Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad, 52802-52804 [E8-21311]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Economic Analysis
• Economic Analysis Bureau

[Federal Register Volume 73, Number 177 (Thursday, September 11, 2008)]
[Proposed Rules]
[Pages 52802-52804]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21311]


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

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 080731960-81014-01]
RIN 0691-AA66


Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct 
Investment Abroad

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 amend the reporting 
requirements for the BE-11, Annual Survey of U.S. Direct Investment 
Abroad. The BE-11 survey is conducted annually and is a sample survey 
that obtains financial and operating data covering U.S. parent 
companies and their foreign affiliates. BEA proposes changes in the 
reporting criteria that will raise the thresholds for reporting.

DATES: Comments on this proposed rule will receive consideration if 
submitted in writing on or before 5 p.m. November 10, 2008.

ADDRESSES: You may submit comments, identified by RIN 0691-AA66, and 
referencing the agency name (Bureau of Economic Analysis), by any of 
the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. For agency, select 
``Commerce Department--all.''
     E-mail: David.Galler@bea.gov.
     Fax: Office of the Chief, Direct Investment Division, 
(202) 606-5318.
     Mail: Office of the Chief, Direct Investment Division, 
U.S. Department of

[[Page 52803]]

Commerce, Bureau of Economic Analysis, BE-50, Washington, DC 20230.
     Hand Delivery/Courier: Office of the Chief, Direct 
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.
    Written comments regarding the burden-hour estimates or other 
aspects of the information-of-collection requirements contained in the 
proposed rule should be sent to both BEA through any of the methods 
above and to the Office of Management and Budget (OMB), O.I.R.A., 
Paperwork Reduction Project 0608-0053, Attention PRA Desk Officer for 
BEA, via e-mail at pbugg@omb.eop.gov, or by FAX at 202-395-7245.
    Public Inspection: All comments received are a part of the public 
record and will generally be posted to https://www.regulations.gov 
without change. All personal identifying information (for example, 
name, address, etc.) voluntarily submitted by the commentator may be 
publicly accessible. Do not submit confidential business information or 
otherwise sensitive or protected information. BEA will accept anonymous 
comments.

FOR FURTHER INFORMATION CONTACT: David H. Galler, Chief, Direct 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; phone (202) 606-9835.

SUPPLEMENTARY INFORMATION: This proposed rule would amend 15 CFR part 
806.14 to set forth the reporting requirements for the BE-11, Annual 
Survey of U.S. Direct Investment Abroad. The Department of Commerce, as 
part of its continuing effort to reduce paperwork and respondent 
burden, invites the general public and other Federal agencies to 
comment on proposed and/or continuing information collections, as 
required by the Paperwork Reduction Act of 1995.

Description of Changes

    The BE-11 survey is a mandatory survey and is conducted annually 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 March of each year; responses will 
be due by May 31.
    In order to align BEA's survey program with available resources, 
which have declined as a result of a recent reduction in BEA's budget, 
BEA proposes changes in the reporting criteria: (a) An increase in the 
threshold for reporting on the BE-11B(SF) short form and BE-11C form 
from $40 million to $60 million; and (b) an increase in the threshold 
for reporting on the BE-11B(LF) long form from $150 million to $225 
million. Majority-owned nonbank affiliates with assets, sales or gross 
operating revenues, or net income (loss) over $60 million but less than 
or equal to $225 million would be filed on a short form; majority-owned 
nonbank affiliates with assets, sales or gross operating revenues, or 
net income (loss) over $225 million would be filed on a long form. 
Minority-owned nonbank affiliates with assets, sales or gross operating 
revenues, or net income (loss) over $60 million would be filed on a C 
form. Two reporting thresholds remain unchanged--the threshold for 
reporting on Form BE-11B(FN) remains at $250 million and the threshold 
for reporting only selected items on Form BE-11A remains at $150 
million.

Survey Background

    The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, 
conducts the BE-11 survey under the authority of the International 
Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108), 
hereinafter, ``the Act.'' Section 4(a) of the Act requires that the 
President shall, to the extent he deems necessary and feasible, conduct 
a regular data collection program to secure current information on 
international financial flows and other information related to 
international investment and trade in services, including (but not 
limited to) such information as may be necessary for computing and 
analyzing the United States balance of payments, the employment and 
taxes of United States parents and affiliates, and the international 
investment and trade in services position of the United States.
    In Section 3 of Executive Order 11961, as amended by Executive 
Orders 12318 and 12518, the President delegated the responsibility for 
performing functions under the Act concerning direct investment to the 
Secretary of Commerce, who has redelegated it to BEA. The annual survey 
of U.S. direct investment abroad is a sample survey that collects 
information on a variety of measures of the overall operations of U.S. 
parent companies and their foreign affiliates, including total assets, 
sales, net income, employment and employee compensation, research and 
development expenditures, and exports and imports of goods. The sample 
data are used to derive universe estimates in nonbenchmark years from 
similar data reported in the BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad, which is taken every five years. The data are needed 
to measure the size and economic significance of direct investment 
abroad, measure changes in such investment, and assess its impact on 
the U.S. and foreign economies. The data are disaggregated by country 
and industry of the foreign affiliate and by industry of the U.S. 
parent.

