Effective as of September 15, 2014, a new reporting requirement applies to a broad range of direct, and indirect, investments in the U.S. by foreign persons. The U.S. Department of Commerce’s Bureau of Economic Analysis (the “BEA”) has published a final rule that reinstates and expands the BE-13 survey of foreign direct investment into the U.S. that was discontinued in 2009 due to budgetary constraints. This mandatory reporting requirement, authorized by the International Investment and Trade in Services Survey Act, now applies to reportable transactions regardless of whether the participants have been contacted by the BEA.

The reporting obligation applies to the U.S. business enterprise that is the subject of a reportable transaction. Reportable transactions include transactions 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. 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 [survey on Form] BE-13B or BE-13D indicating that the established or expanded entity is still under construction.” 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.