[Federal Register Volume 69, Number 158 (Tuesday, August 17, 2004)]
[Proposed Rules]
[Pages 51020-51024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18640]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 040805231-4231-01]
RIN 0691-AA52


Direct Investment Surveys: BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad--2004

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposed rule amends regulations of the Bureau of 
Economic Analysis, Department of Commerce (BEA) to set forth the 
reporting requirements for the BE-10, Benchmark Survey of U.S. Direct 
Investment Abroad. The BE-10 survey is conducted once every 5 years and 
covers virtually the entire universe of U.S. direct investment abroad 
in terms of value. The benchmark survey will be conducted for 2004. To 
address the current needs of data users while at the same time keeping 
the respondent burden as low as possible, BEA proposes modification, 
addition, or deletion of several items on the survey forms and in the 
reporting criteria. Changes are proposed to make the survey more 
consistent with the surveys of direct investment in the United States 
and more consistent with its annual and quarterly counterparts.
    Changes proposed by BEA in the reporting requirements to be 
implemented in this proposed rule are: (a) Increasing the exemption 
level for reporting on the BE-10B(SF) short form from $7 million to $25 
million and on the BE-10B Bank form from $7 million to $10 million; (b) 
increasing the exemption level for reporting on the BE-10B(LF) long 
form from $100 million to $150 million; and (c) increasing the 
exemption level for reporting only selected items on the BE-10A form 
from $100 million to $150 million. In conjunction with these

[[Page 51021]]

increases in exemption levels, BEA proposes to introduce an abbreviated 
short form, Form BE-10B Mini, for reporting nonbank foreign affiliates 
with assets, sales or gross operating revenues, and net income (loss) 
less than or equal to $25 million but greater than $10 million.

DATES: Comments on these proposed rules will receive consideration if 
submitted in writing on or before October 18, 2004.

ADDRESSES: You may submit comments, identified by RIN 0691-AA52, and 
referencing the agency name (Bureau of Economic Analysis), by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected].
     Fax: Office of the Chief, International Investment 
Division, (202) 606-5318.
     Mail: Office of the Chief, International Investment 
Division, U.S. Department of Commerce, Bureau of Economic Analysis, BE-
50, Washington, DC 20230.
     Hand Delivery/Courier: Office of the Chief, International 
Investment Division, U.S. Department of Commerce, Bureau of Economic 
Analysis, BE-50, Shipping and Receiving, Section M100, 1441 L Street, 
NW., Washington, DC 20005.
    Public Inspection: Comments may be inspected at BEA's offices, 1441 
L Street, NW., Room 7006, between 8:30 a.m. and 4:30 p.m., eastern time 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Obie G. Whichard, Chief, International 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; phone (202) 606-9890.

SUPPLEMENTARY INFORMATION: These proposed rules amend 15 CFR 806.16 to 
set forth the reporting requirements for the BE-10, Benchmark Survey of 
U.S. Direct Investment Abroad--2004. The Department of Commerce, as 
part of its continuing effort to reduce paperwork and respondent 
burden, invites the general public and other Federal agencies to 
comment on proposed and/or continuing information collections, as 
required by the Paperwork Reduction Act of 1995.

