« AnteriorContinuar »
$ 802.2 Forms to be used.
Vessel operators shall report on Form BE-29,' Aircraft operators shall report on Form BE-36. $ 802.3 Information to be furnished.
The information required for balanceof-payments purposes consists of the earnings of foreign operators from the carriage of imports into the United States and their total expenses incurred in the United States on both passenger and freight operations, including overhead. Voluntary replies to questions 5, 6, 7 and 8 on Form BE-29 (vessel operators) regarding earnings on exports and movements in accounts due to or payable from home offices of foreign branches in the United States are requested but are not required by law. & 802.4 Time and place of filing reports.
Reports shall be filed annually on or before March 31 of each year to cover operations of the preceding calendar year, except that a report covering operations for 1951 shall be filed on or before June 30, 1952. Reports shall be filed with the Department of Commerce, Office of Business Economics, Balance of Payments Division, Washington 25, D.C.
Who must report. (a) United States business investments abroad-(1) Basic requirement. A report is required from every corporation, partnership, individual, or any other person or closely related group of persons subject to the jurisdiction of the
ted Stat and ordinarily residing within the United States having:
(1) Ownership of 25 percent or more of the voting stock of foreign corporations, either directly or together with domestic or foreign affiliates (Forms BE--577 and BE-5778). See $ 803.2(a) (1) for further detail.
(ii) Ownership of at least 10 percent, but less than 25 percent, of the voting stock of foreign corporations, or the equivalent interest in an unincorporated foreign enterprise, held either directly or together with domestic affiliates (Form BE-577A). See $ 803.2(a) (1) for further detail.
(iii) Unincorporated foreign branches, or other direct foreign operations conducted by a United States incorporated interprise or other business organization in its own name in a foreign country. This includes mining claims, oil concessions, exploration and development activities or other property held by United States persons directly or jointly with others (Form BE-578). See $ 803.2(a) (1) for further detail.
(2) Estates and trusts. Direct foreign investments held by a domestic estate or trust, i.e., an estate or trust created under the laws of the United States or any subdivision thereof, shall be reported by the fiduciary and not by & beneficiary. Such property must be reported whether or not any beneficiary is subject to the laws of the United States or any subdivision thereof.
(3) Persons beneficially interested in property. If direct foreign investments beneficially owned by a person subject to the jurisdiction of the United States were held by or in the name of another, only the person having the beneficial interest shall report, except as specifically provided above regarding domestic estates and trusts.
(4) More than one person owning an: interest in the same foreign organization. Each owner is required to report if the aggregate ownership of the affiliated persons in the foreign organization totals 25 percent or more of the voting securities. However, combined reports may be filed to cover the transactions of more than
PART 803_REPORTS ON FOREIGN
INVESTMENT AND ON INTER-
GENERAL INSTRUCTIONS Sec. 803.1 who must report. 803.2 Forms to be used and frequency of
reports. 803.3 Reporting by banks and insurance
companies. 803.4 Exemptions. 803.5 General definitions. 803.6 Specific definitions. 803.7 Estimates. 803.8 Space not needed. 803.9 Special fling procedures. 803.10 Number of reports. 803.11 Time and place of filing reports. 803.12 Information regarding preparation
of reports. AUTHORITY: The provisions of this part 803 Issued under R.S. 161; 5 U.S.C. 301. Interpret or apply sec. 8, 59 Stat. 515; 22 U.S.C. 2861, E.O. 10033, 14 F.R. 561, 3 CFR, 1949 Supp.
SOURCE: The provisions of this part 803 appear at 27 F.R. 3846, Apr. 21, 1962, unless otherwise noted.
1 Flled with the Office of the Federal RegIster as part of the original document.
one owner. Where combined reports are filed, all owners other than the reporter(s) filing the full report remain liable for the report.
(5) Insurance companies. Reports for foreign branches or subsidiaries are required on Form BE-5781.
(6) Motion picture companies. United States producers or distributors of motion pictures operating in foreign countries through subsidiaries, affiliates or branches, may file quarterly reports on Form BE-35 in lieu of Forms BE-577 and BE-578; however, Forms BE-577S and BE-577A must be filed annually, if applicable.
(b) Foreign business investment in the United States (1) Basic requirement. A report is required to be filed with respect to every business enterprise subject to the jurisdiction of the United States in which foreign persons, either as individuals or as affiliates hold a controlling interest, or which is controlled in the manner indicated in subparagraph (2) of this paragraph directly or india rectly by a foreign person or persons. Such business enterprises shall include, but not be limited to, corporations, partnerships, investments in real property, leaseholds, estates, trusts, and sole proprietorships or other forms of outright individual ownership.
