International Services Surveys: Amendments to the BE-120, Benchmark Survey of Transactions in Selected Services and Intangible Assets With Foreign Persons, 76029-76032 [2011-30914]

Download as PDF Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Rules and Regulations 76029 TABLE 2—REMOVAL OF STAGE 2 HPT AIRSEALS, P/N 53L030, BY CSN—Continued For engine model . . . Remove stage 2 HPT airseal by . . . (2) Listed in paragraph (c)(2)(i) of the Applicability Section of this AD ................................................................................................. (3) Listed in paragraph (c)(2)(ii) of the Applicability Section of this AD ................................................................................................ 13,800 CSN. 15,900 CSN. (h) Removing From Service, the Stage 1 HPT Airseal Ring, P/N 50L664 Remove the stage 1 HPT airseal ring, P/N 50L664, at the next piece-part exposure after the effective date of this AD or before accumulating the number of cycles listed in Table 3 of this AD, whichever occurs later. TABLE 3—REMOVAL OF STAGE 1 HPT AIRSEAL RING, P/N 50L664, BY CSN For engine model . . . Remove stage 1 HPT airseal ring by * * * (1) Listed in paragraph (c)(2)(i) of the Applicability Section of this AD ................................................................................................. (2) Listed in paragraph (c)(2)(ii) of the Applicability Section of this AD ................................................................................................ 14,800 CSN. 16,800 CSN. (i) Installation Prohibition DEPARTMENT OF COMMERCE After the effective date of this AD, do not install any stage 1 HPT airseal, P/N 50L879, stage 2 HPT airseal, P/N 53L030, or stage 1 HPT airseal ring, P/N 50L664, that is at piecepart exposure and exceeds the new life limit listed in Table 1, Table 2, or Table 3 of this AD. Bureau of Economic Analysis 15 CFR Part 801 [Docket No. 110112021–1680–03] RIN 0691–AA76 For the purpose of this AD, piece-part exposure means that the part is completely disassembled and removed from the engine. (k) Alternative Methods of Compliance (AMOCs) International Services Surveys: Amendments to the BE–120, Benchmark Survey of Transactions in Selected Services and Intangible Assets With Foreign Persons AGENCY: (j) Definitions The Manager, Engine Certification Office, FAA, may approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make your request. (l) Related Information For more information about this AD, contact James Gray, Aerospace Engineer, Engine Certification Office, FAA, 12 New England Executive Park, Burlington, MA 01803; phone: (781) 238–7742; fax: (781) 238–7199; email: james.e.gray@faa.gov. (m) Material Incorporated by Reference None. tkelley on DSK3SPTVN1PROD with RULES Issued in Burlington, MA, on November 30, 2011. Peter A. White, Manager, Engine & Propeller Directorate, Aircraft Certification Service. [FR Doc. 2011–31177 Filed 12–5–11; 8:45 am] BILLING CODE 4910–13–P VerDate Mar<15>2010 15:05 Dec 05, 2011 Jkt 226001 Bureau of Economic Analysis, Commerce. ACTION: Final rule. This final rule amends the 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 Intellectual Property with Foreign Persons. The amended regulations for the BE–120 include both definition changes and the addition of three schedules to better collect data in accordance with new international economic accounting standards. In addition, this rule changes the BE–120 survey title from ‘‘Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons’’ to ‘‘Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons’’ because the term ‘‘intellectual property’’ is better understood by U.S. respondents. The BE–120 survey covers transactions in selected services and SUMMARY: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 intellectual property with foreign persons in benchmark years. In nonbenchmark years, the universe estimates for these transactions are derived from sample data reported on BEA’s followon survey, which is the Quarterly Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons (BE–125). The data collected by the BE–120 will be used by BEA to estimate the trade in services component of the U.S. International Transactions Accounts and other economic accounts compiled by BEA. The data are also needed by the U.S. government to monitor U.S. exports and imports of selected services and intellectual property; analyze their impact on the U.S. and foreign economies; support U.S. international trade policy for selected services and intellectual property; and assess and promote U.S. competitiveness in international trade in services. In addition, the data will improve the ability of U.S. businesses to identify and evaluate market opportunities. DATES: The final rule is effective January 5, 2012. FOR FURTHER INFORMATION CONTACT: Chris Emond, Chief, Special Surveys Branch, Balance of Payments Division (BE–50), Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230; email Christopher.Emond@bea.gov; or phone (202) 606–9826. SUPPLEMENTARY INFORMATION: This rule amends 15 CFR 801.10 to update certain reporting requirements for the BE–120, Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons. The revised E:\FR\FM\06DER1.SGM 06DER1 