Rule2022-19436
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
September 8, 2022
Effective
October 11, 2022
Issuing agencies
Commerce DepartmentEconomic Analysis Bureau
Abstract
This final rule amends 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 final rule also amends 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.
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[Federal Register Volume 87, Number 173 (Thursday, September 8, 2022)]
[Rules and Regulations]
[Pages 54885-54890]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19436]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 220901-0181]
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: Final rule.
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SUMMARY: This final rule amends 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
final rule also amends 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: This final rule is effective October 11, 2022.
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#c0a3a8b2a9b3b4afb0a8a5b2eeb3b4a5a9ae80a2a5a1eea7afb6"><span class="__cf_email__" data-cfemail="ee8d869c879d9a819e868b9cc09d9a8b8780ae8c8b8fc0898198">[email protected]</span></a> or phone (301)
278-9189.
SUPPLEMENTARY INFORMATION: On June 15, 2022, BEA published a notice of
proposed rulemaking that set forth the
[[Page 54886]]
revised reporting criteria for the BE-120 Benchmark Survey of
Transactions in Selected Services and Intellectual Property with
Foreign Persons and that clarified when 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, will be conducted (87
FR 36091). No public comments were received. This final rule amends 15
CFR part 801 to set forth the reporting requirements for the BE-120
benchmark survey and clarify when the BE-140 and BE-180 benchmark
surveys will be conducted.
The BE-120 Benchmark Survey of Transactions in Selected Services
and Intellectual Property with Foreign Persons is a 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
This final rule amends the regulation at 15 CFR part 801 by
modifying 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, for reporting years ending in 2 and 7, thereafter. 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 will be conducted by rulemaking.
This final rule amends the regulation at 15 CFR part 801.11 to set
forth the reporting requirements for the BE-120 benchmark survey, and
amends the survey form for the BE-120 benchmark 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 amendments include several changes in
data items collected and the design of the survey form relative to the
2017 benchmark survey.
BEA adds the following to the BE-120 benchmark survey form:
(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
will provide an estimate of the percentage of their sales and purchases
that were transacted from each state.
(2) Questions to collect information on digital intermediation
platforms. BEA will 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 will 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.
(3) Question on employment size class. BEA will add a question
asking for the employment size class of the consolidated U.S. company.
The question will ask all respondents to check a box indicating their
employment size class: 0--(e.g., Sole Proprietorship), 1-19, 20-49, 50-
99, 100-249, 250-499, 500-999, 1,000-9,999, greater than 10,000. BEA
has modified the size categories that were in the proposed rule to
enhance the utility of the data collected.
Additionally, BEA will 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 provided remotely from
the U.S. Reporter's domestic offices to foreign persons and to the U.S.
Reporter's domestic offices from foreign persons via information and
communications technology networks (via the internet, mobile device,
extranet, telephone, fax, video conference, or other comparable online
system). Services provided via in-person meetings, or postal or private
delivery will be excluded. The percentage reported should reflect all
interactions with the customer, not just the delivery of the final
product.
BEA will delete the following two items from the BE-120 benchmark
survey:
(1) Transaction categories for ``Other intellectual property'' will
be
[[Page 54887]]
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) will no longer be collected.
Reporters will be instructed to reclassify transactions 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).
(2) Questions on ``Contract manufacturing services'' will be
eliminated. Details regarding the material inputs, as well as the
output product of the contract manufacturing services activity, for
both sales and purchases activities will no longer be collected.
BEA will also redesign the format and wording of the survey. The
new survey design will incorporate improvements that have been made to
other BEA surveys. BE-120 benchmark survey instructions and data item
descriptions will be changed to improve clarity and ensure that the
survey form is consistent with other BEA surveys.
Change to the Survey Additions From the Proposed Rule
BEA made a change to the proposed question on employment size class
(addition 3 above) to adjust the check box ranges to enhance the
usefulness of the data collected. The modifications from the initial
proposal do not impact the reporter's burden associated with the
question; reporters will still only be required to check a single box
when responding.
Additionally, BEA made a minor modification to the originally
proposed ``exclusions'' in defining which digitally delivered services
are to be reported on Schedules D and E. The original text in the
proposed rule indicated that services provided by manually-typed email,
telephone, or fax would be excluded. In this final rule, BEA has
removed these exclusions to better align BEA statistics with new
developments in international guidelines. Specifically, subsequent to
publication of the proposed rule, an expert group organized by the
Organisation for Economic Co-operation and Development (OECD) adopted a
final definition of digital trade for the forthcoming Handbook on
Measuring Digital Trade that only excludes services provided via in-
person meetings, or postal or private delivery.
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866.
Executive Order 13132
This final rule does not contain policies with federalism
implications sufficient to warrant preparation of a Federalism
assessment under Executive Order 13132.
Paperwork Reduction Act
The collection-of-information in this final rule was submitted to
the Office of Management and Budget (OMB) under the Paperwork Reduction
Act of 1995, 44 U.S.C. 3501-3520 (PRA). OMB approved the reinstatement,
with change, of the information collection under OMB control number
0608-0058.
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.
The BE-120 survey is expected to result in the filing of reports
from approximately 15,000 respondents. Approximately 11,000 respondents
will complete the survey, and approximately 4,000 will file exemption
claims. The respondent burden for this collection of information will
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.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in the
final rule should be sent to both BEA via email at
<a href="/cdn-cgi/l/email-protection#f6959e849f858299869e9384d88582939f98b6949397d8919980"><span class="__cf_email__" data-cfemail="84e7ecf6edf7f0ebf4ece1f6aaf7f0e1edeac4e6e1e5aae3ebf2">[email protected]</span></a>, and OMB, OIRA, Paperwork Reduction Project
0608-0058, Attention PRA Desk Officer for BEA, via email at
<a href="/cdn-cgi/l/email-protection#ca8583988b9599bfa8a7a3b9b9a3a5a48aa5a7a8e4afa5bae4ada5bc"><span class="__cf_email__" data-cfemail="a9e6e0fbe8f6fadccbc4c0dadac0c6c7e9c6c4cb87ccc6d987cec6df">[email protected]</span></a>.
Regulatory Flexibility Act
The Chief Counsel for Regulation, Department of Commerce, certified
to the Chief Counsel for Advocacy, Small Business Administration, at
the proposed rule stage that this action will not have a significant
impact on a substantial number of small entities. No comments were
received on that certification or on the economic impacts of this rule
more generally. Therefore, no regulatory flexibility analysis is
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: September 2, 2022.
Paul W. Farello,
Associate Director of International Economics, Bureau of Economic
Analysis.
For 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 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. Section 801.11 is revised to read as follows:
[[Page 54888]]
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 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) Exemption claims: 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 insurance premiums and losses (for
reporters who are not a U.S. insurance company); Space transport
services; Telecommunications services; Trade-related services; 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. Section Sec. 801.12 is revised 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
[[Page 54889]]
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 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) Exemption claims: 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. Section 801.13 is revised 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 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 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
[[Page 54890]]
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. 2022-19436 Filed 9-7-22; 8:45 am]
BILLING CODE 3510-06-P
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</html>Indexed from Federal Register on September 8, 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.