[Federal Register Volume 87, Number 123 (Tuesday, June 28, 2022)]
[Proposed Rules]
[Pages 38311-38313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13713]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 220616-0135]
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: Notice of proposed rulemaking.

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SUMMARY: This proposed rule would amend 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 
proposes one change to the reporting requirements of the survey that 
will 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: Comments on this proposed rule will receive consideration if 
submitted in writing on or before August 29, 2022.

ADDRESSES: You may submit comments, identified by RIN 0691-AA92, and 
referencing the agency name (Bureau of Economic Analysis), by any of 
the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. For Keyword or ID, 
enter ``EAB-2022-0001.''
     Email: [email protected].
     Mail: Direct Transactions and Positions Branch, U.S. 
Department of Commerce, Bureau of Economic Analysis, BE-49NI, 
Washington, DC 20233.
     Hand Delivery/Courier: Direct Transactions and Positions 
Branch, U.S. Department of Commerce, Bureau of Economic Analysis, BE-
49NI, 4600 Silver Hill Road, Suitland, MD 20746.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
proposed rule should be sent to BEA through any of the methods above 
and also to the Office of Management and Budget (OMB) by submitting 
comments at www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under Review'' or by 
using the search function and entering the title of the collection.
    Public Inspection: All comments received are a part of the public 
record and will generally be posted to https://www.regulations.gov 
without change. Personal identifying information voluntarily submitted 
by the commenter may be publicly accessible. Do not submit confidential 
business information or otherwise sensitive or protected information. 
BEA will accept anonymous comments (enter N/A in required fields if you 
wish to remain anonymous).

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 [email protected] 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 
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 proposed rule would amend 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 proposed rule, persons 
subject to the reporting requirements of the BE-13, Survey of New 
Foreign Direct Investment in the United States, would be required to 
respond, whether or not they are contacted by BEA.
    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, 44 U.S.C. 3501-3520 (PRA).

Description of Changes

    The proposed change amends the regulations for the BE-13 survey. 
Specifically, BEA proposes to change 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 proposes to 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 proposed change would reduce respondent burden 
and the BEA resources needed to continue to collect and process these

[[Page 38312]]

updates, allowing BEA to focus resources on the featured statistics for 
more recent periods.
    BEA will describe any proposed changes to the information collected 
through the survey (including the addition, deletion, and/or 
modification of existing questions and definitions) in a public notice 
and will solicit comments as part of the requirements of the Paperwork 
Reduction Act (PRA). Any changes to reporting requirements or 
significant expansions in scope of the surveys would be conducted by 
rulemaking.

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 OMB under the PRA. The requirement 
will be submitted to OMB for approval as a reinstatement, with change, 
of a previously approved collection under 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, as proposed, 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.
    We are soliciting public comments to permit the Department of 
Commerce/Bureau of Economic Analysis to: (a) Evaluate whether the 
proposed information collection is necessary for the proper functions 
of the Department, including whether the information will have 
practical utility; (b) Evaluate the accuracy of our estimate of the 
time and cost burden for this proposed collection, including the 
validity of the methodology and assumptions used; (c) Evaluate ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and (d) Minimize the reporting burden on those who are to 
respond, including the use of automated collection techniques or other 
forms of information technology.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
proposed rule should be sent to both BEA and OMB following the 
instructions given in the ADDRESSES section above.

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 
(RFA), 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.
    Most of the U.S. business enterprises that are required to file the 
survey are units of multinational enterprises. For the few small 
businesses that are foreign-owned, BEA has attempted to keep burden to 
a minimum by asking only those questions that are considered essential 
and for which answers are likely to be readily available from the 
existing records of the business. The amount of information required to 
be reported by each U.S. business enterprise is determined by the type 
and cost of the transaction. When the cost of the acquisition, 
establishment, or expansion is less than $3 million, the U.S. business 
enterprise will only be required to report selected items on the BE-13 
Claim for Exemption. The burden for this form is an average of 15 
minutes.
    Because relatively few small businesses are required to file the 
survey and because those that are impacted are subject to only a 
minimal recordkeeping burden, the Chief Counsel for Regulation 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities.

List of Subjects in 15 CFR Part 801

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

Paul W. Farello,
Associate Director of International Economics, Bureau of Economic 
Analysis.

    For reasons set forth in the preamble, BEA proposes to amend 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 through 
801.2 and Sec. Sec.  801.4 through 801.6 are applicable to this survey. 
Specific additional rules and regulations for the BE-13 survey are 
given in paragraphs (a) through (d) of this section. More detailed 
instructions are given on the report forms and instructions.
    (a) Response required. A response is required from persons subject 
to the reporting requirements of the BE-13, Survey of New Foreign 
Direct Investment in the United States, contained herein, whether or 
not they

[[Page 38313]]

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 
item (b.4.), 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. 2022-13713 Filed 6-27-22; 8:45 am]
BILLING CODE 3510-06-P