81 FR 33658 - Proposed Information Collection; Comment Request; Direct Investment Surveys: BE-577, Quarterly Survey of U.S. Direct Investment Abroad-Transactions of U.S. Reporter With Foreign Affiliate, and Changes to Private Fund Reporting on Direct Investment Surveys

DEPARTMENT OF COMMERCE
Bureau of Economic Analysis

Federal Register Volume 81, Issue 103 (May 27, 2016)

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 proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).

[Federal Register Volume 81, Number 103 (Friday, May 27, 2016)]
[Notices]
[Pages 33658-33659]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12539]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis


Proposed Information Collection; Comment Request; Direct 
Investment Surveys: BE-577, Quarterly Survey of U.S. Direct Investment 
Abroad--Transactions of U.S. Reporter With Foreign Affiliate, and 
Changes to Private Fund Reporting on Direct Investment Surveys

ACTION: Notice.

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SUMMARY: 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 proposed and/or continuing 
information collections, as required by the Paperwork Reduction Act of 
1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).

DATES: Written comments must be submitted on or before July 26, 2016

ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental 
Paperwork Clearance Officer,

[[Page 33659]]

Department of Commerce, Room 6616, 14th and Constitution Avenue NW., 
Washington, DC 20230, or via email at [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the information collection instrument and instructions should 
be directed to Patricia Abaroa, Chief, Direct Investment Division (BE-
49), Bureau of Economic Analysis, U.S. Department of Commerce, 4600 
Silver Hill Rd., Washington, DC 20233; phone: (301) 278-9591; or via 
email at [email protected].

SUPPLEMENTARY INFORMATION:

I. Abstract

    The Quarterly Survey of U.S. Direct Investment Abroad--Transactions 
of U.S. Reporter with Foreign Affiliate (Form BE-577) obtains quarterly 
data on transactions and positions between U.S.-owned foreign business 
enterprises and their U.S. parents. The survey is a sample survey that 
covers all foreign affiliates above a size-exemption level. The sample 
data are used to derive universe estimates in non-benchmark years from 
similar data reported in the BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad, which is conducted every five years. The data are 
essential for the preparation of the U.S. international transactions 
accounts, the input-output accounts, the national income and product 
accounts, and the international investment position of the United 
States. The data are needed to measure the size and economic 
significance of direct investment abroad, measure changes in such 
investment, and assess its impact on the U.S. and foreign economies.
    BEA proposes to change the reporting requirements for certain 
private funds that file BEA's surveys of U.S. direct investment abroad: 
The BE-577, Quarterly Survey of U.S. Direct Investment Abroad; and the 
BE-11, Annual Survey of U.S. Direct Investment Abroad. The BE-10, 
Benchmark Survey of U.S. Direct Investment Abroad, will also be 
affected by this change but will be addressed in a proposed rule in 
2019.
    BEA, in cooperation with the Treasury Department, proposes to 
instruct reporters of investments in private funds that meet the 
definition of direct investment (that is, ownership by one person of 10 
percent or more of the voting interest of a business enterprise) but 
display characteristics of portfolio investment (specifically, 
investors do not intend to control or influence the management of an 
operating company) to report through the Treasury International Capital 
(TIC) reporting system, where other related portfolio investments are 
already being reported, and not to report on BEA's direct investment 
surveys. Direct investment in operating companies, including investment 
by and through private funds, will continue to be reported to BEA. This 
change will align the U.S. direct investment and portfolio investment 
data more closely with the intent of the investment. In addition, it 
will reduce burden for reporters, many of whom now report both to the 
TIC reporting system and to BEA's direct investment reporting system. 
Under the planned change, U.S. reporters will no longer be required to 
report on BEA surveys of U.S. direct investment abroad data for foreign 
affiliates that are private funds and do not own, directly or 
indirectly, 10 percent or more of the voting interest of another 
foreign business enterprise that is not also a private fund or holding 
company.
    Other changes that are specific to the BE-577 survey include 
improvements to question wording, instructions, and formatting to 
elicit more complete and accurate responses. BEA also plans to add an 
additional question on certain gains/losses to the annual section of 
this form to help verify the quarterly data. BEA expects the additional 
burden to be negligible because this information is only collected once 
each year.

II. Method of Collection

    Notice of specific reporting requirements, including who is to 
report, the information to be reported, the manner of reporting, and 
the time and place of filing reports, will be mailed to potential 
respondents each quarter. Reports are due 30 days after the close of 
each calendar or fiscal quarter--45 days if the report is for the final 
quarter of the respondent's financial reporting year. Reports are 
required from each U.S. person that has a direct and/or indirect 
ownership interest of at least 10 percent of the voting stock in an 
incorporated foreign business enterprise, or an equivalent interest in 
an unincorporated foreign business enterprise, and that meets the 
additional conditions detailed in Form BE-577. Entities required to 
report will be contacted individually by BEA. Entities not contacted by 
BEA have no reporting responsibilities.
    Potential respondents are those U.S. business enterprises that 
reported owning foreign business enterprises in the 2014 benchmark 
survey of U.S. direct investment abroad, along with entities that 
subsequently entered the direct investment universe. The data collected 
are sample data. Universe estimates are developed from the reported 
sample data.
    As an alternative to filing paper forms, BEA offers an electronic 
filing option, the eFile system, for use in reporting on Form BE-577. 
For more information about eFile, go to www.bea.gov/efile.

III. Data

    OMB Control Number: 0608-0004.
    Form Number: BE-577.
    Type of Review: Regular submission.
    Affected Public: Businesses or other for-profit organizations.
    Estimated Number of Respondents: 2,090 U.S. parents filing for 
16,720 foreign affiliates per quarter, 66,880 annually.
    Estimated Time per Response: 1 hour is the average, but may vary 
considerably among respondents because of differences in company 
structure and complexity.
    Estimated Total Annual Burden Hours: 66,880.
    Estimated Total Annual Cost to Public: $0.
    Respondent's Obligation: Mandatory.
    Legal Authority: International Investment and Trade in Services 
Survey Act (Pub. L. 94-472, 22 U.S.C. 3101-3108, as amended by Pub. L. 
98-573 and Pub. L. 101-533).

IV. Request for Comments

    Comments are invited on: (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 Agency's estimate of the burden 
(including hours and cost) of the proposed collection of information; 
(c) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of this information 
collection; they also will become a matter of public record.

    Dated: May 23, 2016.
Glenna Mickelson,
Management Analyst, Office of Chief Information Officer.
[FR Doc. 2016-12539 Filed 5-26-16; 8:45 am]
BILLING CODE 3510-06-P