81_FR_93905 81 FR 93660 - Revisions to User Fees for Export and Investment Promotion Services/Events

81 FR 93660 - Revisions to User Fees for Export and Investment Promotion Services/Events

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 245 (December 21, 2016)

Page Range93660-93664
FR Document2016-30423

The U.S. & Foreign Commercial Service (US&FCS) within the International Trade Administration (ITA) is seeking comment on its proposal to adjust user fees in light of an independent cost study which concluded that the US&FCS is not fully covering its costs for providing services under the current fee structure, as provided in the Office of Management and Budget (OMB) Circular A-25. ITA provides a wide range of export and investment promotion information and services to U.S. individuals and entities. The services considered here are a subset of ITA activities that involve relatively more intensive time engagements with particular client firms; ITA will continue to provide information and services that are less intensive and/or benefit the general public without charge. As part of this proposal, US&FCS also proposes to revise the standards related to company size for determining the fees to be charged.

Federal Register, Volume 81 Issue 245 (Wednesday, December 21, 2016)
[Federal Register Volume 81, Number 245 (Wednesday, December 21, 2016)]
[Notices]
[Pages 93660-93664]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30423]


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DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. 161020988-6988-01]
RIN 0625-XC026


Revisions to User Fees for Export and Investment Promotion 
Services/Events

AGENCY: U.S. & Foreign Commercial Service, International Trade 
Administration, Commerce.

ACTION: Notice of proposed fee revisions and request for comment.

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

SUMMARY: The U.S. & Foreign Commercial Service (US&FCS) within the 
International Trade Administration (ITA) is seeking comment on its 
proposal to adjust user fees in light of an independent cost study 
which concluded that the US&FCS is not fully covering its costs for 
providing services under the current fee structure, as provided in the 
Office of Management and Budget (OMB) Circular A-25. ITA provides a 
wide range of export and investment promotion information and services 
to U.S. individuals and entities. The services considered here are a 
subset of ITA activities that involve relatively more intensive time 
engagements with particular client firms; ITA will continue to provide 
information and services that are less intensive and/or benefit the 
general public without charge. As part of this proposal, US&FCS also 
proposes to revise the standards related to company size for 
determining the fees to be charged.

DATES: We will consider all comments that we receive by January 16, 
2017.

ADDRESSES: You may submit comments by either of the following methods:
     Federal eRulemaking Portal: www.Regulations.gov. The 
identification number is ITA-2016-0012.
     Postal Mail/Commercial Delivery to Docket No. ITA-2016-
0012, International Trade Administration, U.S. & Foreign Commercial 
Service, Office of Strategic Planning & Resource Management, 1400 
Constitution Avenue NW., Rm. C125, Washington, DC 20235.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by US&FCS. All comments received are a part of 
the public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. US&FCS will accept anonymous 
comments (enter ``N/A'' in required fields if you wish to remain 
anonymous).

FOR FURTHER INFORMATION CONTACT: Ms. Aditi Palli, International Trade 
Administration, U.S. & Foreign Commercial Service, Office of Strategic 
Planning, 1400 Constitution Avenue NW., Rm. 21022, Washington, DC 
20230, Phone: (202) 482-2025.

SUPPLEMENTARY INFORMATION:

Background

    The statutory mission of US&FCS is to ``place primary emphasis on 
the promotion of exports of goods and services from the United States, 
particularly by small businesses and medium-sized businesses, and on 
the protection of United States business interests abroad . . . through 
activities that include assisting United States exporters.'' 15 U.S.C. 
Sec. 4721(b). The statute further defines the term ``United States 
exporter'' at 15 U.S.C. Sec. 4721(j) as a U.S. citizen, U.S. 
corporation, or foreign corporation that is more than 95% U.S.-owned, 
that ``exports or seeks to export, goods or services produced in the 
United States.'' In addition, US&FCS leads the federal government's 
investment promotion efforts ``to attract and retain investment in the 
American economy'' as provided in Executive Order 13577--SelectUSA 
Initiative (June 15, 2011). In carrying out these efforts, US&FCS may 
collect user fees from U.S. economic development organizations that 
seek to promote their locality to foreign investors.
    OMB Circular A-25 requires the recovery of an appropriate share of 
the full cost through user fees for goods and services provided to 
recipients of benefits beyond those accruing to the general public. 
Specifically, section 6 of Circular A-25 states that ``when a service 
(or privilege) provides special benefits to an identifiable recipient 
beyond those that accrue to the general public, a charge will be 
imposed (to recover the full cost to the Federal Government for 
providing the special benefit, or the market price).'' A ``user fee'' 
is the amount paid by a recipient of a special benefit beyond those 
benefits accruing to the general public. A ``special benefit'' may 
accrue and a user fee be imposed when a government service: (a) Enables 
the beneficiary to obtain more immediate or substantial gains or values 
than those that accrue to the general public; (b) is performed at the 
request or for the convenience of the recipient, and is beyond the 
services regularly received by members of the same industry or group or 
by the general public; or (c) provides business stability or 
contributes to public confidence in the business activity of the 
beneficiary.
    The direct or indirect cost of a service provided by the Federal 
Government includes, but is not limited to, the following:
     Direct and indirect personnel costs, including salaries 
and fringe benefits such as medical insurance and retirement. 
Retirement costs should include all (funded or unfunded) accrued costs 
not covered by employee contributions as specified in Circular A-11.
     Physical overhead, consulting, or other indirect costs 
including material and supply costs, utilities, insurance travel, and 
rents or imputed rents on land, buildings, and equipment.
     The management and supervisory costs.
     The costs of enforcement, collection, research, 
establishment of standards, and regulation, including any environmental 
impact statements.

Business Size Standards

    To comply with the Small Business Act, US&FCS, in consultation with 
the Small Business Administration (SBA), proposes the following 
standards related to company size:
     Small Business: The company qualifies as a ``small 
business'' under SBA's size standards matched to the North American 
Industry Classification System Codes.
     Medium-sized Business: The company does not qualify under 
SBA's size standards matched to the North American Industry 
Classification System Codes, but has less than $1 billion in annual 
revenue.
     Large Business: The company does not qualify under SBA's 
size standards matched to the North American Industry Classification 
System Codes and has more than $1 billion in annual revenue.
    The US&FCS is committed to ensuring small and medium-sized 
enterprises (SMEs) can access the services that US&FCS provides. The 
US&FCS has historically offered a discount to SMEs, as well as to U.S. 
economic development organizations and non-profit educational 
institutions. US&FCS proposes to continue discounted fees for these 
target populations. Rather than applying a

[[Page 93661]]

standard discount rate to all services, the fees proposed for each 
service are based on price sensitivity survey results as well as other 
considerations, such as the need to ensure that user fees set the 
proper expectation about the value-added for one service relative to 
other service offerings. The result is an average discount of 70 
percent for small companies, U.S. economic development organizations, 
and non-profit educational institutions, and 30 percent for medium-
sized companies.

