Proposed Rule2022-12796
International Services Surveys: Renewal of and Changes to BE-120 Benchmark Survey of Transactions in Selected Services and Intellectual Property With Foreign Persons, and Clarifying When BE-140 and BE-180 Benchmark Surveys Are Conducted
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 15, 2022
Issuing agencies
Commerce DepartmentEconomic Analysis Bureau
Abstract
This proposed rule would amend regulations of the Department of Commerce's Bureau of Economic Analysis (BEA) to renew reporting requirements for the BE-120 Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons. This proposed rule would also amend the regulations for BEA's two other international services benchmark surveys, the BE-140 Benchmark Survey of Insurance Transactions by U.S. Insurance Companies with Foreign Persons and the BE-180 Benchmark Survey of Financial Services Transactions between U.S. Financial Services Providers and Foreign Persons, to clarify when the surveys will be conducted.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 115 (Wednesday, June 15, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 115 (Wednesday, June 15, 2022)]
[Proposed Rules]
[Pages 36091-36096]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12796]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 220608-0131]
RIN 0691-AA91
International Services Surveys: Renewal of and Changes to BE-120
Benchmark Survey of Transactions in Selected Services and Intellectual
Property With Foreign Persons, and Clarifying When BE-140 and BE-180
Benchmark Surveys Are Conducted
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would amend regulations of the Department
of Commerce's Bureau of Economic Analysis (BEA) to renew reporting
requirements for the BE-120 Benchmark Survey of Transactions in
Selected Services and Intellectual Property with Foreign Persons. This
proposed rule would also amend the regulations for BEA's two other
international services benchmark surveys, the BE-140 Benchmark Survey
of Insurance Transactions by U.S. Insurance Companies with Foreign
Persons and the BE-180 Benchmark Survey of Financial Services
Transactions between U.S. Financial Services Providers and Foreign
Persons, to clarify when the surveys will be conducted.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before August 15, 2022.
ADDRESSES: You can submit comments, identified by RIN 0691-AA91, and
referencing the agency name (Bureau of Economic Analysis), by any of
the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments. For Keyword or ID,
enter ``EAB-2022-0002.''
<bullet> Email: <a href="/cdn-cgi/l/email-protection#05666d776c76716a756d60772b7671606c6b456760642b626a73"><span class="__cf_email__" data-cfemail="7b18130912080f140b131e0955080f1e12153b191e1a551c140d">[email protected]</span></a>.
<bullet> Mail: Christopher Stein, Chief, Services Surveys Branch
(BE-50), Balance of Payments Division, Bureau of Economic Analysis,
U.S. Department of Commerce, 4600 Silver Hill Rd., Washington, DC
20233.
<bullet> Hand Delivery/Courier: Christopher Stein, Chief, Services
Surveys Branch (BE-50), Balance of Payments Division, Bureau of
Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Rd.,
Suitland, MD 20746.
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 through any of the methods
above and to the Office of Management and Budget (OMB) by submitting
comments at <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under Review'' or by
using the search function and entering the title of the collection.
Public Inspection: All comments received are a part of the public
record and will generally be posted to <a href="https://www.regulations.gov">https://www.regulations.gov</a>
without change. Personal identifying information voluntarily submitted
by the commenter may be publicly accessible. Do not submit confidential
business information or otherwise sensitive or protected information.
BEA will accept anonymous comments (enter N/A in required fields if you
wish to remain anonymous).
FOR FURTHER INFORMATION CONTACT: Christopher Stein, Chief, Services
Surveys Branch (BE-50), Balance of Payments Division, Bureau of
Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Rd.,
Washington, DC 20233; email <a href="/cdn-cgi/l/email-protection#27444f554e545348574f4255095453424e496745424609404851"><span class="__cf_email__" data-cfemail="9ffcf7edf6ecebf0eff7faedb1ecebfaf6f1dffdfafeb1f8f0e9">[email protected]</span></a> or phone (301)
278-9189.
