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[Federal Register Volume 77, Number 79 (Tuesday, April 24, 2012)]
[Rules and Regulations]
[Pages 24373-24375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9849]

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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Parts 801, 806, and 807

[Docket No. 111012619-2230-03]
RIN 0691-AA81

International Services Surveys and Direct Investment Surveys 
Reporting

AGENCY: Bureau of Economic Analysis.

ACTION: Final rule.

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SUMMARY: The Bureau of Economic Analysis (BEA) revises its rules to 
establish general guidelines for how BEA will collect data on 
international trade in services and direct investment surveys, which 
are provided for by the International Investment and Trade in Services 
Survey Act (the Act). In addition to the Act, the Omnibus Trade and 
Competitiveness Act of 1988 authorizes BEA to conduct international 
trade in services surveys. Currently, international trade in services 
and direct investment surveys are promulgated through separate 
rulemaking actions. This final rule modifies BEA's regulations to allow 
BEA to issue surveys through notices rather than through notice and 
comment rulemaking. It also provides a more general framework for how 
BEA collects data on these surveys that are required, or provided for, 
by the statutes. This rule will simplify and generalize existing 
regulations governing the procurement of information on international 
trade in services and direct investment.

DATES: The final rule is effective on May 24, 2012.

FOR FURTHER INFORMATION CONTACT: David H. Galler, Chief, Direct 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; email 
David.Galler@bea.gov or phone (202) 606-9835.

SUPPLEMENTARY INFORMATION: On January 6, 2012, BEA published a notice 
of proposed rulemaking to amend 15 CFR parts 801, 806, and 807 to set 
forth general guidelines for reporting on international trade in 
services and direct investment surveys provided for by the 
International Investment and Trade in Services Survey Act (22 U.S.C. 
3101 to 3108, (the Act)), 77 FR 772. For surveys that are conducted on 
an ongoing basis--quarterly, annually, quinqenially--BEA proposed to 
issue specific reporting information regarding individual surveys 
through notices rather than through notice and comment rulemaking.
    This rule implements the proposed rule. Under this rule, notices of 
specific surveys pertaining to international investment and trade in 
services and direct investment, including applicable report forms and 
instructions, will be separately published in the Federal Register. 
Only respondents notified of these surveys are required to respond to 
BEA surveys.
    BEA received no comments on the proposed rule, and adopts the 
proposed rule without change. Accordingly, now surveys on international 
trade in services and on direct investment will be issued by a notice 
in the Federal Register, and will also be sent to individual 
respondents. Entities that do not receive a notice of the survey from 
BEA are not required to complete the survey.

Executive Order 12866

    This final rule has been determined to be 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.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, 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 final rule will not have a significant economic impact on a 
substantial number of small

[[Page 24374]]

entities. The rule affects only BEA's internal procedures regarding how 
it conducts surveys of international trade in services and direct 
investment. None of the changes will have a direct effect on any 
businesses, large or small. Those subject to these surveys will still 
be required to respond to BEA's requests for information, but the 
requests themselves will not be subject to notice and comment 
rulemaking. Therefore, the effect of this final rule is to simplify and 
generalize existing regulations governing the procurement of 
information on the international trade in services and direct 
investment under the Act. Because there will be no impact to small 
entities as a result of this change to the regulations, the Chief 
Counsel certified that this final rulemaking will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, no final regulatory flexibility analysis is required, and 
none has been prepared.

Paperwork Reduction Act

    This rule contains no information collection requests as defined in 
the Paperwork Reduction Act (44 USC 3501-3521). However, as necessary 
the individual notices of surveys will include a description of the 
paperwork burden associated with completing the survey, and provide the 
control number from the Office of Management and Budget (OMB) for any 
survey issued pursuant to this rule. No one is required to answer any 
request by the government for information that does not contain an 
approved OMB control number.

List of Subjects

15 CFR Part 801

    Cross-border transactions, Credit card, Debit card, Economic 
statistics, Foreign investment in the United States, Foreign trade, 
International transactions, Penalties, Reporting and recordkeeping 
requirements, Travel expenses, United States investment abroad.

15 CFR Part 806

    Economic statistics, Foreign investments in United States, 
Reporting and recordkeeping requirements, United States investments 
abroad.

15 CFR Part 807

    Libraries.

    Dated: April 15, 2012.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
    For the reasons discussed in the preamble, 15 CFR chapter VIII is 
amended as follows:

0
1. Part 801 is revised to read as follows:

PART 801--SURVEYS OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. 
AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT

Sec.
801.1 Purpose.
801.2 Definitions.
801.3 Reporting requirements.
801.4 Recordkeeping requirements.
801.5 Confidentiality.
801.6 Penalties specified by law.

    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).

Sec.  801.1  Purpose.

    The purpose of this part is to provide general information on 
international trade in services and direct investment data collection 
programs and analyses under the International Investment and Trade in 
Services Survey Act (22 U.S.C. 3101 to 3108, as amended) (the Act). The 
purpose of the Act is to provide for the collection of comprehensive 
and reliable information pertaining to international investment, 
including international trade in services and direct investment, and to 
do so with a minimum of burden on respondents and with no unnecessary 
duplication of effort.

Sec.  801.2  Definitions.