Description of Changes

    The BE-10 survey is a mandatory survey and is conducted once every 
5 years by BEA under the International Investment and Trade in Services 
Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' BEA will 
send the survey to potential respondents in March 2005; responses will 
be due by May 31, 2005 for respondents required to file fewer than 50 
foreign affiliate report forms and by June 30, 2005 for those required 
to file 50 or more forms.
    BEA maintains a continuing dialogue with respondents and with data 
users, including its own internal users, to ensure that, as much as 
possible, the required data serve their intended purposes and are 
available from existing records, that instructions are clear, and that 
unreasonable burdens are not imposed. In designing the survey, BEA 
contacted data users and survey respondents to obtain their views on 
the proposed benchmark survey. The list of proposed changes reflects 
users' and respondents' comments. In reaching decisions on what 
questions to include in the survey, BEA considered the Government's 
need for the data, the burden imposed on respondents, the quality of 
the likely responses (e.g., whether the data are readily available on 
respondents' books), and BEA's experience in previous benchmark and 
related annual surveys.
    To reduce respondent burden, particularly for small companies, BEA 
proposes the following changes to the Code of Federal Regulations: (1) 
Increase the exemption level for reporting on the BE-10B(SF) short form 
from $7 million to $25 million and on the BE-10B Bank form from $7 
million to $10 million; (2) increase the exemption level for reporting 
on the BE-10B(LF) long form from $100 million to $150 million; and (3) 
increase the exemption level for reporting only selected items on the 
BE-10A form from $100 million to $150 million. In conjunction with 
these increases in exemption levels, BEA proposes to introduce an 
abbreviated short form for reporting nonbank foreign affiliates with 
assets, sales or gross operating revenues, and net income (loss) less 
than or equal to $25 million but greater than $10 million.
    In addition to the changes in the reporting criteria mentioned 
above, BEA proposes to expand reporting requirements on the BE-10B(SF) 
so that certain items that previously had been reportable only for 
majority-owned affiliates with assets, sales or gross operating 
revenues, or net income (loss) over $50 million will now be reportable 
for all majority-owned affiliates being filed on the BE-10B(SF).
    On the BE-11 Annual Survey of U.S. Direct Investment Abroad, these 
items are filed for affiliates with assets, sales or gross operating 
revenues, or net income (loss) over $30 million. Also, several of the 
items are on the abbreviated short form and would be filed for 
affiliates with exemption-level-item values between $10 million and $25 
million.
    BEA proposes to add questions to the BE-10A form and BE-10B(LF) 
long form to collect detail on: (1) The broad occupational structure of 
employment; (2) premiums earned and claims paid for U.S. Reporters and 
foreign affiliates operating in the insurance industry; (3) finished 
goods purchased for resale for U.S. Reporters and foreign affiliates 
operating in the wholesale and retail trade industries; and (4) 
research and development performed for affiliated persons or for 
others. BEA proposes to add an item to the BE-10A form to help address 
questions on outsourcing by U.S. businesses to foreign countries. In 
addition, BEA proposes to expand the income statement on the BE-10B(SF) 
short form to include items on the long form and to add questions to 
the BE-10A Bank and BE-10B Bank forms to collect information on sales 
of services and on interest received and paid.
    To offset the burden imposed by these additional questions, BEA 
proposes to remove questions on: (1) U.S. trade in goods by product; 
(2) U.S. Reporter exports to unaffiliated foreign persons by country of 
destination; and (3) composition of external finances for the U.S. 
Reporter. BEA also proposes to replace sales by country of destination 
on the BE-10B(LF) with sales by major countries/regions.

Survey Background

    The Bureau of Economic Analysis (BEA), U.S. Department of Commerce, 
will conduct the survey under the International Investment and Trade in 
Services Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' 
Section 4(b) of the Act provides that with respect to United States 
direct investment abroad, the President shall conduct a benchmark 
survey covering year 1982, a benchmark survey covering year 1989, and 
benchmark surveys covering every fifth year thereafter. In conducting 
surveys pursuant to this subsection, the President shall, among other 
things and to the extent he determines necessary and feasible--
    (1) Identify the location, nature, and magnitude of, and changes in 
total investment by any parent in each of its affiliates and the 
financial transactions between any parent and each of its affiliates;
    (2) Obtain (A) information on the balance sheet of parents and 
affiliates and related financial data, (B) income statements, including 
the gross sales by primary line of business (with as much product line 
detail as is necessary and

[[Page 51022]]

