Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / Proposed Rules 65043

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 971110266–7266–01]

RIN 0691–AA31

Direct Investment Surveys: Raising

Exemption Level for Two Surveys of

Foreign Direct Investment in the United

States

AGENCY: Bureau of Economic Analysis,

Commerce.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document sets forth

proposed rules to amend 15 CFR 806.15

by raising the exemption level for

reporting in two surveys of foreign

direct investment in the United States:

raise the exemption level for Forms BE–

605 and BE–605 Bank to $30 million

from $20 million; and raise the

exemption level for Forms BE–13 and

BE–14 to $3 million from $1 million.

The purpose of these changes is to

bring the surveys into conformity with

the proposed design of the BE–12,

Benchmark Survey of Foreign Direct

Investment in the United States—1997.

It is expected that the changes will

effect a reduction in the number of

reports filed by U.S. affiliates of foreign

persons and thereby reduce reporting

burden. BEA is proposing other changes

to the surveys that do not require a

change in the rule, and that may

increase the reporting burden slightly

for the BE–605 survey, thereby offsetting

a portion of the reduction in burden that

results from raising the exemption level.

DATES: Comments on the proposed rules

will receive consideration if submitted

in writing on or before January 26, 1998.

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 NW., Washington, DC 20005.

Comments received will be available for

public inspection in Room 7006, 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 two

surveys affected by these changes are

part of the Bureau of Economic Analysis

(BEA) data collection program for

foreign direct investment in the United

States. The surveys, the BE–605,

Transactions of U.S. Affiliate, Except a

U.S. Banking Affiliate, with Foreign

Parent, together with the BE–605 Bank,

Transactions of U.S. Banking Affiliate

with Foreign Parent, and the BE–13,

Initial Report on a Foreign Person’s

Direct or Indirect Acquisition,

Establishment, or Purchase of the

Operating Assets, of a U.S. Business

Enterprise, Including Real Estate,

together with BE–14, Report by a U.S.

Person Who Assists or Intervenes in the

Acquisition of a U.S. Business

Enterprise by, or Who Enters Into a Joint

Venture with, a Foreign Person, 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 proposed changes will bring

reporting by U.S. affiliates on the BE–

605 quarterly survey, the first of the two

surveys, into conformity with their

reporting on the proposed 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 owns or controls ten percent or

more of the voting stock, or an

equivalent interest in an unincorporated

business enterprise.) The BE–605 is a

sample survey covering only larger U.S.

affiliates. The sample data reported in

the BE–605 survey will be linked to data

from the BE–12 benchmark survey in

order to derive universe estimates by

quarter for benchmark and

nonbenchmark years. Under this

proposed rule, the exemption level for

the BE–605 survey will be raised from

more than $20 million to more than $30

million of assets, sales, or net income.

The proposed level of $30 million is the

same as that proposed to be used in the

BE–12 Benchmark Survey of Foreign

Direct Investment in the United States—

1997, to determine whether reporting

companies are required to provide

similar balance of payments data on the

BE–12(SF) short form. Below the $30

million threshold, companies reporting

on the BE–12 do not provide these data.

In addition to raising the exemption

level, BEA is proposing one other

change to the BE–605 survey form.

Specifically, it is proposing that trade in

services between U.S. affiliates and their

foreign parents be reported once each

year by type of service, similar to

reporting on the proposed BE–12

benchmark survey. This change is

necessary to bring the data collected on

foreign direct investment in the United

States into conformity with those

collected on U.S. direct investment

abroad data and also with current

international guidelines for the

compilation of balance of payments

accounts. Currently BEA can only

provide detail by type of service for

unaffiliated, but not affiliated,

transactions for foreign direct

investment in the United States.

However, this addition does not require

a rule change and is indicated here only

for information. The revised BE–605

and BE–605 Bank forms would be

required to be filed beginning with the

report for the first calendar quarter of

1998.

