International Services Surveys: BE-120, Benchmark Survey of Transactions in Selected Services and Intangible Assets With Foreign Persons, 54448-54451 [E6-15304]

Download as PDF 54448 Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Proposed Rules Comments Due Date (a) We must receive comments on this proposed airworthiness directive (AD) by October 16, 2006. Affected ADs (b) None. Applicability (c) This AD applies to all Model TBM 700 airplanes fitted with nose landing gear (NLG) part number (P/N) 21130–001–02 with serial numbers (S/N) B168 through B173 and S/N EUR 174 through EUR 239, that are certificated in any U.S. category. ycherry on PROD1PC64 with PROPOSALS Reason (d) The mandatory continuing airworthiness information (MCAI) states that the aircraft manufacturer has identified an unsafe condition resulting from an incomplete thermal treatment done on three hinge pin batches lowering their mechanical properties with a high risk of deformation under service loads. If not corrected, the NLG hinge pin may rupture and cause an uncommanded NLG retraction. Actions and Compliance (e) Within 30 days after the effective date of this AD, unless already done, do the following except as stated in paragraph (f) below. (1) Verify the NLG serial number to determine its eligibility to this AD. If the NLG S/N is not listed in the applicability paragraph of this AD, no further action is required. (2) For airplanes with the applicable NLG S/N, apply the operational procedure as indicated in paragraph A of the accomplishment instructions of EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70–147, ATA No. 32, dated July 2006. This can be done by inserting into the airplane flight manual, the EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70– 147, ATA No. 32, dated July 2006. (3) Identify the pin batch number as instructed in paragraph B of the accomplishment instructions of EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70–147, ATA No. 32, dated July 2006. For airplanes with the correct pin batch numbers, no further action is required. Return the airplane to service as instructed in EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70–147, ATA No. 32, dated July 2006. (4) For airplanes with pins from the defective pin batch numbers or for which the batch number is unreadable, do all the actions as instructed in paragraphs B 5), C, and D of the accomplishment instructions of EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70–147, ATA No. 32, dated July 2006. (5) As of the effective date of this AD, no person shall install on any EADS SOCATA Model TBM 700 airplane, any NLG actuator hinge pins coming from the three defective batches identified as EUR BC 21344–000–01, EUR BD 21344–000–01, and EUR BF 21344– 000–01 on NLG part number 21130–001–02. FAA AD Differences (f) None. VerDate Aug<31>2005 14:48 Sep 14, 2006 Jkt 208001 Other FAA AD Provisions (g) The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, Standards Staff, FAA, Small Airplane Directorate, ATTN: Gunnar Berg, Aerospace Engineer, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4141; facsimile: (816) 329–4090, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. (2) Return to Airworthiness: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAAapproved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service. (3) Reporting Requirements: For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act, the Office of Management and Budget (OMB) has approved the information collection requirements and has assigned OMB Control Number 2120–0056. Related Information (h) This AD is related to European Aviation Safety Agency Emergency AD No. 2006– 0226–E, Issue date: July 21, 2006, which references EADS SOCATA TBM Aircraft Alert Service Bulletin SB 70–147, ATA No. 32, dated July 2006. Issued in Kansas City, Missouri, on September 11, 2006. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E6–15332 Filed 9–14–06; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF COMMERCE Bureau of Economic Analysis 15 CFR Part 801 [Docket No. 060824224–6224–01] RIN 0691–AA60 International Services Surveys: BE– 120, Benchmark Survey of Transactions in Selected Services and Intangible Assets With Foreign Persons Bureau of Economic Analysis, Commerce. ACTION: Notice of proposed rulemaking. AGENCY: SUMMARY: This proposed rule amends regulations of the Bureau of Economic Analysis, Department of Commerce (BEA) to set forth the reporting requirements for the BE–120, Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons. This rule would PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 replace the rule for a similar but more limited survey, the BE–20, Benchmark Survey of Selected Services Transactions with Unaffiliated Foreign Persons. The agency form number and survey title are being changed because the survey is being reconfigured to reflect changes in BEA’s survey program for international services that have occurred since the previous BE–20 survey was conducted, as well as to begin collection of data on transactions with affiliated foreigners and unaffiliated foreigners using the same survey instruments. If adopted the BE– 120 survey would be conducted once every five years beginning with fiscal year 2006. The proposed BE–120 survey is intended to cover the universe of selected services transactions and transactions in intangible assets with foreign persons. In nonbenchmark years, universe estimates covering these transactions would be derived from the sample data reported on BEA’s followon quarterly survey, by extrapolating forward the universe data collected on the BE–120 benchmark survey. DATES: Comments on this proposed rule will receive consideration if submitted in writing on or before 5 p.m. November 14, 2006. ADDRESSES: You may submit comments, identified by RIN 0691–AA60, 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-B 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 though Friday. FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Chief, International Investment Division (BE–50), Bureau of Economic Analysis, U.S. Department of E:\FR\FM\15SEP1.SGM 15SEP1 Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Proposed Rules ycherry on PROD1PC64 with PROPOSALS Commerce, Washington, DC 20230; email Obie.Whichard@bea.gov; or phone (202) 606–9890. SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR Part 801.10 to replace the reporting requirements for the BE–20, Benchmark Survey of Selected Services Transactions with Unaffiliated Foreign Persons with requirements for the BE– 120, Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons. 