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[Federal Register Volume 79, Number 157 (Thursday, August 14, 2014)]
[Rules and Regulations]
[Pages 47573-47575]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19256]

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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 140424374-4639-01]
RIN 0691-XC025

Direct Investment Surveys: BE-13, Survey of New Foreign Direct 
Investment in the United States

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends regulations of the Department of 
Commerce's Bureau of Economic Analysis (BEA) to reinstate the reporting 
requirements for the BE-13, Survey of New Foreign Direct Investment in 
the United States, which was discontinued in 2009. This survey will 
better measure Commerce Department efforts through the ``Build It Here, 
Sell It Everywhere'' initiative to expand foreign business investment 
in the United States and ensure complete coverage of BEA's other 
foreign direct investment statistics. This survey collects information 
on the acquisition or establishment of U.S. business enterprises by 
foreign investors, which was collected on the previous BE-13 survey, 
and information on expansions by existing U.S. affiliates of foreign 
companies, which was not previously collected. This mandatory survey 
will be conducted under the authority of the International Investment 
and Trade in Services Survey Act (the Act). Unlike other BEA surveys 
conducted pursuant to the Act, a response would be required from 
persons subject to the reporting requirements of the BE-13, Survey of 
New Foreign Direct Investment in the United States, whether or not they 
are contacted by BEA, in order to insure that respondents subject to 
the requirements for foreign direct investments in the U.S. are 
identified.

DATES: This final rule is effective September 15, 2014.

FOR FURTHER INFORMATION CONTACT: Barbara Hubbard, Chief, Direct 
Transactions and Positions Branch (BE-49NI), Bureau of Economic 
Analysis, U.S. Department of Commerce, Washington, DC 20230; phone 
(202) 606-9846.

SUPPLEMENTARY INFORMATION: On May 28, 2014, BEA published a notice of 
proposed rulemaking that set forth revised reporting criteria for the 
BE-13, Survey of New Foreign Direct Investment in the United States (79 
FR 30503-30506). No comments on the proposed rule were received. Thus 
the proposed rule is adopted without change. This final rule adds 15 
CFR 801.7 to set forth the reporting requirements for the BE-13, Survey 
of New Foreign Direct Investment in the United States.
    BEA conducts the BE-13 survey under the authority of the 
International Investment and Trade in Services Survey Act (22 U.S.C. 
3101-3108).
    By rule issued in 2012 (77 FR 24373), BEA established guidelines 
for collecting data on international trade in services and direct 
investment through notices, rather than through rulemaking. This final 
rule amends the regulations to provide for a revised BE-13 survey and 
requires a response from persons subject to the reporting requirements 
of the BE-13, whether or not they are contacted by BEA, in order to 
ensure complete coverage of new foreign direct investments.
    The BE-13 survey collects data on the acquisition or establishment 
of U.S. business enterprises by foreign investors and the expansion of 
existing U.S. affiliates of foreign companies to establish new 
production facilities. The data collected on the survey are used to 
measure the amount of new foreign direct investment in the United 
States, assess the impact on the U.S. economy, and based on this 
assessment, make informed policy decisions regarding foreign direct 
investment in the United States. Foreign direct investment in the 
United States is defined as the ownership or control, directly or 
indirectly, by one foreign person (foreign parent) of 10 percent or 
more of the voting securities of an incorporated U.S. business 
enterprise, or an equivalent interest of an unincorporated U.S. 
business enterprise, including a branch.
    BEA will make the survey available via eFile, BEA's electronic 
filing system. Survey respondents will be notified of their obligation 
to file in November 2014 and BEA will collect data retroactively back 
to January 1, 2014. Thereafter, notifications will be mailed to 
respondents as BEA becomes aware of a potentially reportable investment 
or when annual cost updates are needed. The forms are due no later than 
45 days after the acquisition is completed, the new legal entity is 
established, the expansion is begun, or the cost update is requested.

Description of Changes

    The changes amend the regulations and the survey forms for the BE-
13 survey. These amendments include changes in reporting requirements 
and questionnaire design as well as data items collected.

[[Page 47574]]

