CELEX ID: 32007R0716

--- ENGLISH ---

Document:
29.6.2007
EN
Official Journal of the European Union
L 171/17
REGULATION (EC) No 716/2007 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 20 June 2007
on Community statistics on the structure and activity of foreign affiliates
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 285(1) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Central Bank 
(
1
)
,
Acting in accordance with the procedure laid down in Article 251 of the Treaty 
(
2
)
,
Whereas:
(1)
Regular and good quality Community statistics on the structure and activity of foreign affiliates in the whole economy are essential for an adequate assessment of the impact of foreign-controlled enterprises on the European Union economy. This would also facilitate the monitoring of the effectiveness of the internal market and the gradual integration of the economies in the context of globalisation. In this context, multinational enterprises are playing a leading role, but small and medium-sized enterprises can also be concerned by foreign control.
(2)
The implementation and review of the General Agreement on Trade in Services (GATS) and of the Trade-Related Intellectual Property Rights Agreement (TRIPs) as well as the current and future negotiations on further agreements call for the relevant statistical information to be made available in order to assist the negotiations.
(3)
For the preparation of economic, competition, enterprise, research, technical development and employment policies in the context of the liberalisation process, statistics on foreign affiliates to measure direct and indirect effects of foreign control on employment, wages and productivity in particular countries and sectors are necessary.
(4)
The information provided under existing Community legislation or available in Member States is insufficient, inadequate or insufficiently comparable to serve as a reliable basis for the work of the Commission.
(5)
Regulation (EC) No 184/2005 
(
3
)
 establishes a common framework for the systematic production of Community statistics on balance of payments, international trade in services and foreign direct investment. As balance of payments statistics cover only partially the data included in the GATS, it is essential that detailed statistics on foreign affiliates be produced regularly.
(6)
Council Regulation (EC, Euratom) No 58/97 of 20 December 1996 concerning structural business statistics 
(
4
)
 and Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community 
(
5
)
 established a common framework for the collection, compilation, transmission and evaluation of Community statistics on the structure and activity of businesses in the Community.
(7)
The compilation of national accounts according to the Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community 
(
6
)
 requires comparable, complete and reliable business statistics on foreign affiliates.
(8)
Collectively, the Manual on Statistics of International Trade in Services of the United Nations, the Balance of Payments Manual (fifth edition) of the International Monetary Fund, the Benchmark Definition on foreign direct investment and the Handbook on Economic Globalisation Indicators of the Organisation for the Economic Cooperation and Development establish the general rules for compiling international comparable statistics on foreign affiliates.
(9)
The production of specific Community statistics is governed by the rules set out in Council Regulation (EC) No 322/97 of 17 February 1997 on Community Statistics 
(
7
)
.
(10)
Since the objective of this Regulation, namely the creation of common statistical standards for the production of comparable statistics on foreign affiliates, cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale or effects of the action, be better achieved at Community level, the Community may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve that objective.
(11)
The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission 
(
8
)
.
(12)
In particular, power should be conferred on the Commission to adapt the definitions in Annexes I and II and the level of detail in Annex III as well as to make any consequential changes to Annexes I and II, to implement the results of the pilot studies and to define the proper common quality standards and the contents and periodicity of the quality reports. Since those measures are of general scope and are designed to amend non-essential elements of, or to supplement, this Regulation by the addition of new non-essential elements, they should be adopted in accordance with the regulatory procedure with scrutiny laid down in Article 5a of Decision 1999/468/EC.
(13)
The Statistical Programme Committee, established by Council Decision 89/382/EEC, Euratom 
(
9
)
, and the Committee on Monetary, Financial and Balance of Payments Statistics, established by Council Decision 2006/856/EC 
(
10
)
, have been consulted,
HAVE ADOPTED THIS REGULATION:
Article 1
Subject matter
This Regulation establishes a common framework for the systematic production of Community statistics on the structure and activity of foreign affiliates.
Article 2
Definitions
For the purpose of this Regulation, the following definitions apply:
(a)
‘foreign affiliate’ shall mean an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control, or an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control;
(b)
‘control’ shall mean the ability to determine the general policy of an enterprise by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares;
(c)
‘foreign control’ shall mean that the controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident;
(d)
‘branches’ shall mean local units not constituting separate legal entities, which are dependent on foreign-controlled enterprises. They are treated as quasi-corporate enterprises within the meaning of point 3(f) of the Explanatory notes to Section III (B) of the Annex to Regulation (EEC) No 696/93;
(e)
‘statistics on foreign affiliates’ shall mean statistics describing the overall activity of foreign affiliates;
(f)
‘inward statistics on foreign affiliates’ shall mean statistics describing the activity of foreign affiliates resident in the compiling country;
(g)
‘outward statistics on foreign affiliates’ shall mean statistics describing the activity of foreign affiliates abroad controlled by an institutional unit resident in the compiling country;
(h)
‘ultimate controlling institutional unit of a foreign affiliate’ shall mean the institutional unit, proceeding up a foreign affiliate's chain of control, which is not controlled by another institutional unit;
(i)
‘enterprise’, ‘local unit’ and ‘institutional unit’ shall each have the same meaning as in Regulation (EEC) No 696/93.