feasible) of parents and affiliates in each country in which they have 
significant operations, and (C) related information regarding trade, 
including trade in both goods and services, between a parent and each 
of its affiliates and between each parent or affiliate and any other 
person;
    (3) Collect employment data showing both the number of United 
States and foreign employees of each parent and affiliate and the 
levels of compensation, by country, industry, and skill level;
    (4) Obtain information on tax payments by parents and affiliates by 
country; and
    (5) Determine, by industry and country, the total dollar amount of 
research and development expenditures by each parent and affiliate, 
payments or other compensation for the transfer of technology between 
parents and their affiliates, and payments or other compensation 
received by parents or affiliates from the transfer of technology to 
other persons.
    In Section 3 of Executive Order 11961, the President delegated 
authority granted under the Act as concerns direct investment to the 
Secretary of Commerce, who has redelegated it to BEA.
    The benchmark surveys are BEA's censuses, intended to cover the 
universe of U.S. direct investment abroad in terms of value. U.S. 
direct investment abroad is defined as the ownership or control, 
directly or indirectly, by one U.S. person of 10 percent or more of the 
voting securities of an incorporated foreign business enterprise or an 
equivalent interest in an unincorporated foreign business enterprise, 
including a branch.
    The purpose of the benchmark survey is to obtain universe data on 
the financial and operating characteristics of, and on positions and 
transactions between, U.S. parent companies and their foreign 
affiliates. The data are needed to measure the size and economic 
significance of U.S. direct investment abroad, measure changes in such 
investment, and assess its impact on the U.S. and foreign economies. 
The data are used to derive current universe estimates of direct 
investment from sample data collected in other BEA surveys in 
nonbenchmark years. In particular, they will serve as benchmarks for 
the quarterly direct investment estimates included in the U.S. 
international transactions and national income and product accounts, 
and for annual estimates of the U.S. direct investment position abroad 
and of the operations of U.S. parent companies and their foreign 
affiliates.
    As proposed, the survey will consist of an instruction booklet, a 
claim for not filing the BE-10, and a number of report forms. The 
amount and type of data required to be reported vary according to the 
size of the U.S. Reporters or foreign affiliates, whether they are 
banks or nonbanks and, for foreign affiliates, whether or not they are 
majority-owned by U.S. direct investors. For purposes of the BE-10 
survey, a ``bank'' is a business entity engaged in deposit banking or 
closely related functions, including commercial banks, Edge Act 
corporations engaged in international or foreign banking, foreign 
branches and agencies of U.S. banks whether or not they accept deposits 
abroad, savings and loans, savings banks, bank holding companies, and 
financial holding companies. If this proposed rule is adopted, the 
report forms that would be used in the survey consist of the following:
    1. Form BE-10A--Report for nonbank U.S. Reporters;
    2. Form BE-10A BANK--Report for U.S. Reporters that are banks;
    3. Form BE-10B(LF) (Long Form)--Report for majority-owned nonbank 
foreign affiliates of nonbank U.S. parents with assets, sales, or net 
income greater than $150 million (positive or negative);
    4. Form BE-10B(SF) (Short Form)--Report for majority-owned nonbank 
foreign affiliates of nonbank U.S. parents with assets, sales, or net 
income greater than $25 million but not greater than $150 million 
(positive or negative); minority-owned nonbank foreign affiliates of 
nonbank U.S. parents with assets, sales, or net income greater than $25 
million (positive or negative); and nonbank affiliates of U.S. bank 
parents with assets, sales, or net income greater than $25 million 
(positive or negative);
    5. Form BE-10B Mini--Report for nonbank foreign affiliates with 
assets, sales, or net income greater than $10 million but not greater 
than $25 million (positive or negative); and
    6. Form BE-10B BANK--Report for foreign affiliates that are banks.
    Although the proposed survey is intended to cover the universe of 
U.S. direct investment abroad, to reduce respondent burden, foreign 
affiliates with assets, sales, and net income each equal to or less 
than $10 million (positive or negative) are exempt from being reported 
on Form BE-10B(SF), BE-10B Mini, or BE-10B BANK (but must be listed, 
along with selected identification information and data, on Form BE-10A 
SUPPLEMENT A or BE-10A BANK SUPPLEMENT A).

Executive Order 12866

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

Executive Order 13132

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

Paperwork Reduction Act

    This proposed rule contains a collection-of-information requirement 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). The requirement has been 
submitted to OMB for approval as a reinstatement, with change, of a 
previously approved collection for which approval has expired under OMB 
control number 0608-0049.
    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 Paperwork Reduction Act unless that collection 
displays a currently valid OMB control number.
    The survey, as proposed, is expected to result in the filing of 
reports from approximately 3,875 respondents. The respondent burden for 
this collection of information will vary from one company to another, 
but is estimated to average 110 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 the 
2004 survey is estimated at 428,750 hours, compared to 458,000 hours 
estimated for the previous, 1999, survey. The decrease in burden is 
largely attributable to the proposed changes in reporting criteria.
    Comments are requested concerning: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the burden estimate; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology. 
Comments should be addressed to: Director, Bureau of Economic Analysis

[[Page 51023]]