76030 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Rules and Regulations regulations for the BE–120 include both definition changes and the addition of three schedules to better collect data in accordance with new international standards. In addition, this rule would change the title of the BE–120 survey and make other non-substantive format changes to the regulations. In the August 12, 2011 Federal Register (76 FR 50158–50161), BEA published a notice of proposed rulemaking to amend 15 CFR 801.10 to set forth the 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. Thus, the proposed rule is adopted without change. tkelley on DSK3SPTVN1PROD with RULES Description of Changes Upon the effective date of this rule, BEA will conduct the revised BE–120 survey every five years, with the initial survey covering fiscal year 2011, pursuant to the authority provided by the International Investment and Trade in Services Survey Act (Pub. L. 94–472, 90 Stat. 2059, 22 U.S.C. 3101–3108), hereinafter, ‘‘the Act.’’ The revised BE– 120 survey covers purchases from and sales to foreign persons of any of the 36 types of services or intellectual property listed in paragraph 801.10(c) in benchmark years. In non-benchmark years, the universe estimates for these transactions are derived from sample data reported on BEA’s follow-on survey, which is the Quarterly Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons (BE–125). BEA will send the survey to potential respondents in March of 2012; responses will be due by June 30, 2012. This rule revises the regulations for the BE–120 to collect data on a mandatory basis for the same services categories that were covered by the previous version of the survey. However, this rule revises the definition of covered services; some of the services categories that were included in the ‘‘other selected services’’ category in the prior survey will be collected separately. These services include agricultural services; disbursements to fund production costs of motion pictures; disbursements to fund newsgathering costs and production costs of program material other than news; and waste treatment and depollution services. This rule also makes nonsubstantive format changes to the definition of covered services for better organization. Specifically, this rule numbers the types of services or intellectual property into a list of 36 transactions. VerDate Mar<15>2010 15:05 Dec 05, 2011 Jkt 226001 In addition, this rule revises the regulations for the BE–120 survey to include three new schedules, Schedules D, E and F, to collect, on a voluntary basis, additional information related to intellectual property, contract manufacturing services, and merchanting services. The regulations at 15 U.S.C. 801.10(b)(ii) are amended to describe the three new schedules, to indicate the entity that is to complete each schedule, and to provide instructions for the type of data to be reported. For example, Schedule D is to be completed by a U.S. person who engages in contract manufacturing services transactions with foreign persons. Schedule E is to be completed by a U.S. person who engages in intellectual property transactions with foreign persons. Schedule F is to be completed by U.S. persons who engage in merchanting services transactions with foreign persons. Responses from these schedules will help BEA determine whether respondents are able to supply data in a manner that will allow BEA to publish statistics on international services transactions in accordance with international economic accounting guidelines. Finally, this rule changes the BE–120 survey title from ‘‘Benchmark Survey of Transactions in Selected Services and Intangible Assets with Foreign Persons’’ to ‘‘Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons’’ because the term ‘‘intellectual property’’ is better understood by U.S. respondents. 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 reaching decisions about the 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, annual, and quarterly surveys. 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), which provides that the President shall, to the extent he deems necessary and feasible, conduct a regular data collection program to secure current PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 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 the responsibilities under the Act for performing functions concerning international trade in services to the Secretary of Commerce, who has redelegated them to BEA. Data from the survey are needed to monitor U.S. exports and imports of selected services and intellectual property; 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. international trade policy for services and intellectual property; 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 as that term is defined under E.O. 13132. Paperwork Reduction Act The collection-of-information requirement in this final rule has been approved by the Office of Management and Budget (OMB) under Control Number 0608–0058 pursuant to the requirements of 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 benchmark survey is expected to result in the filing of reports from approximately 15,000 respondents. Approximately 7,500 respondents will report either mandatory or voluntary data on the survey and approximately 7,500 will file exemption claims. The respondent burden for this collection of information will vary from one respondent to another, but is estimated E:\FR\FM\06DER1.SGM 06DER1 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Rules and Regulations to average twelve hours for the respondents that file mandatory or voluntary data. This estimate includes time for reviewing the instructions, searching existing data sources, gathering and maintaining the required data, and completing and reviewing the collection of information. For other responses, the estimate is two hours. Thus, the total respondent burden for the survey is estimated at 105,000 hours. 