SUPPLEMENTARY INFORMATION: The BE-120 Benchmark Survey of Transactions
in Selected Services and Intellectual Property with Foreign Persons is
a
[[Page 36092]]
mandatory survey and is conducted once every five years by BEA under
the authority of the International Investment and Trade in Services
Survey Act (22 U.S.C. 3101-3108). The data reported to BEA through this
survey are confidential and may be used only for analytical and
statistical purposes. A response is required from persons subject to
the reporting requirements of the BE-120, whether or not they are
contacted by BEA.
The BE-120 benchmark survey covers the universe of selected
services and intellectual property transactions of U.S. companies with
foreign persons and is BEA's most comprehensive survey of such
transactions. The data collected through the BE-120 are needed to
monitor U.S. trade in services and intellectual property, to analyze
the impact of U.S. trade in these services on the U.S. economy and on
foreign economies, to compile and improve the U.S. economic accounts,
to support U.S. commercial policy on trade in services, to conduct
trade promotion activities, and to improve the ability of U.S.
businesses to identify and evaluate market opportunities. The benchmark
data will be used, in conjunction with data collected from a sample of
respondents on the companion BE-125 Quarterly Survey of Transactions in
Selected Services and Intellectual Property with Foreign Persons, to
produce quarterly estimates of selected services and intellectual
property components for BEA's international transactions accounts,
national income and product accounts, and industry accounts.
Description of Changes
The proposed changes to the BE-120 survey include changes in data
items collected and the design of the survey form. BEA proposes to add
three items to the survey. The changes are proposed in response to
suggestions from data users and to allow BEA to more closely align its
statistics with international guidelines and publish more information
on U.S. trade in services. The following items would be added to the
BE-120 benchmark survey:
(1) Questions to collect information on the largest U.S. states (up
to three) for sales (exports) and purchases (imports) of services.
Respondents that meet the thresholds ($2 million in combined sales,
and/or $1 million in combined purchases) for filing on the mandatory
schedules will be required to report information for up to three U.S.
states that accounted for the largest shares of their sales and
purchases activity. Reporters will be instructed to consider all of
their cross-border sales and purchases of services (in aggregate for
all transaction types and affiliation categories) and report the U.S.
states that represented the largest share of their sales and
(separately) their purchases. After identifying the states, reporters
would provide an estimate of the percentage of their sales and
purchases that were transacted from each state. Collecting information
on the percent of total sales and purchases by state would allow BEA to
study the feasibility of producing statistics on exports and imports of
services by U.S. state and of estimating gross domestic product (GDP)
by state using the expenditure approach.
(2) Questions to collect information on digital intermediation
platforms. BEA proposes to ask if the reporters operated a digital
intermediation platform, and if so, the value of their digital
intermediation sales and associated transaction categories. All BE-120
respondents that meet the thresholds for filing on the mandatory
schedules would be required to respond to these questions. Survey
instructions and definitions will be modified to ensure fees and
commissions for sales and purchases made through digital intermediation
platforms are reported in the correct transaction categories. The
collection of information on digital intermediation services would
allow BEA to develop estimates of the value of digitally intermediated
trade in services.
(3) Question on employment size class. To provide information on
the distribution of international trade in services by business size,
BEA proposes to add a question asking for the employment size class of
the consolidated U.S. company. The question would ask all respondents
to check a box indicating their employment size class: Very small (0-
250), Small (251-500), Medium (501-1,000), Large (1,001-10,000), Very
large (>10,000). Data users have expressed interest in data on the
number of U.S. small businesses engaged in services trade and the value
of their services trade. Collecting this information would allow BEA to
aggregate data on small businesses filing the survey by type of service
and industry, which data users can use to conduct targeted outreach and
promotion efforts in support of small businesses.
