The Return of BE-13, Survey of New Foreign Direct Investment in the United States

more+
less-

Effective September 15, 2014, the Bureau of Economic Analysis (BEA) at the U.S. Department of Commerce is reinstating the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States, which was discontinued in 2009.

The new BE-13 Survey will collect information on the acquisition or establishment of U.S. business enterprises by foreign investors, which was collected on the previous BE–13 Survey, and information on expansions by existing U.S. affiliates of foreign companies, which was not previously collected.

The BEA anticipates launching the new BE-13 Survey in November 2014 and will collect data retroactively to January 1, 2014. Respondents will be mailed a letter to notify them of their filing obligation.

Going forward, notifications will be mailed to respondents as the BEA becomes aware of a potentially reportable investment or when annual cost updates are needed.

It is important to note that a response would be required from persons subject to the reporting requirements of the new BE–13 Survey regardless of whether the BEA contacts such person.

The new BE-13 Survey is required of any U.S. company in which:

  1. A foreign direct investment in the United States relationship is created (foreign direct investment means 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);
  2. An existing U.S. affiliate of a foreign parent establishes a new U.S. legal entity, expands its U.S. operations, or acquires a U.S. business enterprise or
  3. A U.S. business enterprise that previously filed a BE-13B or BE-13D indicating that the established or expanded entity is still under construction.

U.S. affiliates will need to submit one of six types of BE-13 Surveys (BE–13A, BE–13B, BE–13C, BE–13D, BE–13E, or BE–13 Claim for Exemption) depending on the type of investment transaction no later than 45 days after an acquisition is completed, a new legal entity is established, an expansion is begun, or a cost update is requested.

Additional information is located here

Topics:  Foreign Direct Investment, Reporting Requirements

Published In: General Business Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dorsey & Whitney LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »