Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Rules and Regulations 68163

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. 97–34031 Filed 12–30–97; 8:45 am]

BILLING CODE 3510–06–M

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 970903223–7300–02]

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: Final rule.

SUMMARY: These final rules amend the

reporting requirements for the BE–22,

Annual Survey of Selected Services

Transactions With Unaffiliated Foreign

Persons. The BE–22 surveys 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–20,

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, input-output, and 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

final rules: (1) coverage of the BE–22

annual survey is expanded to conform

with the most recent BE–20 benchmark

survey, which covered 1996, and (2)

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 of Royalties, License

Fees, and Other Receipts and Payments

for Intangible Rights Between U.S. and

Unaffiliated Foreign Persons.

EFFECTIVE DATE: These rules will be

effective January 30, 1998.

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: In the

September 26, 1997 Federal Register,

volume 62, No. 187, 62 FR 50531–

50533, BEA published a notice of

proposed rulemaking setting forth

reporting requirements for the BE–22,

Annual Survey of Selected Services

Transactions with Unaffiliated Foreign

Persons. No comments on the proposed

rule were received. Thus, these final

rules are the same as the proposed rules.

These final rule amend 12 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 (P.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, input-output, and national

income and product accounts, develop

U.S. international price indexes for

services, assess U.S. competitiveness in,

and promote, international trade in

services, and improve the ability of U.S.

businesses to identify and evaluate

market opportunities for service 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 final 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 allinclusive 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, these final rules strike

language that previously included
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.