68164 Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Rules and Regulations

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 final rules do not contain

policies with Federalism implications

sufficient to warrant preparation of a

Federalism assessment under E.O.

12612.

Executive Order 12866

These final rules have been

determined to be not significant for

purposes of E.O. 12866.

Paperwork Reduction Act

The collection of information required

in these final rules has been approved

by OMB (OMB No. 0608–0060) under

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 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 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–

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 these final rules 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 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 one 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: December 2, 1997.

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, 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 in this paragraph, 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 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. 97–34030 Filed 12–30–97; 8:45 am]

BILLING CODE 3510–06–M

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 54

[T.D. 98–4]

Technical Change Regarding Duty Free

Entry of Metal Articles

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Final rule.

SUMMARY: This document amends the

Customs Regulations, to conform with

subheadings 9817.00.80 and 9817.00.90,

Harmonized Tariff Schedule of the

United States, relating to the duty free

entry of metal articles imported to be

used in remanufacture by melting or to

be processed by shredding, shearing,

compacting or similar processing which

renders them fit only for the recovery of

the metal content.

EFFECTIVE DATE: December 31, 1997.

FOR FURTHER INFORMATION CONTACT:

Kathy Campanelli, National Commodity

Specialist, Metals and Machinery

Branch, (212) 466-5492.

SUPPLEMENTARY INFORMATION:

Background

As part of a continuing program to

keep its regulations current, the

Customs Service has determined that a

change in § 54.5(a)(2), Customs

Regulations (19 CFR 54.5(a)(2)), is

necessary in order to bring the

regulations into conformity with

subheadings 9817.00.80 and 9817.00.90,

Harmonized Tariff Schedule of the

United States (HTSUS), relating to the

duty free entry of metal articles

imported to be used in remanufacture

by melting or to be processed by

shredding, shearing, compacting or

similar processing which renders them

fit only for the recovery of the metal

content.
Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Rules and Regulations 68165

Discussion of Change

Heading 9817, HTSUS, provides for

classes of articles entitled to duty free

entry into the United States.

The classes of merchandise

encompass unwrought metal including

remelt scrap ingot (except copper, lead,

zinc, and tungsten) in the form of pigs,

ingots or billets (a) that are defective or

damaged, or have been produced from

melted down metal waste and scrap for

convenience in handling and

transportation without sweetening,

alloying, fluxing or deliberate purifying,

and (b) that cannot be commercially

used without remanufacture; relaying or

rerolling rails; and articles of metal

(except articles of lead, of zinc or of

tungsten, and not including metalbearing materials provided for in section

VI, chapter 26 or subheading 8548.10

and not including unwrought metal

provided for in chapters 72–81) to be

used in remanufacture by melting or to

be processed by shredding, shearing,

compacting or similar processing which

renders them fit only for the recovery of

the metal content.

Specifically, subheading 9817.00.80,

provides for articles of copper and

subheading 9817.00.90, provides for

articles of any other metal fitting into

one of the above referenced classes.

Part 54, Customs Regulations (19 CFR

Part 54), provides procedures for the

duty free entry of certain importations.

Section 54.5, Customs Regulations (19

CFR 54.5) sets forth the scope of several

exemptions from entitlement to duty

free entry of metal articles classified in

subheadings 9817.00.80 and 9817.00.90,

HTSUS. The provision presently does

not apply to:

1. Articles of lead, zinc, or tungsten:

2. Metal-bearing materials provided

for in Chapter 26, HTSUS; or

3. Unwrought metal provided for in

Section XV, HTSUS.

Inasmuch as subheadings 9817.00.80

and 9817.00.90, HTSUS, also exclude

metal-bearing materials provided for in

Section VI, HTSUS, as well as articles

provided for in subheading 8548.10,

HTSUS, § 54.5(a)(2), Customs

Regulations, must be amended to

include these exemptions. The

amendment rectifies the omission of

these exemptions.

Inapplicability of Public Notice and

Comment and Delayed Effective Date

Requirements, the Regulatory

Flexibility Act, and Executive Order

12866

Inasmuch as this amendment merely

conforms the Customs Regulations to

existing law as noted above, pursuant to

5 U.S.C. 553(b)(B), notice and public

procedure thereon are unnecessary and

pursuant to 5 U.S.C. 553(d)(3), a delayed

effective date is not required. Since this

document is not subject to the notice

and public procedure requirements of 5

U.S.C. 553, it is not subject to the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.). This

amendment does not meet the criteria

for a ‘‘significant regulatory action’’ as

defined in E.O. 12866.

Drafting Information

The principal author of this document

was Janet L. Johnson, Regulations

Branch, Office of Regulations and

Rulings, U.S. Customs Service.

However, personnel from other offices

participated in its development.

List of Subjects in 19 CFR Part 54

Customs duties and inspection,

Metals, Reporting and recordkeeping

requirements.

Amendment to the Regulations

Part 54, Customs Regulations (19 CFR

Part 54), is amended as set forth below.

PART 54—CERTAIN IMPORTATIONS

TEMPORARILY FREE OF DUTY

1. The general authority citation for

part 54 is revised to read as follows:

Authority: 19 U.S.C. 66, 1202 (General

Note 20, Section XV, Note 5, Harmonized

Tariff Schedule of the United States), 1623,

1624.

2. Section 54.5 is amended by revising

paragraph (a)(2) to read as follows:

§ 54.5 Scope of exemptions; nondeposit of

estimated duty.

(a) * * *

(2) Metal-bearing materials provided

for in section VI, Chapter 26 or

subheading 8548.10, HTSUS; or

* * * * *

Douglas M. Browning,

Acting Commissioner of Customs.

Approved: December 5, 1997.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 97–33855 Filed 12–30–97; 8:45 am]

BILLING CODE 4820–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8749]

RIN 1545–AU34

Qualified Small Business Stock

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to the 50-percent

exclusion for gain from certain small

business stock. The final regulations

reflect changes to the law made by the

Omnibus Budget Reconciliation Act of

1993 and provide guidance to the

issuers and owners of the stock of

certain small businesses.

DATES: This regulation is effective

December 31, 1997. For dates of

applicability of these regulations, see

§ 1.1202–2(e).

FOR FURTHER INFORMATION CONTACT:

Catherine A. Prohofsky of the Office of

the Assistant Chief Counsel (Income Tax

and Accounting) at 202–622–4930 (not

a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

Section 1202 of the Internal Revenue

Code allows a taxpayer (other than a

corporation) to exclude 50 percent of

certain gain from the sale or exchange

of qualified small business stock held

for more than 5 years. This document

contains amendments to the Income Tax

Regulations (26 CFR part 1) that provide

guidance relating to the effect of

redemptions on the availability of this

exclusion.

On June 6, 1996, the Federal Register

published a notice of proposed

rulemaking (IA–26–94), 61 FR 28821,

relating to the effect of certain

redemptions on the 50-percent

exclusion of gain from the sale or

exchange of qualified small business

stock under section 1202. The proposed

regulations provide that these

redemptions are disregarded in

determining whether the anti-churning

rules of section 1202(c) are violated.

Four comments responding to this

notice were received. A public hearing

was held on October 3, 1996. After

consideration of the comments, the

proposed regulations under section

1202 are adopted as modified by this

Treasury decision.