Additionally, BEA proposes to modify the remote services schedules
(Schedules D and E) to better capture trade in digitally delivered
services. Survey instructions will direct reporters to provide an
estimate of the percentage of services that were digitally delivered
from the U.S. Reporter's domestic offices and provided to the purchaser
located abroad via a computer network (via the internet, mobile device,
extranet, or other comparable online system). Services provided via
manually typed email, telephone, or fax will be excluded. The
percentage reported should reflect all interactions with the customer,
not just the delivery of the final product.
BEA also proposes to delete the following two items from the BE-120
benchmark survey:
(1) Transaction categories for ``Other intellectual property''
would be eliminated. Rights to use other intellectual property (code
8.1), rights to reproduce and/or distribute other intellectual property
(code 8.2), and outright sales or purchases of proprietary rights
related to other intellectual property (code 8.3) would no longer be
collected. BEA typically reclassifies transactions reported to BEA in
these categories to research and development (R&D) services
(transaction code 29.1, the provision of customized and non-customized
R&D services; and, transaction code 29.2, other R&D services, including
testing) and to other selected services (transaction code 42). This
proposed deletion is consistent with modifications implemented on the
BE-125 quarterly survey beginning with reporting for the first quarter
of 2022.
(2) Questions on ``Contract manufacturing services'' would be
eliminated. On the 2017 BE-120 survey, in addition to collecting
contract manufacturing services as a stand-alone transaction category
in Table 1 and on the mandatory schedules, BEA incorporated additional
questions related to contract manufacturing that gathered details
regarding the material inputs, as well as the output product of the
contract manufacturing services activity, for both sales and purchases
activities. As a result of very limited and poor reporting of detail in
these questions during the 2017 survey, BEA found little use for the
information gathered and therefore proposes to eliminate collection of
these details for the 2022 survey. Data will continue to be collected
for contract manufacturing sales and purchases in transaction category
35.
BEA proposes to redesign the format and wording of the survey. The
new survey design would incorporate improvements that have been made to
other BEA surveys. BE-120 benchmark survey instructions and data item
descriptions would be changed to improve clarity and ensure that the
survey form is consistent with other BEA surveys.
[[Page 36093]]
This proposed rule would amend 15 CFR part 801 by modifying
Sec. Sec. 801.3 and 801.11 through 801.13 and removing Sec. 801.9 to
clarify the timing of the three international services benchmark
surveys: the BE-120 Benchmark Survey of Transactions in Selected
Services and Intellectual Property with Foreign Persons, the BE-140
Benchmark Survey of Insurance Transactions by U.S. Insurance Companies
with Foreign Persons, and the BE-180 Benchmark Survey of Financial
Services Transactions between U.S. Financial Services Providers and
Foreign Persons. The next BE-120 survey will apply to the 2022 fiscal
reporting year, and will be conducted once every five years thereafter,
for reporting years ending in 2 and 7. Additionally, the next BE-140
survey and BE-180 survey will be collected for the 2023 and 2024
reporting years, respectively, and will continue to be conducted every
five years thereafter. The BE-140 will be collected for reporting years
ending in 3 and 8, and the BE-140 will be collected for reporting years
ending in 4 and 9. See the most recent versions of the BE-120, BE-140,
and BE-180 benchmark surveys at <a href="http://www.bea.gov">www.bea.gov</a> for a more detailed
description of covered transactions and definitions.
Each time a benchmark survey is to be conducted, BEA will describe
any proposed changes to the information collected through the survey
(including the addition, deletion, and/or modification of existing
questions and definitions) in a public notice and will solicit comments
as part of the requirements of the Paperwork Reduction Act (PRA). Any
changes to reporting requirements or significant expansions in scope of
the surveys would be conducted by rulemaking.
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
Executive Order 13132
This proposed rule does not contain policies with federalism
implications sufficient to warrant preparation of a Federalism
assessment under Executive Order 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 of 1995, 44 U.S.C. 3501-3520
(PRA). The proposed requirement will be submitted to OMB for approval
as a reinstatement, with change, of a previously approved collection
under OMB control number 0608-0058, for which approval has expired.
