Direct Investment Surveys: BE-577, Direct Transactions of U.S. Reporter With Foreign Affiliate, 10454-10456 [06-1877]

Download as PDF 10454 Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Proposed Rules airworthiness agreement. In keeping with this bilateral airworthiness agreement, the DGAC kept us informed of the situation described above. We have examined the DGAC’s findings, reviewed all available information, and determined that AD action is necessary for products of this type design that are certificated for operation in the United States. For this reason, we are proposing this AD, which would require inspecting the two headrest bushings for proper installation and installing Mecanindus pins to secure the bushings. The proposed AD would require you to use the service information described previously to perform these actions. Costs of Compliance About 459 Sicma Aero Seat third occupant attendant seat assemblies, 133 Series, of the affected design are installed on 698 airplanes of U.S. registry. We estimate that it would take about 0.5 hour per seat assembly to perform the proposed actions, and that the average labor rate is $65 per work hour. The Mecanindus pins cost $99.88 each, however, Sicma has advised us that they will supply the parts at no cost. Based on the labor rate to install the parts, the total cost of the proposed AD to U.S. operators would be about $14,918. erjones on PROD1PC61 with PROPOSALS Authority for This Rulemaking Title 49 of the United States Code specifies the FAA’s authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency’s authority. We are issuing this rulemaking under the authority described in subtitle VII, part A, subpart III, section 44701, ‘‘General requirements.’’ Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the VerDate Aug<31>2005 14:37 Feb 28, 2006 Jkt 208001 distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that the proposed regulation: 1. Is not a ‘‘significant regulatory action’’ under Executive Order 12866; 2. Is not a ‘‘significant rule’’ under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Would not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Under the authority delegated to me by the Administrator, the Federal Aviation Administration proposes to amend 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by adding the following new airworthiness directive: Sicma Aero Seat: Docket No. FAA–2005– 22959; Directorate Identifier 2005–NE– 40–AD. Comments Due Date (a) The Federal Aviation Administration (FAA) must receive comments on this airworthiness directive (AD) action by May 1, 2006. These third occupant seats are installed on, but not limited to, Airbus A319, A320, and A321 series airplanes. Unsafe Condition (d) This proposed AD results from Sicma’s determination that missing or incorrectly secured bushings could loosen and cause disengagement of the headrest from the seat during a high-energy stop of the airplane, possibly injuring the seat occupant. We are proposing this AD to prevent disengagement of the headrest from the seat during a highenergy stop of the airplane that could injure the seat occupant. Compliance (e) You are responsible for having the actions required by this AD performed within the compliance times specified unless the actions have already been done. Installing Protective Fairings (f) Within 30 days after the effective date of this AD, visually check the installation of the two headrest bushings and install Mecanindus pins, part number GPMECAE2– 5x5, to secure the bushings. Use the instructions in paragraph 2 of Sicma Aero Seat Service Bulletin 133–25–006, dated May 12, 1999, to perform the visual inspection and install the pins. Alternative Methods of Compliance (g) The Manager, Boston Aircraft Certification Office, has the authority to approve alternative methods of compliance for this AD if requested using the procedures found in 14 CFR 39.19. Related Information (h) DGAC airworthiness directive 2000– 042 (AB), dated January 26, 2000, also addresses the subject of this AD. Issued in Burlington, Massachusetts, on February 23, 2006. Peter A. White, Acting Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E6–2849 Filed 2–28–06; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF COMMERCE Affected ADs (b) None. Bureau of Economic Analysis Applicability (c) This AD applies to Sicma Aero Seat third occupant seat assemblies, 133 Series, with the part numbers (P/Ns) and serial numbers (SNs) in the following Table 1: 15 CFR Part 806 TABLE 1.—APPLICABLE SEAT ASSEMBLIES [Docket No. 060131020–6020–01] RIN 0691–AA57 Direct Investment Surveys: BE–577, Direct Transactions of U.S. Reporter With Foreign Affiliate Bureau of Economic Analysis, Commerce. ACTION: Notice of Proposed Rulemaking. AGENCY: Seat P/N Seat SN 130622–070 ....................... 130622–070–1 ................... 1330622–070–2 ................. 130622–100 ....................... 130622V100–1 .................. PO 00000 Frm 00002 Fmt 4702 1 1 1 1 1 through through through through through Sfmt 4702 212. 212. 6. 13. 16. SUMMARY: This proposed rule amends regulations of the Bureau of Economic Analysis, Department of Commerce (BEA) to set forth the reporting E:\FR\FM\01MRP1.SGM 01MRP1 Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Proposed Rules requirements for the quarterly BE–577, Direct Transactions of U.S. Reporter With Foreign Affiliate. The BE–577 survey is conducted quarterly and is a sample survey that obtains data on transactions and positions between U.S.