(2) Foreign beneficial interest. If the foreign controlling interest in a United States business enterprise, including commercial real property, is held, exercised or administered by a United States estate, trust (including irrevocable trusts), nominee, agent, representative, custodian, or other intermediary of the foreign beneficial owners, such intermediary shall be responsible for reporting for the business enterprise the required information on Form BE-605, BE-606, BE-6063 or BE-6061, or shall instruct the United States business enterprise in question to submit the required information. This does not relieve the United States business enterprise of responsibility for reporting if such business enterprise has knowledge of the director indirect foreign controlling interest, but only one report should be filed for each such enterprise. For the purposes of this report, accounts or transactions of a United States business enterprise with a United States estate, trust, nominee or other intermediary of foreign beneficial owners shall be considered as accounts or transactions with such beneficial owners.
(3) Insurance companies. Reports for U.S. branches or subsidiaries of foreign insurance companies are required on Form BE-6061.
(4) Consolidated reports. If a reporter held a controlling interest in other United States enterprises engaged in the same type of business and is required to report, the information requested in the reporting forms may be consolidated for such reporter and enterprises, provided all accounts are fully consolidated. A list of the enterprises included in the consolidations must be provided.
(c) International receipts and payments of royalties, license fees, rentals, etc. United States individuals and firms who have entered into agreements with residents or governments of foreign countries to sell or buy outright or provide or be provided with the use of intangible assets or rights such as patents, techniques, processes, formulae, designs, trademarks, copyrights, franchises, manufacturing rights, and other similar intangible property or rights shall report on Form BE-93.
NOTE: Film royalties, oil royalties, and other natural resources (mining) royalties are not reportable on this form. Companies leasing or renting machinery, equipment, etc., should also respond on this form. $ 803.2 Forms to be used and frequency
of reports. (a) Each reporter is required to submit reports on the following forms, as applicable. (1) United States direct investments abroad:
Form BE-577. One Form BE-577 is to be filled quarterly for each foreign corporation directly owned by the reporter and/or its domestic and foreign affiliates to the extent of at least 25 percent of total outstanding voting stock. Where more than one domestic afiliate has transactions with, or in. terests in, the same foreign corporation, consolidated reports should be iled; consolldated reports may also be filled where several foreign subsidiaries operate in the same country and industry. Reports are also required for direct transactions with foreign enterprises in which 25 percent or more of the voting stock is held through primary foreign enterprises.
Form BE-578. One Form BE-578 is to be filed quarterly for each foreign branch and other direct foreign operations of American reporters, including mining claims, oil concessions held directly or jointly with others and other property such as real estate but excluding branches of banks or insurance companies which are reportable on Forms BE-578B and BE_5781 respectively. Separate reports should be filed for each foreign branch. Where a reporter, or several amillated American corporations, has (or have) branches operating in the same country, or a Joint Interest in one or more branches, consolidated reports may be filed.
Form BE-35. United States motion picture producers or distributors may elect to filo one Form BE-85 quarterly for each foreign subsidiary, aflate or branch, in lieu of Forms BE-577 or 678, as applicable. The instructions as to ownership and consolidations Ilsted for Forms BE-577 and 578 also apply to Aung on Form BE-35.
Form BE-578B. One Form BE-578B 18 to be filled quarterly for each foreign branch of a United States banking Institution. Separate reports should be filed for each foreign branch; consolidated reports may however be filed where & United States bank has seyaral branches operating in the same country.
Form BE-5781. One Form BE-5781 is to be Aled annually for each foreign branch or subsidiary of a United States Insurance firm. Beparate reports should be filled for each foreign branch; consolidated reports may however be filed where a United States insurance company has several branches operating in the same country.
Form BE-577A. One Form BE-577A is to be Aled annually covering the foreign organisations in which the reporter and its domestic afiliates own in excess of 10 percent, but less than 25 percent, of voting stock, or equivalent ownership in unincorporated foreign enterprises.