User Fee Schedule

    The US&FCS offers export and investment promotion services to U.S. 
businesses that consist of Standardized Fee Services and Customized Fee 
Services. For each of these services, the US&FCS collects fees 
according to the User Fee Schedule that is made available on its Web 
site and agency publications. The ``Standardized Fee Services'' listed 
in the User Fee Schedule are services that are performed in the same 
general manner by all US&FCS field units. Other ``Customized 
Services,'' not shown in the chart below, entail substantive variation 
of the scope of work with fees based on the level of effort required 
and direct costs incurred. Under this notice, US&FCS proposes to turn 
more Customized Fee Services into Standardized Fee Services to improve 
the consistency and clarity of fees to be charged.
    The US&FCS proposes to modify the user fees for both Standardized 
Fee Services and Customized Fee Services. The proposed new User Fee 
Schedule provided below lists each standardized fee service and the 
estimated number of hours for completion of service delivery. To 
determine the large company fee for any service, a flat hourly rate of 
$46 for locally employed staff, $150 for commercial officers and $80 
for U.S.-based staff is multiplied by the estimated workload hours for 
each employee type. To determine the fees for a small business and 
medium-sized business, price sensitivity survey results were analyzed 
to determine the discount to be applied. Direct costs, such as 
transportation or an interpreter, will be discussed with the client and 
assessed in addition to the user fee. For Customized Fee Services, the 
estimated workload hours will vary, but the user fee will be calculated 
based on the weighted average hourly rate of $90 per hour for large 
companies, $70 per hour for medium-sized enterprises, and $30 per hour 
for small businesses. The services included in this proposal are 
described below.
    1. Business Service Provider A listing of U.S. and foreign business 
service providers that offer export/investment assistance; such as 
consultants, lawyers, freight forwarders, etc. The fee is paid for by 
the business service provider to be listed on US&FCS's Web sites.
    2. Certified Trade/Investment Mission: Provides a group of U.S. 
companies or economic development organizations with a market briefing, 
networking reception and Gold Key Service in-country as part of a 
mission organized by an economic development organization or US&FCS 
office/team. The fees for these missions are separate from DOC 
Executive-led Missions, which are organized by Industry and Analysis/
Trade Promotion Programs.
    3. Featured U.S. Exporter: Provides U.S. companies with an 
opportunity to enhance their international marketing efforts through 
improved search engine optimization via .gov link-backs to their 
company's Web site. The service entails listing their goods/services 
overseas on a trusted U.S. government Web site with a brief description 
and contact information.
    4. Gold Key Service: Provides U.S. companies with matchmaking 
appointments with up to five interested partners in a foreign market; 
including: Identification and outreach to potential matching firms; 
sending client's information to identified matching firms; preparing a 
profile of interested firms; and providing a report with the profile 
and contact information for interested firms.
    5. Initial Market Check: Provides U.S. firms with a report 
containing information needed to evaluate the potential of their 
product or service offering in a specific target market; including: A 
snapshot of the market potential of the product/service; feedback from 
up to five local contacts on their level of interest in the product/
service; and analysis and recommendations for next steps.
    6. International Company Profile--Full Report: Full: Provides U.S. 
companies and economic development organizations with a comprehensive 
background report on a specific foreign company, including: Information 
on company size, sales data, business activities, corporate structure, 
shareholders and directors, references, financial data creditworthiness 
and market outlook; site visit and interviews with principals; 
information sources consulted in preparing the report; and analysis of 
information collected.
    7. International Company Profile--Partial Report: Provides U.S. 
companies and economic development organizations with a partial 
background report on a specific foreign company; including: Information 
on company size, sales data, business activities, references, corporate 
structure, and shareholders/directors; information sources consulted in 
preparing the report; and brief analysis of information collected.
    8. International Partner Service: Provides U.S. companies with a 
list of up to five partners/distributors that have expressed an 
interest in the client's goods/services; including: Identification and 
outreach to potential matching firms; sending client's information to 
identified matching firms; preparing a profile of interested firms; and 
providing a report with the profile and contact information for 
interested firms.
    9. International Partner Search + Virtual Introductions: Provides 
the same as above, but also includes virtual introductions via 
conference calls with up to five of the contacts identified.
    10. Other Customized Services/Events: Includes all other services/
events not listed.
    11. Single Company or Location Promotion: Provides a U.S. firm or 
locality with a promotional event (such as a technical seminar, press 
conference, luncheon, dinner, cocktail reception, etc.) to help 
increase awareness of their locality or existing/new products/services 
in a specific market, including: organizing the event logistics/venue; 
conducting a targeted direct mail or email campaigns; managing the 
promotional campaign and event-related logistics; providing logistical 
and promotional support on-site during the event; and providing a post-
event de-briefing to discuss next steps.
    12. Target Market Analysis: Provides U.S. firms with an analysis of 
the most promising target markets overseas for their product/service 
based on analysis of secondary research/data (macroeconomic/commercial 
& trade/risk data).
    13. Trade Show Representation: Provides U.S. companies and economic 
development organizations with the ability to increase their marketing 
exposure at a trade show when they are unable to attend in-person; 
entails conducting pre-trade show promotions via Internet/social media/
email campaign; representing the client at the trade show; displaying 
the client's promotional materials at the trade show; conducting 
outreach to foreign buyers/distributors in attendance at the trade 
show; and providing contact information for each overseas company that 
expressed interest in the client's products/services at the trade show.
    14. Verified Contact List: Provides U.S. firms with a basic contact 
list of up to five to 10 agents, distributors and partners in a foreign 
market. The

[[Page 93662]]

information included in the contact list will have been reviewed and 
verified for accuracy only and no information will be provided on the 
level of interest in the client's products/services.
    15. Webinar: Provides U.S. firms and economic development 
organizations with export knowledge and/or market intelligence from 
experts located around the globe via an online webinar. The webinars 
are archived on export.gov.
    16. Web site Globalization: provides U.S. companies with services 
to enhance the strength of their Web site for the purpose of attracting 
foreign partners/business.

User Fee Discounts

    The US&FCS currently offers various discounts to SMEs, economic 
development organizations and non-profit educational institutions. 
US&FCS proposes to discount services for all small businesses, economic 
development organization and non-profit educational institutions by an 
average of ~70 percent and for all medium-sized enterprises by an 
average of ~30 percent. Under this notice, US&FCS also proposes to 
eliminate the current SME incentive program, which currently offers an 
additional discount for first-time users of US&FCS services.
    Full cost rates and SME discount rates are provided on the next 
page so that the public can comment upon the implications of full and 
SME rates.
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    \1\ Other direct costs not included in the service description 
must be assumed by the client. Types of other direct costs include 
translation, transportation, use of contractors, venue rental, 
catering, etc.
    \2\ Fees listed also apply to Economic Development Organizations 
and Non-profit Educational Institutions
    \3\ Fees listed also apply to Foreign Companies, regardless of 
their size, that use US&FCS services, particularly the Business 
Service Provider listing, to promote themselves to U.S. exporters.