-owned foreign business enterprises and their U.S. parents. To address the current needs of data users while at the same time keeping the respondent burden as low as possible, BEA proposes modification of items on the survey form and in the reporting criteria. Changes are proposed to bring the BE–577 forms and related instructions into conformity with the 2004 BE–10, Benchmark Survey of U.S. Direct Investment Abroad, and to exclude data that have recently begun to be collected on other Government surveys. Comments on these proposed rules will receive consideration if submitted on or before 5 p.m. May 1, 2006. DATES: You may submit comments, identified by RIN 0691–AA57, and referencing the agency name (Bureau of Economic Analysis), by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. For agency, select ‘‘Commerce Department—all.’’ • E-mail: Obie.Whichard@bea.gov. • Fax: Office of the Chief, International Investment Division, (202) 606–5318. • Mail: Office of the Chief, International Investment Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE–50, Washington, DC 20230. • Hand Delivery/Courier: Office of the Chief, International Investment Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE–50, Shipping and Receiving, Section M100, 1441 L Street, NW., Washington, DC 20005. Public Inspection: Comments may be inspected at BEA’s offices, 1441 L Street, NW., Room 7006, between 8:30 a.m. and 5 p.m., Eastern Time Monday through Friday. FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Chief, International Investment Division (BE–50), Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230; phone (202) 606–9890. SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR part 806.14 to set forth the reporting requirements for the BE–577, Direct Transactions of U.S. Reporter With erjones on PROD1PC61 with PROPOSALS ADDRESSES: VerDate Aug<31>2005 14:37 Feb 28, 2006 Jkt 208001 Foreign Affiliate. The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Description of Changes The BE–577 survey is a mandatory survey and is conducted quarterly by BEA under the International Investment and Trade in Services Survey Act (22 U.S.C. 3101–3108). BEA will send BE– 577 survey forms to potential respondents each quarter; responses will be due within 30 days after the close of each fiscal quarter, except for the final quarter of the fiscal year, when reports will be due within 45 days. To reduce respondent burden, BEA proposes to increase the exemption level for reporting from $30 million to $40 million. The exemption level is stated in terms of the foreign affiliate’s assets, sales, and net income. BEA expects this change to result in a decrease of approximately 1,800 affiliates reported on the BE–577 from the total of about 15,500 now required to be reported. The decrease in the number of reportable affiliates due to raising the exemption level will offset the increase in reportable affiliates due to natural growth since the exemption level was last increased (from $20 to $30 million) in 2000. In addition, BEA is proposing a few changes to the survey form and instructions. BEA proposes to: 1. Revise the survey form and instructions to bring them into conformity with the most recent BE–10 benchmark survey instructions for reporting capital gains and losses. 2. Collect information on payments to and receipts from foreign affiliates for interest, royalties and license fees and other private services gross of any taxes withheld, to align reporting of these items with current international statistical standards for balance of payments accounts. Previously, this information was collected net of taxes withheld. 3. Modify the survey instructions to indicate that positions and transactions in financial derivatives contracts that are reported on or derived from the Treasury Department’s recently instituted International Capital Form D, Report of Holdings of, and Transactions in, Financial Derivatives Contracts with Foreign Residents should be excluded from BE–577 reports. 4. Remove the requirement for reporting certain affiliated insurance PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 10455 transactions that have been problematic to collect on the BE–577. BEA plans to move the reporting requirement for these transactions to specialized services surveys that BEA conducts in the near future. Survey Background The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, will conduct the survey under the International Investment and Trade in Services Survey Act (22 U.S.C. 3101– 3108), hereinafter, ‘‘the Act.’’ Title 22 United States Code, Section 3103(a)(1) of the Act requires that with respect to United States direct investment abroad, the President shall conduct a data collection program to obtain current information on international capital flows and other information related to international investment and trade in services including information that may be necessary for computing and analyzing the United States balance of payments, the employment and taxes of United States parents and affiliates, and the international investment and trade in services position of the United States. In Section 3 of Executive Order 11961, the President delegated authority granted under the Act as concerns direct investment to the Secretary of Commerce, who has redelegated it to BEA. The quarterly survey of U.S. direct investment abroad is a sample survey that covers all foreign affiliates above a size-exemption level. The survey collects data on transactions and positions between U.S.-owned foreign business enterprises and their U.S. parents. The sample data are used to derive quarterly universe estimates from similar data reported in the BE–10, Benchmark Survey of U.S. Direct Investment Abroad, which is taken every five years. The data are used in the preparation of the U.S. international transactions accounts, input-output accounts, and national income and product accounts. The data are needed to measure the size and economic significance of U.S. direct investment abroad, measure changes in such investment, and assess its impact on the U.S. and foreign economies. The data are disaggregated by country and industry of foreign affiliate. Executive Order 12866 This proposed rule has been determined to be not significant for purposes of E. O. 12866. Executive order 13132 This proposed rule does not contain policies with Federalism implications sufficient to warrant preparation of a E:\FR\FM\01MRP1.SGM 01MRP1 10456 Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Proposed Rules erjones on PROD1PC61 with PROPOSALS Federalism assessment under E.O. 13132. Paperwork Reduction Act This proposed rule contains a collection-of-information requirement subject to review and approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act. The requirement has been submitted to OMB for approval as a revision to a collection currently approved under OMB control number 0608–0004. 