Surveys were collected for the 2017 BE-120 in calendar years 2018 and
2019. No survey submissions were solicited by BEA after the expiration
and discontinuance of the collection in June of 2021.
The BE-120 survey, as proposed, is expected to result in the filing
of reports from approximately 15,000 respondents. Approximately 11,000
respondents would complete the survey, and approximately 4,000 would
file exemption claims. The respondent burden for this collection of
information would vary from one respondent to another, but is estimated
to average (1) 24 hours for the 5,000 respondents that report data by
transaction type, country, and affiliation; (2) 4 hours for the 6,000
respondents that report data by transaction type only; and (3) 1 hour
for the 4,000 that file an exemption claim. These burden-hour estimates
consider time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Thus, the total respondent
burden for this survey is estimated at 148,000 hours, or approximately
10 hours per response (148,000 hours/15,000 respondents), compared to
145,000 hours, or about 9.5 hours per response (145,000 hours/15,500
respondents) for the 2017 BE-120 benchmark survey. The increase in
burden hours is due to estimated changes in the expected quantity of
survey responses, the composition of the respondent universe (those
filing full schedule detail vs. totals by transaction type only) from
2017 to 2022, as well as modifications to the content of the survey for
those filing schedule detail.
As part of its continuing effort to reduce paperwork and respondent
burden, the Department of Commerce invites the general public and other
Federal agencies to comment on proposed and/or continuing information
collections, as required by the PRA. 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
proposed rule should be sent to both BEA and OMB following the
instructions given in the ADDRESSES section above. Notwithstanding any
other provisions of 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 PRA unless
that collection displays a currently valid OMB control number.
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. The changes proposed in this rule are discussed in the
preamble and are not repeated here.
A BE-120 report would be required of any U.S. company that had
services transactions with foreign persons in any of the covered types
of selected services and/or intellectual property. While BEA does not
have information on the size of the respondents to the survey,
historically the respondents to the existing quarterly survey of
transactions in selected services and intellectual property and to the
previous benchmark surveys were mostly major U.S. corporations. For
U.S. companies that had combined sales exceeding $2 million, and/or
combined purchases transactions exceeding $1 million in the transaction
categories covered by the survey for the fiscal year, a completed
benchmark survey would include data on each of the covered types of
services and/or intellectual property transactions with totals
disaggregated by country and by relationship to the foreign transactor
(foreign affiliate, foreign parent group, or unaffiliated). For U.S.
companies that had combined sales of $2 million or less and combined
purchases transactions of $1 million or less in the transaction
categories covered by the survey for the fiscal year, a completed
benchmark would include totals for each type of transaction in which
they engaged. This abbreviated benchmark requirement would exclude most
small businesses from mandatory reporting of detail by country and by
affiliation. Any small businesses that would be required to report
would likely have engaged in a small number of covered transactions and
would be less likely to report detail
[[Page 36094]]
by country and affiliation, and, therefore, would be expected to have
below the average burden of 10 hours per response. Therefore, this
proposed rule would not have a significant economic impact on a
substantial number of small entities, and thus an Initial Regulatory
Flexibility Analysis is not required, and none has been prepared.
List of Subjects in 15 CFR Part 801
Economic statistics, Foreign trade, International transactions,
Penalties, Reporting and recordkeeping requirements.
Dated: June 8, 2022.
Paul W. Farello,
Associate Director of International Economics, Bureau of Economic
Analysis.
For reasons set forth in the preamble, BEA proposes to amend 15 CFR
part 801 as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S.
AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT
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;
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. Amend Sec. 801.3 by revising the introductory text to read as
follows:
Sec. 801.3 Reporting requirements.
