated domestic U.S. Reporter. The determination of whether a 
U.S. insurance company is subject to this reporting requirement may be 
based on the judgment of knowledgeable persons in a company who can 
identify reportable transactions on a recall basis, with a reasonable 
degree of certainty, without conducting a detailed manual records 
search.
    (2) A U.S. insurance company that had transactions with foreign 
persons that were $2 million or less in the insurance categories 
covered by the survey during its calendar year, on an accrual basis, is 
required to provide the total for each type of transaction in which 
they engaged.
    (i) Voluntary reporting of insurance transactions. If, during the 
calendar year covered by the survey, total transactions were $2 million 
or less in the insurance categories covered by the survey, on an 
accrual basis, the U.S. insurance company may, in addition to providing 
the required total for each type of transaction, voluntarily report 
transactions at a country and affiliation level of detail on the 
applicable mandatory schedule(s).
    (ii) [Reserved]
    (3) Exemption claims: Any U.S. person that receives the BE-140 
survey form from BEA but is not subject to the reporting requirements 
must file an exemption claim by completing the determination of 
reporting status section of the BE-140 survey and returning it to BEA 
by the due date of the survey. This requirement is necessary to ensure 
compliance with reporting requirements and efficient administration of 
the Act by eliminating unnecessary follow-up contact.
    (d) Covered types of insurance services. Insurance services covered 
by the BE-140 survey consist of transactions between U.S. insurance 
companies and foreign persons for premiums and losses on primary 
insurance, premiums on reinsurance assumed and ceded, losses on 
reinsurance assumed and ceded, as well as receipts and payments for 
auxiliary insurance services.
    (e) Types of transactions excluded from the scope of this survey. 
Premiums paid to, or losses received from, foreign insurance companies 
on direct insurance.
    (f) Due date. A fully completed and certified BE-140 report, or 
qualifying exemption claim with the determination of reporting status 
section completed, is due to be filed with BEA by July 31 of the year 
after the year covered by the survey.

0
6. Section 801.13 is revised to read as follows:


Sec.  801.13  Rules and regulations for the BE-180 Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons.

    The BE-180 Benchmark Survey of Financial Services Transactions 
between U.S. Financial Services Providers and Foreign Persons will be 
conducted every five years and covers fiscal years ending in 4 and 9. 
BEA will describe the proposed information collection in a public 
notice and will solicit comments according to the requirements of the 
Paperwork Reduction Act (44 U.S.C. 3501-3520). All legal authorities, 
provisions, definitions, and requirements contained in Sec. Sec.  801.1 
through 801.2 and 801.4 through 801.6 are applicable to this survey. 
Specific additional rules and regulations for the BE-180 survey are 
given in this section. More detailed instructions are given on the 
report form and in instructions accompanying the report form.
    (a) Response required. A response is required from persons subject 
to the reporting requirements of the BE-180 Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons, contained in this section, whether or 
not they are contacted by BEA. Also, a person, or its agent, that is 
contacted by BEA about reporting on this survey, either by sending a 
report form or by written inquiry, must respond in writing pursuant to 
this section. This may be accomplished by:
    (1) Completing and returning the BE-180 by the due date of the 
survey; or
    (2) If exempt, completing the determination of reporting status 
section of the BE-180 survey and returning it to BEA by the due date of 
the survey.
    (b) Who must report. A BE-180 report is required of each U.S. 
person that is a financial services provider or intermediary, or whose 
consolidated U.S. enterprise includes a separately organized 
subsidiary, or part, that is a financial services provider or 
intermediary, and that had financial services transactions with foreign 
persons in the categories covered by the survey during the fiscal year 
covered by the survey.
    (c) BE-180 definition of financial services provider. The 
definition of financial services provider used for this survey is 
identical to the definition of the term as used in the North American 
Industry Classification System, United States, Sector 52-Finance and 
Insurance, and holding companies that own or influence, and are 
principally engaged in making management decisions for, these firms 
(part of Sector 55--Management of Companies and Enterprises). For 
example, companies and/or subsidiaries and other separable parts of 
companies in the following industries are defined as financial services 
providers: Depository credit intermediation and related activities 
(including commercial banking, savings institutions, credit unions, and 
other depository credit intermediation); non-depository credit 
intermediation (including credit card issuing, sales