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 as that term is defined in 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 (PRA). The requirement will be 
submitted to the OMB for approval as a revision to a collection 
currently approved under OMB control number 0608-0053.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection-of-information subject to the 
requirements of the Paperwork Reduction Act unless that collection 
displays a currently valid OMB control number.
    The BE-11 survey, as proposed, is expected to result in the filing 
of reports from approximately 1,550 respondents. The respondent burden 
for this collection of information will vary from one company to 
another, but is estimated to average 99.3 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 of the 
survey is estimated at 153,850 hours (1,550 respondents times 99.3 
hours average burden). Although the proposed amendments to the 
reporting rules lower respondent burden, this estimate is somewhat 
above the burden of 122,900 hours currently carried for this survey in 
the OMB inventory, due to growth in the number and size of U.S. parent 
companies and foreign affiliates since the survey was last cleared.
    Comments are requested concerning: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the

[[Page 52804]]

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.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection of information requirements contained in the 
proposed rule should be sent to both BEA and OMB following the 
instructions given in the ADDRESSES section above.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration, under the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 605(b)), that this proposed rulemaking, if adopted, will not 
have a significant economic impact on a substantial number of small 
entities. Few small U.S. businesses are subject to the reporting 
requirements of this survey. U.S. companies that have direct 
investments abroad tend to be quite large, thereby excluding them from 
the definition of small entity. The proposed changes to the BE-11 
annual survey would not increase the burden on small businesses. The 
exemption level for the BE-11 survey is set in terms of the size of a 
U.S. company's foreign affiliates (foreign companies owned 10 percent 
or more by the U.S. company); if a foreign affiliate has total assets, 
sales, or net income (loss) greater than the exemption level, it must 
be reported on Form BE-11B(LF), BE-11B(SF), BE-11B(FN), BE-11B(EZ), or 
BE-11C. With the increase in the exemption level for the BE-11 survey 
for nonbank affiliates of nonbank U.S. Reporters from $40 million to 
$60 million, the burden on small businesses would not increase and is 
likely to decrease since the U.S. parent company required to file the 
report is typically many times larger than its largest foreign 
affiliate. BEA estimates that about 1,700 majority-owned nonbank 
foreign affiliates will shift from being reported on the long form to 
the short form under the $225 million exemption level. About 3,000 
nonbank foreign affiliates will no longer be required to be reported 
under the $60 million exemption level; almost 4,000 foreign affiliates 
were added to the sample due to growth in the universe since the 2004 
BE-10 benchmark survey. About 200 U.S. Reporters will no longer be 
required to report the annual survey because all of their affiliates 
would be exempt.
    Because few small businesses are impacted by this rule, and because 
those small businesses that are impacted are subject to only minimal 
recordkeeping burdens, the Chief Counsel for Regulation certifies that 
this proposed rule will not have a significant economic impact on a 
substantial number of small entities.

List of Subjects in 15 CFR Part 806

    Economic statistics, Multinational corporations, Penalties, 
Reporting and recordkeeping requirements, U.S. investment abroad.

    Dated: August 20, 2008.
Rosemary Marcuss,
Acting Director, Bureau of Economic Analysis.

    For the reasons set forth in the preamble, BEA proposes to amend 15 
CFR part 806 as follows:

PART 806--DIRECT INVESTMENT SURVEYS

    1. The authority citation for 15 CFR part 806 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 22 U.S.C. 3101-3108; 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. Sections 806.14(f)(3)(ii) introductory text, (f)(3)(ii)(A) and 
(B), (f)(3)(iv), (f)(3)(v) introductory text, and (f)(3)(v)(A) are 
revised to read as follows:


Sec.  806.14  U.S. Direct Investment Abroad.

* * * * *
    (f) * * *
    (3) * * *
    (ii) Forms BE-11B(LF), (SF), and (EZ) (Report for Majority-owned 
Nonbank Foreign Affiliate of Nonbank U.S. Reporter).
    (A) A BE-11B(LF) (Long Form) must be filed for each majority-owned 
nonbank foreign affiliate of a nonbank U.S. Reporter for which any one 
of the three items--total assets, sales or gross operating revenues 
excluding sales taxes, or net income after provision for foreign income 
taxes--was greater than $225 million (positive or negative) at the end 
of, or for, the affiliate's fiscal year, unless the nonbank foreign 
affiliate is selected to be reported on Form BE-11B(EZ).
    (B) A BE-11B(SF) (Short Form) must be filed for each majority-owned 
nonbank foreign affiliate of a nonbank U.S. Reporter for which any one 
of the three items listed in paragraph (f)(3)(ii)(A) of this section 
was greater than $60 million (positive or negative), but for which no 
one of these items was greater than $225 million (positive or 
negative), at the end of, or for, the affiliate's fiscal year, unless 
the nonbank foreign affiliate is selected to be reported on Form BE-
11B(EZ).
* * * * *
    (iv) Form BE-11C (Report for Minority-owned Nonbank Foreign 
Affiliate of Nonbank U.S. Reporter) must be filed for each minority-
owned nonbank foreign affiliate of a nonbank U.S. Reporter that is 
owned at least 20 percent, but not more than 50 percent, directly and/
or indirectly, by all U.S. Reporters of the affiliate combined, and for 
which any one of the three items listed in paragraph (f)(3)(ii)(A) of 
this section was greater than $60 million (positive or negative) at the 
end of, or for, the affiliate's fiscal year.
    (v) Based on the preceding, an affiliate is exempt from being 
reported if it meets any one of the following criteria:
    (A) For nonbank affiliates of nonbank U.S. Reporters, none of the 
three items listed in paragraph (f)(3)(ii)(A) of this section exceeds 
$60 million (positive or negative). However, affiliates that were 
established or acquired during the year and for which at least one of 
these items was greater than $10 million but not over $60 million must 
be listed, and key data items reported, on a supplement schedule on 
Form BE-11A.
* * * * *
[FR Doc. E8-21311 Filed 9-10-08; 8:45 am]
BILLING CODE 3510-06-P