Article 3
Submission of data
Member States shall submit to the Commission (Eurostat) data on foreign affiliates in respect of the characteristics, the economic activities and the geographical breakdown as referred to in Annexes I, II and III.
Article 4
Data sources
1.   Member States shall, while complying with conditions as to quality referred to in Article 6, collect the information required under this Regulation using all the sources they consider relevant and appropriate.
2.   Natural and legal persons required to supply information shall, when responding, comply with the time limits and definitions set by the national institutions responsible for the collection of data within the Member States in accordance with this Regulation.
3.   Where the required data cannot be collected at a reasonable cost, best estimates, including zero values, may be transmitted.
Article 5
Pilot studies
1.   The Commission shall draw up a programme for pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97 on a voluntary basis on additional variables and breakdowns for inward and outward statistics on foreign affiliates.
2.   The pilot studies shall be carried out in order to assess the relevance and feasibility of collecting data, taking into account the benefits of the availability of the data in relation to the cost of the statistical system and the burden on enterprises.
3.   The Commission programme for pilot studies shall be consistent with Annexes I and II.
4.   On the basis of the conclusions of the pilot studies, the Commission shall adopt the necessary implementation measures for inward and outward statistics on foreign affiliates in accordance with the regulatory procedure with scrutiny referred to in Article 10(3).
5.   The pilot studies shall be completed by 19 July 2010.
Article 6
Quality standards and reports
1.   Member States shall take all measures necessary to ensure the quality of the data transmitted according to common quality standards.
2.   Member States shall supply the Commission (Eurostat) with a report on the quality of the data transmitted (quality reports).
3.   The common quality standards as well as the content and periodicity of the quality reports shall be specified by the Commission in accordance with the regulatory procedure with scrutiny referred to in Article 10(3).
4.   The Commission shall assess the quality of the data transmitted.
Article 7
Recommendations manual
The Commission shall, in close cooperation with the Member States, publish a recommendations manual which contains the relevant definitions and supplementary guidance concerning the Community statistics produced pursuant to this Regulation.
Article 8
Timetable and derogations
1.   Member States shall compile the data according to the implementation timetable as specified in Annexes I and II.
2.   During a transitional period that shall not exceed four years from the first reference year as referred to in Annexes I and II, derogations from the provisions of this Regulation may be granted for a limited period by the Commission to Member States, in accordance with the regulatory procedure referred to in Article 10(2), when their national systems require major adaptations.
Article 9
Implementing measures
1.   The following measures for implementing this Regulation shall be adopted in accordance with the regulatory procedure referred to in Article 10(2):
(a)
setting out the appropriate format and procedure for the transmission of results by Member States;
and
(b)
granting derogations to Member States when their national systems require major adaptations, including granting derogations from any new requirements following pilot studies, pursuant to Article 8(2).
2.   The following measures designed to amend non-essential elements of this Regulation, including by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 10(3):
(a)
adapting definitions in Annexes I and II, adapting the level of detail in Annex III, and making any consequential changes in Annexes I and II;
(b)
implementing the results of the pilot studies, pursuant to Article 5(4);
and
(c)
defining proper common quality standards and the contents and periodicity of the quality reports, pursuant to Article 6(3).
3.   Particular consideration shall be given to the principle that the benefits of such measures must outweigh their costs, and to the principle that any additional financial burden on MemberStates or enterprises should remain within a reasonable limit.
Article 10
Committee
1.   The Commission shall be assisted by the Statistical Programme Committee (the Committee).
2.   Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
The period referred to in Article 5(6) of Decision 1999/468/EC shall be three months.
3.   Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
4.   The European Central Bank and the national central banks may attend the meetings of the Committee as observers.
Article 11
Cooperation with the Committee on Monetary, Financial and Balance of Payments Statistics
In implementing this Regulation, the Commission shall request the opinion of the Committee on Monetary, Financial and Balance of Payments Statistics on all matters falling within that committee's competence, notably about all measures for adjustment to economic and technical developments concerning the collection and statistical processing of data, the processing and transmission of results.
