[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Rules and Regulations]
[Pages 80294-80296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32027]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 100217100-0608-02]
RIN 0691-AA74


Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct 
Investment Abroad

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends regulations of the Bureau of Economic 
Analysis (BEA), Department of Commerce, to set forth the reporting 
requirements for the BE-11, Annual Survey of U.S. Direct Investment 
Abroad. BEA conducts the survey annually and obtains sample data on 
financial and operating data covering the overall operations of U.S. 
parent companies and their foreign affiliates. BEA is modifying and 
deleting items on the survey forms and changing the reporting criteria. 
The changes include a change in the reporting criteria for foreign 
affiliates with U.S. Parent (U.S. Reporter) ownership between 10 and 20 
percent. BEA is also making changes to bring the BE-11 forms and 
instructions into conformity with the 2009 BE-10, Benchmark Survey of 
U.S. Direct Investment Abroad.

DATES: This final rule will be effective January 21, 2011.

FOR FURTHER INFORMATION CONTACT: David H. Galler, Chief, Direct 
Investment Division (BE-50), Bureau of Economic Analysis, U.S. 
Department of Commerce, Washington, DC 20230; e-mail 
[email protected] or phone (202) 606-9835.

SUPPLEMENTARY INFORMATION: On September 20, 2010, BEA published a 
notice of proposed rulemaking that set forth revised reporting criteria 
for the BE-11, Annual Survey of U.S. Direct Investment Abroad (75 FR 
57217-57220). No comments on the proposed rule were received. Thus the 
proposed rule is adopted without change. This final rule amends 15 CFR 
Part 806.14 to set forth the reporting requirements for the BE-11 
annual survey of U.S. direct investment abroad.
    BEA, U.S. Department of Commerce, conducts the BE-11 survey under 
the authority of the International Investment and Trade in Services 
Survey Act (22 U.S.C. 3101-3108), hereinafter, ``the Act.'' Section 
4(a) of the Act (22 U.S.C. 3103(a)) requires that, with respect to 
United States direct investment abroad, the President shall, to the 
extent he deems necessary and feasible, conduct a regular data 
collection program to secure current information on international 
capital flows and other information related to international investment 
and trade in services, including (but not limited to) such information 
as may be necessary for computing and analyzing the United States' 
balance of payments, the employment and taxes of United States parent 
companies and their affiliates, and the international investment and 
trade in services position of the United States.
    The BE-11 survey is a sample survey that collects information on a 
variety of measures of the overall operations of U.S. parent companies 
and their foreign affiliates, including total assets, sales, net 
income, employment and employee compensation, research and development 
expenditures, and exports and imports of goods. The sample data are 
used to derive universe estimates in nonbenchmark years from similar 
data reported in the BE-10, Benchmark Survey of U.S. Direct Investment 
Abroad, which is taken every five years. The data are needed to measure 
the size and economic significance of direct investment abroad, to 
measure the changes in such investment, and to assess their impact on 
the U.S. and foreign economies. The data are disaggregated by country 
and industry of the foreign affiliate and by industry of the U.S. 
parent. The BE-11 survey is a mandatory annual survey of U.S. direct 
investment abroad conducted by BEA under the Act. BEA sends survey 
forms to potential respondents in March of each year; responses are due 
by May 31.

Description of Changes

    The changes revise the regulations for the BE-11 survey and bring 
the BE-11 forms and instructions into conformity with the 2009 BE-10, 
Benchmark Survey of U.S. Direct Investment Abroad. These revisions 
include changes in reporting thresholds and data items collected, as 
well as changes in form design. Several of these revisions are part of 
a larger program to align the data collection program for 
multinationals with available resources. BEA will also expand the use 
of sampling to help align the data collection program with resources.
    Beginning with the 2010 annual survey, U.S. Reporters will report 
data on all their foreign affiliates, regardless of industry, on one of 
four foreign affiliate forms--BE-11B, BE-11C, BE-11D, or BE-11E. Data 
on foreign affiliates of U.S. Reporters that are banks, bank holding 
companies, or financial holding companies will be collected on the same 
survey forms as data on other foreign affiliates. All U.S. Reporters 
will report data on all domestic operations, on a fully consolidated 
basis, on Form BE-11A, Report for U.S. Reporter. Also, U.S. Reporters 
with total assets, sales or gross operating revenues, or net income 
less than or equal to $300 million will be required to report only 
certain items on Form BE-11A.
    Additionally, BEA will require U.S. Reporters to file reports 
annually for foreign affiliates in which they own a 10 to 20 percent 
voting interest. These affiliates, some of which are very large, fall 
under both U.S. and international definitions for foreign direct 
investment and must be represented in the statistics, but in the past 
they have been required to be reported in the annual survey only in the 
third year following a benchmark survey. Annual reporting will ensure 
that the activities of these affiliates are accurately reflected in the 
statistics derived from the survey.
    The four foreign affiliate forms are--
    (a) Form BE-11B--report for majority-owned foreign affiliates with 
total assets, sales or gross operating revenues, or net income greater 
than $60 million, positive or negative; filing of additional items 
would be required for affiliates with assets, sales, or net income 
greater than $300 million, positive or negative;
    (b) Form BE-11C--report for minority-owned foreign affiliates with 
total assets, sales or gross operating revenues, or net income greater 
than $60 million, positive or negative;
    (c) Form BE-11D--schedule for foreign affiliates established or 
acquired by the U.S. Reporter during the current reporting year with 
total assets, sales or gross operating revenues, or net income greater 
than $25 million, positive or negative, but for which no one of these 
items is greater than $60 million, positive or negative; and
    (d) Form BE-11E--report for foreign affiliates selected by BEA to 
be reported on this form in lieu of Form BE-11B. BEA will statistically 
divide into panels, affiliates with total assets, sales or gross 
operating revenues, and net income (positive or negative) between $60 
million and $300 million. At the