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 OMB control number. The survey, as proposed, is expected to result in the filing of about 13,500 foreign affiliate reports by an estimated 1,500 U.S. parent companies. A parent company must file one form per affiliate. BEA proposes to change the survey in two ways—first, to collect information on payments to and receipts from foreign affiliates for interest, royalties and license fees and other private services gross rather than, as in the past, net of any taxes withheld, and second, to remove the requirement for reporting certain affiliated insurance transactions that have been problematic to collect on the BE–577. (BEA plans to move the reporting requirement for these transactions to specialized services surveys that BEA conducts in the near future.) The respondent burden for this collection of information is estimated to vary from 0.5 hour to 4 hours per response, with an average of 1.25 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Because reports are filed 4 times per year, 54,000 responses annually are expected. Thus, the total annual respondent burden of the survey is estimated at 67,500 hours (13,500 respondents times 4 times 1.25 hours average burden). This estimate is the same as the burden hours currently carried for this collection in the OMB inventory. Comments are requested concerning: (a) Whether the proposed collection of information is necessary for the proper performance of the functions 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, VerDate Aug<31>2005 14:37 Feb 28, 2006 Jkt 208001 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, fax: 202–606– 5311; and the Office of Management and Budget, O.I.R.A., Paperwork Reduction Project 0608–0004, Attention PRA Desk Officer for BEA, via the Internet at pbugg@omb.eop.gov, or by fax at 202– 395–7245. Regulatory Flexibility Act The Chief Counsel for Regulation, Department of Commerce, has certified to the Chief Counsel for Advocacy, Small Business Administration (SBA), 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. Although the BE–577 survey does not itself collect data on the size of the U.S. companies that must respond, data collected on related BEA surveys indicate that about 100 of the estimated 1,500 U.S. parent companies that must respond to the BE–577 survey are small businesses according to the standards established by the Small Business Administration. The exemption level for the BE–577 survey is set in terms of the size of a U.S. company’s foreign affiliates (foreign companies owned 10 percent or more by the U.S. company); if a foreign affiliate has assets, sales, or net income greater than the exemption level, it must be reported. Usually, the U.S. parent company that is required to file the report is many times larger than its largest foreign affiliate. The 100 U.S. businesses that meet the SBA small business standards tend to have few foreign affiliates, and the foreign affiliates that they do own are small. With the proposed increase in the exemption level for the BE–577 survey from $30 million to $40 million (stated in terms of the foreign affiliate’s assets, sales, and net income), small U.S. businesses will be required to file fewer reports for their foreign affiliates than would be required in the absence of this increase. The estimated annual cost to a U.S. business reporting for five or fewer foreign affiliates is estimated to be less than $1,000. List of Subjects in 15 CFR Part 806 International transactions, Economic statistics, U.S. investment abroad, PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 Penalties, Reporting and recordkeeping requirements. Dated: February 21, 2006. 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 is revised 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. 12318 (3 CFR, 1981 Comp., p. 173) and E.O. 12518 (3 CFR, 1985 Comp., p. 348). § 806.14 [Amended] 2. Section 806.14 (e) is amended by deleting ‘‘$30,000,000’’ and inserting ‘‘$40,000,000’’ in its place. [FR Doc. 06–1877 Filed 2–28–06; 8:45 am] BILLING CODE 3510–06–P SOCIAL SECURITY ADMINISTRATION 20 CFR Parts 404 and 416 [Regulation Nos. 4 and 16] RIN 0960–AG05 Optometrists as Acceptable Medical Sources to Establish a Medically Determinable Impairment Social Security Administration. Notice of proposed rulemaking. AGENCY: ACTION: SUMMARY: We propose to revise the Social Security and Supplemental Security Income (SSI) disability regulations regarding sources of evidence for establishing a medically determinable impairment under titles II and XVI of the Social Security Act (the Act). The revised regulations would expand the situations in which we consider licensed optometrists to be ‘‘acceptable medical sources’’. DATES: To be sure that your comments are considered, we must receive them by May 1, 2006. ADDRESSES: You may give us your comments by: using our Internet site facility (i.e., Social Security Online) at https://policy.ssa.gov/erm/rules.nsf/ Rules+Open+To+Comment or the Federal eRulemaking Portal at https:// www.regulations.gov; e-mail to regulations@ssa.gov; telefax to (410) 966–2830; or letter to the Commissioner of Social Security, P.O. Box 17703, Baltimore, MD 21235–7703. You may also deliver them to the Office of E:\FR\FM\01MRP1.SGM 01MRP1