Article 12
Report on implementation
The Commission shall, by 19 July 2012, submit a report to the European Parliament and the Council on the implementation of this Regulation. In particular, that report shall:
(a)
assess the quality of the statistics produced;
(b)
assess the benefits accruing to the Community, the Member States, the providers and users of statistical information of the statistics produced in relation to the costs;
(c)
assess the progress of the pilot studies and their implementation;
and
(d)
identify areas for potential improvement and amendments considered necessary in light of the results obtained and the costs involved.
Article 13
Entry into force
This Regulation shall enter into force on the 20th day following its publication in the 
Official Journal of the European Union
.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Strasbourg, 20 June 2007.
For the European Parliament
The President
H.-G. PÖTTERING
For the Council
The President
G. GLOSER
(
1
)
  
            
OJ C 144, 14.6.2005, p. 14
.
(
2
)
  Opinion of the European Parliament delivered on 12 December 2006 (not yet published in the Official Journal) and Council Decision of 25 May 2007.
(
3
)
  
            
OJ L 35, 8.2.2005, p. 23
. Regulation as amended by Commission Regulation (EC) No 602/2006 (
OJ L 106, 19.4.2006, p. 10
).
(
4
)
  
            
OJ L 14, 17.1.1997, p. 1
. Regulation as last amended by Regulation (EC) No 1893/2006 of the European Parliament and of the Council (
OJ L 393, 30.12.2006, p. 1
).
(
5
)
  
            
OJ L 76, 30.3.1993, p. 1
. Regulation as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (
OJ L 284, 31.10.2003, p. 1
).
(
6
)
  
            
OJ L 310, 30.11.1996, p. 1
. Regulation as last amended by Regulation (EC) No 1267/2003 of the European Parliament and of the Council (
OJ L 180, 18.7.2003, p. 1
).
(
7
)
  
            
OJ L 52, 22.2.1997, p. 1
. Regulation as amended by Regulation (EC) No 1882/2003.
(
8
)
  
            
OJ L 184, 17.7.1999, p. 23
. Decision as amended by Decision 2006/512/EC (
OJ L 200, 22.7.2006, p. 11
).
(
9
)
  
            
OJ L 181, 28.6.1989, p. 47
.
(
10
)
  
            
OJ L 332, 30.11.2006, p. 21
.
ANNEX I
COMMON MODULE FOR INWARD STATISTICS ON FOREIGN AFFILIATES
SECTION 1
Statistical unit
The statistical units are the enterprises and all branches, which are under foreign control according to the definitions contained in Article 2.
SECTION 2
Characteristics
The following characteristics as defined in the Annex to Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning the definitions of characteristics for structural business statistics 
(
1
)
 will be compiled:
Code
Title
11 11 0
Number of enterprises
12 11 0
Turnover
12 12 0
Production value
12 15 0
Value added at factor cost
13 11 0
Total purchases of goods and services
13 12 0
Purchases of goods and services purchased for resale in the same condition as received
13 31 0
Personnel costs
15 11 0
Gross investment in tangible goods
16 11 0
Number of persons employed
22 11 0
Total intra-mural R & D expenditure
 (
*1
)
22 12 0
Total number of R & D personnel
 (
*1
)
If the number of persons employed is not available, the number of employees (code 16 13 0) will be compiled instead.
Variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) are only required to be compiled for activities in NACE sections C, D, E and F.
For NACE section J only the number of enterprises, turnover 
(
2
)
 and the number of persons employed (or the number of employees instead) will be compiled.
SECTION 3
Level of detail
Data will be provided according to the concept of ‘ultimate controlling institutional unit’ with the geographical breakdown level 2-IN combined with the activity breakdown level 3 as specified in Annex III and the geographical breakdown level 3 combined with Business Economy.
SECTION 4
First reference year and periodicity
1.
The first reference year for which annual statistics will be compiled is the calendar year of the entry into force of this Regulation.
2.
Member States will provide data for every calendar year thereafter.
3.
The first reference year for which variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) will be compiled is 2007.
SECTION 5
Transmission of results
The results will be transmitted within 20 months after the end of the reference year.
SECTION 6
Reports and pilot studies
1.
Member States will provide the Commission with a report relating to the definition, structure and availability of the statistical data to be compiled for the purposes of this common module.
2.
For the level of detail covered by this Annex, the Commission will institute pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97 pursuant to Article 5 of this Regulation.
3.
The pilot studies will be carried out in order to assess the feasibility of obtaining data, taking into account the benefits of the availability of such data in relation to the cost of collection and the burden on business.
4.
Pilot studies will be conducted for the following characteristics:
Code
Title
Exports of goods and services
Imports of goods and services
Intra-group exports of goods and services
Intra-group imports of goods and services
Exports, imports, intra-group exports and intra-group imports will be broken down into goods and services.
5.