Except for surveys subject to rulemaking in Sec. Sec. 801.7,
801.8, 801.10, 801.11, 801.12, and 801.13, reporting requirements for
all other surveys conducted by the Bureau of Economic Analysis shall be
as follows:
* * * * *
Sec. 801.9 [Removed and Reserved]
0
3. Section 801.9 is removed and reserved.
0
4. Revise Sec. 801.11 to read as follows:
Sec. 801.11 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 once
every five years and covers years ending in 2 and 7. BEA will describe
the proposed information collection in a public notice and will solicit
comments according to the requirements of the Paperwork Reduction Act
(44 U.S.C. 3501-3520).
All legal authorities, provisions, definitions, and requirements
contained in Sec. Sec. 801.1 through 801.2 and Sec. Sec. 801.4
through 801.6 are applicable to this survey. Specific additional rules
and regulations for the BE-120 survey are given in this section. More
detailed instructions are given on the report form and in instructions
accompanying the report form.
(a) Response required. A response is required, every fifth year,
from persons subject to the reporting requirements of the BE-120
Benchmark Survey of Transactions in Selected Services and Intellectual
Property with Foreign Persons, contained in this section, whether or
not they are contacted by BEA. Also, a person, or its agent, that is
contacted by BEA about reporting on this survey, either by sending a
report form or by written inquiry, must respond in writing pursuant to
this section. This may be accomplished by:
(1) Completing and returning the BE-120 by the due date of the
survey; or
(2) If exempt, by completing the determination of reporting status
section of the BE-120 survey and returning it to BEA by the due date of
the survey.
(b) Who must report. A BE-120 report is required of each U.S.
person that had transactions with foreign persons in the categories
covered by the survey during the fiscal year covered by the survey.
(c) What must be reported. (1) A U.S. person that had combined
sales to foreign persons that exceeded $2 million, and/or combined
purchases from foreign persons that exceeded $1 million in the services
and intellectual property categories covered by the survey during its
fiscal year, on an accrual basis, is required to provide data on total
sales and/or purchases of each of the covered types of transactions and
must disaggregate the totals by country and by relationship to the
foreign transactor (foreign affiliate, foreign parent group, or
unaffiliated). The $2 million threshold for sales and the $1 million
threshold for purchases should be applied to the covered transactions
categories with foreign persons by all parts of the consolidated
domestic U.S. Reporter. Because the $2 million and $1 million
thresholds apply separately to sales and purchases, the mandatory
reporting requirement may apply to sales only, to purchases only, or to
both. The determination of whether a U.S. services provider is subject
to this reporting requirement can be 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 manual records search.
(2) A U.S. person that had combined sales to foreign persons that
were $2 million or less, and combined purchases from foreign persons
that were $1 million or less in the transaction categories covered by
the survey during its fiscal year, on an accrual basis, is required to
provide the total sales and/or purchases for each type of transaction
in which they engaged. The $2 million threshold for sales and the $1
million threshold for purchases should be applied to the covered
transactions categories with foreign persons by all parts of the
consolidated domestic U.S. Reporter. Because the $2 million and $1
million thresholds apply separately to sales and purchases, the
mandatory reporting requirement may apply to sales only, to purchases
only, or to both.
(i) Voluntary reporting of transactions. If, during the reporter's
fiscal year, combined sales were $2 million or less, and combined
purchases were $1 million or less, on an accrual basis, the U.S. person
may, in addition to providing the required total for each type of
transaction, report sales at a country and affiliation level of detail
on the applicable mandatory schedule(s). The estimates can be
judgmental, that is, based on recall, without conducting a detailed
records search.
(ii) [Reserved]
(3) Any U.S. person that receives the BE-120 survey form from BEA,
but is not subject to the reporting requirements, must file an
exemption claim by completing the determination of reporting status
section of the BE-120 survey and returning it to BEA by the due date of
the survey. This requirement is necessary to ensure compliance with
reporting requirements and efficient administration of the Act by
eliminating unnecessary follow-up contact.
(d) Covered types of services and intellectual property. Services
transactions covered by this survey consist of: Advertising and related
services; architectural, engineering, scientific, and other technical
services; computer services; construction; financial services (for
reporters who are not a financial services providers); franchises and
trademarks licensing fees; information services; legal, accounting,
management consulting, and public relations services; licenses for the
use of outcomes of research and development; licenses to reproduce and/
or distribute computer software; licenses to reproduce and/or
distribute audiovisual products; maintenance and repair services;
manufacturing services; operating leasing services; other business
services; personal, cultural, and recreational services; research and
development services; primary
[[Page 36095]]
insurance premiums and losses (for reporters who are not a U.S.
insurance company); space transport services; telecommunications
services; trade-related services; and waste treatment and de-pollution,
agricultural, and mining services.
(e) Types of transactions excluded from the scope of this survey.
(1) Financial services transactions conducted by a U.S. financial
services provider, all insurance services conducted by a U.S. insurance
company, and all travel and transport activities that are not space
transport services.
(2) Sales and purchases of goods. Trade in goods involves products
that have a physical form, and includes payments or receipts for
electricity.
(3) Sales and purchases of financial instruments, including stocks,
bonds, financial derivatives, loans, mutual fund shares, and negotiable
CDs. (However, securities brokerage is a service.)
(4) Income on financial instruments (interest, dividends, capital
gain distributions, etc.).
(5) Compensation paid to, or received by, employees.
(6) Penalties and fines and gifts or grants in the form of goods
and cash (sometimes called ``transfers'').
(f) Due date. A fully completed and certified BE-120 report, or
qualifying exemption claim with the determination of reporting status
section completed, is due to be filed with BEA by July 31 of the year
after the year covered by the survey.
0
5. Revise Sec. 801.12 to read as follows:
Sec. 801.12 Rules and regulations for the BE-140 Benchmark Survey of
Insurance Transactions by U.S. Insurance Companies with Foreign
Persons.
The BE-140 Benchmark Survey of Insurance Transactions by U.S.
Insurance Companies with Foreign Persons will be conducted once every
five calendar years and covers years ending in 3 and 8. BEA will
describe the proposed information collection in a public notice and
will solicit comments according to the requirements of the Paperwork
Reduction Act (44 U.S.C. 3501-3520). All legal authorities, provisions,
definitions, and requirements contained in Sec. Sec. 801.1 through
801.2 and Sec. Sec. 801.4 through 801.6 are applicable to this survey.
Specific additional rules and regulations for the BE-140 survey are
given in this section. More detailed instructions are given on the
report form and in instructions accompanying the report form.
(a) Response required. A response is required from U.S. insurance
companies subject to the reporting requirements of the BE-140 Benchmark
Survey of Insurance Transactions by U.S. Insurance Companies with
Foreign Persons, contained in this section, whether or not they are
contacted by BEA. Also, a U.S. insurance company, or its agent, that is
contacted by BEA about reporting on this survey, either by transmission
of a report form or by written inquiry, must respond in writing
pursuant to this section. This may be accomplished by:
(1) Completing and returning the BE-140 by the due date of the
survey; or
(2) If exempt, by completing the determination of reporting status
section of the BE-140 survey and returning it to BEA by the due date of
the survey.
(b) Who must report. A BE-140 report is required of each U.S.
insurance company that had insurance transactions with foreign persons
in the categories covered by the survey during the calendar year
covered by the survey.
(c) What must be reported. (1) A U.S. insurance company that had
transactions with foreign persons that exceeded $2 million in the
insurance categories covered by the survey during its calendar year, on
an accrual basis, is required to provide data on the total transactions
of each of the covered types of insurance transactions and must
disaggregate the totals by country and by relationship to the foreign
counterparty (foreign affiliate, foreign parent group, or
unaffiliated). The $2 million threshold should be applied to insurance
services transactions with foreign persons by all parts of the
consolidated domestic U.S. Reporter. The determination of whether a
U.S. insurance company is subject to this reporting requirement may be
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 manual records
search.