    Under the revised regulations, U.S. affiliates report information 
on expansions, acquisitions, and establishments of U.S. business 
enterprises by foreign investors. Unlike other BEA surveys conducted 
pursuant to the Act, persons subject to the reporting requirements of 
the BE-13, Survey of New Foreign Direct Investment in the United 
States, are required to respond whether or not they are contacted by 
BEA.
    Depending on the type of investment transaction, U.S. affiliates 
shall report their information on one of six forms--BE-13A, BE-13B, BE-
13C, BE-13D, BE-13E, or BE-13 Claim for Exemption. The reporting 
requirements for the six forms are:
    a. Form BE-13A--Report for a U.S. business enterprise when a 
foreign entity acquires a voting interest (directly, or indirectly 
through an existing U.S. affiliate) in that enterprise, segment, or 
operating unit and (i) the total cost of the acquisition is greater 
than $3 million, (ii) the U.S. business enterprise will operate as a 
separate legal entity, and (iii) by this acquisition, at least 10 
percent of the voting interest in the acquired entity is now held 
(directly or indirectly) by the foreign entity.
    b. Form BE-13B--Report for a U.S. business enterprise when a 
foreign entity, or an existing U.S. affiliate of a foreign entity, 
establishes a new legal entity in the United States and (i) the 
projected total cost to establish the new legal entity is greater than 
$3 million, and (ii) the foreign entity owns 10 percent or more of the 
new business enterprise's voting interest (directly or indirectly).
    c. Form BE-13C--Report for an existing U.S. affiliate of a foreign 
parent when it acquires a U.S. business enterprise or segment that it 
then merges into its operations and the total cost to acquire the 
business enterprise is greater than $3 million.
    d. Form BE-13D--Report for an existing U.S. affiliate of a foreign 
parent when it expands its operations to include a new facility where 
business is conducted and the projected total cost of the expansion is 
greater than $3 million.
    e. Form BE-13E--Report for a U.S. business enterprise that 
previously filed a BE-13B or BE-13D indicating that the established or 
expanded entity is still under construction.
    f. Form BE-13 Claim for Exemption--Report for a U.S. business 
enterprise that (i) was contacted by BEA but does not meet the 
requirements for filing forms BE-13A, BE-13B, BE-13C, or BE-13D, or 
(ii) whether or not contacted by BEA, met all requirements for filing 
on Forms BE-13A, BE-13B, BE-13C, or BE-13D except the $3 million 
reporting threshold.
    In addition to the changes in the reporting criteria and form 
design, BEA hereby adds and deletes some data items from the 
information collected on the previous BE-13 survey. The following items 
are added to the survey:
    1. Equity and debt components of the foreign parent funding;
    2. A question asking if the new U.S. operation will have research 
and development activities;
    3. A question asking if the new operation is under construction;
    4. Employment projections;
    5. Actual and projected construction expenditures by type and by 
year.
    BEA is eliminating the following items from the new BE-13 survey: 
Investment incentives, sales by industry (total sales and the overall 
industry code for the new operation is still collected), equity 
ownership interest (voting interest is still collected), address of the 
foreign parent (country is still collected), and acres of U.S. land 
owned.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of E.O. 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
assessment under E.O. 13132.

Paperwork Reduction Act

    The collection of information in this final rule was submitted to 
the Office of Management and Budget (OMB) pursuant to the requirements 
of the Paperwork Reduction Act (PRA). OMB approved the information 
collection under OMB control number 0608-0035.
    Notwithstanding any other provisions of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the PRA unless that collection displays a currently valid OMB 
control number.
    The BE-13 survey is expected to result in the filing of reports 
from approximately 1,350 U.S. affiliates each year. The respondent 
burden for this collection of information will vary from one company to 
another, but is estimated to average 1.6 hours per response, including 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. Thus the total respondent burden for 
this survey is estimated at 2,160 hours, compared to 900 hours for the 
previous BE-13 survey. The increase in burden hours is due to the 
increase in the number of respondents expected to file.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
final rule should be sent to both BEA via email at 
Barbara.Hubbard@bea.gov or by FAX at (202) 606-2894, and to OMB, 
O.I.R.A., Paperwork Reduction Project 0608-0035, Attention PRA Desk 
Officer for BEA, via email at pbugg@omb.eop.gov or by FAX at (202) 395-
7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, certified 
at the proposed rule stage to the Chief Counsel for Advocacy, Small 
Business Administration, under the provisions of the Regulatory 
Flexibility Act (RFA), 5 U.S.C. 605(b), that this final rule will not 
have a significant economic impact on a substantial number of small 
entities. The factual basis for the certification was published in the 
proposed rule and is not repeated here. No comments were received 
regarding the certification or the economic impact of the rule more 
generally. No final regulatory flexibility analysis was prepared.

List of Subjects in 15 CFR Part 801

    Economic statistics, Foreign investment in the United States, 
International transactions, Penalties, Reporting and record keeping 
requirements.

    Dated: July 30, 2014
Brian Moyer,
Acting Director, Bureau of Economic Analysis.

    For reasons set forth in the preamble, BEA amends 15 CFR part 801 
as follows:

PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. 
AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT

0
1. The authority citation for 15 CFR part 801 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; 
E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 
CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348).

0
2. Revise Sec.  801.3 to read as follows:

[[Page 47575]]

Sec.  801.3  Reporting requirements.

    Except for surveys subject to rulemaking in Sec.  801.7, reporting 
requirements for all other surveys conducted by the Bureau of Economic 
Analysis shall be as follows:
    (a) Notice of specific reporting requirements, including who is 
required to report, the information to be reported, the manner of 
reporting, and the time and place of filing reports, will be published 
by the Director of the Bureau of Economic Analysis in the Federal 
Register prior to the implementation of a survey;
    (b) In accordance with section 3104(b)(2) of title 22 of the United 
States Code, persons notified of these surveys and subject to the 
jurisdiction of the United States shall furnish, under oath, any report 
containing information which is determined to be necessary to carry out 
the surveys and studies provided for by the Act; and
    (c) Persons not notified in writing of their filing obligation by 
the Bureau of Economic Analysis are not required to complete the 
survey.