                                                Proposed User Fee Schedule for Export Promotion Services
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Current fee \1\                                     Proposed fee \1\
        Service/Event            Average hours  --------------------------------------------------------------------------------------------------------
                                 (per client)        Small \2\          Medium           Large \3\        Small \2\          Medium         Large \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Business Service Provider....  4...............  $300............  $600............  $600............  $150...........  $250...........  $350
                                                 + $50 for         + $50 for         + $50 for         + $50 for        + $50 for        + $50 for
                                                  translation if    translation if    translation if    translation if   translation if   translation if
                                                  needed.           needed.           needed.           needed.          needed.          needed.
Certified Trade Mission        70..............  $28 per staff     $28 per staff     $28 per staff     Full Package:    Full Package:    Full Package:
 (market briefing and/or                          hour.             hour.             hour.             $1,200.          $2,800.          $4,000.
 networking reception and/or                     + any direct      + any direct      + any direct      Networking       Networking       Networking
 Gold Key Service--GKS).                          costs.            costs.            costs.            Reception and    Reception and    Reception and
                                                                                                        GKS: $1,100.     GKS: $2,700.     GKS: $3,900.
                                                                                                       Market Briefing  Market Briefing  Market Briefing
                                                                                                        and GKS:         and GKS:         and GKS:
                                                                                                        $1,000.          $2,400.          $3,500.
                                                                                                       Market Briefing  Market Briefing  Market Briefing
                                                                                                        and Networking   and Networking   and Networking
                                                                                                        Reception:       Reception:       Reception:
                                                                                                        $250.            $500.            $600.
                                                                                                       + any direct     + any direct     + any direct
                                                                                                        costs.           costs.           costs.
Featured U.S. Exporter         8...............  $150............  $300............  $300............  $150...........  $350...........  $500.
 listing (5 markets).                            + $50 for         + $50 for         + $50 for         + $50 for        + $50 for        + $50 for
                                                  translation if    translation if    translation if    translation if   translation if   translation if
                                                  needed.           needed.           needed.           needed.          needed.          needed.
Gold Key Service.............  62..............  $700............  $2,300..........  $2,300..........  $950...........  $2,300.........  $3,400.
                                                 + $350 for 2nd    + $1,000 for 2nd  + $1,000 for 2nd  + $350 for 2nd   + $1,000 for     + $1,200 for
                                                  day.              day.              day.              day.             2nd day.         2nd day.
Initial Market Check.........  20..............  $450............  $1,280..........  $1,280..........  $450...........  $1,000.........  $1,300.
International Company          31..............  $600............  $900............  $900............  $700...........  $1,200.........  $2,000.
 Profile--Full.
International Company          12..............  N/A.............  N/A.............  N/A.............  $350...........  $850...........  $1,100.
 Profile--Partial.
International Partner Search.  40..............  $550............  $1,400..........  $1,400..........  $750...........  $1,400.........  $2,800.
International Partner Search   45..............  N/A.............  N/A.............  N/A.............  $900...........  $1,750.........  $3,250.
 + Virtual Introductions.
Other Customized Services and  N/A.............  $28 per staff     $80 per staff     $80 per staff     $30 per staff    $70 per staff    $90 per staff
 Events.                                          hour.             hour.             hour.             hour.            hour.            hour
                                                 + any direct      + any direct      + any direct      + any direct     + any direct     + any direct
                                                  costs.            costs.            costs.            costs.           costs.           costs.
Single Company Promotion.....  Events requires   $28 per staff     $80 per staff     $80 per staff     20 to 40 hours   20 to 40 hours   20 to 40 hours
                                20 to 40; 40 to   hour.             hour.             hour.             of staff time:   of staff time:   of staff time:
                                80; or 80 to     + any direct      + any direct      + any direct       $800.            $1,800.          $2,600.
                                110.              costs.            costs.            costs.           40 to 80 hours   40 to 80 hours   40 to 80 hours
                                                                                                        of staff time:   of staff time:   of staff time:
                                                                                                        $1,500.          $2,000.          $4,500.
                                                                                                       80 to 110 hours  80 to 110 hours  80 to 110 hours
                                                                                                        of staff time:   of staff time:   of staff time:
                                                                                                        $2,600.          $4,800.          $6,300.
                                                                                                       + any direct     + any direct     + any direct
                                                                                                        costs..          costs..          costs.
Target Market Analysis.......  5...............  N/A.............  N/A.............  N/A.............  $150...........  $350...........  $500.
Trade Show Representation....  12..............  N/A.............  N/A.............  N/A.............  $400...........  $950...........  $1,350.
Verified Contact List........  5...............  N/A.............  N/A.............  N/A.............  $150...........  $350...........  $450.

[[Page 93663]]

 
Webinar......................  2...............  $28 per staff     $28 per staff     $28 per staff     $25 per webinar  $25 per webinar  $25 per webinar
                                                  hour.             hour.             hour.             hour.            hour.            hour.
Website Globalization........  4...............  N/A.............  N/A.............  N/A.............  $100...........  $300...........  $400.
--------------------------------------------------------------------------------------------------------------------------------------------------------

     
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    \4\ Other direct costs not included in the service description 
must be covered by the client in the form of additional user fees. 
Types of other direct costs include translation, transportation, use 
of contractors, venue rental, catering, etc.

                          Proposed User Fee Schedule for Investment Promotion Services
----------------------------------------------------------------------------------------------------------------
                                                                 Current fee for      Proposed fee for economic
              Service                  Average hours (per     economic development    development organizations
                                             client)            organizations \4\                \4\
----------------------------------------------------------------------------------------------------------------
Certified Investment Mission         70....................  $28 per staff hour....  Full Package: $1,200.
 (market briefing, networking                                + any direct costs....  Networking Reception and
 reception and Gold Key Service).                                                     GKS: $1,100.
                                                                                     Market Briefing and GKS:
                                                                                      $1,000.
                                                                                     Market Briefing and
                                                                                      Networking Reception:
                                                                                      $250.
                                                                                     + any direct costs.
Gold Key Service...................  62....................  $700..................  $950
                                                             + $350 for 2nd day....  + $350 for 2nd day.
International Company Profile--Full  31....................  $600..................  $700.
International Company Profile--      12....................  N/A...................  $350.
 Partial.
Other Customized Services/Events...  N/A...................  $28 per staff hour....  $30 per staff hour
                                                             + any direct costs....  + any direct costs.
Single Location Promotion..........  20 to 40; 40 to 80; or  $28 per staff hour....  20-40 hours of staff time:
                                      80 to 110.             + any direct costs....   $800.
                                                                                     40-80 hours of staff time:
                                                                                      $1,500.
                                                                                     80-110 hours of staff time:
                                                                                      $2,000.
                                                                                     + any direct costs.
----------------------------------------------------------------------------------------------------------------

    Notes:
     Business Service Provider: Fee is for up to 5 categories. 
To be listed in more than 5 categories, there is an additional fee per 
category of $60 for large companies, $40 for medium-sized enterprises 
and $30 for small businesses.
     Certified Trade Mission: The fee is assessed on a per 
Post/city basis. Applicants will be charged a fee for an Initial Market 
Check if US&FCS staff is uncertain about their market potential. The 
fee paid by the applicant will then be applied to their Certified Trade 
Mission fee if they participate in the mission.
     Featured U.S. Exporter: Listings are typically provided 
for up to 5 markets; however, they can be provided for an individual 
market for $100 for large companies, $40 for medium-sized enterprises 
and $30 for small businesses.
     Initial Market Check: Will be a required precursor to more 
time intensive services if US&FCS staff is uncertain about a client's 
market potential. Fees paid for the Initial Market Check will then be 
applied to any follow-on service if the results are positive. The fee 
is assessed on a per country basis.
     International Company Profile--Partial: Does not include a 
site visit.
     Webinars will be archived and made available to the 
general public, so the requirement to cover US&FCS's costs does not 
apply; however, a minimal fee is proposed to help ensure the 
suitability of participants and cover the cost of any special benefit 
that may derive from attending in real-time, such as question and 
answer opportunities. Uniform pricing is proposed as the enforcement of 
pricing by size standards of each registrant would create an 
administrative burden. Some webinars will be provided at no charge when 
the purpose is primarily to promote US&FCS or other United States 
Government events, activities, etc.

Determining the Cost of Performing Each Service

    The cost of service methodology developed by US&FCS was designed to 
bring the organization closer to full cost recovery guidance set forth 
in OMB Circular A-25. To set user fees that are ``self-sustaining,'' 
the US&FCS had to determine the true cost of providing various export 
and investment promotion services.
    Federal Accounting Standards permit US&FCS to use an activity-based 
costing model to determine the true cost of services listed in the 
proposed User Fee Schedule. The activities were defined in accordance 
with the US&FCS list of services offered by US&FCS, including both 
standard and customized services.
    As part of the cost of service study, the US&FCS conducted a 
workload survey to obtain a more accurate estimate of the true cost for 
delivery of specific services. The workload survey was designed and 
distributed to all US&FCS international and domestic field units. The 
data submitted by various US&FCS field units was then aggregated to 
determine the global average of workload for each standard or 
customized service. Using FY2015 US&FCS budget data, fringe benefits 
and non-labor related costs (e.g., materials, supplies, rent, 
utilities, and equipment) were prorated to determine the burdening rate 
that was to be added to the hourly rate. This resulted in an hourly 
rate that accounts for all applicable labor and non-labor costs

[[Page 93664]]

specifically related to the delivery of services, which is consistent 
with federal accounting standards.