(2) A U.S. insurance company that had transactions with foreign
persons that were $2 million or less in the insurance categories
covered by the survey during its calendar year, on an accrual basis, is
required to provide the total for each type of transaction in which
they engaged.
(i) Voluntary reporting of insurance transactions. If, during the
calendar year covered by the survey, total transactions were $2 million
or less in the insurance categories covered by the survey, on an
accrual basis, the U.S. insurance company may, in addition to providing
the required total for each type of transaction, voluntarily report
transactions at a country and affiliation level of detail on the
applicable mandatory schedule(s).
(ii) [Reserved]
(3) Any U.S. person that receives the BE-140 survey form from BEA
but is not subject to the reporting requirements must file an exemption
claim by completing the determination of reporting status section of
the BE-140 survey and returning it to BEA by the due date of the
survey. This requirement is necessary to ensure compliance with
reporting requirements and efficient administration of the Act by
eliminating unnecessary follow-up contact.
(d) Covered types of insurance services. Insurance services covered
by the BE-140 survey consist of transactions between U.S. insurance
companies and foreign persons for premiums and losses on primary
insurance, premiums on reinsurance assumed and ceded, losses on
reinsurance assumed and ceded, as well as receipts and payments for
auxiliary insurance services.
(e) Types of transactions excluded from the scope of this survey.
Premiums paid to, or losses received from, foreign insurance companies
on direct insurance.
(f) Due date. A fully completed and certified BE-140 report, or
qualifying exemption claim with the determination of reporting status
section completed, is due to be filed with BEA by July 31 of the year
after the year covered by the survey.
0
6. Revise Sec. 801.13 to read as follows:
Sec. 801.13 Rules and regulations for the BE-180 Benchmark Survey of
Financial Services Transactions between U.S. Financial Services
Providers and Foreign Persons.
The BE-180 Benchmark Survey of Financial Services Transactions
between U.S. Financial Services Providers and Foreign Persons will be
conducted every five years and covers fiscal years ending in 4 and 9.
BEA will describe the proposed information collection in a public
notice and will solicit comments according to the requirements of the
Paperwork Reduction Act (44 U.S.C. 3501-3520). All legal authorities,
provisions, definitions, and requirements contained in Sec. Sec. 801.1
through 801.2 and Sec. Sec. 801.4 through 801.6 are applicable to this
survey. Specific additional rules and regulations for the BE-180 survey
are given in this section. More detailed instructions are given on the
report form and in instructions accompanying the report form.
(a) Response required. A response is required from persons subject
to the reporting requirements of the BE-180
[[Page 36096]]
Benchmark Survey of Financial Services Transactions between U.S.
Financial Services Providers and Foreign Persons, contained in this
section, whether or not they are contacted by BEA. Also, a person, or
its agent, that is contacted by BEA about reporting on this survey,
either by sending a report form or by written inquiry, must respond in
writing pursuant to this section. This may be accomplished by:
(1) Completing and returning the BE-180 by the due date of the
survey; or
(2) If exempt, completing the determination of reporting status
section of the BE-180 survey and returning it to BEA by the due date of
the survey.
(b) Who must report. A BE-180 report is required of each U.S.
person that is a financial services provider or intermediary, or whose
consolidated U.S. enterprise includes a separately organized
subsidiary, or part, that is a financial services provider or
intermediary, and that had financial services transactions with foreign
persons in the categories covered by the survey during the fiscal year
covered by the survey.