(BE-1), U.S. Department of Commerce, Washington, DC 20230 (FAX: 202-
606-5311); and to the Office of Management and Budget, O.I.R.A., 
Paperwork Reduction Project 0608-0049, Attention PRA Desk Officer for 
BEA, via the Internet at [email protected], or by FAX at 202-395-7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration, under the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 605(b)), that this proposed rulemaking, if adopted, will not 
have a significant economic impact on a substantial number of small 
entities. A BE-10 report is required of any U.S. company that had a 
foreign affiliate--that is, that had direct or indirect ownership or 
control of at least 10 percent of the voting stock of an incorporated 
foreign business enterprise, or an equivalent interest in an 
unincorporated foreign business enterprise--at any time during the U.S. 
company's 2004 fiscal year. Companies that have direct investments 
abroad tend to be quite large. To reduce the reporting burden on 
smaller U.S. companies, U.S. Reporters with total assets, sales or 
gross operating revenues, and net income less than or equal to $150 
million (positive or negative) are required to report only selected 
items on the BE-10A form for U.S. Reporters in addition to forms they 
may be required to file for their foreign affiliates.

List of Subjects in 15 CFR Part 806

    Economic statistics, Foreign investments in United States, 
Penalties, Reporting and recordkeeping requirements, United States 
investments abroad.

    Dated: July 30, 2004.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

    For the reasons set forth in the preamble, BEA proposes to amend 15 
CFR Part 806 as follows:

PART 806--DIRECT INVESTMENT SURVEYS

    1. The authority citation for 15 CFR Part 806 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 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); E.O. 12518 (3 CFR, 1985 Comp., p. 348).

    2. Section 806.16 is revised to read as follows:


Sec.  806.16  Rules and regulations for BE-10, Benchmark Survey of U.S. 
Direct Investment Abroad--2004.

    A BE-10, Benchmark Survey of U.S. Direct Investment Abroad will be 
conducted covering 2004. All legal authorities, provisions, 
definitions, and requirements contained in Sec.  806.1 through Sec.  
806.13 and Sec.  806.14(a) through (d) are applicable to this survey. 
Specific additional rules and regulations for the BE-10 survey are 
given in paragraphs (a) through (e) 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-10, Benchmark Survey of U.S. 
Direct Investment Abroad--2004, contained in this section, whether or 
not they are contacted by BEA. Also, a person, or their agent, that 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 Sec.  806.4. This may be accomplished by:
    (1) Certifying in writing, by the due date of the survey, to the 
fact that the person had no direct investment within the purview of the 
reporting requirements of the BE-10 survey;
    (2) Completing and returning the ``BE-10 Claim for Not Filing'' by 
the due date of the survey; or
    (3) Filing the properly completed BE-10 report (comprising Form BE-
10A or BE-10A BANK and Forms BE-10B(LF), BE-10B(SF), BE-10B Mini and/or 
BE-10B BANK) by May 31, 2005, or June 30, 2005, as required.
    (b) Who must report. (1) A BE-10 report is required of any U.S. 
person that had a foreign affiliate--that is, that had direct or 
indirect ownership or control of at least 10 percent of the voting 
stock of an incorporated foreign business enterprise, or an equivalent 
interest in an unincorporated foreign business enterprise--at any time 
during the U.S. person's 2004 fiscal year.
    (2) If the U.S. person had no foreign affiliates during its 2004 
fiscal year, a ``BE-10 Claim for Not Filing'' must be filed by the due 
date of the survey; no other forms in the survey are required. If the 
U.S. person had any foreign affiliates during its 2004 fiscal year, a 
BE-10 report is required and the U.S. person is a U.S. Reporter in this 
survey.
    (3) Reports are required even if the foreign business enterprise 
was established, acquired, seized, liquidated, sold, expropriated, or 
inactivated during the U.S. person's 2004 fiscal year.
    (4) The amount and type of data required to be reported vary 
according to the size of the U.S. Reporters or foreign affiliates, 
whether they are banks or nonbanks; and, for foreign affiliates, 
whether they are majority-owned or minority-owned by U.S. direct 
investors. For purposes of the BE-10 survey, a ``majority-owned'' 
foreign affiliate is one in which the combined direct and indirect 
ownership interest of all U.S. parents of the foreign affiliate exceeds 
50 percent; all other affiliates are referred to as ``minority-owned'' 
affiliates. In addition, a ``bank'' is a business entity engaged in 
deposit banking or closely related functions, including commercial 
banks, Edge Act corporations, foreign branches and agencies of U.S. 
banks whether or not they accept deposits abroad, savings and loans, 
savings banks, bank holding companies, and financial holding companies. 
Elsewhere in this section, when ``bank'' is used, it refers to all such 
organizations.
    (c) Forms for nonbank U.S. Reporters and foreign affiliates.--(1) 
Form BE-10A (Report for nonbank U.S. Reporter). A BE-10A report must be 
completed by a U.S. Reporter that is not a bank. If the U.S. Reporter 
is a corporation, Form BE-10A is required to cover the fully 
consolidated U.S. domestic business enterprise. However, where a U.S. 
Reporter's primary line of business is not in banking (or related 
financial activities), but the Reporter also has ownership in a bank, 
the bank, including all of its domestic subsidiaries or units, must 
file on the BE-10A BANK form and the nonbanking U.S. operations not 
owned by the bank must file on the BE-10A.
    (i) If for a nonbank U.S. Reporter any one of the following three 
items--total assets, sales or gross operating revenues excluding sales 
taxes, or net income after provision for U.S. income taxes--was greater 
than $150 million (positive or negative) at any time during the 
Reporter's 2004 fiscal year, the U.S. Reporter must file a complete 
Form BE-10A and, as applicable, a BE-10A SUPPLEMENT A listing each, if 
any, foreign affiliate that is exempt from being reported on Form BE-
10B(LF), BE-10B(SF), BE-10B Mini, or BE-10B BANK. It must also file a 
Form BE-10B(LF), BE-10B(SF), BE-10B Mini, or BE-10B BANK, as 
appropriate, for each nonexempt foreign affiliate.
    (ii) If for a nonbank U.S. Reporter none of the three items listed 
in paragraph (c)(1)(i) of this section was greater than $150 million 
(positive or negative) at any time during the Reporter's 2004 fiscal 
year, the U.S. Reporter is required to file on Form BE-