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. Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in the final rule should be sent both to Christopher.emond@bea.gov and to the Office of Management and Budget, O.I.R.A., Paperwork Reduction Project, Attention PRA Desk Officer for BEA, via email 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 and is not repeated here. No comments were received regarding the economic impact of this rule. As a result, final regulatory flexibility analysis is not required and none was prepared. List of Subjects in 15 CFR Part 801 tkelley on DSK3SPTVN1PROD with RULES International transactions, Economic statistics, Foreign trade, Penalties, Reporting and recordkeeping requirements. Dated: November 22, 2011. J. Steven Landefeld, Director, Bureau of Economic Analysis. For the reasons set forth in the preamble, BEA amends 15 CFR part 801, as follows: VerDate Mar<15>2010 15:05 Dec 05, 2011 Jkt 226001 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. Revise § 801.10 to read as follows: § 801.10 Rules and regulations for the BE– 120, Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons. The BE–120, Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons, will be conducted covering fiscal year 2011 and every fifth year thereafter. All legal authorities, provisions, definitions, and requirements contained in section 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 six schedules. Part I requests information needed to contact the respondent and the reporting period. Part II requests information needed to determine whether a report is required and information about the reporting entity. Each of the six 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 intellectual property 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 intellectual property listed in paragraph (c) of this section. 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. (i) The determination of whether a U.S. person is subject to this mandatory reporting requirement may be judgmental, that is, based on the PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 76031 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. (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 values of transactions applicable to schedules A, B, and C 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. Schedule D is to be completed by a U.S. person who engages in contract manufacturing services transactions with foreign persons. Schedule E is to be completed by a U.S. person who engages in intellectual property transactions with foreign persons. Schedule F is to be completed by U.S. persons who engage in merchanting services transactions with foreign persons. (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 subject to the mandatory reporting requirements and chooses not to report voluntarily, must file an exemption claim by completing pages one through five of the BE–120 survey and returning it to BEA. This requirement is necessary to ensure compliance with reporting E:\FR\FM\06DER1.SGM 06DER1 tkelley on DSK3SPTVN1PROD with RULES 76032 Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Rules and Regulations requirements and efficient administration of the Act by eliminating unnecessary follow-up contact. (c) Covered types of services. The services covered by the BE–120 include sales and purchases for the following transactions (transaction types 1–8 include rights to use, rights to distribute, or outright sales or purchases): (1) Rights related to industrial processes and products; (2) Rights related to books, CD’s, digital music, etc.; (3) Rights related to trademarks; (4) Rights related to performances and events pre-recorded on motion picture film and TV tape (including digital recordings); (5) Rights related to broadcast and recording of live performances and events; (6) Rights related to general use computer software; (7) Business format franchising fees; (8) Other intellectual property; (9) Accounting, auditing, and bookkeeping services; (10) Advertising services; (11) Auxiliary insurance services; (12) Computer and data processing services; (13) Construction services; (14) Data base and other information services; (15) Educational and training services; (16) Engineering, architectural, and surveying services; (17) Financial services (purchases only); (18) Industrial engineering services; (19) Industrial-type maintenance, installation, alteration, and training services; (20) Legal services; (21) Management, consulting, and