Agencies

[Federal Register Volume 71, Number 40 (Wednesday, March 1, 2006)]
[Proposed Rules]
[Pages 10454-10456]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-1877]


=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 060131020-6020-01]
RIN 0691-AA57


Direct Investment Surveys: BE-577, Direct Transactions of U.S. 
Reporter With Foreign Affiliate

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Notice of Proposed Rulemaking.

-----------------------------------------------------------------------

SUMMARY: This proposed rule amends regulations of the Bureau of 
Economic Analysis, Department of Commerce (BEA) to set forth the 
reporting

[[Page 10455]]

requirements for the quarterly BE-577, Direct Transactions of U.S. 
Reporter With Foreign Affiliate. The BE-577 survey is conducted 
quarterly and is a sample survey that obtains data on transactions and 
positions between U.S.-owned foreign business enterprises and their 
U.S. parents.
    To address the current needs of data users while at the same time 
keeping the respondent burden as low as possible, BEA proposes 
modification of items on the survey form and in the reporting criteria. 
Changes are proposed to bring the BE-577 forms and related instructions 
into conformity with the 2004 BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad, and to exclude data that have recently begun to be 
collected on other Government surveys.

DATES: Comments on these proposed rules will receive consideration if 
submitted on or before 5 p.m. May 1, 2006.

