Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad, 1590-1591 [E9-463]

Agencies

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

[Federal Register Volume 74, Number 8 (Tuesday, January 13, 2009)]
[Rules and Regulations]
[Pages 1590-1591]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-463]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 080731960-81629-02]
RIN 0691-AA66


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

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 change 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 the overall 
operations of U.S. parent companies and their foreign affiliates. BEA 
is making changes in the reporting criteria that will raise the 
thresholds for reporting on the survey.

DATES: This final rule will be effective February 12, 2009.

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 or 
e-mail (david.galler@bea.gov).

SUPPLEMENTARY INFORMATION: In the September 11, 2008, Federal Register, 
73 FR 52802-52804, BEA published a notice of proposed rulemaking 
setting forth revised reporting criteria for the BE-11, Annual Survey 
of U.S. Direct Investment Abroad. No comments on the proposed rule were 
received. Thus, the proposed rule is adopted without change. This final 
rule amends 15 CFR 806.14 to set forth the reporting requirements for 
the BE-11, Annual Survey of U.S. Direct Investment Abroad.

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.
    This final rule changes the reporting criteria on the BE-11 annual 
survey as follows: (a) The threshold for reporting on the BE-11B(SF) 
short form and BE-11C form increases from $40 million to $60 million, 
and (b) the threshold for reporting on the BE-11B(LF) long form 
increases 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 
will be filed on the BE-11B(SF) short form; majority-owned nonbank 
affiliates with assets, sales or gross operating revenues, or net 
income (loss) over $225 million will be filed on the BE-11B(LF) long 
form. Minority-owned nonbank affiliates with assets, sales or gross 
operating revenues, or net income (loss) over $60 million will be filed 
on the BE-11C 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 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 Federalism 
assessment under E.O. 13132.

Paperwork Reduction Act

    The collection-of-information in this final rule was submitted to 
the Office of Management and Budget (OMB) for review and approval under 
the Paperwork Reduction Act (PRA). OMB approved the information 
collection under 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 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

[[Page 1591]]

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 amendments to the reporting rules 
lower respondent burden, the total estimated burden hours are higher 
than the currently estimated hours of 122,900 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.
    Written comments regarding the burden-hour estimates or any other 
aspect of the information-of-collection requirements contained in the 
final rule should be sent to (1) the Bureau of Economic Analysis via 
mail to U.S. Department of Commerce, Bureau of Economic Analysis, 
Office of the Chief, Direct Investment Division, BE-50, Washington, DC 
20230; via e-mail at David.Galler@bea.gov; or by FAX at 202-606-5311 
and (2) the Office of Management and Budget, 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.

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 rule will not have a significant economic 
impact on a substantial number of small entities. The factual basis for 
the certification was published in the proposed rule and is not 
repeated here. No comments were received regarding the economic impact 
of the rule. As a result, no final regulatory flexibility analysis was 
prepared.

List of Subjects in 15 CFR Part 806

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

    Dated: December 16, 2008.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

0
For the reasons set forth in the preamble, BEA amends 15 CFR Part 806 
as follows:

PART 806--DIRECT INVESTMENT SURVEYS

0
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).


0
2. Section 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. E9-463 Filed 1-12-09; 8:45 am]
BILLING CODE 3510-06-P