public relations services (includes expenses allocated to/from a parent and its affiliates); (22) Merchanting services; (23) Mining services; (24) Operational leasing services; (25) Trade-related services, other than merchanting services; (26) Performing arts, sports, and other live performances, presentations, and events; (27) Premiums paid on primary insurance (payments only); (28) Losses recovered on primary insurance; (29) Research and development services; (30) Telecommunications services; (31) Agricultural services; (32) Contract manufacturing services; (33) Disbursements to fund production costs of motion pictures; (34) Disbursements to fund newsgathering costs and production costs of program material other than news; VerDate Mar<15>2010 15:05 Dec 05, 2011 Jkt 226001 (35) Waste treatment and depollution services; and (36) Other selected services. [FR Doc. 2011–30914 Filed 12–5–11; 8:45 am] BILLING CODE 3510–06–P Background DEPARTMENT OF STATE 22 CFR Part 22 [Public Notice 7706] RIN 1400–AC57 Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates AGENCY: Bureau of Consular Affairs, State. ACTION: Final rule. This rule adopts without change the interim final rule published in the Federal Register, 75 FR 28188, on May 20, 2010 (Public Notice 7018). Specifically, the rule proposed changes to the Schedule of Fees for Consular Services (Schedule) for nonimmigrant visa and border crossing card application processing fees. This rulemaking adopts as final the change from $131 to $140 for the fee charged for the processing of an application for most non-petition-based nonimmigrant visas (Machine-Readable Visas or MRVs) and adult Border Crossing Cards (BCCs). The rule also provides new tiers of the application fee for certain categories of petition-based nonimmigrant visas and treaty trader and investor visas. Finally, the rule adopts as final the increase in the BCC fee charged to Mexican citizens under age 15 who apply in Mexico, and whose parent or guardian already has a BCC or is applying for one, from $13 to $14. This latter change results from a congressionally mandated surcharge that went into effect in 2009. The Department of State is adjusting the fees to ensure that sufficient resources are available to meet the costs of providing consular services in light of an independent cost of service study’s findings that the U.S. Government is not fully covering its costs for the processing of these visas under the current cost structure. The Department endeavors to recover the cost of providing services that benefit specific individuals, as opposed to the general public. See OMB Circular A–25, section 6(a)(1), (a)(2)(a). For this reason, the Department has adjusted the Schedule. DATES: Effective Date: This rule is effective December 6, 2011. FOR FURTHER INFORMATION CONTACT: Polly Hill, Office of the Comptroller, SUMMARY: PO 00000 Frm 00006 Fmt 4700 Bureau of Consular Affairs, Department of State; phone: (202) 663–1301, telefax: (202) 663–2599; email: fees@state.gov. SUPPLEMENTARY INFORMATION: Sfmt 4700 For the complete explanation of the background of this rule, including the rationale for it, the Department’s authority to make the fee changes in question, and an explanation of the CoSM that produced the fee amounts, consult the prior public notices: 75 FR 66076 (Dec. 14, 2009); 75 FR 14111 (Mar. 24, 2010); and 75 FR 28188 (May 20, 2010). The Department published a proposed rule in the Federal Register, 74 FR 66076, on December 14, 2009, proposing to amend 22 CFR 22.1. Specifically, the rule proposed changes to the Schedule of Fees for Consular Services for nonimmigrant visa and border crossing card application processing fees, and provided 60 days for comments from the public. In response to requests by the public for more information and a further opportunity to submit comments, the Department published a supplementary notice in the Federal Register, 75 FR 14111, on March 24, 2010. The supplementary notice provided a more detailed explanation of the CoSM, the activity-based costing model that the Department used to determine the proposed fees for consular services, and reopened the comment period for an additional 15 days. During this and the previous 60day comment period, 81 comments were received, either by email or through the submission process at www.regulations.gov. The Department analyzed these 81 comments in the interim final rule at 75 FR 28188, 28190–82, and does not reproduce that analysis here. Instead, the current notice addresses only the additional comments received in the further 60 days during which the comment period for this interim final rule was open. In total, the public has been given 135 days to comment on this change to the Schedule of Fees. This rule establishes the following fees for these categories corresponding to projected cost figures for the visa category as determined by the CoSM. These fees incorporate the $1 Wilberforce surcharge that must be added to all nonimmigrant MRVs, see Public Law 110–457, Title II, § 239(a): —H, L, O, P, Q, and R: $150; —E: $390; and —K: $350. The Department rounded these fees to the nearest $10 for the ease of converting to foreign currencies, which E:\FR\FM\06DER1.SGM 06DER1

