[Federal Register Volume 76, Number 67 (Thursday, April 7, 2011)]
[Proposed Rules]
[Pages 19282-19284]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7769]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 806
[Docket No. 110321207-1206-01 0691-AA78
Direct Investment Surveys: Alignment of Regulations With Current
Practices
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Economic Analysis (BEA) proposes to amend its
regulations related to direct investment surveys. Specifically, BEA
proposes to eliminate reporting requirements for several direct
investment surveys that are no longer necessary because the information
is collected on other surveys of direct investment conducted by BEA.
The surveys that would be eliminated from the regulations are: a survey
of foreign direct investment in the U.S. seafood industry (BE-21), two
schedules of expenditures for property, plant, and equipment of U.S.
direct investment abroad (BE-133B and BE-133C), and two industry
classification questionnaires (BE-507 and BE-607). In addition, BEA
proposes to eliminate the reporting requirements for two surveys of new
foreign direct investment in the United States (BE-13 and BE-14). BEA
suspended collection of these surveys in 2009 in order to align its
international survey program with available resources. BEA also
proposes other minor revisions to its regulations to eliminate outdated
information.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before June 6, 2011.
ADDRESSES: You may submit comments, identified by RIN 0691-AA78, and
referencing the agency name (Bureau of Economic Analysis), by any of
the following methods:
Federal eRulemaking Portal: http://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 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 collection-of-information requirements contained in the
proposed rule should be sent both to BEA, through any of the methods
above, and to the Office of Management and Budget, O.I.R.A., Paperwork
Reduction Project 0608-0024, 0608-0030, 0608-0032, 0608-0035, and 0608-
0050, 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 http://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 by revising Sections 806.14, 806.15, and 806.18 to remove the
reporting requirements for several direct investment surveys. The
surveys are:
BE-13, Initial Report on a Foreign Person's Direct or Indirect
Acquisition, Establishment, or Purchase of the Operating Assets, of a
[[Page 19283]]
U.S. Business Enterprise, Including Real Estate
BE-14, Report by a U.S. Person Who Assists or Intervenes in the
Acquisition of a U.S. Business Enterprise by, or Who Enters into a
Joint Venture With, a Foreign Person
BE-21, Survey of Foreign Direct Investment in U.S. Business Enterprises
Engaged in the Processing, Packaging, or Wholesale Distribution of Fish
or Seafoods
BE-133B, Follow-up Schedule of Expenditures for Property, Plant, and
Equipment of U.S. Direct Investment Abroad
BE-133C, Schedule of Expenditures for Property, Plant, and Equipment of
U.S. Direct Investment Abroad
BE-507, Industry Classification Questionnaire
BE-607, Industry Classification Questionnaire
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 the cancellation of the reporting
requirements for these surveys, consistent with the Paperwork Reduction
Act of 1995.
BEA is proposing to remove the reporting requirements for the BE-13
and the BE-14 surveys which were suspended in 2009 in order to align
its international survey program with available resources. The surveys
had been used to collect identification information on the U.S.
business being established or acquired and on the new foreign owner,
information on the cost of the investment and source of funding, and
limited financial and operating data for the newly established or
acquired entity. The data had been used to measure the amount of new
foreign direct investment in the United States and assess its impact on
the U.S. economy. BEA continues to identify newly acquired or
established U.S. affiliates of foreign investors and bring them into
its international survey program through the BE-12, BE-15, and BE-605
surveys, which are the benchmark, annual, and quarterly surveys of
foreign direct investment in the United States, respectively, but they
are not separately identified in BEA's published statistics.
BEA is proposing to eliminate the regulations for the BE-21, BE-
133B, BE-133C, BE-507, and BE-607 surveys since they have not been
conducted in many years and are no longer necessary because the
information is collected on other surveys of direct investment
conducted by BEA.
In addition, BEA proposes other minor revisions to its regulations
to eliminate outdated information. These revisions eliminate references
to outdated information regarding BE-10 survey forms and inactive OMB
control numbers.
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
The Office of Management and Budget (OMB) approvals under the
Paperwork Reduction Act for the seven surveys that BEA is proposing to
eliminate have expired. The information collection approval for the BE-
13 and BE-14 (under OMB control number 0608-0035) expired on August 31,
2009; the BE-21 approval (OMB control number 0608-0050) expired
September 30, 1983; the BE-133B and BE-133C (OMB control number 0608-
0024) expired December 31, 1994; the BE-507 approval (OMB control
number 0608-0032) expired April 30, 1997; and the BE-607 approval (OMB
control number 0608-0030) expired on May 31, 1991.
