Rule2022-21116
Direct Investment Surveys: BE-13, Survey of New Foreign Direct Investment in the United States
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 29, 2022
Effective
October 31, 2022
Issuing agencies
Commerce DepartmentEconomic Analysis Bureau
Abstract
This final rule amends regulations of the Department of Commerce's Bureau of Economic Analysis (BEA) to set forth the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States ("BE-13 survey"). The BE-13 survey collects information on the acquisition or establishment of U.S. business enterprises by foreign investors, and information on expansions by existing U.S. affiliates of foreign companies. The data collected through the survey are used to measure the amount of new foreign direct investment in the United States and ensure complete coverage of BEA's other foreign direct investment statistics. BEA will change the reporting requirements of the survey to reduce respondent burden, simplify reporting, and increase the efficiency of the data collection. This mandatory BE-13 survey is required from persons subject to the reporting requirements, whether or not they are contacted by BEA.
Full Text
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<title>Federal Register, Volume 87 Issue 188 (Thursday, September 29, 2022)</title>
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[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Rules and Regulations]
[Pages 58955-58957]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21116]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 220923-0197]
RIN 0691-AA92
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 set forth the reporting
requirements for the BE-13, Survey of New Foreign Direct Investment in
the United States (``BE-13 survey''). The BE-13 survey collects
information on the acquisition or establishment of U.S. business
enterprises by foreign investors, and information on expansions by
existing U.S. affiliates of foreign companies. The data collected
through the survey are used to measure the amount of new foreign direct
investment in the United States and ensure complete coverage of BEA's
other foreign direct investment statistics. BEA will change the
reporting requirements of the survey to reduce respondent burden,
simplify reporting, and increase the efficiency of the data collection.
This mandatory BE-13 survey is required from persons subject to the
reporting requirements, whether or not they are contacted by BEA.
DATES: This final rule is effective October 31, 2022.
FOR FURTHER INFORMATION CONTACT: Ricardo Limes, Chief, Direct
Transactions and Positions Branch (BE-49NI), Bureau of Economic
Analysis, U.S. Department of Commerce, 4600 Silver Hill Road,
Washington, DC 20233; email <a href="/cdn-cgi/l/email-protection#23714a404251474c0d4f4a4e4650634146420d444c55"><span class="__cf_email__" data-cfemail="95c7fcf6f4e7f1fabbf9fcf8f0e6d5f7f0f4bbf2fae3">[email protected]</span></a> or 301-278-9659.
SUPPLEMENTARY INFORMATION: The BE-13, Survey of New Foreign Direct
Investment in the United States, is a mandatory survey conducted by BEA
under the authority of the International Investment and Trade in
Services Survey Act (22 U.S.C. 3101-3108).
The purpose of the BE-13 survey is 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 facility where business is conducted. The
data collected on the survey are used to measure the amount and
[[Page 58956]]
economic significance of new foreign direct investment in the United
States and assess its impact on the U.S. economy. 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.
This final rule amends 15 CFR 801.7 to set forth the reporting
requirements for the BE-13, Survey of New Foreign Direct Investment in
the United States. Under this rule, 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.
Description of Changes
This final rule amends the regulations at 15 CFR part 801 by
modifying Sec. 801.7. Specifically, BEA changes the reporting
requirements of form BE-13E, Fiscal Year End Cost Update for Projects
Originally Reported on Forms BE-13B and BE-13D. The form collects
updated cost information for greenfield investments--i.e.,
establishments or expansions of U.S. businesses by foreign investors
filed on BE-13B or BE-13D forms, respectively--and is required to be
filed annually until the establishment or expansion of the U.S.
business enterprise is complete.
BEA will limit the filing requirement of the BE-13E form to three
years after the year the investment is initiated. BEA has found that
this timeframe would be sufficient to collect the vast majority of the
changes to total planned expenditures of greenfield investments and
provide data users with insightful statistics on the ultimate cost of
these investments. The change will reduce respondent burden and the BEA
resources needed to continue to collect and process these updates,
allowing BEA to focus resources on the featured statistics for more
recent periods.
On June 28, 2022, 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 (87 FR 38311). No
comments were received on the proposed rule.
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 revision of the
currently approved information collection under BE-13, Survey of New
Foreign Direct Investment in the United States, OMB control number
0608-0035.