ADDRESSES: You may submit comments, identified by RIN 0691-AA57, and 
referencing the agency name (Bureau of Economic Analysis), by any of 
the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. For agency, select 
``Commerce Department--all.''
     E-mail: Obie.Whichard@bea.gov.
     Fax: Office of the Chief, International Investment 
Division, (202) 606-5318.
     Mail: Office of the Chief, International Investment 
Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE-
50, Washington, DC 20230.
     Hand Delivery/Courier: Office of the Chief, International 
Investment Division, U.S. Department of Commerce, Bureau of Economic 
Analysis, BE-50, Shipping and Receiving, Section M100, 1441 L Street, 
NW., Washington, DC 20005.
    Public Inspection: Comments may be inspected at BEA's offices, 1441 
L Street, NW., Room 7006, between 8:30 a.m. and 5 p.m., Eastern Time 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Chief, International 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; phone (202) 606-9890.

SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR part 
806.14 to set forth the reporting requirements for the BE-577, Direct 
Transactions of U.S. Reporter With Foreign Affiliate. The Department of 
Commerce, as part of its continuing effort to reduce paperwork and 
respondent burden, invites the general public and other Federal 
agencies to comment on proposed and/or continuing information 
collections, as required by the Paperwork Reduction Act of 1995.

Description of Changes

    The BE-577 survey is a mandatory survey and is conducted quarterly 
by BEA under the International Investment and Trade in Services Survey 
Act (22 U.S.C. 3101-3108). BEA will send BE-577 survey forms to 
potential respondents each quarter; responses will be due within 30 
days after the close of each fiscal quarter, except for the final 
quarter of the fiscal year, when reports will be due within 45 days.
    To reduce respondent burden, BEA proposes to increase the exemption 
level for reporting from $30 million to $40 million. The exemption 
level is stated in terms of the foreign affiliate's assets, sales, and 
net income. BEA expects this change to result in a decrease of 
approximately 1,800 affiliates reported on the BE-577 from the total of 
about 15,500 now required to be reported. The decrease in the number of 
reportable affiliates due to raising the exemption level will offset 
the increase in reportable affiliates due to natural growth since the 
exemption level was last increased (from $20 to $30 million) in 2000.
    In addition, BEA is proposing a few changes to the survey form and 
instructions. BEA proposes to:
    1. Revise the survey form and instructions to bring them into 
conformity with the most recent BE-10 benchmark survey instructions for 
reporting capital gains and losses.
    2. Collect information on payments to and receipts from foreign 
affiliates for interest, royalties and license fees and other private 
services gross of any taxes withheld, to align reporting of these items 
with current international statistical standards for balance of 
payments accounts. Previously, this information was collected net of 
taxes withheld.
    3. Modify the survey instructions to indicate that positions and 
transactions in financial derivatives contracts that are reported on or 
derived from the Treasury Department's recently instituted 
International Capital Form D, Report of Holdings of, and Transactions 
in, Financial Derivatives Contracts with Foreign Residents should be 
excluded from BE-577 reports.
    4. Remove the requirement for reporting certain affiliated 
insurance transactions that have been problematic to collect on the BE-
577. BEA plans to move the reporting requirement for these transactions 
to specialized services surveys that BEA conducts in the near future.

Survey Background

    The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, 
will conduct the survey under the International Investment and Trade in 
Services Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' 
Title 22 United States Code, Section 3103(a)(1) of the Act requires 
that with respect to United States direct investment abroad, the 
President shall conduct a data collection program to obtain current 
information on international capital flows and other information 
related to international investment and trade in services including 
information that may be necessary for computing and analyzing the 
United States balance of payments, the employment and taxes of United 
States parents and affiliates, and the international investment and 
trade in services position of the United States.
    In Section 3 of Executive Order 11961, the President delegated 
authority granted under the Act as concerns direct investment to the 
Secretary of Commerce, who has redelegated it to BEA. The quarterly 
survey of U.S. direct investment abroad is a sample survey that covers 
all foreign affiliates above a size-exemption level. The survey 
collects data on transactions and positions between U.S.-owned foreign 
business enterprises and their U.S. parents. The sample data are used 
to derive quarterly universe estimates from similar data reported in 
the BE-10, Benchmark Survey of U.S. Direct Investment Abroad, which is 
taken every five years. The data are used in the preparation of the 
U.S. international transactions accounts, input-output accounts, and 
national income and product accounts. The data are needed to measure 
the size and economic significance of U.S. direct investment abroad, 
measure changes in such investment, and assess its impact on the U.S. 
and foreign economies. The data are disaggregated by country and 
industry of foreign affiliate.