[[Page 54890]]

financing, and other non-depository credit intermediation); activities 
related to credit intermediation (including mortgage and nonmortgage 
loan brokers, financial transactions processing, reserve, and 
clearinghouse activities, and other activities related to credit 
intermediation); securities and commodity contracts intermediation and 
brokerage (including investment banking and securities dealing, 
securities brokerage, commodity contracts and dealing, and commodity 
contracts brokerage); securities and commodity exchanges; other 
financial investment activities (including miscellaneous 
intermediation, portfolio management, investment advice, and all other 
financial investment activities); insurance carriers; insurance 
agencies, brokerages, and other insurance related activities; insurance 
and employee benefit funds (including pension funds, health and welfare 
funds, and other insurance funds); other investment pools and funds 
(including open-end investment funds, trusts, estates, and agency 
accounts, real estate investment trusts, and other financial vehicles); 
and holding companies that own, or influence the management decisions 
of, firms principally engaged in the aforementioned activities.
    (d) What must be reported. (1) A U.S. person that had combined 
sales to, or purchases from foreign persons that exceeded $3 million in 
the financial services categories covered by the survey during its 
fiscal year, on an accrual basis, is required to provide data on total 
sales and/or purchases of each of the covered types of financial 
services and must disaggregate the totals by country and by 
relationship to the foreign transactor (foreign affiliate, foreign 
parent group, or unaffiliated). The $3 million threshold for sales and 
purchases should be applied to financial services transactions with 
foreign persons by all parts of the consolidated domestic U.S. 
Reporter. Because the $3 million threshold applies separately to sales 
and purchases, the mandatory reporting requirement may apply to sales 
only, to purchases only, or to both. The determination of whether a 
U.S. financial services provider is subject to this reporting 
requirement can be based on the judgment of knowledgeable persons in a 
company who can identify reportable transactions on a recall basis, 
with a reasonable degree of certainty, without conducting a detailed 
manual records search.
    (2) A U.S. person that had combined sales to, or purchases from 
foreign persons that were $3 million or less in the financial services 
categories covered by the survey during its fiscal year, on an accrual 
basis, is required to provide the total sales and/or purchases for each 
type of transaction in which they engaged. The $3 million threshold for 
sales and purchases should be applied to financial services 
transactions with foreign persons by all parts of the consolidated 
domestic U.S. Reporter. Because the $3 million threshold applies 
separately to sales and purchases, the mandatory reporting requirement 
may apply to sales only, to purchases only, or to both.
    (e) Voluntary reporting of financial services transactions. If, 
during the fiscal year, combined sales and purchases were $3 million or 
less, on an accrual basis, the U.S. person may, in addition to 
providing the required total for each type of transaction, report sales 
at a country and affiliation level of detail on the applicable 
mandatory schedule(s). The estimates can be judgmental, that is, based 
on recall, without conducting a detailed records search.
    (f) Exemption claims. Any U.S. person that receives the BE-180 
survey form from BEA, but is not subject to the reporting requirements, 
must file an exemption claim by completing the determination of 
reporting status section of the BE-180 survey and returning it to BEA 
by the due date of the survey. This requirement is necessary to ensure 
compliance with reporting requirements and efficient administration of 
the Act by eliminating unnecessary follow-up contact.
    (g) Covered types of financial services. Financial services covered 
by the BE-180 survey consist of transactions between U.S. financial 
services companies and foreign persons for brokerage, underwriting, 
financial management, credit-related, credit-cards, financial advisory, 
financial custody, securities lending, electronic funds transfers, and 
other financial services.
    (h) Due date. A fully completed and certified BE-180 report, or 
qualifying exemption claim with the determination of reporting status 
section completed, is due to be filed with BEA by July 31 of the year 
after the year covered by the survey.

[FR Doc. 2022-19436 Filed 9-7-22; 8:45 am]
BILLING CODE 3510-06-P