[Code of Federal Regulations] [Title 15, Volume 3] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 15CFR806.17] [Page 33-35] TITLE 15--COMMERCE AND FOREIGN TRADE CHAPTER VIII--BUREAU OF ECONOMIC ANALYSIS, DEPARTMENT OF COMMERCE PART 806_DIRECT INVESTMENT SURVEYS--Table of Contents Sec. 806.17 Rules and regulations for BE-12, Benchmark Survey of Foreign Direct Investment in the United States--2002 A BE-12, Benchmark Survey of Foreign Direct Investment in the United States will be conducted covering 2002. All legal authorities, provisions, definitions, and requirements contained in Sec. Sec. 806.1 through 806.13 and Sec. 806.15(a) through (g) are applicable to this survey. Specific additional rules and regulations for the BE-12 survey are given in this section. (a) Response required. A response is required from persons subject to the reporting requirements of the BE-12, Benchmark Survey of Foreign Direct Investment in the United States--2002, contained in this section, whether or not they are contacted by BEA. Also, a person, or their agent, contacted by BEA concerning their being subject to reporting, either by sending them a report form or by written inquiry, must respond in writing pursuant to Sec. 806.4, or electronically using BEA's Automated Survey Transmission and Retrieval (ASTAR) system. This may be accomplished by completing and returning either Form BE-12(X) within 30 days of the date it was received, if Form BE-12(LF), Form BE-12(SF), or Form BE-12 Bank do not apply, or by completing and returning Form BE- 12(LF), Form BE-12(SF), or Form BE-12 Bank, whichever is applicable, by May 31, 2003. (b) Who must report. A BE-12 report is required for each U.S. affiliate, i.e., for each U.S. business enterprise in which a foreign person (foreign parent) owned or controlled, directly or indirectly, 10 percent or more of the voting securities if an incorporated U.S. business enterprise, or an equivalent interest if an unincorporated U.S. business enterprise, at the end of the business enterprise's 2002 fiscal year. A report is required even though the foreign person's ownership interest in the U.S. business enterprise may have been established or acquired during the reporting period. Beneficial, not record, ownership is the basis of the reporting criteria. (c) Forms to be filed. (1) Form BE-12(LF)--Benchmark Survey of Foreign Direct Investment in the United States--2002 (Long Form) must be completed and filed by May 31, 2003, by each U.S. business enterprise that was a U.S. affiliate of a foreign person at the end of its 2002 fiscal year and that was majority-owned by one or more foreign parents (a ``majority-owned'' U.S. affiliate is one in which the combined direct and indirect ownership interest of all foreign parents of the U.S. affiliate exceeds 50 percent), if: (i) It is not a bank or a bank holding company, and is not owned directly or indirectly by a U.S. bank holding company, and (ii) On a fully consolidated basis, or, in the case of real estate investment, on an aggregated basis, one or more of the following three items for the U.S. affiliate (not just the foreign parent's share) exceeded $125 million (positive or negative) at the end of, or for, its 2002 fiscal year: (A) Total assets (do not net out liabilities); (B) Sales or gross operating revenues, excluding sales taxes; (C) Net income after provision for U.S. income taxes. (2) Form BE-12(SF)--Benchmark Survey of Foreign Direct Investment in the United States--2002 (Short Form) must be completed and filed by May 31, 2003 by each U.S. business enterprise that was a U.S. affiliate of a foreign person at the end of its 2002 fiscal year, if: [[Page 34]] (i) It is not a bank or a bank holding company, and is not owned directly or indirectly by a U.S. bank holding company, and (ii) On a fully consolidated basis, or, in the case of real estate investment, on an aggregated basis, one or more of the following three items for a majority-owned U.S. affiliate (not just the foreign parent's share) exceeded $10 million, but no one item exceeded $125 million (positive or negative) at the end of, or for, its 2002 fiscal year: (A) Total assets (do not net out