Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Proposed Rules 50531

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 this proposed rulemaking,

if adopted, 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 businesses 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: August 26, 1997.

J. Steven Landefeld,

Director, Bureau of Economic Analysis.

For the reasons set forth in the

preamble, BEA proposes to amend 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, 1985 Comp., p. 348).

2. Section 801.9 is amended by

revising paragraph (b)(5)(i) to read as

follows:

§ 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. 97–25613 Filed 9–25–97; 8:45 am]

BILLING CODE 3510–EA–M

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 970903223–7223–01]

RIN 0691–AA30

International Services Surveys: BE–22

Annual Survey of Selected Services

Transactions With Unaffiliated Foreign

Persons

AGENCY: Bureau of Economic Analysis,

Commerce.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document sets forth

proposed rules to amend the reporting

requirements for the BE–22, Annual

Survey of Selected Services

Transactions With Unaffiliated Foreign

Persons.

The BE–22 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. It is the annual

follow-on survey to the quinquennial

BE–22, Benchmark Survey of Selected

Services Transactions With Unaffiliated

Foreign Persons, which was last

conducted for 1996. Together, the two

surveys produce a continuous annual

time series of data on major types of

services that are out of the scope of

other international services surveys. In

nonbenchmark years, universe estimates

of these transactions are derived by

adding to annually reported sample data

extrapolations of data reported in the

benchmark survey by companies

exempt from annual reporting. The data

are needed to support U.S. trade policy

initiatives, compile the U.S. balance of

payments and the national income and

product accounts, develop U.S.

international price indexes for services,

assess U.S. competitiveness in services,

and improve the ability of U.S.

businesses to identify and evaluate

market opportunities.

Two major changes to the BE–22

annual survey are contained in these

proposed rules: Coverage of the BE–22

annual survey is expanded to conform

with the most recent BE–20 benchmark

survey, which covered 1996, and

coverage of general use computer

software royalties and license fees is

dropped. To consolidate on one form all

transactions in intangible rights between

U.S. and unaffiliated foreign persons,

coverage of general use computer

software royalties and license fees is

being moved from the BE–22 to the BE–

93, Annual Survey Royalties, License

Fees, and Other Receipts and Payments

for Intangible Rights Between U.S. and

Unaffiliated Foreign Persons.

DATES: Comments on these proposed

rules will receive consideration if

submitted in writing on or before

November 10, 1997.

ADDRESSES: Comments may be mailed 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 delivered to room M–100, 1441 L

Street, N.W., Washington, DC 20005.

Comments will be available for public

inspection in room 7005, 1441 L Street,

N.W., 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: These

proposed rules amend 15 CFR Part 801

by revising paragraph 801.9(b)(6)(ii) to

set forth revised reporting requirements

for the BE–22, Annual Survey of

Selected Services Transactions With

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 (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 the authority under the Act as

concerns international trade in services

to the Secretary of Commerce, who has

redelegated it to BEA.

The BE–22 survey is an annual survey

of selected U.S. services transactions

with unaffiliated foreign persons. It is

intended to update the results of the

BE–20 benchmark survey, which covers

the universe of such transactions. In

nonbenchmark years, universe estimates

of these transactions are derived by

adding to annually reported sample data

extrapolations of data reported in the

benchmark survey by companies

exempt from annual reporting. The data

are needed to support U.S. trade policy

initiatives, compile the U.S. balance of

payments and the national income and

product accounts, develop U.S.

international price indexes for services,

assess U.S. competitiveness in, and
50532 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Proposed Rules

promote, international trade in services,

and improve the ability of U.S.

businesses to identify and evaluate

market opportunities for services trade.

In order to bring the BE–22 annual

survey into conformity with the 1996

BE–20 benchmark survey, coverage of

the BE–22 is expanded to include, for

the first time, data on merchanting

services (sales only), operational leasing

services, selling agent services, and a

variety of services included in a new

‘‘other’’ selected services category. This

category covers satellite photography

services, security services, actuarial

services, salvage services, oil spill and

toxic waste cleanup services, language

translation services, and account

collection services.