Agencies

[Federal Register Volume 76, Number 234 (Tuesday, December 6, 2011)]
[Rules and Regulations]
[Pages 76029-76032]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30914]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 110112021-1680-03]
RIN 0691-AA76


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

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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

SUMMARY: This final rule amends the 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 Intellectual Property with Foreign Persons. 
The amended regulations for the BE-120 include both definition changes 
and the addition of three schedules to better collect data in 
accordance with new international economic accounting standards. In 
addition, this rule changes the BE-120 survey title from ``Benchmark 
Survey of Transactions in Selected Services and Intangible Assets with 
Foreign Persons'' to ``Benchmark Survey of Transactions in Selected 
Services and Intellectual Property with Foreign Persons'' because the 
term ``intellectual property'' is better understood by U.S. 
respondents.
    The BE-120 survey covers transactions in selected services and 
intellectual property with foreign persons in benchmark years. In non-
benchmark years, the universe estimates for these transactions are 
derived from sample data reported on BEA's follow-on survey, which is 
the Quarterly Survey of Transactions in Selected Services and 
Intangible Assets with Foreign Persons (BE-125).
    The data collected by the BE-120 will be used by BEA to estimate 
the trade in services component of the U.S. International Transactions 
Accounts and other economic accounts compiled by BEA. The data are also 
needed by the U.S. government to monitor U.S. exports and imports of 
selected services and intellectual property; analyze their impact on 
the U.S. and foreign economies; support U.S. international trade policy 
for selected services and intellectual property; and assess and promote 
U.S. competitiveness in international trade in services. In addition, 
the data will improve the ability of U.S. businesses to identify and 
evaluate market opportunities.

DATES: The final rule is effective January 5, 2012.

FOR FURTHER INFORMATION CONTACT: Chris Emond, Chief, Special Surveys 
Branch, Balance of Payments Division (BE-50), Bureau of Economic 
Analysis, U.S. Department of Commerce, Washington, DC 20230; email 
Christopher.Emond@bea.gov; or phone (202) 606-9826.

SUPPLEMENTARY INFORMATION: This rule amends 15 CFR 801.10 to update 
certain reporting requirements for the BE-120, Benchmark Survey of 
Transactions in Selected Services and Intangible Assets with Foreign 
Persons. The revised

[[Page 76030]]

regulations for the BE-120 include both definition changes and the 
addition of three schedules to better collect data in accordance with 
new international standards. In addition, this rule would change the 
title of the BE-120 survey and make other non-substantive format 
changes to the regulations.
    In the August 12, 2011 Federal Register (76 FR 50158-50161), BEA 
published a notice of proposed rulemaking to amend 15 CFR 801.10 to set 
forth the 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. Thus, the 
proposed rule is adopted without change.