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 proposed BE–120 survey would be a mandatory survey and would be conducted, beginning with transactions for fiscal year 2006, once every 5 years by BEA under the International Investment and Trade in Services Survey Act (22 U.S.C. 3101C3108), hereinafter, ‘‘the Act.’’ BEA would send the survey to potential respondents in January of 2007; responses would be due by March 31, 2007. BEA maintains a continuing dialogue with respondents and with data users, including its own internal users, to ensure that, as far as possible, the required data serve their intended purposes and are available from existing records, that instructions are clear, and that unreasonable burdens are not imposed. In designing the survey, BEA contacted Government and nonGovernment data users outside the Bureau and potential survey respondents to obtain their views on the proposed benchmark survey. In reaching decisions on what questions to include in the survey, BEA considered the Government’s need for the data, the burden imposed on respondents, the quality of the likely responses (for example, whether the data are available on respondents’ books), and BEA’s experience in previous benchmark and related annual and quarterly surveys. BEA proposes the following five changes to the Code of Federal Regulations: (1) Include services transactions that were previously collected on two annual surveys that have been discontinued—the BE–47, Annual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons and the BE–93, Annual Survey of Royalties, License Fees, and Other Receipts and VerDate Aug<31>2005 14:48 Sep 14, 2006 Jkt 208001 Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons. BEA is currently collecting these transactions on the surveys—the BE–22, Annual Survey of Selected Services Transactions Between U.S. and Unaffiliated Foreign Persons and the BE–25, Quarterly Survey of Transactions between U.S. and Unaffiliated Foreign Persons in Selected Services and in Intangible Assets—for which the BE–120 survey is designed to provide benchmark coverage. (2) Include services transactions with affiliated parties (i.e., with foreign affiliates, foreign parents, and foreign affiliates of foreign parents). BEA is currently collecting these transactions on its quarterly direct investment surveys (the BE–577, Direct Transactions of U.S. Reporter with Foreign Affiliate, the BE–605, Transactions of U.S. Affiliate, except a U.S. Banking Affiliate, with Foreign Parent, and the BE–605 Bank, Transactions of U.S. Banking Affiliate with Foreign Parent). BEA proposes to remove quarterly collection of data on these affiliated services transactions from these surveys beginning with reports for the first quarter of calendar year 2007, and move them to a redesigned quarterly survey of transactions in selected services and in intangible assets (which will replace the current BE–22 and BE–25 surveys). (3) Raise the exemption level for reporting sales from $1 million to $2 million. (The exemption level for purchases, for which transactions for a given firm may often be smaller than sales, will remain at $1 million). (4) Combine several services into one ‘‘other selected services’’ category, which will include any services not individually covered by the survey or available from other sources. (5) Eliminate several schedules from the prior benchmark survey that collected additional detail on computer and data processing services; data base and other information services (receipts only); telecommunications services; financial services (payments only); and operational leasing services (receipts only). Survey Background The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, would conduct the survey under the International Investment and Trade in Services Survey Act (22 U.S.C. 3101– 3108), hereinafter, ‘‘the Act.’’ Section 4(a) of the Act (22 U.S.C. 3103(a)) provides that the President shall, to the extent he deems necessary and feasible, conduct a regular data collection program to secure current information related to international investment and PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 54449 trade in services and publish for the use of the general public and United States Government agencies periodic, regular, and comprehensive statistical information collected pursuant to this subsection. In Section 3 of Executive Order 11961, as amended by Executive Orders 12318 and 12518, the President delegated his responsibilities under the Act for performing functions concerning international trade in services to the Secretary of Commerce, who has redelegated them to BEA. The survey would update and broaden data provided on the universe of transactions between U.S. and foreign persons in selected services and intangible assets. The data are needed to monitor trade in services and intangible assets; analyze their impact on the U.S. and foreign economies; compile and improve the U.S. international transactions, national income and product, and input-output accounts; support U.S. commercial policy on services and intangible assets; assess and promote U.S. competitiveness in international trade in services; and improve the ability of U.S. businesses to identify and evaluate market opportunities. 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 Federal 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 will be submitted to OMB as a request for a reinstatement, with change, of a previously approved collection for which approval has expired under OMB control number 0608–0058. 