These proposed rules also drop

coverage of general use computer

software royalties and license fees from

the BE–22. 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, 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 made

it impossible to classify these

transactions in the most appropriate

balance of payments category. (Current

international standards recommend that

computer royalties and license fees be

classified in ‘‘royalties and license fees’’

rather than ‘‘other services’’ in the

balance of payments.) Thus, BEA is

moving coverage of general use

computer software royalties and license

fees from the BE–22 to the BE–93,

Annual Survey of Royalties, License

Fees, and Other Receipts and Payments

for Intangible Rights Between U.S. and

Unaffiliated Foreign Persons. To effect

this change, this proposed rulemaking

strikes language that previously

included coverage of copyrights and

other intellectual property rights related

to computer software on the BE–22.

Separately, a proposed rulemaking for

the BE–93 survey will add language to

include coverage of computer software

royalties and license fees.

Reporting in the BE–22 annual survey

is required from U.S. persons with sales

to, or purchases from, unaffiliated

foreign persons in excess of $1,000,000

in any of the services covered during the

reporting year. Those meeting this

criterion must supply data on the

amount of their total sales or total

purchases of each type of service in

which their transactions exceeded this

threshold amount. Except for sales of

merchanting services, the data are also

disaggregated by country. U.S. persons

with purchases or sales during the

reporting year of $1,000,000 or less in a

given type of covered service are asked

to provide, on a voluntary basis,

estimates only of their total purchases or

total sales, as appropriate, for the given

type of service.

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.

A request for review of the forms has

been submitted to the Office of

Management and Budget under section

3507 of 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–

0060) has been displayed.

Public reporting burden for this

collection of information is estimated to

vary from 4 to 500 hours, with an

overall average burden of 11.5 hours.

This includes time for reviewing the

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–

0060, 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 the provisions of

the Regulatory Flexibility Act (5 U.S.C.

605(b)), that this proposed rulemaking,

if adopted, will not have 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 it total sales

or purchases transactions with

unaffiliated foreign persons in a covered

type of service exceed $1,000,000

during the year. Of those smaller

businesses that must report, most will

tend to have specialized operations and

activities and will likely report only

type of service; 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: August 26, 1997.

J. Steven Landefeld,

Director, Bureau of Economic Analysis.

For the reasons set forth in the

preamble, BEA proposes to amend 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 1997 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)(6)(ii) to read as

follows:

§ 801.9 Reports required.

* * * * *

(b) * * *

(6) * * *

(ii) Covered services. With the

exceptions given below, the services

covered by this survey are the same as

those covered by the BE–20, Benchmark

Survey of Selected Services

Transactions With Unaffiliated Foreign

Persons—1996, as listed in § 801.10(c)

of this part. The exceptions are

elimination of coverage of general use

computer software royalties and license

fees from computer and data processing
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Proposed Rules 50533

services, and the elimination of

coverage of four small types of

services—agricultural services;

management of health care facilities;

mailing, reproduction, and commercial

art; and temporary help supply services.

* * * * *

[FR Doc. 97–25614 Filed 9–25–97; 8:45 am]

BILLING CODE 3510–EA–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–246250–96]

RIN 1545–AV13

Public Disclosure of Material Relating

to Tax-Exempt Organizations

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

and notice of public hearing.

SUMMARY: This document contains

proposed regulations relating to the

public disclosure requirements of

section 6104(e) of the Internal Revenue

Code. The proposed regulations provide

guidance for a tax-exempt organization

required to make its application for tax

exemption and annual information

return available for public inspection.

The proposed regulations also provide

guidance for a tax-exempt organization

required to comply with requests made

in writing or in person from individuals

who seek a copy of those documents.

