[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Rules and Regulations]
[Pages 68163-68164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34030]


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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.

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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 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, these 
final rules strike language that previously included

[[Page 68164]]

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:


Sec. 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 Sec. 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