Conclusion

    Based on the information provided above, the US&FCS believes its 
proposed fees are consistent with both the mission of US&FCS to promote 
``exports of goods and services from the United States, particularly by 
small businesses and medium-sized businesses,'' and the objective of 
OMB Circular A-25 to ``promote efficient allocation of the nation's 
resources by establishing charges for special benefits provided to the 
recipient that are at least as great as the cost to the U.S. Government 
of providing the special benefits.''

Frank Spector,
Senior Advisor, Office of Trade Promotion Programs.
[FR Doc. 2016-30423 Filed 12-20-16; 8:45 am]
 BILLING CODE 3510-FP-P



                                                    93660                    Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Notices

                                                      2. Magnitude of the Margins Likely To                 received are a part of the public record              service: (a) Enables the beneficiary to
                                                         Prevail                                            and will generally be posted for public               obtain more immediate or substantial
                                                    VII. Final Results of Sunset Reviews                    viewing on www.regulations.gov                        gains or values than those that accrue to
                                                    VIII. Recommendation                                    without change. All personal identifying              the general public; (b) is performed at
                                                    [FR Doc. 2016–30732 Filed 12–20–16; 8:45 am]            information (e.g., name, address, etc.),              the request or for the convenience of the
                                                    BILLING CODE 3510–DS–P                                  confidential business information, or                 recipient, and is beyond the services
                                                                                                            otherwise sensitive information                       regularly received by members of the
                                                                                                            submitted voluntarily by the sender will              same industry or group or by the general
                                                    DEPARTMENT OF COMMERCE                                  be publicly accessible. US&FCS will                   public; or (c) provides business stability
                                                                                                            accept anonymous comments (enter ‘‘N/                 or contributes to public confidence in
                                                    International Trade Administration
                                                                                                            A’’ in required fields if you wish to                 the business activity of the beneficiary.
                                                    [Docket No. 161020988–6988–01]                          remain anonymous).                                       The direct or indirect cost of a service
                                                                                                            FOR FURTHER INFORMATION CONTACT: Ms.                  provided by the Federal Government
                                                    RIN 0625–XC026
                                                                                                            Aditi Palli, International Trade                      includes, but is not limited to, the
                                                    Revisions to User Fees for Export and                   Administration, U.S. & Foreign                        following:
                                                    Investment Promotion Services/Events                    Commercial Service, Office of Strategic                  • Direct and indirect personnel costs,
                                                                                                            Planning, 1400 Constitution Avenue                    including salaries and fringe benefits
                                                    AGENCY:  U.S. & Foreign Commercial                      NW., Rm. 21022, Washington, DC                        such as medical insurance and
                                                    Service, International Trade                            20230, Phone: (202) 482–2025.                         retirement. Retirement costs should
                                                    Administration, Commerce.                                                                                     include all (funded or unfunded)
                                                                                                            SUPPLEMENTARY INFORMATION:
                                                    ACTION: Notice of proposed fee revisions                                                                      accrued costs not covered by employee
                                                    and request for comment.                                Background                                            contributions as specified in Circular
                                                                                                               The statutory mission of US&FCS is to              A–11.
                                                    SUMMARY:   The U.S. & Foreign
                                                                                                            ‘‘place primary emphasis on the                          • Physical overhead, consulting, or
                                                    Commercial Service (US&FCS) within                                                                            other indirect costs including material
                                                                                                            promotion of exports of goods and
                                                    the International Trade Administration                                                                        and supply costs, utilities, insurance
                                                                                                            services from the United States,
                                                    (ITA) is seeking comment on its                                                                               travel, and rents or imputed rents on
                                                                                                            particularly by small businesses and
                                                    proposal to adjust user fees in light of                                                                      land, buildings, and equipment.
                                                                                                            medium-sized businesses, and on the
                                                    an independent cost study which                                                                                  • The management and supervisory
                                                                                                            protection of United States business
                                                    concluded that the US&FCS is not fully                                                                        costs.
                                                                                                            interests abroad . . . through activities                • The costs of enforcement,
                                                    covering its costs for providing services
                                                                                                            that include assisting United States                  collection, research, establishment of
                                                    under the current fee structure, as
                                                                                                            exporters.’’ 15 U.S.C. Sec. 4721(b). The              standards, and regulation, including any
                                                    provided in the Office of Management
                                                                                                            statute further defines the term ‘‘United             environmental impact statements.
                                                    and Budget (OMB) Circular A–25. ITA
                                                                                                            States exporter’’ at 15 U.S.C. Sec. 4721(j)
                                                    provides a wide range of export and
                                                                                                            as a U.S. citizen, U.S. corporation, or               Business Size Standards
                                                    investment promotion information and
                                                                                                            foreign corporation that is more than                   To comply with the Small Business
                                                    services to U.S. individuals and entities.
                                                                                                            95% U.S.-owned, that ‘‘exports or seeks               Act, US&FCS, in consultation with the
                                                    The services considered here are a
                                                                                                            to export, goods or services produced in              Small Business Administration (SBA),
                                                    subset of ITA activities that involve
                                                                                                            the United States.’’ In addition, US&FCS              proposes the following standards related
                                                    relatively more intensive time
                                                                                                            leads the federal government’s                        to company size:
                                                    engagements with particular client
                                                    firms; ITA will continue to provide
                                                                                                            investment promotion efforts ‘‘to attract               • Small Business: The company
                                                                                                            and retain investment in the American                 qualifies as a ‘‘small business’’ under
                                                    information and services that are less
                                                                                                            economy’’ as provided in Executive                    SBA’s size standards matched to the
                                                    intensive and/or benefit the general
                                                                                                            Order 13577—SelectUSA Initiative                      North American Industry Classification
                                                    public without charge. As part of this
                                                                                                            (June 15, 2011). In carrying out these                System Codes.
                                                    proposal, US&FCS also proposes to
                                                    revise the standards related to company
                                                                                                            efforts, US&FCS may collect user fees                   • Medium-sized Business: The
                                                                                                            from U.S. economic development                        company does not qualify under SBA’s
                                                    size for determining the fees to be
                                                                                                            organizations that seek to promote their              size standards matched to the North
                                                    charged.
                                                                                                            locality to foreign investors.                        American Industry Classification
                                                    DATES: We will consider all comments                       OMB Circular A–25 requires the                     System Codes, but has less than $1
                                                    that we receive by January 16, 2017.                    recovery of an appropriate share of the               billion in annual revenue.
                                                    ADDRESSES: You may submit comments                      full cost through user fees for goods and               • Large Business: The company does
                                                    by either of the following methods:                     services provided to recipients of                    not qualify under SBA’s size standards
                                                      • Federal eRulemaking Portal:                         benefits beyond those accruing to the                 matched to the North American
                                                    www.Regulations.gov. The identification                 general public. Specifically, section 6 of            Industry Classification System Codes
                                                    number is ITA–2016–0012.                                Circular A–25 states that ‘‘when a                    and has more than $1 billion in annual
                                                      • Postal Mail/Commercial Delivery to                  service (or privilege) provides special               revenue.
                                                    Docket No. ITA–2016–0012,                               benefits to an identifiable recipient                   The US&FCS is committed to
                                                    International Trade Administration,                     beyond those that accrue to the general               ensuring small and medium-sized
                                                    U.S. & Foreign Commercial Service,                      public, a charge will be imposed (to                  enterprises (SMEs) can access the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Office of Strategic Planning & Resource                 recover the full cost to the Federal                  services that US&FCS provides. The
                                                    Management, 1400 Constitution Avenue                    Government for providing the special                  US&FCS has historically offered a
                                                    NW., Rm. C125, Washington, DC 20235.                    benefit, or the market price).’’ A ‘‘user             discount to SMEs, as well as to U.S.
                                                      Instructions: Comments sent by any                    fee’’ is the amount paid by a recipient               economic development organizations
                                                    other method, to any other address or                   of a special benefit beyond those                     and non-profit educational institutions.
                                                    individual, or received after the end of                benefits accruing to the general public.              US&FCS proposes to continue
                                                    the comment period, may not be                          A ‘‘special benefit’’ may accrue and a                discounted fees for these target
                                                    considered by US&FCS. All comments                      user fee be imposed when a government                 populations. Rather than applying a


