International Services Surveys: BE-120, Benchmark Survey of Transactions in Selected Services and Intangible Assets With Foreign Persons, 75417-75420 [E6-21429]
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Federal Register / Vol. 71, No. 241 / Friday, December 15, 2006 / Rules and Regulations
a PMI (e.g. part 121, 125, and 135 operators),
and the cognizant Flight Standards District
Office for other operators (e.g., part 91
operators).
Scheduling Corrosion Tasks for Transferred
Airplanes
(m) Before any airplane subject to this AD
is transferred and placed into service by an
operator: Establish a schedule for
accomplishing the CPCP tasks required by
this AD in accordance with paragraph (m)(1)
or (m)(2) of this AD, as applicable.
(1) For airplanes on which the CPCP tasks
required by this AD have been accomplished
previously at the schedule established by this
AD: Perform the first CPCP task in each area
in accordance with the previous operator’s
schedule, or in accordance with the new
operator’s schedule, whichever results in an
earlier accomplishment of that CPCP task.
After the initial accomplishment of each
CPCP task in each area as required by this
paragraph, repeat each CPCP task in
accordance with the new operator’s schedule.
(2) For airplanes on which the CPCP tasks
required by this AD have not been
accomplished previously, or have not been
accomplished at the schedule established by
this AD: The new operator must perform
each initial CPCP task in each area before
further flight or in accordance with a
schedule approved by the FAA. For the
purposes of this paragraph, the FAA is
defined as the cognizant PMI for operators
that are assigned a PMI (e.g., part 121, 125,
and 135 operators), and the cognizant Flight
Standards District Office for other operators
(e.g., part 91 operators).
Alternative Methods of Compliance
(AMOCs)
(n)(1) The Manager, New York ACO, has
the authority to approve AMOCs for this AD,
if requested using the procedures found in 14
CFR 39.19.
(2) Before using any AMOC approved in
accordance with 14 CFR 39.19 on any
airplane to which the AMOC applies, notify
the appropriate principal inspector in the
FAA Flight Standards Certificate Holding
District Office.
Related Information
(o) Canadian airworthiness directive CF–
2005–06, dated March 10, 2005, also
addresses the subject of this AD.
Material Incorporated by Reference
(p) You must use the applicable service
information specified in Table 1 of this AD
to perform the actions that are required by
this AD, unless the AD specifies otherwise.
TABLE 1.—MATERIAL INCORPORATED BY REFERENCE
Service information
Date
Bombardier Challenger 600 Time Limits/Maintenance ....................................................................................................................
Checks (CPCP) Supplement, PSP 605 (CPCP)
Bombardier Challenger 601 Time Limits/Maintenance ....................................................................................................................
Checks (CPCP) Supplement, PSP 601–5 (CPCP)
Bombardier Challenger 601 Time Limits/Maintenance ....................................................................................................................
Checks (CPCP) Supplement, PSP 601A–5 (CPCP)
The Director of the Federal Register
approved the incorporation by reference of
these documents in accordance with 5 U.S.C.
552(a) and 1 CFR part 51. Contact
Bombardier, Inc., Canadair, Aerospace
Group, P.O. Box 6087, Station Centre-ville,
Montreal, Quebec H3C 3G9, Canada, for a
copy of this service information. You may
review copies at the Docket Management
Facility, U.S. Department of Transportation,
400 Seventh Street, SW., Room PL–401,
Nassif Building, Washington, DC; on the
Internet at https://dms.dot.gov; or at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at the NARA,
call (202) 741–6030, or go to https://
www.archives.gov/federal_register/
code_of_federal_regulations/
ibr_locations.html.
Issued in Renton, Washington, on
December 7, 2006.
Michael J. Kaszycki,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. E6–21268 Filed 12–14–06; 8:45 am]
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BILLING CODE 4910–13–P
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
RIN 0691–AA60
[Docket No. 060824224–6310–02]
International Services Surveys: BE–
120, Benchmark Survey of
Transactions in Selected Services and
Intangible Assets With Foreign
Persons
Bureau of Economic Analysis,
Commerce.
ACTION: Final rule.
AGENCY:
SUMMARY: This final 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 survey
replaces 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
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July 28, 2004.
July 28, 2004.
July 28, 2004.
transactions with affiliated foreigners
and unaffiliated foreigners using the
same survey instruments. The BE–120
survey will be conducted once every
five years beginning with fiscal year
2006.