The proposed regulations describe how

a tax-exempt organization can make

those documents widely available and,

therefore, not be required to provide

copies in response to individual

requests. The proposed regulations

address the standards that apply in

determining whether a tax-exempt

organization is the subject of a

harassment campaign and guidance on

the applicable procedures to obtain

relief. This document also provides

notice of a public hearing.

DATES: Written comments and requests

to speak (with outlines of oral

comments) at the public hearing

scheduled for February 4, 1998,

beginning at 10 a.m. must be submitted

by December 26, 1997.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–246250–96),

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington DC 20044. Submissions

may be hand-delivered between the

hours of 8 a.m. and 5 p.m. to:

CC:DOM:CORP:R (REG–246250–96),

Courier’s Desk, Internal Revenue

Service, Constitution Avenue NW.,

Washington DC. Alternatively,

taxpayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regs’’ option on the

IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.ustreas.gov/prod/

taxlregs/comments.html. The public

hearing will be held in the IRS

Auditorium, Internal Revenue Service

Building, 1111 Constitution Avenue,

NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Michael B.

Blumenfeld, (202) 622–6070; concerning

submissions and the hearing, Michael

Slaughter, (202) 622–7190 (not toll-free

numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collections of information

contained in this notice of proposed

rulemaking have been submitted to the

Office of Management and Budget for

review in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3507(d)). Comments on the

collections of information should be

sent to the Office of Management and

Budget, Attn: Desk Officer for the

Department of the Treasury, Office of

Information and Regulatory Affairs,

Washington, DC 20503, with copies to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, T:FP,

Washington, DC 20224. Comments on

the collections of information should be

received by November 25, 1997.

Comments are specifically requested

concerning:

Whether the proposed collections of

information are necessary for the proper

performance of the functions of the

Internal Revenue Service, including

whether the information will have

practical utility;

The accuracy of the estimated burden

associated with the proposed collections

of information;

How the quality, utility, and clarity of

the information to be collected may be

enhanced;

How the burden of complying with

the proposed collections of information

may be minimized, including through

the application of automated collection

techniques or other forms of information

technology; and

Estimates of capital or start-up costs

and costs of operation, maintenance,

and purchase of services to provide

information.

The collections of information in

these proposed regulations are in

§§ 301.6104(e)–1, 301.6104(e)–2, and

301.6104(e)–3. This information is

required to enable a tax-exempt

organization to comply with section

6104(e) of the Internal Revenue Code.

Under section 6104(e), a tax-exempt

organization is required to make its

application for tax exemption and its

annual information returns available for

public inspection. In addition, a taxexempt organization is required to

comply with requests made in writing

or in person from individuals who seek

a copy of those documents or, in the

alternative, to make its documents

widely available. The requirement that

a tax-exempt organization make its

application for tax exemption and

annual information returns available for

public inspection and comply with

requests made in writing or in person

from individuals who seek a copy of

those documents or, in the alternative,

make the documents widely available,

will enable the public to obtain

information about the tax-exempt

organization. Under section 6104(e), a

tax-exempt organization is permitted to

file an application for relief from the

requirement to provide copies if the

organization reasonably believes it is the

subject of a harassment campaign. The

information a tax-exempt organization

provides when filing an application for

a determination that it is subject to a

harassment campaign will be used by

the IRS to make such determination.

The collection of information is

required to obtain relief from the

requirement to comply with requests for

copies if such requests are part of the

harassment campaign. The likely

respondents and/or recordkeepers are

tax-exempt organizations. The burden

for recordkeeping and for reporting is

reflected below.

Estimated total annual recordkeeping

burden: 551,000 hours.

Estimated average annual burden per

recordkeeper: 30 minutes.

Estimated number of recordkeepers:

1,100,000.

Estimated total annual reporting

burden: 500 hours.

Estimated average annual reporting

burden per respondent: 29 minutes.

Estimated number of respondents:

1050.

Estimated annual frequency of

responses: on occasion.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by the Office of

Management and Budget.

Books or records relating to a

collection of information must be

retained as long as their contents may

become material in the administration