Form BE-5775. Reports covering transactions between primary and secondary foreign corporations (see $ 803.8(a) for definitions) are to be filled on an annual basis. Separate reports should be filled for each secondary foreign corporation owned through a primary foreign corporation and its foreign affiliates for which the United States equity amounts to 25 percent or more of its voting securities. However, a reportable interest is deemed to exist only if the United States parent owns 50 percent or more of the voting stock of the primary foreign corporation and it in turn owns at least 50 percent of the voting stock of the secondary foreign organization. Transactions of domestic amulated companies directly with such secondary foreign corporations should be treated as primary relationships, and are reportable on Form BE-577 on a quarterly basis. Combined reports may be filed where several secondary foreign corporations operating in the same country are owned by the same primary foreign corporation. (See also $ 803.6(a)(2)).
(2) Foreign direct investments in the United States.
Form BE-605. One Form BE-605 is to be filed quarterly for each United States corporation 25 percent or more of whose voting stock is owned directly or indirectly by a foreign person(s) or organization(s) and its United States or foreign affiliates.
Form BE-606. One Form BE-606 is to bo fled quarterly for each United States branch of a foreign business organization, or for leaseholds, real property or other United States unincorporated business property owned directly by a foreign person or organ. ization but excluding branch operations in the United States of foreign banks or insurance companies.
Form BE-606B. One Form BE-606B is to be filed quarterly for each United States branch of a foreign banking institution. Where å foreign bank has more than one United States branch, consolidated reports may be filed.
Form BE-6061. One Form BE-6061 is to be filed annually for each United States branch of a foreign insurance firm, or for United States insurance companies 25 percent or more of whose voting stock is held by foreign owners.
(3) International payments of royalties, fees, etc.
Form BE-93. One Form BE-93 is to be filed annually by each United States person or firm receiving from foreigners, or paying to foreigners, royalties, licensing fees, rentals, etc., arising from the use, purchase or sale of intangible assets or rights.
(b). Frequency of reports. Reports on Forms BE-577S, BE-577A, BE-5781, BE-6061 and BE-93 must be filed an
ally beginning with a report covering the calendar or fiscal year 1961; reports on Forms BE-577, BE-578, BE-35, BE 578B, BE-605, BE-606 and BE-606B must be filed quarterly beginning with a report for the first calendar or fiscal quarter of 1962. $ 803.3 Reporting by banks and insur
ance companies. (a) United States banks, including agencies of foreign banks, reporting on Forms BE-577, 577 A, 5775, 578B, 605 or 606B. In order to avoid duplication of claims or liabilities reported on Treasury Foreign Exchange Forms B-1 and B-2, intercompany or branch accounts reported on the Commerce forms listed above should exclude accounts with or investments in foreign branches or subsidiaries or accounts with a foreign pareut organization and its affiliates, to the extent they are included in the Treasury foreign exchange forms. However, data covering earnings, income, fees or other charges remitted or credited, or permanent investments not includible in the Treasury forms, should be reflected in the Commerce forms.
(b) United States insurance com. panies. United States insurance com
panies should file annual reports on Form BE-5781 covering their transactions with their foreign subsidiaries or branches, or on Form BE-6061, covering their transactions with their foreign parent companies or head offices. & 803.4 Exemptions.
(a) United States direct investments abroad. (1) Exemption based on value of property. A reporter whose property in foreign countries otherwise subject to reporting has an aggregate value of less than $2,000,000, at the beginning of the current calendar year based on the value of holdings of securities, equity in surplis accounts, and intercompany indebtedness or net branch investment in foreign countries, is not required to report. Value is to be determined by the book value as carried on the books of the foreign organization converted into Cnited States dollars. Reports for individual foreign subsidiaries, affiliates, or branches (other than banks) which are inactive, or have a book value of less than $25,000 at the beginning of the calendar year, can be omitted with a note to that effect. For foreign branches of banks, reports are required if either (i) the book value exceeds $25,000, or (ii) the total assets exceed $2,000,000.
(2) Certain persons exempted regardless of the amount or kind of property. Report need not be made by any person who is within any of the following categories.
(i) Members of the Armed Forces of the United States serving outside continental United States;
(li) Citizens of the United States who permanently reside in a foreign country;
(iii) Officers or employees of foreign governments and members of the immediate families of such persons, provided they are not citizens of the United States;
(iv) Religious bodies, charitable organizations and other nonprofit organizations, except for the interests of such groups in foreign organizations conducting business for profit.
(b) Foreign direct investments in the United States (1) Exemption based on value. If the value of a business organization (other than a U.S. branch or agency of a foreign bank) otherwise required to report is less than $2,000,000 at the beginning of the current calendar year, such a person or business organization is not required to report. The value is to be determined by the book
value of the foreign owner's holdings in the securities, surplus accounts, and 1ability accounts of the reporter. For banks, reports are required if total assets exceed $3,000,000.