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                                                                             Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Notices                                           93661

                                                    standard discount rate to all services,                 providers that offer export/investment                size, sales data, business activities,
                                                    the fees proposed for each service are                  assistance; such as consultants, lawyers,             references, corporate structure, and
                                                    based on price sensitivity survey results               freight forwarders, etc. The fee is paid              shareholders/directors; information
                                                    as well as other considerations, such as                for by the business service provider to               sources consulted in preparing the
                                                    the need to ensure that user fees set the               be listed on US&FCS’s Web sites.                      report; and brief analysis of information
                                                    proper expectation about the value-                        2. Certified Trade/Investment Mission:             collected.
                                                    added for one service relative to other                 Provides a group of U.S. companies or                    8. International Partner Service:
                                                    service offerings. The result is an                     economic development organizations                    Provides U.S. companies with a list of
                                                    average discount of 70 percent for small                with a market briefing, networking                    up to five partners/distributors that have
                                                    companies, U.S. economic development                    reception and Gold Key Service in-                    expressed an interest in the client’s
                                                    organizations, and non-profit                           country as part of a mission organized                goods/services; including: Identification
                                                    educational institutions, and 30 percent                by an economic development                            and outreach to potential matching
                                                    for medium-sized companies.                             organization or US&FCS office/team.                   firms; sending client’s information to
                                                                                                            The fees for these missions are separate              identified matching firms; preparing a
                                                    User Fee Schedule                                       from DOC Executive-led Missions,                      profile of interested firms; and
                                                       The US&FCS offers export and                         which are organized by Industry and                   providing a report with the profile and
                                                    investment promotion services to U.S.                   Analysis/Trade Promotion Programs.                    contact information for interested firms.
                                                    businesses that consist of Standardized                    3. Featured U.S. Exporter: Provides                   9. International Partner Search +
                                                    Fee Services and Customized Fee                         U.S. companies with an opportunity to                 Virtual Introductions: Provides the same
                                                    Services. For each of these services, the               enhance their international marketing                 as above, but also includes virtual
                                                    US&FCS collects fees according to the                   efforts through improved search engine                introductions via conference calls with
                                                    User Fee Schedule that is made                          optimization via .gov link-backs to their             up to five of the contacts identified.
                                                    available on its Web site and agency                    company’s Web site. The service entails                  10. Other Customized Services/
                                                    publications. The ‘‘Standardized Fee                    listing their goods/services overseas on              Events: Includes all other services/
                                                    Services’’ listed in the User Fee                       a trusted U.S. government Web site with               events not listed.
                                                    Schedule are services that are performed                a brief description and contact                          11. Single Company or Location
                                                    in the same general manner by all                       information.                                          Promotion: Provides a U.S. firm or
                                                    US&FCS field units. Other ‘‘Customized                     4. Gold Key Service: Provides U.S.                 locality with a promotional event (such
                                                    Services,’’ not shown in the chart below,               companies with matchmaking                            as a technical seminar, press conference,
                                                    entail substantive variation of the scope               appointments with up to five interested               luncheon, dinner, cocktail reception,
                                                    of work with fees based on the level of                 partners in a foreign market; including:              etc.) to help increase awareness of their
                                                    effort required and direct costs incurred.              Identification and outreach to potential              locality or existing/new products/
                                                    Under this notice, US&FCS proposes to                   matching firms; sending client’s                      services in a specific market, including:
                                                    turn more Customized Fee Services into                  information to identified matching                    organizing the event logistics/venue;
                                                    Standardized Fee Services to improve                    firms; preparing a profile of interested              conducting a targeted direct mail or
                                                    the consistency and clarity of fees to be               firms; and providing a report with the                email campaigns; managing the
                                                    charged.                                                profile and contact information for                   promotional campaign and event-related
                                                       The US&FCS proposes to modify the                    interested firms.                                     logistics; providing logistical and
                                                    user fees for both Standardized Fee                        5. Initial Market Check: Provides U.S.             promotional support on-site during the
                                                    Services and Customized Fee Services.                   firms with a report containing                        event; and providing a post-event de-
                                                    The proposed new User Fee Schedule                      information needed to evaluate the                    briefing to discuss next steps.
                                                    provided below lists each standardized                  potential of their product or service                    12. Target Market Analysis: Provides
                                                    fee service and the estimated number of                 offering in a specific target market;                 U.S. firms with an analysis of the most
                                                    hours for completion of service delivery.               including: A snapshot of the market                   promising target markets overseas for
                                                    To determine the large company fee for                  potential of the product/service;                     their product/service based on analysis
                                                    any service, a flat hourly rate of $46 for              feedback from up to five local contacts               of secondary research/data
                                                    locally employed staff, $150 for                        on their level of interest in the product/            (macroeconomic/commercial & trade/
                                                    commercial officers and $80 for U.S.-                   service; and analysis and                             risk data).
                                                    based staff is multiplied by the                        recommendations for next steps.                          13. Trade Show Representation:
                                                    estimated workload hours for each                          6. International Company Profile—                  Provides U.S. companies and economic
                                                    employee type. To determine the fees                    Full Report: Full: Provides U.S.                      development organizations with the
                                                    for a small business and medium-sized                   companies and economic development                    ability to increase their marketing
                                                    business, price sensitivity survey results              organizations with a comprehensive                    exposure at a trade show when they are
                                                    were analyzed to determine the                          background report on a specific foreign               unable to attend in-person; entails
                                                    discount to be applied. Direct costs,                   company, including: Information on                    conducting pre-trade show promotions
                                                    such as transportation or an interpreter,               company size, sales data, business                    via Internet/social media/email
                                                    will be discussed with the client and                   activities, corporate structure,                      campaign; representing the client at the
                                                    assessed in addition to the user fee. For               shareholders and directors, references,               trade show; displaying the client’s
                                                    Customized Fee Services, the estimated                  financial data creditworthiness and                   promotional materials at the trade show;
                                                    workload hours will vary, but the user                  market outlook; site visit and interviews             conducting outreach to foreign buyers/
                                                    fee will be calculated based on the                     with principals; information sources                  distributors in attendance at the trade
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    weighted average hourly rate of $90 per                 consulted in preparing the report; and                show; and providing contact
                                                    hour for large companies, $70 per hour                  analysis of information collected.                    information for each overseas company
                                                    for medium-sized enterprises, and $30                      7. International Company Profile—                  that expressed interest in the client’s
                                                    per hour for small businesses. The                      Partial Report: Provides U.S. companies               products/services at the trade show.
                                                    services included in this proposal are                  and economic development                                 14. Verified Contact List: Provides
                                                    described below.                                        organizations with a partial background               U.S. firms with a basic contact list of up
                                                       1. Business Service Provider A listing               report on a specific foreign company;                 to five to 10 agents, distributors and
                                                    of U.S. and foreign business service                    including: Information on company                     partners in a foreign market. The