Pilot studies will also be conducted to study the feasibility of compiling data for activities in NACE sections M, N and O and of compiling the variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) for activities in NACE sections G, H, I, K, M, N and O. Pilot studies will also be conducted to assess the relevance, feasibility and costs of breaking down the data as specified in section 2 into size classes measured in terms of number of persons employed.
(
1
)
  
            
OJ L 344, 18.12.1998, p. 49
. Regulation as last amended by Regulation (EC) No 1670/2003 (
OJ L 244, 29.9.2003, p. 74
).
(
*1
)
  Variables 22 11 0 and 22 12 0 shall be reported every second year. If the total amount of turnover or the number of persons employed in a division of NACE Rev. 1.1 Sections C to F represent, in a Member State, less than 1 % of the Community total, the information necessary for the compilation of statistics relating to characteristics 22 11 0 and 22 12 0 need not be collated for the purposes of this Regulation.
(
2
)
  For NACE Rev. 1.1 division 65 turnover will be replaced by production value.
ANNEX II
COMMON MODULE FOR OUTWARD STATISTICS ON FOREIGN AFFILIATES
SECTION 1
Statistical unit
The statistical units are the enterprises and all branches abroad that are controlled by an institutional unit resident in the compiling country, according to the definitions contained in Article 2.
SECTION 2
Characteristics
The following characteristics, as defined in the Annex to Regulation (EC) No 2700/98, will be compiled:
Code
Title
12 11 0
Turnover
16 11 0
Number of persons employed
11 11 0
Number of enterprises
If the number of persons employed is not available, the number of employees (code 16 13 0) will be compiled instead.
SECTION 3
Level of detail
Data will be provided with the detail by country of location and by activity of the foreign affiliate specified in Annex III. The detail by country of location and activity will be combined as follows:
—
Level 1 of the geographical breakdown combined with Level 2 of the activity breakdown.
—
Level 2-OUT of the geographical breakdown combined with level 1 of the activity breakdown.
—
Level 3 of the geographical breakdown combined with data on total activity only.
SECTION 4
First reference year and periodicity
1.
The first reference year for which annual statistics will be compiled is the calendar year of the entry in force of this Regulation.
2.
Member States will provide data for every calendar year thereafter.
SECTION 5
Transmission of results
The results will be transmitted within 20 months from the end of the reference year.
SECTION 6
Reports and pilot studies
1.
Member States will provide the Commission with a report relating to the definition, structure and availability of the statistical data to be compiled for the purposes of this common module.
2.
For the level of detail covered by this Annex, the Commission will institute pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97, pursuant to Article 5 of this Regulation.
3.
The pilot studies will be carried out in order to assess the relevance and feasibility of obtaining data, taking into account the benefits of the availability of such data in relation to the cost of collection and the burden on business.
4.
Pilot studies will be conducted for the following characteristics:
Code
Title
13 31 0
Personnel costs
Exports of goods and services
Imports of goods and services
Intra-group exports of goods and services
Intra-group imports of goods and services
12 15 0
Value added at factor cost
15 11 0
Gross investment in tangible goods
ANNEX III