0
3. Revise Sec.  801.4 to read as follows:

Sec.  801.4  Recordkeeping requirements.

    In accordance with section 3104(b)(1) of title 22 of the United 
States Code, persons subject to the jurisdiction of the United States 
shall maintain any information essential for carrying out the surveys 
and studies provided for by the Act.

0
4. Add Sec.  801.7 to read as follows:

Sec.  801.7  Rules and regulations for the BE-13, Survey of New Foreign 
Direct Investment in the United States.

    The BE-13, Survey of New Foreign Direct Investment in the United 
States is conducted to collect data on the acquisition or establishment 
of U.S. business enterprises by foreign investors and the expansion of 
existing U.S. affiliates of foreign companies to establish a new 
production facility. All legal authorities, provisions, definitions, 
and requirements contained in Sec. Sec.  801.1 through 801.2 and 
Sec. Sec.  801.4 through 801.6 are applicable to this survey. Specific 
additional rules and regulations for the BE-13 survey are given in 
paragraphs (a) through (d) of this section. More detailed instructions 
are given on the report forms and instructions.
    (a) Response required. A response is required from persons subject 
to the reporting requirements of the BE-13, Survey of New Foreign 
Direct Investment in the United States, contained herein, whether or 
not they are contacted by BEA. Also, persons, or their agents, that are 
contacted by BEA about reporting in this survey, either by sending them 
a report form or by written inquiry, must respond in writing pursuant 
this section. This may be accomplished by filing the properly completed 
BE-13 report (BE-13A, BE-13B, BE-13C, BE-13D, BE-13E, or BE-13 Claim 
for Exemption) within 45 days of being contacted.
    (b) Who must report. A BE-13 report is required of any U.S. company 
in which:
    (1) A foreign direct investment in the United States relationship 
is created;
    (2) An existing U.S. affiliate of a foreign parent establishes a 
new U.S. legal entity, expands its U.S. operations, or acquires a U.S. 
business enterprise, or;
    (3) A U.S. business enterprise that previously filed a BE-13B or 
BE-13D indicating that the established or expanded entity is still 
under construction. Foreign direct investment is defined as the 
ownership or control by one foreign person (foreign parent) of 10 
percent or more of the voting securities of an incorporated U.S. 
business enterprise, or an equivalent interest of an unincorporated 
U.S. business enterprise, including a branch.
    (c) Forms to be filed. Depending on the type of investment 
transaction, U.S. affiliates shall report their information, on one of 
six forms--BE-13A, BE-13B, BE-13C, BE-13D, BE-13E, or BE-13 Claim for 
Exemption.
    (1) Form BE-13A--Report for a U.S. business enterprise when a 
foreign entity acquires a voting interest (directly, or indirectly 
through an existing U.S. affiliate) in that enterprise, segment, or 
operating unit and:
    (i) The total cost of the acquisition is greater than $3 million;
    (ii) The U.S. business enterprise will operate as a separate legal 
entity, and;
    (iii) By this acquisition, at least 10 percent of the voting 
interest in the acquired entity is now held (directly or indirectly) by 
the foreign entity.
    (2) Form BE-13B--Report for a U.S. business enterprise when a 
foreign entity, or an existing U.S. affiliate of a foreign entity, 
establishes a new legal entity in the United States and:
    (i) The projected total cost to establish the new legal entity is 
greater than $3 million, and;
    (ii) The foreign entity owns 10 percent or more of the new business 
enterprise's voting interest (directly or indirectly).
    (3) Form BE-13C--Report for an existing U.S. affiliate of a foreign 
parent when it acquires a U.S. business enterprise or segment that it 
then merges into its operations and the total cost to acquire the 
business enterprise is greater than $3 million.
    (4) Form BE-13D--Report for an existing U.S. affiliate of a foreign 
parent when it expands its operations to include a new facility where 
business is conducted and the projected total cost of the expansion is 
greater than $3 million.
    (5) Form BE-13E--Report for a U.S. business enterprise that 
previously filed a BE-13B or BE-13D indicating that the established or 
expanded entity is still under construction. This form will collect 
updated cost information and will be collected annually until 
construction is complete.
    (6) Form BE-13 Claim for Not Filing--Report for a U.S. business 
enterprise that:
    (i) Was contacted by BEA but does not meet the requirements for 
filing forms BE-13A, BE-13B, BE-13C, or BE-13D; or
    (ii) Whether or not contacted by BEA, met all requirements for 
filing on Forms BE-13A, BE-13B, BE-13C, or BE-13D except the $3 million 
reporting threshold.
    (d) Due date. The BE-13 forms are due no later than 45 days after 
the acquisition is completed, the new legal entity is established, the 
expansion is begun, or the cost update is requested.

[FR Doc. 2014-19256 Filed 8-13-14; 8:45 am]
BILLING CODE 3510-06-P
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