SUPPLEMENTARY INFORMATION:

I. Abstract

The Quarterly Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons (Form BE-125) is an ongoing survey that collects data from U.S. persons who engage in covered transactions in selected services or intellectual property with foreign persons. A U.S. person means any individual, branch, partnership, associated group, association, estate, trust, corporation, or other organization (whether or not organized under the laws of any State), resident in the United States or subject to the jurisdiction of the United States. A U.S. person must report if they had combined sales of covered services or intellectual property to foreign persons that exceeded $6 million for the previous fiscal year, or are expected to exceed that amount during the current fiscal year, or if they had combined purchases of covered services or intellectual property from foreign persons that exceeded $4 million for the previous fiscal year, or are expected to exceed that amount during the current fiscal year.

The data are needed to monitor U.S. trade in services, to analyze the impact of these cross-border services on the U.S. and foreign economies, to compile and improve the U.S. economic accounts, to support U.S. commercial policy on trade in services, to conduct trade promotion, and to improve the ability of U.S. businesses to identify and evaluate market opportunities. The data are used in estimating the trade in services component of the U.S. international transactions accounts (ITAs) and national income and product accounts (NIPAs).

The Bureau of Economic Analysis (BEA) is proposing to expand transaction category detail to further align BEA's statistics with international guidelines and to collect additional information that can be used to improve the current estimation methodologies for published services transactions, increasing the quality and usefulness of BEA's statistics on trade in services. BEA is also proposing to modify the survey reporting thresholds, decreasing survey respondent burden and streamlining data collection.

BEA proposes three changes to the survey's data and database transaction categories:

(1) Separately collect the following three new intellectual property (IP) rights transaction types related to data and database transactions: ( printed page 66077)

(a) “rights to use data and databases” (new transaction code 8.1),

(b) “rights to reproduce and/or distribute data and databases” (new transaction code 8.2), and

(c) “outright sales of data and databases” (new transaction code 8.3).

(2) Collect a new information services transaction type, “compilation services for data and databases” (new transaction category 14.2).

(3) Redefine “other information services” (new transaction code 14.3, currently transaction code 14.2) so that it does not cover transactions currently reported in 14.2. Collecting separate categories for data and database related IP rights will further improve BEA's measurement for these growing economic activities and further align BEA's statistics with international guidelines.

BEA also proposes collecting a new category of personal, cultural, and recreational services. The category, “other personal services” (new transaction code 42) has presumably been included by reporters in “other selected services” (current transaction code 42). The transaction category “other selected services” will now be reported as transaction code 43 (new transaction code after “other personal services” have been moved to their new location in the redefined transaction code 42).

BEA estimates there will be no change in the average number of burden hours per response associated with the changes in transaction categories. The affected reporters should not experience a noticeable impact to burden because the data are already collected by BEA within other transaction categories and BEA believes this additional level of detail is readily available in their accounting records.

BEA also proposes to increase the threshold for filing the BE-125. The new reporting thresholds would require reporting from U.S. persons who had combined sales of covered services or intellectual property to foreign persons that exceeded $20 million (currently $6 million) for the previous fiscal year, or are expected to exceed that amount during the current fiscal year, or if they had combined purchases of covered services or intellectual property from foreign persons that exceeded $12 million (currently $4 million) for the previous fiscal year, or are expected to exceed that amount during the current fiscal year. BEA has determined that this increased threshold on the BE-125 would be sufficient to collect the information necessary to provide data users with insightful statistics measuring the economic impact of trade in services. This proposed change would reduce respondent burden and the BEA resources needed to collect and process these transactions.

The language in the instructions and definitions will be reviewed and adjusted as necessary to clarify survey requirements.

II. Method of Collection

BEA contacts potential respondents by mail at the end of each quarter. Respondents would be required to file the completed BE-125 forms within 30 days after the end of each fiscal quarter that is not the final fiscal quarter of the year and within 45 days after the close of the final fiscal quarter of the year. Reports would be required from each U.S. person that had combined sales of covered services or intellectual property to foreign persons that exceeded $20 million for the previous fiscal year, or are expected to exceed that amount during the current fiscal year, or that had combined purchases of covered services or intellectual property from foreign persons that exceeded $12 million for the previous fiscal year, or that are expected to exceed that amount during the current fiscal year. Entities required to report will be contacted individually by BEA. Entities not contacted by BEA have no reporting responsibilities.

BEA offers its electronic filing option, the eFile system, for use in reporting on Form BE-125. For more information about eFile, go to www.bea.gov/​efile. In addition, BEA posts all its survey forms and reporting instructions on its website, www.bea.gov/​ssb. These may be downloaded, completed, printed, and submitted via fax or mail.

III. Data

OMB Control Number: 0608-0067.

Form Number(s): BE-125.

Type of Review: Regular submission.

Affected Public: Business or other for-profit organizations.

Estimated Number of Respondents: 10,000 annually (2,500 filed each quarter; 1,900 reporting mandatory data by country and affiliation, and 600 that would file exemption claims or voluntary responses).

Estimated Time per Response: 21 hours is the average for the 1,900 respondents filing data by country and affiliation and 1 hour for those filing an exemption claim or voluntary response. Hours may vary considerably among respondents because of differences in company size and complexity.

Estimated Total Annual Burden Hours: 162,000.

Estimated Total Annual Cost to Public: $0.

Respondent's Obligation: Mandatory.

Legal Authority: International Investment and Trade in Services Survey Act (P.L. 94-472, 22 U.S.C. 3101-3108, as amended).

IV. Request for Comments

We are soliciting public comments to permit the Department/Bureau to: (a) Evaluate whether the proposed information collection is necessary for the proper functions of the Department, including whether the information will have practical utility; (b) Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used; (c) Evaluate ways to enhance the quality, utility, and clarity of the information to be collected; and (d) Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.

Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.

91 FR 66076