LEVELS FOR DETAILED INFORMATION BY GEOGRAPHY AND BY ACTIVITY
Geographical breakdown levels
Level 1
Level 2-OUT
(Level 1 + 24 countries)
V2
Extra-EU 27
V2
Extra-EU 27
IS
Iceland
LI
Liechtenstein
NO
Norway
CH
Switzerland
CH
Switzerland
HR
Croatia
RU
Russian Federation
RU
Russian Federation
TR
Turkey
EG
Egypt
MA
Morocco
NG
Nigeria
ZA
South Africa
CA
Canada
CA
Canada
US
United States of America
US
United States
MX
Mexico
AR
Argentina
BR
Brazil
BR
Brazil
CL
Chile
UY
Uruguay
VE
Venezuela
IL
Israel
CN
China
CN
China
HK
Hong Kong
HK
Hong Kong
IN
India
IN
India
ID
Indonesia
JP
Japan
JP
Japan
KR
South Korea
MY
Malaysia
PH
Philippines
SG
Singapore
TW
Taiwan
TH
Thailand
AU
Australia
NZ
New Zealand
Z8
Extra-EU 27 not allocated
Z8
Extra-EU 27 not allocated
C4
Offshore Financial Centres
C4
Offshore Financial Centres
Z7
Equally-shared control of UCIs
 (
*1
)
 of more than 1 Member State
Z7
Equally-shared control of UCIs
 (
*1
)
 of more than one Member State
Level 2-IN
A1
World total (all entities including compiling country)
Z9
Rest of the World (excluding compiling country)
A2
Controlled by the compiling country
V1
EU-27 (Intra-EU-27) excluding compiling country
BE
Belgium
BG
Bulgaria
CZ
Czech Republic
DK
Denmark
DE
Germany
EE
Estonia
IE
Ireland
GR
Greece
ES
Spain
FR
France
IT
Italy
CY
Cyprus
LV
Latvia
LT
Lithuania
LU
Luxembourg
HU
Hungary
MT
Malta
NL
Netherlands
AT
Austria
PL
Poland
PT
Portugal
RO
Romania
SI
Slovenia
SK
Slovakia
FI
Finland
SE
Sweden
UK
United Kingdom
Z7
Equally-shared control of UCIs
 (
*2
)
 of more than one Member State
V2
Extra-EU 27
AU
Australia
CA
Canada
CH
Switzerland
CN
China
HK
Hong Kong
IL
Israel
IS
Iceland
JP
Japan
LI
Liechtenstein
NO
Norway
NZ
New Zealand
RU
Russian Federation
TR
Turkey
US
United States
C4
Offshore financial centres
Z8
Extra-EU27 not allocated
Level 3
AD
Andorra
EE
Estonia
 (
*3
)
KZ
Kazakhstan
QA
Qatar
AE
United Arab Emirates
EG
Egypt
LA
Lao People's Democratic Republic
RO
Romania
 (
*3
)
AF
Afghanistan
ER
Eritrea
LB
Lebanon
RS
Serbia
AG
Antigua and Barbuda
ES
Spain
 (
*3
)
LC
Saint Lucia
RU
Russian Federation
AI
Anguilla
ET
Ethiopia
LI
Liechtenstein
RW
Rwanda
AL
Albania
FI
Finland
 (
*3
)
LK
Sri Lanka
SA
Saudi Arabia
AM
Armenia
FJ
Fiji
LR
Liberia
SB
Solomon Islands
AN
Netherlands Antilles
FK
Falkland Islands (Malvinas)
LS
Lesotho
SC
Seychelles
AO
Angola
FM
Micronesia, Federated States of
LT
Lithuania
 (
*3
)
SD
Sudan
AQ
Antarctica
FO
Faroe Islands
LU
Luxembourg
 (
*3
)
SE
Sweden
 (
*3
)
AR
Argentina
FR
France
 (
*3
)
LV
Latvia
 (
*3
)
SG
Singapore
AS
American Samoa
GA
Gabon
LY
Libyan Arab Jamahiriya
SH
St Helena
AT
Austria
 (
*3
)
GD
Grenada
MA
Morocco
SI
Slovenia
 (
*3
)
AU
Australia
GE
Georgia
MD
Moldova, Republic of
SK
Slovakia
 (
*3
)
AW
Aruba
GG
Guernsey
ME
Montenegro
SL
Sierra Leone
AZ
Azerbaijan
GH
Ghana
MG
Madagascar
SM
San Marino
BA
Bosnia and Herzegovina
GI
Gibraltar
MH
Marshall Islands
SN
Senegal
BB
Barbados
GL
Greenland
MK
 (
1
)
the Former Yugoslav Republic of Macedonia
SO
Somalia
BD
Bangladesh
GM
Gambia
ML
Mali
SR
Suriname
BE
Belgium
 (
*3
)
GN
Guinea
MM
Myanmar
ST
Sao Tome and Principe
BF
Burkina Faso
GQ
Equatorial Guinea
MN
Mongolia
SV
El Salvador
BG
Bulgaria
 (
*3
)
GR
Greece
 (
*3
)
MO
Macau
SY
Syrian Arab Republic
BH
Bahrain
GS
South Georgia and the South Sandwich Islands
MP
Northern Mariana Islands
SZ
Swaziland
BI
Burundi
GT
Guatemala
MR
Mauritania
TC
Turks and Caicos Islands
BJ
Benin
GU
Guam
MS
Montserrat
TD
Chad
BM
Bermuda
GW
Guinea-Bissau
MT
Malta
 (
*3
)
TF
French Southern Territories
BN
Brunei Darussalam
GY
Guyana
MU
Mauritius
TG
Togo
BO
Bolivia
HK
Hong Kong
MV
Maldives
TH
Thailand
BR
Brazil
HM