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                                                    93662                       Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Notices

                                                    information included in the contact list                                enhance the strength of their Web site                                         average of ∼70 percent and for all
                                                    will have been reviewed and verified for                                for the purpose of attracting foreign                                          medium-sized enterprises by an average
                                                    accuracy only and no information will                                   partners/business.                                                             of ∼30 percent. Under this notice,
                                                    be provided on the level of interest in                                                                                                                US&FCS also proposes to eliminate the
                                                                                                                            User Fee Discounts
                                                    the client’s products/services.                                                                                                                        current SME incentive program, which
                                                      15. Webinar: Provides U.S. firms and                                    The US&FCS currently offers various                                          currently offers an additional discount
                                                    economic development organizations                                      discounts to SMEs, economic
                                                                                                                                                                                                           for first-time users of US&FCS services.
                                                    with export knowledge and/or market                                     development organizations and non-
                                                    intelligence from experts located around                                profit educational institutions. US&FCS                                          Full cost rates and SME discount rates
                                                    the globe via an online webinar. The                                    proposes to discount services for all                                          are provided on the next page so that
                                                    webinars are archived on export.gov.                                    small businesses, economic                                                     the public can comment upon the
                                                      16. Web site Globalization: provides                                  development organization and non-                                              implications of full and SME rates.
                                                    U.S. companies with services to                                         profit educational institutions by an
                                                                                               PROPOSED USER FEE SCHEDULE FOR EXPORT PROMOTION SERVICES
                                                                                                                                            Current fee 1                                                                      Proposed fee 1
                                                                              Average hours
                                                       Service/Event           (per client)                       Small 2                      Medium                        Large 3                     Small 2                     Medium                       Large 3

                                                    Business Service       4 ..........................   $300 ....................     $600 ....................    $600 ....................    $150 ....................   $250 ....................   $350
                                                      Provider.                                           + $50 for trans-              + $50 for trans-             + $50 for trans-             + $50 for trans-            + $50 for trans-            + $50 for trans-
                                                                                                            lation if needed.             lation if needed.            lation if needed.            lation if needed.           lation if needed.           lation if needed.
                                                    Certified Trade        70 ........................    $28 per staff hour            $28 per staff hour           $28 per staff hour           Full Package:               Full Package:               Full Package:
                                                      Mission (market                                     + any direct costs            + any direct costs           + any direct costs             $1,200.                     $2,800.                     $4,000.
                                                      briefing and/or                                                                                                                             Networking Re-              Networking Re-              Networking Re-
                                                      networking re-                                                                                                                                ception and                 ception and                 ception and
                                                      ception and/or                                                                                                                                GKS: $1,100                 GKS: $2,700                 GKS: $3,900.
                                                      Gold Key Serv-                                                                                                                              Market Briefing             Market Briefing             Market Briefing
                                                      ice—GKS).                                                                                                                                     and GKS:                    and GKS:                    and GKS:
                                                                                                                                                                                                    $1,000                      $2,400                      $3,500.
                                                                                                                                                                                                  Market Briefing             Market Briefing             Market Briefing
                                                                                                                                                                                                    and Networking              and Networking              and Networking
                                                                                                                                                                                                    Reception: $250             Reception: $500             Reception:
                                                                                                                                                                                                  + any direct costs          + any direct costs            $600.
                                                                                                                                                                                                                                                          + any direct costs.
                                                    Featured U.S. Ex-      8 ..........................   $150 ....................     $300 ....................    $300 ....................    $150 ....................   $350 ....................   $500.
                                                      porter listing (5                                   + $50 for trans-              + $50 for trans-             + $50 for trans-             + $50 for trans-            + $50 for trans-            + $50 for trans-
                                                      markets).                                             lation if needed.             lation if needed.            lation if needed.            lation if needed.           lation if needed.           lation if needed.
                                                    Gold Key Service ..    62 ........................    $700 ....................     $2,300 .................     $2,300 .................     $950 ....................   $2,300 .................    $3,400.
                                                                                                          + $350 for 2nd                + $1,000 for 2nd             + $1,000 for 2nd             + $350 for 2nd              + $1,000 for 2nd            + $1,200 for 2nd
                                                                                                            day.                          day.                         day.                         day.                        day.                        day.
                                                    Initial Market         20 ........................    $450 ....................     $1,280 .................     $1,280 .................     $450 ....................   $1,000 .................    $1,300.
                                                       Check.
                                                    International Com-     31 ........................    $600 ....................     $900 ....................    $900 ....................    $700 ....................   $1,200 .................    $2,000.
                                                       pany Profile—
                                                       Full.
                                                    International Com-     12 ........................    N/A ......................    N/A ......................   N/A ......................   $350 ....................   $850 ....................   $1,100.
                                                       pany Profile—
                                                       Partial.
                                                    International Part-    40 ........................    $550 ....................     $1,400 .................     $1,400 .................     $750 ....................   $1,400 .................    $2,800.
                                                       ner Search.
                                                    International Part-    45 ........................    N/A ......................    N/A ......................   N/A ......................   $900 ....................   $1,750 .................    $3,250.
                                                       ner Search +
                                                       Virtual Introduc-
                                                       tions.
                                                    Other Customized       N/A ......................     $28 per staff hour            $80 per staff hour           $80 per staff hour           $30 per staff hour          $70 per staff hour          $90 per staff hour
                                                       Services and                                       + any direct costs            + any direct costs           + any direct costs           + any direct costs          + any direct costs          + any direct costs.
                                                       Events.
                                                    Single Company         Events requires     $28 per staff hour                       $80 per staff hour           $80 per staff hour           20 to 40 hours of           20 to 40 hours of           20 to 40 hours of
                                                       Promotion.            20 to 40; 40 to   + any direct costs                       + any direct costs           + any direct costs             staff time: $800.           staff time:                 staff time:
                                                                             80; or 80 to 110.                                                                                                    40 to 80 hours of             $1,800.                     $2,600.
                                                                                                                                                                                                    staff time:               40 to 80 hours of           40 to 80 hours of
                                                                                                                                                                                                    $1,500                      staff time:                 staff time:
                                                                                                                                                                                                  80 to 110 hours of            $2,000                      $4,500.
                                                                                                                                                                                                    staff time:               80 to 110 hours of          80 to 110 hours of
                                                                                                                                                                                                    $2,600                      staff time:                 staff time:
                                                                                                                                                                                                  + any direct costs.           $4,800                      $6,300.
                                                                                                                                                                                                                              + any direct costs.         + any direct costs.
                                                    Target Market          5 ..........................   N/A ......................    N/A ......................   N/A ......................   $150 ....................   $350 ....................   $500.
                                                      Analysis.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Trade Show Rep-        12 ........................    N/A ......................    N/A ......................   N/A ......................   $400 ....................   $950 ....................   $1,350.
                                                      resentation.
                                                    Verified Contact       5 ..........................   N/A ......................    N/A ......................   N/A ......................   $150 ....................   $350 ....................   $450.
                                                      List.

                                                       1 Other direct costs not included in the service                       2 Fees listed also apply to Economic Development                               3 Fees listed also apply to Foreign Companies,

                                                    description must be assumed by the client. Types                        Organizations and Non-profit Educational                                       regardless of their size, that use US&FCS services,
                                                    of other direct costs include translation,                              Institutions                                                                   particularly the Business Service Provider listing, to
                                                    transportation, use of contractors, venue rental,                                                                                                      promote themselves to U.S. exporters.
                                                    catering, etc.