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. The BE–120 benchmark survey, as proposed, is expected to result in the filing of reports containing mandatory data from approximately 5,000 E:\FR\FM\15SEP1.SGM 15SEP1 54450 Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Proposed Rules ycherry on PROD1PC64 with PROPOSALS respondents. The respondent burden for this collection of information will vary from one respondent to another, but is estimated to average 12 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. Thus, the total respondent burden for the 2006 BE–120 survey is estimated at 60,000 hours, compared to 13,200 hours estimated for the previous, 2001, BE–20 survey. The increase in burden is a result of several factors: more U.S. persons with transactions in international services, the inclusion of transactions with affiliated foreign persons, and the coverage of transactions in intangible assets and in construction and related services. 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 0608–0058, Attention PRA Desk Officer for BEA, via e-mail at pbugg@omb.eop.gov. or by fax at 202– 395–7245. million during the fiscal year covered, or whose purchases from foreign persons in any of the covered transactions exceeded $1 million during the fiscal year covered. This amount is applied separately to each of the individual types of transactions covered by the survey. Thus, the exemption level will exclude most small businesses from mandatory coverage. Of those smaller businesses that must report, most will tend to have specialized operations and activities, so they will likely report only one type of transaction, often limited to transactions with a single partner country; therefore, the burden on them should be small. In addition, BE survey mailings are targeted mailings. Thus, since small businesses tend not to be involved in the transactions to be covered by the BE–120 survey, few small businesses should receive the survey. However, those receiving the survey are expected to incur a minimal burden in completing the exemption form. Regulatory Flexibility Act The Chief Counsel for 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. The information collection excludes most small businesses from mandatory reporting. Companies that engage in international transactions in covered services or intangible assets tend to be relatively large. In addition, the reporting threshold for this survey is set at a level that will exempt most small businesses from reporting. The proposed BE–120 benchmark survey will be required from U.S. persons whose sales to foreign persons in any of the covered transactions exceeded $2 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.86, as amended by E.O. 12318, 3 CFR, 1981 Comp., p. 173, and E.O. 12518, 3 CFR, 1985 Comp., p. 348. VerDate Aug<31>2005 14:48 Sep 14, 2006 Jkt 208001 List of Subjects in 15 CFR Part 801 International transactions, Economic statistics, Foreign trade, Penalties, 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 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: 2. Section 801.10 is revised to read as follows: § 801.10 Rules and regulations for the BE– 120, Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons. The BE–120, Benchmark Survey of Transactions in Selected Services and Intangible Assets with Unaffiliated Foreign Persons, will be conducted covering fiscal year 2006 and every fifth year thereafter. All legal authorities, provisions, definitions, and requirements contained in §§ 801.1 through 801.9(a) are applicable to this survey. Additional rules and regulations for the BE–120 survey are given in paragraphs (a) through (c) of this PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 section. More detailed instructions and descriptions of the individual types of transactions covered are given on the report form itself. (a) The BE–120 survey consists of two parts and three schedules. Part I requests information needed to determine whether a report is required and which schedules apply. Part II requests information about the reporting entity. Each of the three schedules covers one or more types of transactions and is to be completed only if the U.S. reporter has transactions of the type(s) covered by the particular schedule. (b) Who must report—(1) Mandatory reporting. A BE–120 report is required from each U.S. person that had sales to foreign persons that exceeded $2 million during the fiscal year covered of any of the types of services or intangible assets listed in paragraph (c) of this section, or had purchases from foreign persons that exceeded $1 million during the fiscal year covered of any of the types of services or intangible assets listed in paragraph (c) of this section. (i) The determination of whether a U.S. person is subject to this mandatory reporting requirement may be judgmental, that is, based on the judgment of knowledgeable persons in a company who can identify reportable transactions on a recall basis, with a reasonable degree of certainty, without conducting a detailed records search. Because the reporting threshold ($2 million for sales and $1 million for purchases) applies separately to sales and purchases, the mandatory reporting requirement may apply only to sales, only to purchases, or to both sales and purchases. (ii) U.S. persons that file pursuant to this mandatory reporting requirement must complete Parts I and II of Form BE–120 and all applicable schedules. The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) and, except for sales of merchanting services, these amounts must be distributed among the countries involved in the transactions. For sales of merchanting services, the data are not required to be reported by individual foreign country, although this information may be provided voluntarily. (iii) Application of the exemption levels to each covered transaction is indicated on the schedule for that particular type of transaction. It should be noted that an item other than sales or purchases may be used as the measure of a given type of transaction for purposes of determining whether the threshold for mandatory reporting of the transaction is exceeded. E:\FR\FM\15SEP1.SGM 15SEP1 ycherry on PROD1PC64 with PROPOSALS Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Proposed Rules (2) Voluntary reporting. If, during the fiscal year covered, the U.S. person’s total transactions (either sales or purchases) in any of the types of transactions listed in paragraph (c) of this section are $2 million or