Overview
Title
Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Direct Investment Surveys: BE-605, Quarterly Survey of Foreign Direct Investment in the United States-Transactions of U.S. Affiliate With Foreign Parent
Agencies
ELI5 AI
The government is asking businesses in the U.S. that are owned by people from other countries to fill out a survey every three months. This survey helps them understand how these foreign investments affect the country's economy.
Summary AI
The Department of Commerce plans to submit a request to the Office of Management and Budget (OMB) for approval to collect information through the Quarterly Survey of Foreign Direct Investment in the United States (Form BE-605). This survey gathers data from U.S. businesses with foreign ownership to measure and analyze foreign direct investment. The collected data, which businesses are required to provide quarterly, help determine the impact of foreign investments on the U.S. economy. Public comments on this information collection are welcome for an additional 30 days via the website www.reginfo.gov.
Keywords AI
Sources
AnalysisAI
The document in question, published by the Department of Commerce, outlines a plan to gather information on foreign direct investment in the United States through the Quarterly Survey (Form BE-605). The goal is to analyze the data collected from U.S. businesses with foreign ownership and assess the economic impact of such investments. This information collection is conducted under the authority of the International Investment and Trade in Services Survey Act. The document also invites public feedback for a period of 30 days.
Summary and Key Issues
The document serves as a formal request for public comments on a survey designed to understand and measure foreign direct investments in the United States. The Bureau of Economic Analysis (BEA) intends for this survey to take place quarterly, targeting U.S. companies with foreign affiliations. Approximately 17,800 responses are anticipated annually, each expected to take an average of one hour to complete.
A notable point of discussion is the average time estimate for completing the survey. Although the document states an average of one hour per response, it admits variability due to factors such as the size and complexity of the company. This vagueness could lead to inconsistencies and increased burdens on certain respondents, particularly those from larger and more complex organizations.
Another issue arises from technical jargon in the "Needs and Uses" section. Terms like "affiliated foreign groups" and "size-exemption level" are used without definition or clarification, which can cause confusion. Additionally, the document does not elaborate on the methodology for deriving estimates from sample data, leaving questions regarding the reliability and accuracy of the findings.
Impact on the Public and Stakeholders
For the general public, the impact of this document is likely minimal in the short term, as it primarily concerns data collection for economic analysis. However, the results derived from this survey could eventually influence economic policies or regulations, indirectly affecting citizens.
From a business perspective, the survey presents both an obligation and a potential burden, particularly for companies with more complicated structures. Businesses are mandated to respond, and the variability in response times could result in significant resource allocation for compliance. On the positive side, this survey can offer companies insights into their economic interactions and contributions, potentially benefiting those looking to optimize or understand their market footprint.
Conclusion
Overall, while the document aims to gather vital information on foreign investments to aid economic analysis, it raises some concerns regarding clarity and respondent burden. It is important for affected businesses and related stakeholders to engage with the process and provide feedback within the 30-day comment period, ensuring that their perspectives are considered in refining this information collection effort. Moreover, further clarification from the Commerce Department could enhance understanding and efficiency for all stakeholders involved.
Issues
• The document mentions an average response time of one hour but acknowledges variability due to differences in company size and complexity, which might lead to inconsistencies and challenges in estimating the actual burden on respondents.
• The 'Needs and Uses' section uses specific terminology such as 'affiliated foreign groups' and 'size-exemption level' without offering definitions or explanations, potentially causing confusion.
• The notice provides no detailed explanation of the methodology used to derive universe estimates from the sample data, which may raise questions about the accuracy and reliability of the data.
• The document's call to action is somewhat convoluted, asking for comments to be submitted within 30 days of publication but not providing a clear deadline date.
• The notice references several forms and surveys (BE-605, BE-12) without additional context or explanation about how these forms differ or relate to each other, potentially causing confusion for the audience.