For the BE–605 survey, an increase in

the reporting burden due to adding the

requirement to provide information on

services transactions by type of service

has been kept to a minimum by

requesting that the added information

be reported only once each year. Many

respondents do not have transactions in

services and will not have to file the

added information; those that do will

only be required to provide it once each

year, along with other data that are

already required to be filed annually

following the end of their fiscal year. In

order to allow for respondents’ review

of the additional instructions and the

provision of the information that will be

required only on an annual basis, the

average burden was increased by onefourth of an hour (1 hour for one of the

four quarters for which reports will be

filed). The reporting changes will only

affect the BE–605 and not the BE–605

Bank form and are the minimum

necessary to maintain consistency with

the benchmark survey. However,

because of raising the reporting

threshold to $30 million from $20

million, BEA estimates that 650

companies, or 14 percent of potential

respondents, will drop out of the

reporting sample, thus reducing the

increased burden associated with

reporting services transactions by type.

The second of the two surveys

affected by these rules changes is the

BE–13 new investment survey. In the

proposed 1997 BE–12 benchmark

survey, the reporting threshold is raised

to over $3 million from over $1 million

of assets, sales, or net income in the

previous benchmark survey.

Accordingly, BEA proposes to raise the

threshold for reporting on the BE–13

new investment survey (measured by

the acquired or established U.S.

company’s total assets) to $3 million to

correspond to the initial reporting level

on the BE–12. For both surveys, the BE–

13 and BE–12, only an exemption claim

must be filed for companies below the

$3 million level, thereby reducing
65044 Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / Proposed Rules

respondent burden for small companies.

A concomitant requirement on the BE–

13 that a report be filed for all

acquisitions of 200 or more acres of U.S.

land will not be changed. The

exemption level for the related form BE–

14 also is raised to correspond to the

new $3 million threshold for the BE–13.

To maintain consistency with the

benchmark survey, BEA also proposes

to base the industry coding system used

on the BE–13 on the new North

American Industry Classification

System (NAICS) in place of the current

system, which is based on the U.S.

Standard Industrial Classification

System. However, this modification

does not require a rule change and

therefore is not reflected in this

proposed rule. The revised BE–13 and

BE–14 report forms would be required

to be filed for reports covering 1998

transactions.

The change in the basis for industry

coding should not affect the average

reporting burden for the BE–13 new

investment survey. However, BEA

estimates that 300 potential respondents

to the survey will not be required to file

in the survey because of raising the

reporting threshold to $3 million from

$1 million. This represents a 20 percent

decrease in the estimated number of

reporters that would otherwise be

required to report in the survey.

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.

Public reporting burden for the BE–

605 collection of information is

estimated to vary from 1⁄2 hour to 4

hours per response with an average 11⁄4

hours per response. The estimated

average burden of 11⁄4 hours per form

includes time for reviewing

instructions, searching existing data

sources, gathering and maintaining the

data needed, and completing and

reviewing the collection of information.

Public reporting burden for the BE–13

collection of information is estimated to

vary from 1 to 4 hours per response,

with an average 11⁄2 hours per response.

The estimated average burden of 11⁄2

hours 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 0608–0009

(BE–605/605 Bank) or Paperwork

Reduction Project 0608–0035 (BE–13/

14), 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 because of these proposed

changes. For the BE–605 quarterly

survey, the proposed rule changes

increase the exemption level at which

reporting will be required, thereby

eliminating the reporting requirement

for a number of small companies. For

the BE–13 new investment survey, the

reporting threshold is being raised from

$1 million to $3 million, thus

eliminating an additional number of

small companies that would have been

required to file. These provisions are

intended to reduce the reporting burden

on smaller companies.

List of Subjects in 15 CFR Part 806

Balance of payments, 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).

§ 806.15 [Amended]

2. Section 806.15(h)(1) is amended by

deleting ‘‘$20,000,000’’ and inserting in

its place ‘‘$30,000,000.’’

3. Section 806.15(h)(2) is amended by

deleting ‘‘$20,000,000’’ and inserting in

its place ‘‘$30,000,000.’’

4. Section 806.15(j)(3)(ii)(b) is

amended by deleting ‘‘$1,000,000’’ and

inserting in its place ‘‘$3,000,000.’’

5. Section 806.15(j)(3)(ii)(c) is

amended by deleting ‘‘$1,000,000’’ and

inserting in its place ‘‘$3,000,000.’’

6. Section 806.15(j)(4)(ii)(b) is

amended by deleting ‘‘$1,000,000’’ and

inserting in its place ‘‘$3,000,000.’’

[FR Doc. 97–32251 Filed 12–9–97; 8:45 am]

BILLING CODE 3510–06–M

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 917

[KY–217–FOR]

Kentucky Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.