less for sales or $1 million or less for purchases, the U.S. person is requested to provide an estimate of the total for each type of transaction. Provision of this information is voluntary. The estimates may be judgmental, that is, based on recall, without conducting a detailed records search. Because the exemption threshold applies separately to sales and purchases, the voluntary reporting option may apply only to sales, only to purchases, or to both sales and purchases. (3) Any U.S. person that receives the BE–120 survey form from BEA, but is not reporting data in either the mandatory or voluntary section of the form, must nevertheless complete and return the ‘‘Basis for not reporting data’’ included with the form to BEA. This requirement is necessary to ensure compliance with reporting requirements and efficient administration of the Act by eliminating unnecessary follow-up contact. (c) Covered types of services and intangible assets. The BE–120 survey is intended to collect information on U.S. international trade in all types of services and intangible assets for which information is not collected in other BEA surveys and is not available to BEA from other sources. The major types of services transactions not covered by the BE–120 survey are travel, transportation, insurance (except for purchases of primary insurance), financial services (except for purchases by non-financial firms), and expenditures by students and medical patients who are studying or seeking treatment in a country different from their country of residence. Covered services are: Advertising services; accounting, auditing, and bookkeeping services; auxiliary insurance services; computer and data processing services; construction services; data base and other information services; educational and training services; engineering, architectural, and surveying services; financial services (purchases only, by companies or parts of companies that are not financial services providers); industrial engineering services; industrial-type maintenance, installation, alteration, and training services; legal services; management, consulting, and public relations services (including allocated expenses); merchanting services (sales only); mining services; operational leasing services; other trade-related services; VerDate Aug<31>2005 14:48 Sep 14, 2006 Jkt 208001 performing arts, sports, and other live performances, presentations, and events; premiums paid on purchases of primary insurance; losses recovered on purchases of primary insurance; research, development, and testing services; telecommunications services; and other selected services. ‘‘Other selected services’’ includes, but is not limited to: Account collection services; disbursements to fund news-gathering costs of broadcasters; disbursements to fund news-gathering costs of print media; disbursements to fund production costs of motion pictures; disbursements to fund production costs of broadcast program material other than news; disbursements to maintain government tourism and business promotion offices; disbursements for sales promotion and representation; disbursements to participate in foreign trade shows (purchases only); employment agencies and temporary help supply services; language translation services; mailing, reproduction, and commercial art; medical services (non-patient B e.g., laboratory or diagnostic services); salvage services; satellite photography and remote sensing/satellite imagery services; security services; space transport (includes satellite launches, transport of goods and people for scientific experiments, and space passenger transport); transcription services; and waste treatment and depollution services. The intangible assets covered by the BE–120 survey are rights related to: Industrial processes and products; books, compact discs, audio tapes and other copyrighted material and intellectual property; trademarks, brand names, and signatures; performances and events pre-recorded on motion picture film and television tape, including digital recording; broadcast and recording of live performances and events; general use computer software; business format franchising fees; and other intangible assets, including indefeasible rights of users. [FR Doc. E6–15304 Filed 9–14–06; 8:45 am] BILLING CODE 3510–06–P PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 54451 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 203 and 291 [Docket No. FR–4887–N–02] RIN 2502–AI14 HUD’s Accelerated Claim and Asset Disposition (ACD) Program; Reopening of Public Comment Period Office of the Assistant Secretary for Housing-Federal Housing Commissioner, HUD. ACTION: Advance notice of proposed rulemaking; reopening of comment period. AGENCY: SUMMARY: This notice announces the reopening of the public comment period on HUD’s advance notice of proposed rulemaking (ANPR) regarding the Accelerated Claim and Asset Disposition (ACD) program, published on June 5, 2006. The June 5, 2006, ANPR provided for a 60-day public comment period, which closed on August 4, 2006. In response to recent requests for additional time to submit public comments, HUD is announcing through this notice that it is reopening the public comment period for an additional 30-day period. DATES: Comment Due Date: Comments on the June 5, 2006, ANPR are due on or before October 16, 2006. ADDRESSES: Interested persons are invited to submit written comments regarding this proposed rule to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 10276, Washington, DC 20410–0500. Interested persons also may submit comments electronically through the Federal eRulemaking Portal at: https://www.regulations.gov. Commenters should follow the instructions provided on that site to submit comments electronically. HUD strongly encourages commenters to submit comments electronically in order to make them immediately available to the public. All communications should refer to the above docket number and title. Facsimile (FAX) comments and email comments are not acceptable. A copy of each communication submitted will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at (202) 708– 3055 (this is not a toll-free number). Persons with hearing or speech E:\FR\FM\15SEP1.SGM 15SEP1