[[Page 80295]]

direction of BEA, U.S. Reporters will alternate reporting these 
affiliates on Form BE-11B and Form BE-11E.
    A Form BE-11B, BE-11C, or BE-11E must be filed for a foreign 
affiliate of the U.S. Reporter that owns another non-exempt foreign 
affiliate even if the foreign affiliate parent is otherwise exempt. 
That is, all affiliates upward in the chain of ownership must be 
reported.
    In addition to the changes in the reporting criteria, BEA adds, 
combines, or deletes some items on the annual survey forms. BEA will no 
longer collect selected balance sheet items as separate items. BEA also 
will discontinue collecting a breakdown of the number of employees and 
amount of employee compensation by occupational classification; the 
composition of external finances; and wholesale and retail trade items 
(specifically, the cost of goods purchased for resale and inventory of 
goods purchased for resale).
    BEA also adds several items to be collected in the surveys. First, 
BEA adds an item on Form BE-11C to collect information about 
respondents' total liabilities. BEA also adds an item on Form BE-11E to 
collect property, plant, and equipment expenditure information, and 
adds a schedule on Form BE-11B to collect a list of foreign affiliates 
in which the affiliate being reported has a direct equity interest, but 
which are not fully consolidated into the reported foreign affiliate. 
Completion of this list will be required only for foreign affiliates 
with total assets, sales or gross operating revenues, or net income 
greater than $300 million at the end of, or for, the fiscal year.
    The changes to the BE-11A, U.S. Reporter annual survey form, 
largely parallel the above-described changes to the foreign affiliate 
forms. For the BE-11A, BEA will no longer collect the breakdown of 
number of employees and amount of employee compensation by occupational 
classification and no longer collect wholesale and retail trade items 
(specifically, the cost of goods purchased for resale and inventory of 
goods purchased for resale). BEA also adds a question to Form BE-11A 
asking if the Reporter is a bank, and will add questions to collect 
information on assets, liabilities, and interest receipts and payments 
that are related to banking activities.

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 has been submitted 
to the Office of Management and Budget (OMB) under the Paperwork 
Reduction Act (PRA). OMB approved the information collection under 
control number 0608-0053.
    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-11 survey is expected to result in the filing of reports 
from approximately 1,750 respondents, which is an increase from the 
1,550 respondents that were required to file reports for the 2008 BE-11 
annual survey. The respondent burden for this collection of information 
will vary from one company to another, but is estimated to average 86 
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. The 
total respondent burden of the survey is estimated at 150,550 hours, 
which is a decrease from the 153,800 hours estimated for the 2008 BE-11 
annual survey. The reduction in burden is due to a decrease in the 
estimated average hours per response that resulted from the changes in 
reporting requirements. Written comments regarding the burden-hour 
estimates or any other aspects of the collection-of-information 
requirements contained in the final rule should be sent both to the 
Bureau of Economic Analysis via mail to U.S. Department of Commerce, 
Bureau of Economic Analysis, Office of the Chief, Direct Investment 
Division, BE-50, Washington, DC 20230; via e-mail at 
[email protected]; or by FAX at (202) 606-5311, and to the Office of 
Management and Budget, O.I.R.A., Paperwork Reduction Project 0608-0053, 
Attention PRA Desk Officer for BEA, via e-mail 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 (SBA), under the provisions of the Regulatory 
Flexibility Act, 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 806

    Economic statistics, Multinational corporations, Penalties, 
Reporting and recordkeeping requirements, U.S. investment abroad.

    Dated: November 29, 2010.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

0
For the reasons set forth in the preamble, BEA amends 15 CFR Part 806 
as follows:

PART 806--DIRECT INVESTMENT SURVEYS

0
1. The authority citation for 15 CFR Part 806 continues 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) and E.O. 12518 (3 CFR, 1985 Comp., p. 348).