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                                                                                    Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Notices                                                                                                       93663

                                                                                      PROPOSED USER FEE SCHEDULE FOR EXPORT PROMOTION SERVICES—Continued
                                                                                                                                                Current fee 1                                                                       Proposed fee 1
                                                                                  Average hours
                                                       Service/Event               (per client)                       Small 2                      Medium                        Large 3                      Small 2                     Medium                    Large 3

                                                    Webinar ................   2 ..........................   $28 per staff hour            $28 per staff hour           $28 per staff hour            $25 per webinar             $25 per webinar             $25 per webinar
                                                                                                                                                                                                         hour.                       hour.                       hour.
                                                    Website                    4 ..........................   N/A ......................    N/A ......................   N/A ......................    $100 ....................   $300 ....................   $400.
                                                     Globalization.




                                                                                               PROPOSED USER FEE SCHEDULE FOR INVESTMENT PROMOTION SERVICES
                                                                                                                                                      Current fee for economic
                                                                                                              Average hours                                                                                    Proposed fee for economic development
                                                                  Service                                                                                   development                                                    organizations 4
                                                                                                               (per client)                                organizations 4

                                                    Certified Investment Mission                   70 .......................................       $28 per staff hour ..............                 Full Package: $1,200.
                                                      (market briefing, net-                                                                        + any direct costs.                               Networking Reception and GKS: $1,100.
                                                      working reception and                                                                                                                           Market Briefing and GKS: $1,000.
                                                      Gold Key Service).                                                                                                                              Market Briefing and Networking Reception: $250.
                                                                                                                                                                                                      + any direct costs.
                                                    Gold Key Service .................             62 .......................................       $700 ...................................          $950
                                                                                                                                                    + $350 for 2nd day.                               + $350 for 2nd day.
                                                    International Company Pro-                     31 .......................................       $600 ...................................          $700.
                                                       file—Full.
                                                    International Company Pro-                     12 .......................................       N/A .....................................         $350.
                                                       file—Partial.
                                                    Other Customized Services/                     N/A .....................................        $28 per staff hour ..............                 $30 per staff hour
                                                       Events.                                                                                      + any direct costs.                               + any direct costs.
                                                    Single Location Promotion ..                   20 to 40; 40 to 80; or 80 to                     $28 per staff hour ..............                 20–40 hours of staff time: $800.
                                                                                                     110.                                           + any direct costs.                               40–80 hours of staff time: $1,500.
                                                                                                                                                                                                      80–110 hours of staff time: $2,000.
                                                                                                                                                                                                      + any direct costs.



                                                      Notes:                                                                    positive. The fee is assessed on a per                                          various export and investment
                                                      • Business Service Provider: Fee is for                                   country basis.                                                                  promotion services.
                                                    up to 5 categories. To be listed in more                                      • International Company Profile—                                                 Federal Accounting Standards permit
                                                    than 5 categories, there is an additional                                   Partial: Does not include a site visit.                                         US&FCS to use an activity-based costing
                                                    fee per category of $60 for large                                             • Webinars will be archived and                                               model to determine the true cost of
                                                    companies, $40 for medium-sized                                             made available to the general public, so                                        services listed in the proposed User Fee
                                                    enterprises and $30 for small                                               the requirement to cover US&FCS’s                                               Schedule. The activities were defined in
                                                    businesses.                                                                 costs does not apply; however, a                                                accordance with the US&FCS list of
                                                      • Certified Trade Mission: The fee is                                     minimal fee is proposed to help ensure                                          services offered by US&FCS, including
                                                    assessed on a per Post/city basis.                                          the suitability of participants and cover
                                                                                                                                                                                                                both standard and customized services.
                                                    Applicants will be charged a fee for an                                     the cost of any special benefit that may
                                                    Initial Market Check if US&FCS staff is                                     derive from attending in real-time, such                                           As part of the cost of service study,
                                                    uncertain about their market potential.                                     as question and answer opportunities.                                           the US&FCS conducted a workload
                                                    The fee paid by the applicant will then                                     Uniform pricing is proposed as the                                              survey to obtain a more accurate
                                                    be applied to their Certified Trade                                         enforcement of pricing by size standards                                        estimate of the true cost for delivery of
                                                    Mission fee if they participate in the                                      of each registrant would create an                                              specific services. The workload survey
                                                    mission.                                                                    administrative burden. Some webinars                                            was designed and distributed to all
                                                      • Featured U.S. Exporter: Listings are                                    will be provided at no charge when the                                          US&FCS international and domestic
                                                    typically provided for up to 5 markets;                                     purpose is primarily to promote                                                 field units. The data submitted by
                                                    however, they can be provided for an                                        US&FCS or other United States                                                   various US&FCS field units was then
                                                    individual market for $100 for large                                        Government events, activities, etc.                                             aggregated to determine the global
                                                    companies, $40 for medium-sized                                                                                                                             average of workload for each standard or
                                                    enterprises and $30 for small                                               Determining the Cost of Performing                                              customized service. Using FY2015
                                                    businesses.                                                                 Each Service                                                                    US&FCS budget data, fringe benefits and
                                                      • Initial Market Check: Will be a                                            The cost of service methodology                                              non-labor related costs (e.g., materials,
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    required precursor to more time                                             developed by US&FCS was designed to                                             supplies, rent, utilities, and equipment)
                                                    intensive services if US&FCS staff is                                       bring the organization closer to full cost                                      were prorated to determine the
                                                    uncertain about a client’s market                                           recovery guidance set forth in OMB                                              burdening rate that was to be added to
                                                    potential. Fees paid for the Initial                                        Circular A–25. To set user fees that are                                        the hourly rate. This resulted in an
                                                    Market Check will then be applied to                                        ‘‘self-sustaining,’’ the US&FCS had to                                          hourly rate that accounts for all
                                                    any follow-on service if the results are                                    determine the true cost of providing                                            applicable labor and non-labor costs
                                                      4 Other direct costs not included in the service                          form of additional user fees. Types of other direct                             costs include translation, transportation, use of
                                                    description must be covered by the client in the                                                                                                            contractors, venue rental, catering, etc.



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                                                    93664                    Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Notices