Description of Changes

    Upon the effective date of this rule, BEA will conduct the revised 
BE-120 survey every five years, with the initial survey covering fiscal 
year 2011, pursuant to the authority provided by the International 
Investment and Trade in Services Survey Act (Pub. L. 94-472, 90 Stat. 
2059, 22 U.S.C. 3101-3108), hereinafter, ``the Act.'' The revised BE-
120 survey covers purchases from and sales to foreign persons of any of 
the 36 types of services or intellectual property listed in paragraph 
801.10(c) in benchmark years. In non-benchmark years, the universe 
estimates for these transactions are derived from sample data reported 
on BEA's follow-on survey, which is the Quarterly Survey of 
Transactions in Selected Services and Intangible Assets with Foreign 
Persons (BE-125). BEA will send the survey to potential respondents in 
March of 2012; responses will be due by June 30, 2012.
    This rule revises the regulations for the BE-120 to collect data on 
a mandatory basis for the same services categories that were covered by 
the previous version of the survey. However, this rule revises the 
definition of covered services; some of the services categories that 
were included in the ``other selected services'' category in the prior 
survey will be collected separately. These services include 
agricultural services; disbursements to fund production costs of motion 
pictures; disbursements to fund news-gathering costs and production 
costs of program material other than news; and waste treatment and 
depollution services. This rule also makes non-substantive format 
changes to the definition of covered services for better organization. 
Specifically, this rule numbers the types of services or intellectual 
property into a list of 36 transactions.
    In addition, this rule revises the regulations for the BE-120 
survey to include three new schedules, Schedules D, E and F, to 
collect, on a voluntary basis, additional information related to 
intellectual property, contract manufacturing services, and merchanting 
services. The regulations at 15 U.S.C. 801.10(b)(ii) are amended to 
describe the three new schedules, to indicate the entity that is to 
complete each schedule, and to provide instructions for the type of 
data to be reported. For example, Schedule D is to be completed by a 
U.S. person who engages in contract manufacturing services transactions 
with foreign persons. Schedule E is to be completed by a U.S. person 
who engages in intellectual property transactions with foreign persons. 
Schedule F is to be completed by U.S. persons who engage in merchanting 
services transactions with foreign persons. Responses from these 
schedules will help BEA determine whether respondents are able to 
supply data in a manner that will allow BEA to publish statistics on 
international services transactions in accordance with international 
economic accounting guidelines.
    Finally, this rule changes the BE-120 survey title from ``Benchmark 
Survey of Transactions in Selected Services and Intangible Assets with 
Foreign Persons'' to ``Benchmark Survey of Transactions in Selected 
Services and Intellectual Property with Foreign Persons'' because the 
term ``intellectual property'' is better understood by U.S. 
respondents.
    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 reaching decisions about the 
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, 
annual, and quarterly surveys.

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), which 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 the responsibilities 
under the Act for performing functions concerning international trade 
in services to the Secretary of Commerce, who has redelegated them to 
BEA.
    Data from the survey are needed to monitor U.S. exports and imports 
of selected services and intellectual property; 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. international trade policy for services 
and intellectual property; 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 as that term is defined under E.O. 13132.

Paperwork Reduction Act

    The collection-of-information requirement in this final rule has 
been approved by the Office of Management and Budget (OMB) under 
Control Number 0608-0058 pursuant to the requirements of 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 benchmark survey is expected to result in the filing of reports 
from approximately 15,000 respondents. Approximately 7,500 respondents 
will report either mandatory or voluntary data on the survey and 
approximately 7,500 will file exemption claims. The respondent burden 
for this collection of information will vary from one respondent to 
another, but is estimated

[[Page 76031]]

to average twelve hours for the respondents that file mandatory or 
voluntary data. This estimate includes time for reviewing the 
instructions, searching existing data sources, gathering and 
maintaining the required data, and completing and reviewing the 
collection of information. For other responses, the estimate is two 
hours. Thus, the total respondent burden for the survey is estimated at 
105,000 hours.
    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.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
final rule should be sent both to Christopher.emond@bea.gov and to the 
Office of Management and Budget, O.I.R.A., Paperwork Reduction Project, 
Attention PRA Desk Officer for BEA, via email 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 and is not 
repeated here. No comments were received regarding the economic impact 
of this rule. As a result, final regulatory flexibility analysis is not 
required and none was prepared.