0
2. Amend Sec.  806.14 by revising paragraphs (b)(1) and(f)(3) to read 
as follows:
    806.14 U.S. direct investment abroad.
* * * * *
    (b) * * *
    (1) The affiliates are in the same BEA 4-digit industry as defined 
in the Guide to Industry Classifications for International Surveys, 
2007; or
* * * * *
    (f) * * *
    (3) BE-11--Annual Survey of U.S. Direct Investment Abroad: A 
report, consisting of Form BE-11A and Form(s) BE-11B, BE-11C, BE-11D 
and/or BE-11E, is required of each U.S. Reporter that, at the end of 
the Reporter's fiscal year, had a foreign affiliate reportable on Form 
BE-11B, BE-11C, BE-11D or BE-11E. Forms required and the criteria for 
reporting on each are as follows:
    (i) Form BE-11A (Report for U.S. Reporter) must be filed by each 
U.S. person having a foreign affiliate reportable on Form BE-11B, BE-
11C, BE-11D or BE-11E. If the U.S. Reporter is a corporation, Form BE-
11A is required to cover the fully consolidated U.S. domestic business 
enterprise.

[[Page 80296]]

    (A) If for a 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 
$300 million (positive or negative) at the end of, or for, the 
Reporter's fiscal year, the U.S. Reporter must file a complete Form BE-
11A. It must also file a Form BE-11B, BE-11C, BE-11D or BE-11E, as 
applicable, for each nonexempt foreign affiliate.
    (B) If for a U.S. Reporter no one of the three items listed in 
paragraph (f)(3)(i)(A) of this section was greater than $300 million 
(positive or negative) at the end of, or for, the Reporter's fiscal 
year, the U.S. Reporter is required to file on Form BE-11A only items 1 
through 26 and Part IV. It must also file a Form BE-11B, BE-11C, BE-
11D, or BE-11E as applicable, for each nonexempt foreign affiliate.
    (ii) Forms BE-11B, BE-11C, BE-11D, and BE-11E (Report for Foreign 
Affiliate).
    (A) Form BE-11B must be reported for each majority-owned foreign 
affiliate, whether held directly or indirectly, for which any one of 
the following three items--total assets, sales or gross operating 
revenues excluding sales taxes, or net income after provision for 
foreign income taxes--was greater than $60 million (positive or 
negative) at the end of, or for, the affiliate's fiscal year, unless 
the foreign affiliate is selected to be reported on Form BE-11E.
    (B) Form BE-11C must be reported for each minority-owned foreign 
affiliate, whether held directly or indirectly, for which any one of 
the three items listed in paragraph (f)(3)(ii)(A) of this section was 
greater than $60 million (positive or negative) at the end of, or for, 
the affiliate's fiscal year.
    (C) Form BE-11D must be reported for each majority- and minority-
owned foreign affiliate, whether held directly or indirectly, 
established or acquired during the year for which any one of the three 
items listed in paragraph (f)(3)(ii)(A) of this section was greater 
than $25 million (positive or negative), but for which no one of these 
items was greater than $60 million (positive or negative), at the end 
of, or for, the affiliate's fiscal year. Form BE-11D is a schedule; a 
U.S. Reporter would submit one or more pages of the form depending on 
the number of affiliates that are required to be filed on this form.
    (D) Form BE-11E must be reported for each foreign affiliate that is 
selected by BEA to be reported on this form in lieu of Form BE-11B. BEA 
statistically divides into panels, affiliates for which any one of the 
three items listed in paragraph (f)(3)(ii)(A) of this section was 
greater than $60 million (positive or negative), but for which no one 
of these items was greater than $300 million (positive or negative), at 
the end of, or for, the affiliate's fiscal year. At the direction of 
BEA, U.S. Reporters would alternate reporting these affiliates on Form 
BE-11B and Form BE-11E.
    (iii) Based on the preceding, an affiliate is exempt from being 
reported if none of the three items listed in paragraph (f)(3)(ii)(A) 
of this section exceeds $60 million (positive or negative). However, 
affiliates that were established or acquired during the year and for 
which at least one of the items was greater than $25 million but not 
over $60 million must be listed, and key items reported, on schedule-
type Form BE-11D.
    (iv) Notwithstanding paragraph (f)(3)(iii) of this section, a Form 
BE-11B, BE-11C, or BE-11E must be filed for a foreign affiliate of the 
U.S. Reporter that owns another non-exempt foreign affiliate of that 
U.S. Reporter, even if the foreign affiliate parent is otherwise 
exempt. That is, all affiliates upward in the chain of ownership must 
be reported.
* * * * *
[FR Doc. 2010-32027 Filed 12-21-10; 8:45 am]
BILLING CODE 3510-06-P