(2) Certain property exempted. Reports are not required for foreign-owned assets in the United States not employed in connection with a United States business enterprise controlled abroad. Assets of religious bodies, charitable organizations or other non-profit organizations are exempt from reporting, except for the interest of such groups in United States enterprises primarily conducting business for profit. Real or personal property acquired for personal use or occupancy by a foreign owner is exempt from reporting. However, interests in real property in the United States acquired for business purposes by a foreign owner must be reported, except as otherwise exempted by this section.
(c) International receipts and payments of royalties, license fees, etc. Reports on Form BE-93 are not required if the respondent's annual foreign receipts and payments, combined, of the types covered by the form, are less than $25.000 in the year covered by the report. $ 803.5 General definitions.
For the purpose of these reports, the following definitions are prescribed :
(a) Person. “Person" shall include an individual, partnership, association, corporation, estate or trust or other organization.
(b) Person subject to the jurisdiction of the United States. (1) Any person ordinarily residing in the United States.
(2) Any corporation or other organization created or organized under the laws of the United States or any State, territory, district, or possession thereof.
(3) Any other resident of the United States including branches of foreign organizations, real property, leaseholds, sole proprietorships and partnerships.
(c) United States. United States shall mean the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.
(d) Foreign. Foreign shall mean subject to the jurisdiction of a country other than the United States, and when applied to persons shall also mean not ordinarily residing within the United States.
(e) Affiliates. (1) Any group of persons who ordinarily exercise their voting rights in a business organization as a unit.
(2) In relation to any corporation or other organization issuing stock or similar securities, any person who, directly or indirectly, owns, controls, or hoids with power to vote, 10 percent or more of the outstanding voting securities thereof.
(3) As to any other organization, any person who owns or controls 10 percent or more of the comparable ownership rights therein. Any corporation or other business organization of which a person was an affiliate also shall be deemed to be affiliates of each other.
(f) Control of controlling interest. Control or controlling interest shall mean, for the statistical purposes of these reports, the direct ownership and/ or indirect ownership through intermediaries or affiliates of 25 percent or more of the voting securities of a corporation or of other ownership equities in other types of organizations. Indirect control should be deemed to exist only if the United States parent owns 50 percent or more of the voting stock of the primary foreign corporation and it in turn owns at least 50 percent of the voting stock of the secondary foreign corporation.
(g) Parent. Parent shall mean any person or affiliated group of persons directly owning 25 percent or more of the voting securities of a corporation or of other ownership equities in other types of organizations. In some cases there may be more than one parent. 8 803.6 Specific definitions.
(a) Terms relating to the reporting of United States direct investments abroad. (1) Primary foreign organizations shall include the following organizations located in or under the jurisdiction of a foreign country:
(i) Any foreign corporation of which
(a) The reporting organization owns 25 percent or more of the voting securities, or
(b) The reporting organization owns less than 25 percent of the voting securities but affiliates, either domestic or foreign, or the reporting organization
own additional voting securities which when added to the amount owned by the reporting organization total 25 percent or more, or
(c) The reporting organization owns none of the voting securities but does own bonds, notes, or other certificates of indebtedness or has direct de gs by exchange of merchandise or rendering services, and 25 percent or more of the voting securities are owned by aiiliates (domestic or foreign) of the reporting organization.
(ii) Any partnership in which a person subject to the jurisdiction of the United States is one of the partners, whether general, special, limited, or otherwise.
(iii) Branch: The interest of any person subject to the jurisdiction of the United States in property in any foreign country allocated to or held in the name or for the use of any branch, depot, or office outside of the United States maintained by such person for the transaction of any of his business. Foreign operations conducted by United States corporations in their own names and not through foreign incorporated companies are to be reported as branch operations.
(iv) Any business enterprise or real property owned outright by a resident of the United States.
(2) "Secondary foreign organization” shall include the following organizations:
(i) A foreign organization allied with the reporter through the ownership of at least 50 percent of its voting securities or other certificates of ownership by & primary foreign organization, which in turn is owned by the reporting organization to the extent of at least 50 percent of its voting stock, giving the U.S. reporter an ownership of at least 25 percent of the secondary foreign organization.
(ii) Branches of primary foreign organizations located in countries other than the primary organization have to be reported separately. However, branches or subsidiaries of a primary foreign organization located in the same country and engaged in the same type of business as the primary organization may be combined and one report submitted covering the activities of all of these organizations. The report must be a consolidated report showing the total activities of all