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. Entities that have foreign affiliates, that are at least ten
percent foreign-owned, or that assisted or intervened in the
acquisition of a U.S. business enterprise by a foreign person would
have been subject to the reporting requirements that are proposed to be
eliminated in this rulemaking. However, BEA does not currently collect
data that enables BEA to determine how many of these entities would be
considered ``small'' under the Small Business Administration's size
standards. Although BEA does not know the number of small entities that
would have been subject to the reporting requirements being eliminated
by this rulemaking, BEA has determined that this action would not have
a significant economic impact as this rule proposes to merely remove
references to the surveys that are no longer in use. The collection of
the BE-13 and BE-14 surveys was suspended in 2009, and the BE-21, BE-
133B, BE-133C, BE-507, and BE-607 surveys have not been conducted in
many years. In addition, the information collection approvals for these
surveys have expired and are no longer part of the inventory of active
collections of information maintained by the Office of Management and
Budget. Because there would be no impact to small entities as a result
of this change to the regulations, the Chief Counsel certified that
this proposed rulemaking, if adopted, will not have a significant
economic impact on a substantial number of small entities.
List of Subjects in 15 CFR Part 806
Economic statistics, Foreign investment in the United States,
International transactions, Penalties, Reporting and recordkeeping
requirements.
Dated: March 16, 2011.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.
For 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. Amend Sec. 806.14 to revise paragraphs (d), (f) and (g) to read
as follows:
Sec. 806.14 U.S. direct investment abroad.
* * * * *
(d) Exemption levels. Exemption levels for individual report forms
will normally be stated in terms of total assets, net sales or gross
operating revenues excluding sales taxes, and net income after income
taxes, whether positive or negative, although different or special
criteria may be specified for a given report form. If any one of the
three items exceeds the exemption level and if the statistical data
requested in the report are applicable to the entity being reported,
then a report must be filed. Since these items may not have to be
reported on a given form, a U.S. Reporter claiming exemption from
filing a given form must furnish a certification as to the levels of
the items on which the exemption is based or must certify that the data
requested are not
[[Page 19284]]
applicable. The exemption-level tests shall be applied as outlined
below.
(1) For quarterly report forms, as to the assets test reports are
required beginning with the quarter in which total assets exceed the
exemption level; as to the test for sales (revenues) and net income
after income taxes, reports are required for each quarter of a year in
which the annual amount of these items exceeds or can be expected to
exceed, the exemption level. Quarterly reports for a year may be
required retroactively when it is determined that the exemption level
has been exceeded.
(2) For report forms requesting annual data after the close of the
year in question, the test shall be whether any one of the three items
exceeded the exemption level during that year.
If total assets, sales or net income exceed the exemption level in
a given year, it is deemed that the exemption level will also be
exceeded in the following year.
The number and title of each report form, its exemption level, and
other reporting criteria, if any, pertaining to it, are given below.
* * * * *
(f) Annual report forms. (1) [Reserved.]
(2) [Reserved.]
(3) BE-11--Annual Survey of U.S. Direct Investment Abroad: A
report, consisting of Form BE-11A and Form(s) BE-11B, BE-11C, BE-11D
and/or BE-11E, is required of each U.S. Reporter that, at the end of
the Reporter's fiscal year, had a foreign affiliate reportable on Form
BE-11B, BE-11C, BE-11D or BE-11E. Forms required and the criteria for
reporting on each are as follows:
(i) Form BE-11A (Report for U.S. Reporter) must be filed by each
U.S. person having a foreign affiliate reportable on Form BE-11B, BE-
11C, BE-11D or BE-11E. If the U.S. Reporter is a corporation, Form BE-
11A is required to cover the fully consolidated U.S. domestic business
enterprise.
(A) If for a U.S. Reporter any one of the following three items--
total assets, sales or gross operating revenues excluding sales taxes,
or net income after provision for U.S. income taxes--was greater than
$300 million (positive or negative) at the end of, or for, the
Reporter's fiscal year, the U.S. Reporter must file a complete Form BE-
11A. It must also file a Form BE-11B, BE-11C, BE-11D or BE-11E, as
applicable, for each nonexempt foreign affiliate.