Agencies

[Federal Register Volume 71, Number 179 (Friday, September 15, 2006)]
[Proposed Rules]
[Pages 54448-54451]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-15304]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 060824224-6224-01]
RIN 0691-AA60


International Services Surveys: BE-120, Benchmark Survey of 
Transactions in Selected Services and Intangible Assets With Foreign 
Persons

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 requirements for the BE-120, Benchmark Survey of Transactions 
in Selected Services and Intangible Assets with Foreign Persons. This 
rule would replace the rule for a similar but more limited survey, the 
BE-20, Benchmark Survey of Selected Services Transactions with 
Unaffiliated Foreign Persons. The agency form number and survey title 
are being changed because the survey is being reconfigured to reflect 
changes in BEA's survey program for international services that have 
occurred since the previous BE-20 survey was conducted, as well as to 
begin collection of data on transactions with affiliated foreigners and 
unaffiliated foreigners using the same survey instruments. If adopted 
the BE-120 survey would be conducted once every five years beginning 
with fiscal year 2006.
    The proposed BE-120 survey is intended to cover the universe of 
selected services transactions and transactions in intangible assets 
with foreign persons. In nonbenchmark years, universe estimates 
covering these transactions would be derived from the sample data 
reported on BEA's follow-on quarterly survey, by extrapolating forward 
the universe data collected on the BE-120 benchmark survey.

DATES: Comments on this proposed rule will receive consideration if 
submitted in writing on or before 5 p.m. November 14, 2006.

ADDRESSES: You may submit comments, identified by RIN 0691-AA60, 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-B 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 though Friday.

FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Chief, International 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of

[[Page 54449]]

Commerce, Washington, DC 20230; e-mail Obie.Whichard@bea.gov; or phone 
(202) 606-9890.

SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR Part 
801.10 to replace the reporting requirements for the BE-20, Benchmark 
Survey of Selected Services Transactions with Unaffiliated Foreign 
Persons with requirements for the BE-120, Benchmark Survey of 
Transactions in Selected Services and Intangible Assets with Foreign 
Persons. 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 proposed BE-120 survey would be a mandatory survey and would be 
conducted, beginning with transactions for fiscal year 2006, once every 
5 years by BEA under the International Investment and Trade in Services 
Survey Act (22 U.S.C. 3101C3108), hereinafter, ``the Act.'' BEA would 
send the survey to potential respondents in January of 2007; responses 
would be due by March 31, 2007.
    BEA maintains a continuing dialogue with respondents and with data 
users, including its own internal users, to ensure that, as far as 
possible, the required data serve their intended purposes and are 
available from existing records, that instructions are clear, and that 
unreasonable burdens are not imposed. In designing the survey, BEA 
contacted Government and non-Government data users outside the Bureau 
and potential survey respondents to obtain their views on the proposed 
benchmark survey. In reaching decisions on what questions to include in 
the survey, BEA considered the Government's need for the data, the 
burden imposed on respondents, the quality of the likely responses (for 
example, whether the data are available on respondents' books), and 
BEA's experience in previous benchmark and related annual and quarterly 
surveys.
    BEA proposes the following five changes to the Code of Federal 
Regulations: (1) Include services transactions that were previously 
collected on two annual surveys that have been discontinued--the BE-47, 
Annual Survey of Construction, Engineering, Architectural, and Mining 
Services Provided by U.S. Firms to Unaffiliated Foreign Persons and the 
BE-93, Annual Survey of Royalties, License Fees, and Other Receipts and 
Payments for Intangible Rights Between U.S. and Unaffiliated Foreign 
Persons. BEA is currently collecting these transactions on the 
surveys--the BE-22, Annual Survey of Selected Services Transactions 
Between U.S. and Unaffiliated Foreign Persons and the BE-25, Quarterly 
Survey of Transactions between U.S. and Unaffiliated Foreign Persons in 
Selected Services and in Intangible Assets--for which the BE-120 survey 
is designed to provide benchmark coverage. (2) Include services 
transactions with affiliated parties (i.e., with foreign affiliates, 
foreign parents, and foreign affiliates of foreign parents). BEA is 
currently collecting these transactions on its quarterly direct 
investment surveys (the BE-577, Direct Transactions of U.S. Reporter 
with Foreign Affiliate, the BE-605, Transactions of U.S. Affiliate, 
except a U.S. Banking Affiliate, with Foreign Parent, and the BE-605 
Bank, Transactions of U.S. Banking Affiliate with Foreign Parent). BEA 
proposes to remove quarterly collection of data on these affiliated 
services transactions from these surveys beginning with reports for the 
first quarter of calendar year 2007, and move them to a redesigned 
quarterly survey of transactions in selected services and in intangible 
assets (which will replace the current BE-22 and BE-25 surveys). (3) 
Raise the exemption level for reporting sales from $1 million to $2 
million. (The exemption level for purchases, for which transactions for 
a given firm may often be smaller than sales, will remain at $1 
million). (4) Combine several services into one ``other selected 
services'' category, which will include any services not individually 
covered by the survey or available from other sources. (5) Eliminate 
several schedules from the prior benchmark survey that collected 
additional detail on computer and data processing services; data base 
and other information services (receipts only); telecommunications 
services; financial services (payments only); and operational leasing 
services (receipts only).

Survey Background

    The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, 
would conduct the survey under the International Investment and Trade 
in Services Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' 
Section 4(a) of the Act (22 U.S.C. 3103(a)) provides that the President 
shall, to the extent he deems necessary and feasible, conduct a regular 
data collection program to secure current information related to 
international investment and trade in services and publish for the use 
of the general public and United States Government agencies periodic, 
regular, and comprehensive statistical information collected pursuant 
to this subsection.
    In Section 3 of Executive Order 11961, as amended by Executive 
Orders 12318 and 12518, the President delegated his responsibilities 
under the Act for performing functions concerning international trade 
in services to the Secretary of Commerce, who has redelegated them to 
BEA. The survey would update and broaden data provided on the universe 
of transactions between U.S. and foreign persons in selected services 
and intangible assets. The data are needed to monitor trade in services 
and intangible assets; analyze their impact on the U.S. and foreign 
economies; compile and improve the U.S. international transactions, 
national income and product, and input-output accounts; support U.S. 
commercial policy on services and intangible assets; assess and promote 
U.S. competitiveness in international trade in services; and improve 
the ability of U.S. businesses to identify and evaluate market 
opportunities.