Heard Island and McDonald Islands
MW
Malawi
TJ
Tajikistan
BS
Bahamas
HN
Honduras
MX
Mexico
TK
Tokelau
BT
Bhutan
HR
Croatia
MY
Malaysia
TM
Turkmenistan
BV
Bouvet Island
HT
Haiti
MZ
Mozambique
TN
Tunisia
BW
Botswana
HU
Hungary
 (
*3
)
NA
Namibia
TO
Tonga
BY
Belarus
ID
Indonesia
NC
New Caledonia
TP
East Timor
BZ
Belize
IE
Ireland
 (
*3
)
NE
Niger
TR
Turkey
CA
Canada
IL
Israel
NF
Norfolk Island
TT
Trinidad and Tobago
CC
Cocos (Keeling) Islands
IM
Isle of Man
NG
Nigeria
TV
Tuvalu
CD
Congo, the Democratic Republic of the
IN
India
NI
Nicaragua
TW
Taiwan, Province of China
CF
Central African Republic
IO
British Indian Ocean Territory
NL
Netherlands
 (
*3
)
TZ
Tanzania, United Republic of
CG
Congo
IQ
Iraq
NO
Norway
UA
Ukraine
CH
Switzerland
IR
Iran, Islamic Republic of
NP
Nepal
UG
Uganda
CI
Côte d'Ivoire
IS
Iceland
NR
Nauru
UK
United Kingdom
 (
*3
)
CK
Cook Islands
IT
Italy
 (
*3
)
NU
Niue
UM
United States Minor Outlying Islands
CL
Chile
JE
Jersey
NZ
New Zealand
US
United States
CM
Cameroon
JM
Jamaica
OM
Oman
UY
Uruguay
CN
China
JO
Jordan
PA
Panama
UZ
Uzbekistan
CO
Colombia
JP
Japan
PE
Peru
VA
Holy See (Vatican City State)
CR
Costa Rica
KE
Kenya
PF
French Polynesia
VC
St Vincent and the Grenadines
CU
Cuba
KG
Kyrgyzstan
PG
Papua New Guinea
VE
Venezuela
CV
Cape Verde
KH
Cambodia (Kampuchea)
PH
Philippines
VG
Virgin Islands, British
CX
Christmas Island
KI
Kiribati
PK
Pakistan
VI
Virgin Islands, US
CY
Cyprus
 (
*3
)
KM
Comoros
PL
Poland
 (
*3
)
VN
Viet Nam
CZ
Czech Republic
 (
*3
)
KN
St Kitts and Nevis
PN
Pitcairn
VU
Vanuatu
DE
Germany
 (
*3
)
KP
Korea, Democratic People's Republic of (North Korea)
PS
Palestinian Territory, Occupied
WF
Wallis and Futuna
DJ
Djibouti
KR
Korea, Republic of (South Korea)
PT
Portugal
 (
*3
)
WS
Samoa
DK
Denmark
 (
*3
)
KW
Kuwait
PW
Palau
YE
Yemen
DM
Dominica
KY
Cayman Islands
PY
Paraguay
DO
Dominican Republic
ZA
South Africa
DZ
Algeria
ZM
Zambia
EC
Ecuador
Z8
Extra EU-27 not allocated
ZW
Zimbabwe
A2
Controlled by the compiling country
Z7
Equally-shared control of UCIs
 (
*4
)
 of more than one Member State
Activity breakdown Levels
Level 1
Level 2
NACE Rev. 1.1
 (
2
)
TOTAL ACTIVITY
TOTAL ACTIVITY
Sec C to O (excluding L)
MINING & QUARRYING
MINING AND QUARRYING
Sec C
Of which:
Extraction of petroleum and gas
Div 11
MANUFACTURING
MANUFACTURING
Sec D
Food products
Subsection DA
Textiles and wearing apparel
Subsection DB
Wood, publishing and printing
Subsections DD & DE
TOTAL textiles + wood activities
Refined petroleum prod. And other treatments
Div 23
Manufacture of chemicals & chemical products
Div 24
Rubber and plastic products
Div 25
Petrol., chem., rubber, plastic prod.
TOTAL petroleum, chemic., rubber, plastic products
Metal products
Subsection DJ
Mechanical products
Div 29
TOTAL metal and mechanical products
Office machinery and computers
Div 30
Radio, TV, communication equipments
Div 32
Office mach., comp., RTV, comm. eq.
TOTAL machin., comput., RTV, comm. equip.
Motor vehicles
Div 34
Other transport equipment
Div 35
Vehicles, other transport equip.
TOTAL vehicles + other transport equipment
Manufacturing n.i.e.
ELECTRIC., GAS & WATER
ELECTRICITY, GAS AND WATER
Sec E
CONSTRUCTION
CONSTRUCTION
Sec F
TOTAL SERVICES
TOTAL SERVICES
TRADE AND REPAIRS
TRADE AND REPAIRS
Sec G
Sale, maintenance and repair of motor vehicles and motor cycles; retail sale of automotive fuel
Div 50
Wholesale trade and commission trade, except of motor vehicles and motor cycles
Div 51
Retail trade, except of motor vehicles and motor cycles; repair of personal and household goods
Div 52
HOTELS & RESTAURANTS
HOTELS AND RESTAURANTS
Sec H
TRANSP., STORAGE AND COM.