The 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
will 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: The final rule will be effective
January 16, 2007.
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; email obie.whichard@bea.gov; or phone
(202) 606–9890.
SUPPLEMENTARY INFORMATION: In the
September 15, 2006 Federal Register, 71
FR 54448, BEA published a notice of
proposed rulemaking setting forth
reporting requirements for the BE–120,
Benchmark Survey of Transactions in
Selected Services and Intangible Assets
with Foreign Persons. No comments
were received on the proposed rule.
However, one change to the proposed
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rule is nonetheless necessary. The
proposed rule referred to a survey
section, ‘‘Basis for not reporting data.’’
To improve the clarity of the survey,
this section has been dropped (The
information contained in this section
has been redistributed to other parts of
the survey.), and so the reference to this
section has been replaced with updated
information. This final rule amends 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.
Description of Changes
The BE–120 survey is a mandatory
survey and will 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.
3101–3108), hereinafter, ‘‘the Act.’’ BEA
will send the survey to potential
respondents in January of 2007;
responses are due by March 31, 2007.
BEA is introducing 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 AssetsCfor
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 intends to
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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 includes 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,
will 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
will 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.
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competitiveness in international trade
in services; and improve the ability of
U.S. businesses to identify and evaluate
market opportunities.
Executive Order 12866
This final rule has been determined to
be not significant for purposes of E.O.
12866.
Executive Order 13132
This final rule does not contain
policies with Federalism implications
sufficient to warrant preparation of a
Federal assessment under E.O. 13132.
Paperwork Reduction Act
The collection-of-information in this
final rule has been approved by the
Office of Management and Budget
(OMB) under the Paperwork Reduction
Act.
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 OMB control number for
the BE–120 is 0608–0058; the collection
will display this number.
The BE–120 benchmark survey is
expected to result in the filing of reports
containing mandatory data from
approximately 5,000 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 regarding this 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, fax: 202–606–5311; and the
Office of Management and Budget,
O.I.R.A., Paperwork Reduction Project
0608–0058, Attention PRA Desk Officer
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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 rule will
not have a significant economic impact
on a substantial number of small
entities. The factual basis for this
certification was published with the
proposed rule. No comments were
received regarding the economic impact
of this rule. As a result, no final
regulatory flexibility analysis was
prepared.
List of Subjects in 15 CFR Part 801
International transactions, Economic
statistics, Foreign trade, Penalties,
Reporting and recordkeeping
requirements.
Dated: December 8, 2006.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
For the reasons set forth in the
preamble, BEA amends 15 CFR part 801,
as follows:
I
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:
I
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:
I
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§ 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 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
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
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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.
(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
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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 provide
information on the reason for not
reporting. 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;
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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—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. E6–21429 Filed 12–14–06; 8:45 am]
BILLING CODE 3510–07–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets
in Single-Employer Plans; Interest
Assumptions for Valuing and Paying
Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
cprice-sewell on PROD1PC66 with RULES
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation’s regulations on Benefits
Payable in Terminated Single-Employer
Plans and Allocation of Assets in
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Single-Employer Plans prescribe interest
assumptions for valuing and paying
benefits under terminating singleemployer plans. This final rule amends
the regulations to adopt interest
assumptions for plans with valuation
dates in January 2007. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective January 1, 2007.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: The
PBGC’s regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
Three sets of interest assumptions are
prescribed: (1) A set for the valuation of
benefits for allocation purposes under
section 4044 (found in Appendix B to
Part 4044), (2) a set for the PBGC to use
to determine whether a benefit is
payable as a lump sum and to determine
lump-sum amounts to be paid by the
PBGC (found in Appendix B to Part
4022), and (3) a set for private-sector
pension practitioners to refer to if they
wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology (found in Appendix C to
Part 4022).
This amendment (1) adds to
Appendix B to Part 4044 the interest
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during January 2007, (2)
adds to Appendix B to Part 4022 the
interest assumptions for the PBGC to
use for its own lump-sum payments in
plans with valuation dates during
January 2007, and (3) adds to Appendix
C to Part 4022 the interest assumptions
for private-sector pension practitioners
to refer to if they wish to use lump-sum
interest rates determined using the
PBGC’s historical methodology for
valuation dates during January 2007.