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 Federal 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 will be 
submitted to OMB as a request for a reinstatement, with change, of a 
previously approved collection for which approval has expired under OMB 
control number 0608-0058.
    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.
    The BE-120 benchmark survey, as proposed, is expected to result in 
the filing of reports containing mandatory data from approximately 
5,000

[[Page 54450]]

respondents. The respondent burden for this collection of information 
will vary from one respondent to another, but is estimated to average 
12 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. 
Thus, the total respondent burden for the 2006 BE-120 survey is 
estimated at 60,000 hours, compared to 13,200 hours estimated for the 
previous, 2001, BE-20 survey. The increase in burden is a result of 
several factors: more U.S. persons with transactions in international 
services, the inclusion of transactions with affiliated foreign 
persons, and the coverage of transactions in intangible assets and in 
construction and related services.
    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 0608-0058, Attention PRA Desk Officer for BEA, via e-
mail 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, 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. The information collection excludes most small businesses 
from mandatory reporting. Companies that engage in international 
transactions in covered services or intangible assets tend to be 
relatively large. In addition, the reporting threshold for this survey 
is set at a level that will exempt most small businesses from 
reporting. The proposed BE-120 benchmark survey will be required from 
U.S. persons whose sales to foreign persons in any of the covered 
transactions exceeded $2 million during the fiscal year covered, or 
whose purchases from foreign persons in any of the covered transactions 
exceeded $1 million during the fiscal year covered. This amount is 
applied separately to each of the individual types of transactions 
covered by the survey. Thus, the exemption level will exclude most 
small businesses from mandatory coverage. Of those smaller businesses 
that must report, most will tend to have specialized operations and 
activities, so they will likely report only one type of transaction, 
often limited to transactions with a single partner country; therefore, 
the burden on them should be small. In addition, BE survey mailings are 
targeted mailings. Thus, since small businesses tend not to be involved 
in the transactions to be covered by the BE-120 survey, few small 
businesses should receive the survey. However, those receiving the 
survey are expected to incur a minimal burden in completing the 
exemption form.

List of Subjects in 15 CFR Part 801

    International transactions, Economic statistics, Foreign trade, 
Penalties, 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 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.86, as amended by E.O. 12318, 3 
CFR, 1981 Comp., p. 173, and E.O. 12518, 3 CFR, 1985 Comp., p. 348.

    2. Section 801.10 is revised to read as follows:


Sec.  801.10  Rules and regulations for the BE-120, Benchmark Survey of 
Transactions in Selected Services and Intangible Assets with Foreign 
Persons.

    The BE-120, Benchmark Survey of Transactions in Selected Services 
and Intangible Assets with Unaffiliated Foreign Persons, will be 
conducted covering fiscal year 2006 and every fifth year thereafter. 
All legal authorities, provisions, definitions, and requirements 
contained in Sec. Sec.  801.1 through 801.9(a) are applicable to this 
survey. Additional rules and regulations for the BE-120 survey are 
given in paragraphs (a) through (c) of this section. More detailed 
instructions and descriptions of the individual types of transactions 
covered are given on the report form itself.
    (a) The BE-120 survey consists of two parts and three schedules. 
Part I requests information needed to determine whether a report is 
required and which schedules apply. Part II requests information about 
the reporting entity. Each of the three schedules covers one or more 
types of transactions and is to be completed only if the U.S. reporter 
has transactions of the type(s) covered by the particular schedule.
    (b) Who must report--(1) Mandatory reporting. A BE-120 report is 
required from each U.S. person that had sales to foreign persons that 
exceeded $2 million during the fiscal year covered of any of the types 
of services or intangible assets listed in paragraph (c) of this 
section, or had purchases from foreign persons that exceeded $1 million 
during the fiscal year covered of any of the types of services or 
intangible assets listed in paragraph (c) of this section.
    (i) The determination of whether a U.S. person is subject to this 
mandatory reporting requirement may be judgmental, that is, based on 
the judgment of knowledgeable persons in a company who can identify 
reportable transactions on a recall basis, with a reasonable degree of 
certainty, without conducting a detailed records search. Because the 
reporting threshold ($2 million for sales and $1 million for purchases) 
applies separately to sales and purchases, the mandatory reporting 
requirement may apply only to sales, only to purchases, or to both 
sales and purchases.
    (ii) U.S. persons that file pursuant to this mandatory reporting 
requirement must complete Parts I and II of Form BE-120 and all 
applicable schedules. The total amounts of transactions applicable to a 
particular schedule are to be entered in the appropriate column(s) and, 
except for sales of merchanting services, these amounts must be 
distributed among the countries involved in the transactions. For sales 
of merchanting services, the data are not required to be reported by 
individual foreign country, although this information may be provided 
voluntarily.
    (iii) Application of the exemption levels to each covered 
transaction is indicated on the schedule for that particular type of 
transaction. It should be noted that an item other than sales or 
purchases may be used as the measure of a given type of transaction for 
purposes of determining whether the threshold for mandatory reporting 
of the transaction is exceeded.