TRANSPORTS, STORAGE AND COMMUNICATION
Sec I
Transport and storage
Div 60, 61, 62, 63
Land transport; transport via pipelines
Div 60
Water transport
Div 61
Air transport
Div 62
Supporting and auxiliary transport activities; activities of travel agencies
Div 63
Post and telecommunications
Div 64
Post and courier activities
Group 64.1
Telecommunications
Group 64.2
FINANCIAL INTERMED.
FINANCIAL INTERMEDIATION
Sec J
Financial intermediation, except insurance and pension funding
Div 65
Insurance and pension funding, except compulsory social security
Div 66
Activities auxiliary to financial intermediation
Div 67
REAL ESTATE ACTIVITIES
Sec K, Div 70
RENTING OF MACHINERY AND EQUIPMENT WITHOUT OPERATOR AND OF PERSONAL AND HOUSEHOLD GOODS
Sec K, Div 71
COMPUT. & RELATED ACT.
COMPUTER AND RELATED ACTIVITIES
Sec K, Div 72
RESEARCH & DEVELOP.
RESEARCH AND DEVELOPMENT
Sec K, Div 73
OTHER BUSINESS ACT.
OTHER BUSINESS ACTIVITIES
Sec K, Div 74
Legal, account., market research, consultancy
Group 74.1
Legal activities
Class 74.11
Account., bookkeeping and audit.; tax consult.
Class 74.12
Market research and public opinion polling
Class 74.13
Business and management consultancy activities
Class 74.14
Management activities of holding companies
Class 74.15
Architectural, engineering and other tech. act.
Group 74.2
Advertising
Group 74.4
Business activities n.e.c.
Group 74.3, 74.5, 74.6, 74.7, 74.8
EDUCATION
Sec M
HEALTH AND SOCIAL WORK
Sec N
SEWAGE AND REFUSE DISPOSAL
Sec O, Div 90
ACTIVITIES OF MEMBERSHIP ORGANIS. N.E.C.
Sec O, Div 91
REC., CULT., SPORTING ACTIV.
RECREATIONAL, CULT., SPORTING ACTIVITIES
Sec O, Div 92
Motion picture, radio, tel., other entertain. activ.
Group 92.1, 92.2, 92.3
News agency activities
Group 92.4
Library, archives, museums, other cultural act.
Group 92.5
Sporting and other recreational activities
Group 92.6, 92.7
OTHER SERVICE ACTIVITIES
Sec O, Div 93
Not allocated
Level 3 (NACE Rev. 1.1)
Heading
Requested level of detail
Business Economy
Sections C to K
Mining and quarrying
Section C
Manufacturing
Section D
All subsections DA to DN
All divisions 15 to 37
Aggregates:
High-technology (HIT)
24.4, 30, 32, 33, 35.3
Medium-high-technology (MHT)
24 except 24.4, 29, 31, 34, 35.2, 35.4, 35.5
Medium-low-technology (MLT)
23, 25-28, 35.1
Low-Technology (LOT)
15-22, 36, 37
Electricity, gas and water supply
Section E
All divisions (40 and 41)
Construction
Section F (Division 45)
All Groups (45.1 to 45.5)
Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods
Section G
All divisions (50 to 52)
Groups 50.1 + 50.2 + 50.3, 50.4, 50.5, 51.1 to 51.9
Groups 52.1 to 52.7
Hotels and restaurants
Section H (Division 55)
Groups 55.1 to 55.5
Transport, storage and communication
Section I
All divisions
Groups 60.1, 60.2, 60.3, 63.1 + 63.2, 63.3, 63.4, 64.1, 64.2
Financial intermediation
Section J
All divisions
Real estate, renting and business activities
Section K
Division 70
Division 71, groups 71.1 + 71.2, 71.3 and 71.4
Division 72, groups 72.1 to 72.6
Division 73
Division 74, the aggregates 74.1 to 74.4 and 74.5 to 74.8
(
*1
)
  Ultimate controlling institutional unit of a foreign affiliate
(
*2
)
  Ultimate controlling institutional unit of a foreign affiliate.
(
*3
)
  Only for inward
(
*4
)
  Ultimate controlling institutional unit of a foreign affiliate
(
1
)
  Provisional code that does not affect the definitive denomination of the country to be attributed after the conclusion of the negotiation currently taking place at the United Nations.
(
2
)
  Council Regulation (EEC) No 3037/90 of 9 October 1990 on the statistical classification of economic activities in the European Community (
OJ L 293, 24.10.1990, p. 1
). Regulation as last amended by Regulation (EC) No 1893/2006.

Summary:
Production of EU statistics on the structure and activity of foreign affiliates
SUMMARY OF:
Regulation (EC) No 716/2007 — EU statistics on the structure and activity of foreign affiliates
WHAT IS THE AIM OF THE REGULATION?