(B) If for a U.S. Reporter no one of the three items listed in
paragraph (f)(3)(i)(A) of this section was greater than $300 million
(positive or negative) at the end of, or for, the Reporter's fiscal
year, the U.S. Reporter is required to file on Form BE-11A only items 1
through 26 and Part IV. It must also file a Form BE-11B, BE-11C, BE-
11D, or BE-11E as applicable, for each nonexempt foreign affiliate.
(ii) Forms BE-11B, BE-11C, BE-11D, and BE-11E (Report for Foreign
Affiliate).
(A) Form BE-11B must be reported for each majority-owned foreign
affiliate, whether held directly or indirectly, for which any one of
the following three items--total assets, sales or gross operating
revenues excluding sales taxes, or net income after provision for
foreign income taxes--was greater than $60 million (positive or
negative) at the end of, or for, the affiliate's fiscal year, unless
the foreign affiliate is selected to be reported on Form BE-11E.
(B) Form BE-11C must be reported for each minority-owned foreign
affiliate, whether held directly or indirectly, 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.
(C) Form BE-11D must be reported for each majority- and minority-
owned foreign affiliate, whether held directly or indirectly,
established or acquired during the year for which any one of the three
items listed in paragraph (f)(3)(ii)(A) of this section was greater
than $25 million (positive or negative), but for which no one of these
items was greater than $60 million (positive or negative), at the end
of, or for, the affiliate's fiscal year. Form BE-11D is a schedule; a
U.S. Reporter would submit one or more pages of the form depending on
the number of affiliates that are required to be filed on this form.
(D) Form BE-11E must be reported for each foreign affiliate that is
selected by BEA to be reported on this form in lieu of Form BE-11B. BEA
statistically divides into panels, affiliates 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 $300 million (positive or negative), at
the end of, or for, the affiliate's fiscal year. At the direction of
BEA, U.S. Reporters would alternate reporting these affiliates on Form
BE-11B and Form BE-11E.
(iii) Based on the preceding, an affiliate is exempt from being
reported if 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 the items was greater than $25 million but not
over $60 million must be listed, and key items reported, on schedule-
type Form BE-11D.
(iv) Notwithstanding paragraph (f)(3)(iii) of this section, a Form
BE-11B, BE-11C, or BE-11E must be filed for a foreign affiliate of the
U.S. Reporter that owns another non-exempt foreign affiliate of that
U.S. Reporter, even if the foreign affiliate parent is otherwise
exempt. That is, all affiliates upward in the chain of ownership must
be reported.
* * * * *
(g) Other report forms. (1) [Reserved.]
(2) BE-10-Benchmark Survey of U.S. Direct Investment Abroad:
Section 4(b) of the Act (22 U.S.C. 3103) provides that a comprehensive
benchmark survey of U.S. direct investment abroad will be conducted in
1982, 1989, and every fifth year thereafter. Exemption levels, specific
requirements for, and the year of coverage of, a given BE-10 survey may
be found in Sec. 806.16.
* * * * *
3. Section 806.15(j) is revised to read as follows:
Sec. 806.15 Foreign direct investment in the United States.
* * * * *
(j) Other report forms. (1) [Reserved.]
(2) BE-12--Benchmark Survey of Foreign Direct Investment in the
United States: Section 4b of the Act (22 U.S.C. 3103) provides that a
comprehensive benchmark survey of foreign direct investment in the
United States shall be conducted in 1980, 1987, and every fifth year
thereafter. The survey is referred to as the ``BE-12.'' Exemption
levels, specific requirements for, and the year of coverage of, a given
BE-12 Survey may be found in Sec. 806.17.
* * * * *
4. Section 806.18(b) is revised to read as follows:
Sec. 806.18 OMB control numbers assigned to the Paperwork Reduction
Act.
* * * * *
(b) Display.
------------------------------------------------------------------------
Current OMB
15 CFR section where identified and described Control No.
------------------------------------------------------------------------
806.1 through 806.17...................................... 0608-0004
0009
0034
0042
0049
0053
* * * * *
------------------------------------------------------------------------
[FR Doc. 2011-7769 Filed 4-6-11; 8:45 am]
BILLING CODE 3510-06-P