[[Page 51024]]

10A only certain items as designated on the form and, as applicable, a 
BE-10A SUPPLEMENT A listing each, if any, foreign affiliate that is 
exempt from being reported on Form BE-10B(LF), BE-10B(SF), BE-10B Mini, 
or BE-10B BANK. It must also file a Form BE-10B(LF), BE-10B(SF), BE-10B 
Mini, or BE-10B BANK, as appropriate, for each nonexempt foreign 
affiliate.
    (2) Form BE-10B(LF), (SF), or Mini (Report for nonbank foreign 
affiliate).
    (i) A BE-10B(LF) (Long Form) must be filed for each majority-owned 
nonbank foreign affiliate of a nonbank U.S. Reporter, whether held 
directly or indirectly, for which any one of the three items--total 
assets, sales or gross operating revenues excluding sales taxes, or net 
income after provision for foreign income taxes--was greater than $150 
million (positive or negative) at any time during the affiliate's 2004 
fiscal year.
    (ii) A BE-10B(SF) (Short Form) must be filed:
    (A) For each majority-owned nonbank foreign affiliate of a nonbank 
U.S. Reporter, whether held directly or indirectly, for which any one 
of the three items listed in paragraph (c)(2)(i) of this section was 
greater than $25 million but for which none of these items was greater 
than $150 million (positive or negative), at any time during the 
affiliate's 2004 fiscal year, and
    (B) For each minority-owned nonbank foreign affiliate of a nonbank 
U.S. Reporter, whether held directly or indirectly, for which any one 
of the three items listed in paragraph (c)(2)(i) of this section was 
greater than $25 million (positive or negative), at any time during the 
affiliate's 2004 fiscal year, and
    (C) For each nonbank foreign affiliate of a U.S. bank Reporter, 
whether held directly or indirectly, for which any one of the three 
items listed in paragraph (c)(2)(i) of this section was greater than 
$25 million (positive or negative), at any time during the affiliate's 
2004 fiscal year.
    (iii) A BE-10B Mini must be filed for each nonbank foreign 
affiliate, whether held directly or indirectly, for which any one of 
the three items listed in paragraph (c)(2)(i) of this section was 
greater than $10 million but for which none of these items was greater 
than $25 million (positive or negative), at any time during the 
affiliate's 2004 fiscal year.
    (iv) Notwithstanding paragraphs (c)(2)(i), (c)(2)(ii), and 
(c)(2)(iii) of this section, a Form BE-10B(LF), (SF), or Mini must be 
filed for a foreign affiliate of the U.S. Reporter that owns another 
nonexempt foreign affiliate of that U.S. Reporter, even if the foreign 
affiliate parent is otherwise exempt, i.e., a Form BE-10B(LF), (SF), 
Mini, or BANK must be filed for all affiliates upward in a chain of 
ownership.
    (d) Forms for U.S. Reporters and foreign affiliates that are banks, 
bank holding companies, or financial holding companies. (1) Form BE-10A 
BANK (Report for a U.S. Reporter that is a bank). A BE-10A BANK report 
must be completed by a U.S. Reporter that is a bank. For purposes of 
filing Form BE-10A BANK, the U.S. Reporter is deemed to be the fully 