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of E. O. 12866.

Executive order 13132

    This proposed rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a

[[Page 10456]]

Federalism assessment under E.O. 13132.

Paperwork Reduction Act

    This proposed rule contains a collection-of-information requirement 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act. The requirement has been 
submitted to OMB for approval as a revision to a collection currently 
approved under OMB control number 0608-0004.
    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 OMB control number.
    The survey, as proposed, is expected to result in the filing of 
about 13,500 foreign affiliate reports by an estimated 1,500 U.S. 
parent companies. A parent company must file one form per affiliate. 
BEA proposes to change the survey in two ways--first, to collect 
information on payments to and receipts from foreign affiliates for 
interest, royalties and license fees and other private services gross 
rather than, as in the past, net of any taxes withheld, and second, to 
remove the requirement for reporting certain affiliated insurance 
transactions that have been problematic to collect on the BE-577. (BEA 
plans to move the reporting requirement for these transactions to 
specialized services surveys that BEA conducts in the near future.) The 
respondent burden for this collection of information is estimated to 
vary from 0.5 hour to 4 hours per response, with an average of 1.25 
hours per response, including time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Because reports are filed 4 times per year, 54,000 responses annually 
are expected. Thus, the total annual respondent burden of the survey is 
estimated at 67,500 hours (13,500 respondents times 4 times 1.25 hours 
average burden). This estimate is the same as the burden hours 
currently carried for this collection in the OMB inventory.
    Comments are requested concerning: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions 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, fax: 202-
606-5311; and the Office of Management and Budget, O.I.R.A., Paperwork 
Reduction Project 0608-0004, Attention PRA Desk Officer for BEA, via 
the Internet at pbugg@omb.eop.gov, or by fax at 202-395-7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration (SBA), 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. Although the BE-577 survey does not itself 
collect data on the size of the U.S. companies that must respond, data 
collected on related BEA surveys indicate that about 100 of the 
estimated 1,500 U.S. parent companies that must respond to the BE-577 
survey are small businesses according to the standards established by 
the Small Business Administration. The exemption level for the BE-577 
survey is set in terms of the size of a U.S. company's foreign 
affiliates (foreign companies owned 10 percent or more by the U.S. 
company); if a foreign affiliate has assets, sales, or net income 
greater than the exemption level, it must be reported. Usually, the 
U.S. parent company that is required to file the report is many times 
larger than its largest foreign affiliate.
    The 100 U.S. businesses that meet the SBA small business standards 
tend to have few foreign affiliates, and the foreign affiliates that 
they do own are small. With the proposed increase in the exemption 
level for the BE-577 survey from $30 million to $40 million (stated in 
terms of the foreign affiliate's assets, sales, and net income), small 
U.S. businesses will be required to file fewer reports for their 
foreign affiliates than would be required in the absence of this 
increase. The estimated annual cost to a U.S. business reporting for 
five or fewer foreign affiliates is estimated to be less than $1,000.

List of Subjects in 15 CFR Part 806

    International transactions, Economic statistics, U.S. investment 
abroad, Penalties, Reporting and recordkeeping requirements.

    Dated: February 21, 2006.
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 is revised 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. 12318 (3 CFR, 1981 
Comp., p. 173) and E.O. 12518 (3 CFR, 1985 Comp., p. 348).


Sec.  806.14  [Amended]

    2. Section 806.14 (e) is amended by deleting ``$30,000,000'' and 
inserting ``$40,000,000'' in its place.

[FR Doc. 06-1877 Filed 2-28-06; 8:45 am]
BILLING CODE 3510-06-P