For valuation of benefits for allocation
purposes, the interest assumptions that
the PBGC will use (set forth in
Appendix B to part 4044) will be 4.88
percent for the first 20 years following
the valuation date and 4.55 percent
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thereafter. These interest assumptions
represent a decrease (from those in
effect for December 2006) of 0.92
percent for the first 20 years following
the valuation date and 0.20% for all
years thereafter.
The interest assumptions that the
PBGC will use for its own lump-sum
payments (set forth in Appendix B to
part 4022) will be 2.75 percent for the
period during which a benefit is in pay
status and 4.00 percent during any years
preceding the benefit’s placement in pay
status. These interest assumptions
represent a decrease (from those in
effect for December 2006) of 0.25
percent in the immediate annuity rate
and are otherwise unchanged. For
private-sector payments, the interest
assumptions (set forth in Appendix C to
part 4022) will be the same as those
used by the PBGC for determining and
paying lump sums (set forth in
Appendix B to part 4022).
The PBGC has determined that notice
and public comment on this amendment
are impracticable and contrary to the
public interest. This finding is based on
the need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect current
market conditions as accurately as
possible.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during January 2007, the
PBGC finds that good cause exists for
making the assumptions set forth in this
amendment effective less than 30 days
after publication.
The PBGC has determined that this
action is not a ‘‘significant regulatory
action’’ under the criteria set forth in
Executive Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
List of Subjects
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
I
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]]>Agencies
[Federal Register Volume 71, Number 241 (Friday, December 15, 2006)]
[Rules and Regulations]
[Pages 75417-75420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21429]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
RIN 0691-AA60
[Docket No. 060824224-6310-02]
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: Final rule.
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SUMMARY: This final 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
survey replaces 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. The BE-120 survey will be
conducted once every five years beginning with fiscal year 2006.
The 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 will 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: The final rule will be effective January 16, 2007.
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; e-mail
obie.whichard@bea.gov; or phone (202) 606-9890.
SUPPLEMENTARY INFORMATION: In the September 15, 2006 Federal Register,
71 FR 54448, BEA published a notice of proposed rulemaking setting
forth reporting requirements for the BE-120, Benchmark Survey of
Transactions in Selected Services and Intangible Assets with Foreign
Persons. No comments were received on the proposed rule. However, one
change to the proposed
[[Page 75418]]
rule is nonetheless necessary. The proposed rule referred to a survey
section, ``Basis for not reporting data.'' To improve the clarity of
the survey, this section has been dropped (The information contained in
this section has been redistributed to other parts of the survey.), and
so the reference to this section has been replaced with updated
information. This final rule amends 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.
Description of Changes
The BE-120 survey is a mandatory survey and will 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. 3101-3108), hereinafter, ``the Act.'' BEA will send the
survey to potential respondents in January of 2007; responses are due
by March 31, 2007.
BEA is introducing 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
AssetsCfor 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 intends 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 includes 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,
will 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 will 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 final rule has been determined to be not significant for
purposes of E.O. 12866.
Executive Order 13132
This final rule does not contain policies with Federalism
implications sufficient to warrant preparation of a Federal assessment
under E.O. 13132.
Paperwork Reduction Act
The collection-of-information in this final rule has been approved
by the Office of Management and Budget (OMB) under the Paperwork
Reduction Act.
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 OMB control number for the BE-120 is 0608-0058; the
collection will display this number.
The BE-120 benchmark survey is expected to result in the filing of
reports containing mandatory data from approximately 5,000 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 regarding this 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, fax: 202-606-5311; and the Office of Management and Budget,
O.I.R.A., Paperwork Reduction Project 0608-0058, Attention PRA Desk
Officer
[[Page 75419]]
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 rule will not have a significant economic
impact on a substantial number of small entities. The factual basis for
this certification was published with the proposed rule. No comments
were received regarding the economic impact of this rule. As a result,
no final regulatory flexibility analysis was prepared.
List of Subjects in 15 CFR Part 801
International transactions, Economic statistics, Foreign trade,
Penalties, Reporting and recordkeeping requirements.
Dated: December 8, 2006.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
0
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
0
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.
0
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 Foreign Persons, will be conducted covering
fiscal year 2006 and every fifth year thereafter. All legal
authorities, provisions, definitions, and requirements contained in
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.
(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 provide information on the reason for
not reporting. 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;
[[Page 75420]]
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--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. E6-21429 Filed 12-14-06; 8:45 am]
BILLING CODE 3510-07-P