consolidated U.S. domestic business enterprise and all required data on 
the form shall be for the fully consolidated domestic entity.
    (i) If a U.S. bank had any foreign affiliates at any time during 
its 2004 fiscal year, whether a bank or nonbank and whether held 
directly or indirectly, for which any one of the three items--total 
assets, sales or gross operating revenues excluding sales taxes, or net 
income after provision for foreign income taxes--was greater than $10 
million (positive or negative) at any time during the affiliate's 2004 
fiscal year, the U.S. Reporter must file a Form BE-10A BANK and, as 
applicable, a BE-10A BANK SUPPLEMENT A listing each, if any, foreign 
affiliate, whether bank or nonbank, that is exempt from being reported 
on Form BE-10B(SF), BE-10B Mini, or BE-10B BANK. It must also file a 
Form BE-10B(SF) or BE-10B Mini for each nonexempt nonbank foreign 
affiliate and a Form BE-10B BANK for each nonexempt bank foreign 
affiliate.
    (ii) If the U.S. bank Reporter had no foreign affiliates for which 
any one of the three items listed in paragraph (d)(2)(i) of this 
section was greater than $10 million (positive or negative) at any time 
during the affiliate's 2004 fiscal year, the U.S. Reporter must file a 
Form BE-10A BANK and a BE-10A BANK SUPPLEMENT A, listing all foreign 
affiliates exempt from being reported on Form BE-10B(SF), BE-10B Mini, 
or BE-10B BANK.
    (2) Form BE-10B BANK (Report for a foreign affiliate that is a 
bank). (i) A BE-10B BANK report must be filed for each foreign bank 
affiliate of a bank or nonbank U.S. Reporter, whether directly or 
indirectly held, for which any one of the three items--total assets, 
sales or gross operating revenues excluding sales taxes, or net income 
after provision for foreign income taxes--was greater than $10 million 
(positive or negative) at any time during the affiliate's 2004 fiscal 
year.
    (ii) Notwithstanding paragraph (d)(3)(i) of this section, a Form 
BE-10B BANK must be filed for a foreign bank affiliate of the U.S. 
Reporter that owns another nonexempt foreign affiliate of that U.S. 
Reporter, even if the foreign affiliate parent is otherwise exempt, 
i.e., a Form BE-10B(LF), (SF), Mini, or BANK must be filed for all 
affiliates upward in a chain of ownership. However, a Form BE-10B BANK 
is not required to be filed for a foreign bank affiliate in which the 
U.S. Reporter holds only an indirect ownership interest of 50 percent 
or less and that does not own a reportable nonbank foreign affiliate, 
but the indirectly-owned bank affiliate must be listed on the BE-10A 
BANK SUPPLEMENT A.
    (e) Due date. A fully completed and certified BE-10 report 
comprising Form BE-10A or 10A BANK and Form(s) BE-10B(LF), (SF), Mini, 
or BANK (as required) is due to be filed with BEA not later than May 
31, 2005 for those U.S. Reporters filing fewer than 50, and June 30, 
2005 for those U.S. Reporters filing 50 or more, Forms BE-10B(LF), 
(SF), Mini, or BANK.

[FR Doc. 04-18640 Filed 8-16-04; 8:45 am]
BILLING CODE 3510-06-P