It aims to create common statistical standards for the systematic production of comparable statistics on the structure and activity of foreign affiliates
*
.
KEY POINTS
Definitions
Foreign affiliates statistics (FATS)
 measure the commercial presence through affiliates in foreign markets.
Inward FATS
 describe the overall activity of foreign affiliates resident in the compiling country (see Annex I of the regulation).
Outward FATS
 describe the overall activity of foreign affiliates abroad controlled by residents of the compiling country, for example how many employees work in affiliates resident outside the EU and controlled by European enterprises (see Annex II of the regulation).
FATS are compiled according to the 
ultimate controlling institutional unit
 concept. This refers to an institutional unit (enterprise, branch or natural person) under a foreign affiliate’s chain of control and not controlled by another institutional unit.
Scope
EU countries must submit to the European Commission (
Eurostat
) data on foreign affiliates in regard to their 
characteristics
, 
economic activities
 and 
geographical breakdown
 (see Annex III of the regulation).
The countries collect data on 
11 characteristics
, including:
number of foreign-controlled enterprises (i.e. an enterprise in one country controlled by a resident of another country);
turnover;
production value;
added value;
total purchases of goods and services;
staff costs;
gross investment in tangible goods;
number of persons employed;
total on-site research and development (R & D) expenditure; and
total number of R & D staff.
Data sources
EU countries have to collect the required information using 
relevant 
and 
appropriate
 sources. Business registers, statistical surveys or already existing data from administrative sources are the main sources for FATS statistics (see summary of 
Business statistics
). Where the required data cannot be collected at a reasonable cost, best estimates, including zero values, may be transmitted to Eurostat.
Quality standards and reports
EU countries must ensure that the quality of the data they transmit to Eurostat meets common quality standards. The 
European Commission
 (Eurostat) specifies the quality standards to be met and the content and frequency of 
quality reports
 to be submitted.
Recommendations manual
In close cooperation with EU countries, Eurostat prepares a 
manual
 containing the relevant definitions and supplementary guidance with regard to the production of FATS.
Timetable
A timetable for compiling the data is specified in the regulation’s Annexes I and II.
Committees
The Commission (Eurostat) is assisted and advised by the 
European Statistical System Committee
, a committee of EU countries. In implementing this regulation, the Commission can also request the opinion of the 
Committee on Monetary, Financial and Balance of Payments Statistics
 on all matters falling within that committee’s competence, in particular about measures for adjustment to economic and technical developments concerning the collection and statistical processing of data and the processing and transmission of results.
Implementation report
In 2012 the Commission was to submit a report to the 
European Parliament
 and the 
Council
 on the implementation of the regulation.
FROM WHEN DOES THE REGULATION APPLY?
It has applied since 19 July 2007.
BACKGROUND
Although statistics on foreign direct investment record the total amount of capital invested by foreign companies in the EU, FATS provide more detailed information on the economic impact of those investments in terms of job creation, R & D, etc.
For more information, see:
Foreign affiliates (foreign-controlled enterprises)
 (
Eurostat
).
KEY TERMS
Foreign affiliate:
 an enterprise resident in a country which is under the control of an institutional unit not resident in the same country.
MAIN DOCUMENT
Regulation (EC) No 
716/2007
 of the European Parliament and of the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates (OJ L 171, 29.6.2007, pp. 17-31)
Successive amendments to Regulation (EC) No 716/2007 have been incorporated into the original document. This 
consolidated version
 is of documentary value only.
RELATED DOCUMENTS
Report from the Commission to the European Parliament and the Council on the implementation of Regulation (EC) No 716/2007 of the European Parliament and of the Council of 20 June 2007 on Community statistics on the structure and activity of foreign affiliates (
COM(2012) 249 final
, 31.5.2012)
Commission Regulation (EC) No 
834/2009
 of 11 September 2009 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the quality reports (OJ L 241, 12.9.2009, pp. 3-4)
Regulation (EC) No 
295/2008
 of the European Parliament and of the Council of 11 March 2008 concerning structural business statistics (recast) (OJ L 97, 9.4.2008, pp. 13-59)
See 
consolidated version
.
Commission Regulation (EC) No 
364/2008
 of 23 April 2008 implementing Regulation (EC) No 716/2007 of the European Parliament and of the Council, as regards the technical format for the transmission of foreign affiliates statistics and the derogations to be granted to Member States (OJ L 112, 24.4.2008, pp. 14-21)
Commission Regulation (EC) No 
747/2008
 of 30 July 2008 amending Regulation (EC) No 716/2007 of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates, as regards the definitions of characteristics and the implementation of NACE Rev. 2 (OJ L 202, 31.7.2008, pp. 20-27)
last update 13.11.2017

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