List of Subjects in 15 CFR Part 801

    International transactions, Economic statistics, Foreign trade, 
Penalties, Reporting and recordkeeping requirements.

     Dated: November 22, 2011.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

    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. Revise Sec.  801.10 to read as follows:


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

    The BE-120, Benchmark Survey of Transactions in Selected Services 
and Intellectual Property with Foreign Persons, will be conducted 
covering fiscal year 2011 and every fifth year thereafter. All legal 
authorities, provisions, definitions, and requirements contained in 
section 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 six schedules. Part 
I requests information needed to contact the respondent and the 
reporting period. Part II requests information needed to determine 
whether a report is required and information about the reporting 
entity. Each of the six 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 intellectual property 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 
intellectual property listed in paragraph (c) of this section. 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.
    (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.
    (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 values of transactions applicable to 
schedules A, B, and C 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. Schedule D is to be completed by a U.S. person who engages 
in contract manufacturing services transactions with foreign persons. 
Schedule E is to be completed by a U.S. person who engages in 
intellectual property transactions with foreign persons. Schedule F is 
to be completed by U.S. persons who engage in merchanting services 
transactions with foreign persons.
    (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 subject to the mandatory reporting requirements and chooses 
not to report voluntarily, must file an exemption claim by completing 
pages one through five of the BE-120 survey and returning it to BEA. 
This requirement is necessary to ensure compliance with reporting

[[Page 76032]]

requirements and efficient administration of the Act by eliminating 
unnecessary follow-up contact.
    (c) Covered types of services. The services covered by the BE-120 
include sales and purchases for the following transactions (transaction 
types 1-8 include rights to use, rights to distribute, or outright 
sales or purchases):
    (1) Rights related to industrial processes and products;
    (2) Rights related to books, CD's, digital music, etc.;
    (3) Rights related to trademarks;
    (4) Rights related to performances and events pre-recorded on 
motion picture film and TV tape (including digital recordings);
    (5) Rights related to broadcast and recording of live performances 
and events;
    (6) Rights related to general use computer software;
    (7) Business format franchising fees;
    (8) Other intellectual property;
    (9) Accounting, auditing, and bookkeeping services;
    (10) Advertising services;
    (11) Auxiliary insurance services;
    (12) Computer and data processing services;
    (13) Construction services;
    (14) Data base and other information services;
    (15) Educational and training services;
    (16) Engineering, architectural, and surveying services;
    (17) Financial services (purchases only);
    (18) Industrial engineering services;
    (19) Industrial-type maintenance, installation, alteration, and 
training services;
    (20) Legal services;
    (21) Management, consulting, and public relations services 
(includes expenses allocated to/from a parent and its affiliates);
    (22) Merchanting services;
    (23) Mining services;
    (24) Operational leasing services;
    (25) Trade-related services, other than merchanting services;
    (26) Performing arts, sports, and other live performances, 
presentations, and events;
    (27) Premiums paid on primary insurance (payments only);
    (28) Losses recovered on primary insurance;
    (29) Research and development services;
    (30) Telecommunications services;
    (31) Agricultural services;
    (32) Contract manufacturing services;
    (33) Disbursements to fund production costs of motion pictures;
    (34) Disbursements to fund news-gathering costs and production 
costs of program material other than news;
    (35) Waste treatment and depollution services; and
    (36) Other selected services.

[FR Doc. 2011-30914 Filed 12-5-11; 8:45 am]
BILLING CODE 3510-06-P