    For purposes of the Act and for reporting requirements under this 
part:
    (a) United States, when used in a geographic sense, means the 
several States, the District of Columbia, the Commonwealth of Puerto 
Rico, and all territories and possessions of the United States.
    (b) Foreign, when used in a geographic sense, means that which is 
situated outside the United States or which belongs to or is 
characteristic of a country other than the United States.
    (c) Person means any individual, branch, partnership, associated 
group, association, estate, trust, corporation, or other organization 
(whether or not organized under the laws of any State), and any 
government (including a foreign government, the United States 
Government, a State or local government, and any agency, corporation, 
financial institution, or other entity or instrumentality thereof, 
including a government-sponsored agency).
    (d) United States person means any person resident in the United 
States or subject to the jurisdiction of the United States.
    (e) Foreign person means any person resident outside the United 
States or subject to the jurisdiction of a country other than the 
United States.
    (f) Business enterprise means any organization, association, 
branch, or venture which exists for profit-making purposes or to 
otherwise secure economic advantage, and any ownership of any real 
estate.
    (g) Services are economic activities whose outputs are other than 
tangible goods. This term includes, but is not limited to, banking, 
other financial services, insurance, transportation, communications and 
data processing, retail and wholesale trade, advertising, accounting, 
construction, design, engineering, management consulting, real estate, 
professional services, entertainment, education, and health care.
    (h) International investment means:
    (1) The ownership or control, directly or indirectly, by 
contractual commitment or otherwise, by foreign persons of any interest 
in property in the United States, or of stock, other securities, or 
short- and long-term debt obligations of a United States person; and
    (2) The ownership or control, directly or indirectly, by 
contractual commitment or otherwise, by United States persons of any 
interest in property outside the United States, or of stock, other 
securities, or short- and long-term debt obligations of a foreign 
person.
    (i) Direct investment means the ownership or control, directly or 
indirectly, by one person of 10 percent or more of the voting 
securities of an incorporated business enterprise or an equivalent 
interest in an unincorporated business enterprise.

Sec.  801.3  Reporting requirements.

    (a) Notice of specific reporting requirements, including who is 
required to report, the information to be reported, the manner of 
reporting, and the time and place of filing reports, will be published 
by the Director of the Bureau of Economic Analysis in the Federal 
Register prior to the implementation of a survey.
    (b) In accordance with section 3104(b)(2) of title 22 of the United 
States Code persons notified of these surveys and subject to the 
jurisdiction of the United States shall furnish, under oath, any report 
containing information which is determined to be necessary to carry out 
the surveys and studies provided for by the Act.

[[Page 24375]]

Sec.  801.4  Recordingkeeping requirements.

    In accordance with section 3104(b)(1) of title 22 of the United 
States Code, persons subject to the jurisdiction of the United States 
shall maintain any information which is essential for carrying out the 
surveys and studies provided for by the Act.

Sec.  801.5  Confidentiality.

    Information collected pursuant to 3104(c) of title 22 of the United 
States Code is confidential.
    (a) Access to this information shall be available only to officials 
and employees (including consultants and contractors and their 
employees) of agencies designated by the President to perform functions 
under the Act.
    (b) Subject to paragraph (d) of this section, the President may 
authorize the exchange of information between agencies or officials 
designated to perform functions under the Act.
    (c) Nothing in this part shall be construed to require any Federal 
agency to disclose information otherwise protected by law.
    (d) This information shall be used solely for analytical or 
statistical purposes or for a proceeding under Sec.  801.6.
    (e) No official or employee (including consultants and contractors 
and their employees) shall publish or make available to any other 
person any information collected under the Act in such a manner that 
the person to whom the information relates can be specifically 
identified.
    (f) Reports and copies of reports prepared pursuant to the Act are 
confidential and their submission or disclosure shall not be compelled 
by any person without the prior written permission of the person filing 
the report and the customer of such person where the information 
supplied is identifiable as being derived from the records of such 
customer.

Sec.  801.6  Penalties.

    (a) Civil penalties. Whoever fails to furnish any information 
required by the Act or to comply with any rule, regulation, order or 
instruction promulgated under the Act shall be subject to a civil 
penalty of not less than $2,500, and not more than $25,000, and to 
injunctive relief commanding such person to comply, or both (see 22 
U.S.C. 3105(a) and (b)). These civil penalties are subject to 
inflationary adjustments (15 CFR 6.4.).
    (b) Criminal penalties. Whoever willfully fails to submit any 
information required by the Act or willfully violates any rule, 
regulation, order or instruction promulgated under the Act, upon 
conviction, shall be fined not more than $10,000 and, if an individual, 
may be imprisoned for not more than one year, or both. Any officer, 
director, employee, or agent of any corporation who knowingly 
participates in such violations, upon conviction, may be punished by a 
like fine, imprisonment or both (see 22 U.S.C. 3105(c)).

PART 806--[REMOVED AND RESERVED]

0
2. Under the authority of 5 U.S.C. 301, part 806 is removed and 
reserved.

PART 807--[REMOVED AND RESERVED]

0
3. Under the authority of 5 U.S.C. 301, part 806 is removed and 
reserved.

[FR Doc. 2012-9849 Filed 4-23-12; 8:45 am]
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