liabilities); (B) Sales or gross operating revenues, excluding sales taxes; (C) Net income after provision for U.S. income taxes, or (iii) On a fully consolidated basis, or, in the case of real estate investment, on an aggregated basis, one or more of the following three items for a minority-owned U.S. affiliate (not just the foreign parent's share) exceeded $10 million (positive or negative) at the end of, or for, its 2002 fiscal year (a ``minority-owned'' U.S. affiliate is one in which the combined direct and indirect ownership interest of all foreign parents of the U.S. affiliate is 50 percent or less): (A) Total assets (do not net out liabilities); (B) Sales or gross operating revenues, excluding sales taxes; (C) Net income after provision for U.S. income taxes. (3) Form BE-12 Bank--Benchmark Survey of Foreign Direct Investment in the United States--2002 BANK must be completed and filed by May 31, 2003, by each U.S. business enterprise that was a U.S. affiliate of a foreign person at the end of its 2002 fiscal year, if: (i) The U.S. affiliate is in ``banking'', which, for purposes of the BE-12 survey, covers business enterprises engaged in deposit banking or closely related functions, including commercial banks, Edge Act corporations engaged in international or foreign banking, U.S. branches and agencies of foreign banks whether or not they accept domestic deposits, savings and loans, savings banks, and bank holding companies, including all subsidiaries or units of a bank holding company and (ii) On a fully consolidated basis, one or more of the following three items for the U.S. affiliate (not just the foreign parent's share) exceeded $10 million (positive or negative) at the end of, or for, its 2002 fiscal year: (A) Total assets (do not net out liabilities); (B) Sales or gross operating revenues, excluding sales taxes; (C) Net income after provision for U.S. income taxes. (4) Form BE-12(X)--Benchmark Survey of Foreign Direct Investment in the United States--2002 Claim for Exemption from Filing BE-12(LF), BE- 12(SF), or BE-12 Bank must be completed and filed within 30 days of the date it was received by: (i) Each U.S. business enterprise that was a U.S. affiliate of a foreign person at the end of its 2002 fiscal year (whether or not the U.S. affiliate, or its agent, is contacted by BEA concerning its being subject to reporting in the 2002 benchmark survey), but is exempt from filing Form BE-12(LF), Form BE-12(SF), and Form BE-12 Bank; and (ii) Each U.S. business enterprise, or its agent, that is contacted, in writing, by BEA concerning its being subject to reporting in the 2002 benchmark survey but that is not otherwise required to file the Form BE- 12(LF), Form BE-12(SF), or Form BE-12 Bank. (d) Aggregation of real estate investments. All real estate investments of a foreign person must be aggregated for the purpose of applying the reporting criteria. A single report form must be filed to report the aggregate holdings, unless written permission has been received from BEA to do otherwise. Those holdings not aggregated must be reported separately. (e) Exemption. (1) A U.S. affiliate as consolidated, or aggregated in the case of real estate investments, is not required to file form BE- 12(LF), BE-12(SF), or Form BE-12 Bank if each of the following three items for the U.S. affiliate (not just the foreign parent's share) did not exceed $10 million (positive or negative) at the end of, or for, its 2002 fiscal year: (i) Total assets (do not net out liabilities); (ii) Sales or gross operating revenues, excluding sales taxes; and [[Page 35]] (iii) Net income after provision for U.S. income taxes. (2) If a U.S. business enterprise was a U.S. affiliate at the end of its 2002 fiscal year but is exempt from filing a completed Form BE- 12(LF), BE-12(SF), or Form BE-12 Bank, it must nevertheless file a completed and certified Form BE-12(X). (f) Due date. A fully completed and certified Form BE-12(LF), Form BE-12(SF), or Form BE-12 Bank is due to be filed with BEA not later than May 31, 2003. A fully completed and certified Form BE-12(X) is due to be filed with BEA within 30 days of the date it was received. [68 FR 1532, Jan. 13, 2003]