[[Page 54451]]

    (2) Voluntary reporting. If, during the fiscal year covered, the 
U.S. person's total transactions (either sales or purchases) in any of 
the types of transactions listed in paragraph (c) of this section are 
$2 million or less for sales or $1 million or less for purchases, the 
U.S. person is requested to provide an estimate of the total for each 
type of transaction. Provision of this information is voluntary. The 
estimates may be judgmental, that is, based on recall, without 
conducting a detailed records search. Because the exemption threshold 
applies separately to sales and purchases, the voluntary reporting 
option may apply only to sales, only to purchases, or to both sales and 
purchases.
    (3) Any U.S. person that receives the BE-120 survey form from BEA, 
but is not reporting data in either the mandatory or voluntary section 
of the form, must nevertheless complete and return the ``Basis for not 
reporting data'' included with the form to BEA. This requirement is 
necessary to ensure compliance with reporting requirements and 
efficient administration of the Act by eliminating unnecessary follow-
up contact.
    (c) Covered types of services and intangible assets. The BE-120 
survey is intended to collect information on U.S. international trade 
in all types of services and intangible assets for which information is 
not collected in other BEA surveys and is not available to BEA from 
other sources. The major types of services transactions not covered by 
the BE-120 survey are travel, transportation, insurance (except for 
purchases of primary insurance), financial services (except for 
purchases by non-financial firms), and expenditures by students and 
medical patients who are studying or seeking treatment in a country 
different from their country of residence. Covered services are: 
Advertising services; accounting, auditing, and bookkeeping services; 
auxiliary insurance services; computer and data processing services; 
construction services; data base and other information services; 
educational and training services; engineering, architectural, and 
surveying services; financial services (purchases only, by companies or 
parts of companies that are not financial services providers); 
industrial engineering services; industrial-type maintenance, 
installation, alteration, and training services; legal services; 
management, consulting, and public relations services (including 
allocated expenses); merchanting services (sales only); mining 
services; operational leasing services; other trade-related services; 
performing arts, sports, and other live performances, presentations, 
and events; premiums paid on purchases of primary insurance; losses 
recovered on purchases of primary insurance; research, development, and 
testing services; telecommunications services; and other selected 
services. ``Other selected services'' includes, but is not limited to: 
Account collection services; disbursements to fund news-gathering costs 
of broadcasters; disbursements to fund news-gathering costs of print 
media; disbursements to fund production costs of motion pictures; 
disbursements to fund production costs of broadcast program material 
other than news; disbursements to maintain government tourism and 
business promotion offices; disbursements for sales promotion and 
representation; disbursements to participate in foreign trade shows 
(purchases only); employment agencies and temporary help supply 
services; language translation services; mailing, reproduction, and 
commercial art; medical services (non-patient B e.g., laboratory or 
diagnostic services); salvage services; satellite photography and 
remote sensing/satellite imagery services; security services; space 
transport (includes satellite launches, transport of goods and people 
for scientific experiments, and space passenger transport); 
transcription services; and waste treatment and depollution services. 
The intangible assets covered by the BE-120 survey are rights related 
to: Industrial processes and products; books, compact discs, audio 
tapes and other copyrighted material and intellectual property; 
trademarks, brand names, and signatures; performances and events pre-
recorded on motion picture film and television tape, including digital 
recording; broadcast and recording of live performances and events; 
general use computer software; business format franchising fees; and 
other intangible assets, including indefeasible rights of users.

[FR Doc. E6-15304 Filed 9-14-06; 8:45 am]
BILLING CODE 3510-06-P

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