(c) BE-180 definition of financial services provider. The
definition of financial services provider used for this survey is
identical to the definition of the term as used in the North American
Industry Classification System, United States, Sector 52--Finance and
Insurance, and holding companies that own or influence, and are
principally engaged in making management decisions for, these firms
(part of Sector 55--Management of Companies and Enterprises). For
example, companies and/or subsidiaries and other separable parts of
companies in the following industries are defined as financial services
providers: Depository credit intermediation and related activities
(including commercial banking, savings institutions, credit unions, and
other depository credit intermediation); non-depository credit
intermediation (including credit card issuing, sales financing, and
other non-depository credit intermediation); activities related to
credit intermediation (including mortgage and nonmortgage loan brokers,
financial transactions processing, reserve, and clearinghouse
activities, and other activities related to credit intermediation);
securities and commodity contracts intermediation and brokerage
(including investment banking and securities dealing, securities
brokerage, commodity contracts and dealing, and commodity contracts
brokerage); securities and commodity exchanges; other financial
investment activities (including miscellaneous intermediation,
portfolio management, investment advice, and all other financial
investment activities); insurance carriers; insurance agencies,
brokerages, and other insurance related activities; insurance and
employee benefit funds (including pension funds, health and welfare
funds, and other insurance funds); other investment pools and funds
(including open-end investment funds, trusts, estates, and agency
accounts, real estate investment trusts, and other financial vehicles);
and holding companies that own, or influence the management decisions
of, firms principally engaged in the aforementioned activities.
(d) What must be reported. (1) A U.S. person that had combined
sales to, or purchases from foreign persons that exceeded $3 million in
the financial services categories covered by the survey during its
fiscal year, on an accrual basis, is required to provide data on total
sales and/or purchases of each of the covered types of financial
services and must disaggregate the totals by country and by
relationship to the foreign transactor (foreign affiliate, foreign
parent group, or unaffiliated). The $3 million threshold for sales and
purchases should be applied to financial services transactions with
foreign persons by all parts of the consolidated domestic U.S.
Reporter. Because the $3 million threshold applies separately to sales
and purchases, the mandatory reporting requirement may apply to sales
only, to purchases only, or to both. The determination of whether a
U.S. financial services provider is subject to this reporting
requirement can be 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
manual records search.
(2) A U.S. person that had combined sales to, or purchases from
foreign persons that were $3 million or less in the financial services
categories covered by the survey during its fiscal year, on an accrual
basis, is required to provide the total sales and/or purchases for each
type of transaction in which they engaged. The $3 million threshold for
sales and purchases should be applied to financial services
transactions with foreign persons by all parts of the consolidated
domestic U.S. Reporter. Because the $3 million threshold applies
separately to sales and purchases, the mandatory reporting requirement
may apply to sales only, to purchases only, or to both.
(e) Voluntary reporting of financial services transactions. If,
during the fiscal year, combined sales and purchases were $3 million or
less, on an accrual basis, the U.S. person may, in addition to
providing the required total for each type of transaction, report sales
at a country and affiliation level of detail on the applicable
mandatory schedule(s). The estimates can be judgmental, that is, based
on recall, without conducting a detailed records search.
(f) Exemption claims. Any U.S. person that receives the BE-180
survey form from BEA, but is not subject to the reporting requirements,
must file an exemption claim by completing the determination of
reporting status section of the BE-180 survey and returning it to BEA
by the due date of the survey. This requirement is necessary to ensure
compliance with reporting requirements and efficient administration of
the Act by eliminating unnecessary follow-up contact.
(g) Covered types of financial services. Financial services covered
by the BE-180 survey consist of transactions between U.S. financial
services companies and foreign persons for brokerage, underwriting,
financial management, credit-related, credit-cards, financial advisory,
financial custody, securities lending, electronic funds transfers, and
other financial services.
(h) Due date. A fully completed and certified BE-180 report, or
qualifying exemption claim with the determination of reporting status
section completed, is due to be filed with BEA by July 31 of the year
after the year covered by the survey.
[FR Doc. 2022-12796 Filed 6-14-22; 8:45 am]
BILLING CODE 3510-06-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on June 15, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.