                                                    specifically related to the delivery of                 copper pipe and tube from the PRC and                      pipe and tube produced or comparable
                                                    services, which is consistent with                      Mexico.1 On October 1, 2015, the                           to the American Society for Testing and
                                                    federal accounting standards.                           Department initiated 2 and the ITC                         Materials (‘‘ASTM’’) ASTM–B42,
                                                                                                            instituted 3 five-year (sunset) reviews of                 ASTM–B68, ASTM–B75, ASTM–B88,
                                                    Conclusion
                                                                                                            the Orders, pursuant to section 751(c) of                  ASTM–B88M, ASTM–B188, ASTM–
                                                       Based on the information provided                    the Tariff Act of 1930, as amended (the                    B251, ASTM–B251M, ASTM–B280,
                                                    above, the US&FCS believes its                          ‘‘Act’’). As a result of its reviews, the                  ASTM–B302, ASTM–B306, ASTM–359,
                                                    proposed fees are consistent with both                  Department determined that revocation                      ASTM–B743, ASTM–B819, and ASTM–
                                                    the mission of US&FCS to promote                        of the Orders would likely lead to                         B903 specifications and meeting the
                                                    ‘‘exports of goods and services from the                continuation or recurrence of dumping.4                    physical parameters described therein.
                                                    United States, particularly by small                    The Department, therefore, notified the                    Also included within the scope of the
                                                    businesses and medium-sized                             ITC of the magnitude of the dumping                        Orders are all sets of covered products,
                                                    businesses,’’ and the objective of OMB                  margins likely to prevail should the                       including ‘‘line sets’’ of seamless refined
                                                    Circular A–25 to ‘‘promote efficient                    Orders be revoked.5 On December 8,                         copper tubes (with or without fittings or
                                                    allocation of the nation’s resources by                 2016, the ITC published its                                insulation) suitable for connecting an
                                                    establishing charges for special benefits               determination that revocation of the                       outdoor air conditioner or heat pump to
                                                    provided to the recipient that are at least             Orders would likely lead to                                an indoor evaporator unit. The phrase
                                                    as great as the cost to the U.S.                        continuation or recurrence of material                     ‘‘all sets of covered products’’ denotes
                                                    Government of providing the special                     injury to an industry in the United                        any combination of items put up for sale
                                                    benefits.’’                                             States within a reasonably foreseeable                     that is comprised of merchandise
                                                                                                            time, pursuant to section 751(c) of the                    subject to the scope.
                                                    Frank Spector,
                                                                                                            Act.6                                                         ‘‘Refined copper’’ is defined as: (1)
                                                    Senior Advisor, Office of Trade Promotion                                                                          Metal containing at least 99.85 percent
                                                    Programs.                                               Scope of the Orders
                                                                                                                                                                       by weight of copper; or (2) metal
                                                    [FR Doc. 2016–30423 Filed 12–20–16; 8:45 am]               For the purpose of the Orders, the                      containing at least 97.5 percent by
                                                    BILLING CODE 3510–FP–P                                  products covered are all seamless                          weight of copper, provided that the
                                                                                                            circular refined copper pipes and tubes,                   content by weight of any other element
                                                                                                            including redraw hollows, greater than                     does not exceed the following limits:
                                                    DEPARTMENT OF COMMERCE                                  or equal to six inches (152.4 mm) in
                                                                                                            length and measuring less than 12.130                                                                  Limiting
                                                    International Trade Administration                                                                                                                             Content
                                                                                                            inches (308.102 mm) (actual) in outside                                  Element
                                                    [A–570–964; A–201–838]                                  diameter (‘‘OD’’), regardless of wall                                                                 Percent by
                                                                                                                                                                                                                   Weight
                                                                                                            thickness, bore (e.g., smooth, enhanced
                                                    Seamless Refined Copper Pipe and                        with inner grooves or ridges),                             Ag—Silver .............................           0.25
                                                    Tube from the People’s Republic of                      manufacturing process (e.g., hot                           As—Arsenic ..........................              0.5
                                                    China and Mexico: Continuation of                       finished, cold-drawn, annealed), outer                     Cd—Cadmium ......................                  1.3
                                                    Antidumping Duty Orders                                 surface (e.g., plain or enhanced with                      Cr—Chromium ......................                 1.4
                                                                                                            grooves, ridges, fins, or gills), end finish               Mg—Magnesium ...................                   0.8
                                                    AGENCY:    Enforcement and Compliance,                                                                             Pb—Lead ..............................             1.5
                                                    International Trade Administration,                     (e.g., plain end, swaged end, flared end,
                                                                                                                                                                       S—Sulfur ..............................            0.7
                                                    Department of Commerce.                                 expanded end, crimped end, threaded),                      Sn—Tin .................................           0.8
                                                    SUMMARY: As a result of the                             coating (e.g., plastic, paint), insulation,                Te—Tellurium .......................               0.8
                                                    determinations by the Department of                     attachments (e.g., plain, capped,                          Zn—Zinc ...............................            1.0
                                                    Commerce (the ‘‘Department’’) and the                   plugged, with compression or other                         Zr—Zirconium .......................               0.3
                                                                                                            fitting), or physical configuration (e.g.,                 Other elements (each) ..........                   0.3
                                                    International Trade Commission (the
                                                    ‘‘ITC’’) that revocation of the                         straight, coiled, bent, wound on spools).
                                                                                                               The scope of the Orders covers, but is                     Excluded from the scope of the Orders
                                                    antidumping duty (‘‘AD’’) orders on
                                                                                                            not limited to, seamless refined copper                    are all seamless circular hollows of
                                                    seamless refined copper pipe and tube
                                                                                                                                                                       refined copper less than 12 inches in
                                                    (‘‘copper pipe and tube’’) from the                        1 See Seamless Refined Copper Pipe and Tube             length whose OD (actual) exceeds its
                                                    People’s Republic of China (‘‘PRC’’) and                from Mexico and the People’s Republic of China:            length. The products subject to the
                                                    Mexico would likely lead to a                           Antidumping Duty Orders and Amended Final                  Orders are currently classifiable under
                                                    continuation or recurrence of dumping                   Determination of Sales at Less Than Fair Value
                                                                                                            from Mexico, 75 FR 71070 (November 22, 2010)               subheadings 7411.10.1030 and
                                                    and material injury to an industry in the
                                                                                                            (‘‘Orders’’).                                              7411.10.1090 of the Harmonized Tariff
                                                    United States, the Department is                           2 See Initiation of Five-Year (‘‘Sunset’’) Review, 80   Schedule of the United States
                                                    publishing this notice of continuation of               FR 59133 (October 1, 2015).                                (‘‘HTSUS’’). Products subject to the
                                                    the AD orders.                                             3 See Seamless Refined Copper Pipe and Tube
                                                                                                                                                                       Orders may also enter under HTSUS
                                                    DATES: Effective December 21, 2016.                     from China and Mexico; Institution of Five-Year
                                                                                                            Reviews, 80 FR 59186 (October 1, 2015).                    subheadings 7407.10.1500,
                                                    FOR FURTHER INFORMATION CONTACT:                           4 See Seamless Refined Copper Pipe and Tube             7419.99.5050, 8415.90.8065, and
                                                    Robert Galantucci, 202–482–2923, AD/                    from the People’s Republic of China and Mexico:            8415.90.8085. Although the HTSUS
                                                    CVD Operations, Enforcement and                         Preliminary Results of the Sunset Reviews of the           subheadings are provided for
                                                    Compliance, International Trade                         Antidumping Duty Orders, 81 FR 4252 (January 26,
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            2016) and accompanying Preliminary Decision
                                                                                                                                                                       convenience and customs purposes, the
                                                    Administration, U.S. Department of                      Memorandum; Seamless Refined Copper Pipe and               written description of the scope of the
                                                    Commerce, 14th Street and Constitution                  Tube from the People’s Republic of China and               Orders is dispositive.
                                                    Avenue NW., Washington, DC 20230.                       Mexico: Final Results of the Full Sunset Reviews of
                                                                                                            the Antidumping Duty Orders, 81 FR 38134 (June             Continuation of the Orders
                                                    SUPPLEMENTARY INFORMATION:
                                                                                                            13, 2016).
                                                                                                               5 Id.
                                                                                                                                                                         As a result of the determinations by
                                                    Background                                                                                                         the Department and the ITC that
                                                                                                               6 See Seamless Refined Copper Pipe and Tube
                                                      On November 22, 2010, the                             From China and Mexico; Determination, 81 FR                revocation of the Orders would likely
                                                    Department published the AD orders on                   88704 (December 8, 2016).                                  lead to continuation or recurrence of


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Document Created: 2018-02-14 09:11:40
Document Modified: 2018-02-14 09:11:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of proposed fee revisions and request for comment.
DatesWe will consider all comments that we receive by January 16, 2017.
ContactMs. Aditi Palli, International Trade Administration, U.S. & Foreign Commercial Service, Office of Strategic Planning, 1400 Constitution Avenue NW., Rm. 21022, Washington, DC 20230, Phone: (202) 482-2025.
FR Citation81 FR 93660 
RIN Number0625-XC02

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