Notwithstanding any other provisions of the 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
approximately 3,027 reports from U.S. affiliates each year. The
respondent burden for this collection of information is expected to
vary because of differences in company structure, size, and complexity,
but is estimated to average 1.1 hours per response. The burden includes
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 3,027 hours, compared to 2,547 hours for
the previous BE-13 survey estimate. The increase in burden hours is due
to the increase in the overall number of respondents expected to file,
partially offset by a reduction in the number of BE-13E forms expected
to be filed.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in this
final rule should be sent to both BEA via email at
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="aaf8c3c9cbd8cec584e6c3c7cfd9eac8cfcb84cdc5dc">[email protected]</a> and to OMB Office of Information and Regulatory
Affairs (OIRA), Paperwork Reduction Project 0608-0035, Attention PRA
Desk Officer for BEA, via email at <a href="/cdn-cgi/l/email-protection#1956504b58464a6c7b74706a6a7076775976747b377c7669377e766f"><span class="__cf_email__" data-cfemail="c08f8992819f93b5a2ada9b3b3a9afae80afada2eea5afb0eea7afb6">[email protected]</span></a>.
Regulatory Flexibility Act
The Chief Counsel for Regulation, Department of Commerce, has
certified to the Chief Counsel for Advocacy, Small Business
Administration, at the proposed rule stage that this action will not
have a significant impact on a substantial number of small entities. No
comments were received on that certification or on the economic impacts
of this rule more generally. Therefore, no regulatory flexibility
analysis is required and none has been prepared.
List of Subjects in 15 CFR Part 801
Economic statistics, Foreign investment in the United States,
International transactions, Penalties, Reporting and recordkeeping
requirements.
Paul W. Farello,
Associate Director of International Economics, 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. 801.7 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
new facilities where business is conducted. 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. BEA will
describe the proposed information collection in a public notice and
will solicit comments according to the requirements of the Paperwork
Reduction Act (44 U.S.C. 3501-3520). All legal authorities, provisions,
definitions, and requirements contained in Sec. Sec. 801.1 and 801.2
and 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
[[Page 58957]]
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, a person, or their agent, who is
contacted by BEA about reporting in this survey, either by sending them
a report form or by written inquiry, must respond in writing pursuant
to this section. This may be accomplished by filing the properly
completed BE-13 report (BE-13A, BE-13B, BE-13D, BE-13E, or BE-13 Claim
for Exemption).
(b) Who must report. A BE-13 report is required of any U.S.
business enterprise, except certain private funds, see exception in
paragraph (b)(4) of this section, 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. business enterprise, expands its U.S. operations, or acquires
a U.S. business enterprise; or
(3) BEA requests a cost update (Form BE-13E) for a U.S. business
enterprise that previously filed Form BE-13B or BE-13D.
(4) Certain private funds are exempt from reporting on the BE-13
survey. If a U.S. business enterprise is a private fund and does not
own, directly or indirectly, 10 percent or more of another business
enterprise that is not also a private fund or a holding company, it is
not required to file any BE-13 report except to indicate exemption from
the survey if contacted by BEA.
(c) Forms to be filed. Depending on the type of investment
transaction, U.S. affiliates would report their information on one of
five forms--BE-13A, BE-13B, 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 U.S. business enterprise
including segments, operating units, or real estate; and
(i) The total cost of the acquisition is greater than $3 million;
and
(ii) By this acquisition, the foreign entity now owns at least 10
percent of the voting interest (directly, or indirectly through an
existing U.S. affiliate) in the acquired U.S. business enterprise.
(2) Form BE-13B--report for a U.S. business enterprise when it is
established by a foreign entity or by an existing U.S. affiliate of a
foreign parent; and
(i) The expected total cost to establish the new U.S. business
enterprise is greater than $3 million; and
(ii) The foreign entity owns at least 10 percent of the voting
interest (directly, or indirectly through an existing U.S. affiliate)
in the new U.S. business enterprise.
(3) 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 expected total cost of the expansion is
greater than $3 million.
(4) Form BE-13E--report for a U.S. business enterprise that
previously filed Form BE-13B or BE-13D. Form BE-13E collects updated
cost information and will be collected annually for three years after
the year of the establishment or expansion of the U.S. business
enterprise.
(5) 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, or BE-13D; or
(ii) Whether or not contacted by BEA, met all requirements for
filing Forms BE-13A, BE-13B, or BE-13D except the $3 million reporting
threshold.
(d) Due date. The BE-13 forms are due no later than 45 calendar
days after the acquisition is completed, the new U. S. business
enterprise is established, the expansion is begun, the cost update is
requested, or a notification letter is received from BEA by a U.S.
business enterprise that does not meet the filing requirements for the
survey.
[FR Doc. 2022-21116 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-06-P
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