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ing any amendments to the guaranteed facturing experience, essential to bridgspecifications which have been inserted ing the gap and the time required by in the record. Similarly, the guaranteed the domestic manufacturer to produce specifications for the most closely com- an instrument, apparatus, or accessory parable domestic instrument will be con- to purchaser's specifications. sidered, including any amendments to (c) Excessive delivery time. Dutythe guaranteed specifications which have free entry of the article shall be conbeen inserted in the record. In the com- sidered justified without regard to parison, the Deputy Assistant Secretary whether there is being manufactured in may consider any reasonable combina- the United States an instrument, aption of domestic instruments and acces- paratus, accessory of equivalent sories as being comparable to a foreign scientific value for the purposes described instrument that combines two or more in response to question 7 of the applifunctions in an integrated unit, if the cation form, if the delay in obtaining combination of domestic instruments and such domestic instrument, apparatus, or accessories is capable of accomplishing accessory (as indicated by the difference the purposes for which the foreign in- between the delivery times quoted by strument is intended to be used. If the domestic manufacturer and foreign Deputy Assistant Secretary finds that at manufacturer) will seriously impair the least one domestic instrument or reason- accomplishment of the purposes. In deable combination of domestic instru- termining whether the difference in dements does possess all the pertinent spec- livery times is excessive, the Deputy ifications of the foreign article, he shall Assistant Secretary shall take into acfind that there is being manufactured in count the relevancy of the applicant's the United States an instrument of program to other research programs equivalent scientific value to the foreign with respect to timing, the applicant's instrument for such purposes as de- need to have such instrument, apparatus, scribed in the response to question 7 of or accessory available at the scheduled the application form. Otherwise, he shall time for the course(s) in which the arfind to the contrary.

ticle is intended to be used, and other (b) Manufactured in the United relevant circumstances. States. An instrument, apparatus, or (d) Decision on the application. The accessory shall be considered as being Deputy Assistant Secretary shall premanufactured in the United States if it pare a written decision granting or is customarily produced for stock, pro- denying the application in whole or in duced on order, or custom-made within part. The decision shall be in the form the United States. In determining of one or more findings stating whether whether a U.S. manufacturer is able an instrument or apparatus of equivalent and willing to produce a produced on scientific value to the article for which order, or custom-made instrument, ap- duty-free entry is sought, for the purparatus, or accessory and have it avail- poses for which it is intended to be used, able without unreasonable delay to the is or is not being manufactured in the applicant the Deputy Assistant Secre- United States, and it shall include a tary shall take into account the normal statement of his reasons for the findcommercial practices applicable to the ing(s). He shall transmit the decision to production and delivery of instruments, the FEDERAL REGISTER for publication, to apparatus, or accessories of the same the Commissioner of Customs, and to general category. For example, in de- the applicant. At the same time, he shall termining whether a domestic manu- make a copy of the record available for facturer is able to produce public review. (Copies of materials recustom-made instrument, apparatus, or

ceived pursuant to paragraphs (a) and accessory the Deputy Assistant Secre- (c) of $ 701.10 which were not entered tary may take into account the pro- in the record pursuant to § 701.10 shall duction experiences of the domestic also be made available for public review. manufacturer with respect to the types

The Deputy Assistant Secretary may and complexity of products, the extent dispose of such materials at any time of the technological gap between the after final disposition of the applicainstrument, apparatus, or accessory to

tion.) Pursuant to 19 CFR 10.117, the which the application relates and the Deputy Assistant Secretary shall notify manufacturer's customary products, the district director of customs for the and the availability of the professional district in which entry of the merchanand technical skills, as well as manu- dise in question was made, or the Com


missioner of Customs if the district of entry is not known to the Deputy Assistant Secretary, of the final disposition of each application. If the Deputy Assistant Secretary thereafter receives notice from the applicant in accordance with 19 CFR 10.116(c), he shall then notify said district director of the final disposition of the application. For purposes of this paragraph, disposition of an application shall be deemed final (1) when 20 days have elapsed after publication of the decision in the FEDERAL REGISTER and no appeal has been taken pursuant to $ 701.12, or (2) if such appeal has been taken, when final judgment is made and entered by the U.S. Court of Customs and Patent Appeals.

(e) Cons dated de ision. The Deputy Assistant Secretary may on his own initiative, consolidate two or more applications under a single notice of consolidated decision whenever he deems such consolidation to be appropriate. An appeal from any decision published in such notice of consolidated decision which is

taken in accordance with headnote 6(e) to part 4 of Schedule 8, shall affect only that application (s) to which the specified decision and appeal relates. $ 701.12 Appeal.

An appeal from any decision made pursuant to $ 701.11 may be taken, in accordance with headnote 6(e) to part 4 of Schedule 8, only to the U.S. Court of Customs and Patent Appeals and only on a question or questions of law, within 20 days after publication of the decision in the FEDERAL REGISTER. If at any time while its application is under consideration by the Deputy Assistant Secretary or by the Court of Customs and Patent Appeals on an appeal from a finding by him, an institution cancels an order for the instrument or apparatus to which the application relates or ceases to have a firm intention to order such instrument or apparatus, the institution shall promptly notify the Deputy Assistant Secretary or such court, as the case may be.



Part 802

Annual reporting of revenues for carrying imports to, and expenditures in,

the United States of shipping and air transport operators of foreign

nationality. Reports on foreign investment and on international receipts and payments

of royalties and fees.


PART 802—ANNUAL REPORTING OF (2) The Department of Commerce

REVENUES FOR CARRYING IM- may in lieu of individual reports required PORTS TO, AND EXPENDITURES IN,

under this part, accept consolidated re

ports from foreign governments covering THE UNITED STATES OF SHIPPING

the operations of their national shipping AND AIR TRANSPORT OPERATORS

concerns when, in its discretion, such OF FOREIGN NATIONALITY

consolidated reports would provide the Sec.

information required by this part. 802.1 who must report.

Where such reports are accepted, the in802.2 Forms to bo used.

dividual reports from operators or their 802.3 Information to be furnished.

agents will not be required. 802.4 Time and place of filing reports.

(b) The foreign operator, for purAUTHORITY: The provisions of this part 802 poses of this part, means the owner, issued under R.S. 161; 5 U.S.C. 301. Interpret managing or operating owner, chartered or apply sec. 8, 59 Stat. 515; 22 U.S.C. 2861, owner, or subchartered owner who enE.O. 10033, 14 F.R. 561, 3 CFR, 1949 Supp. ters into and carries out any form of

SOURCE: The provisions of this part 802 transportation contract with the shipappear at 17 F.R. 4922, May 30, 1952, unless pers of merchandise or with passengers. otherwise noted. Redesignated at 18 F.R.

(c) I foreign-owned vessels or air8111, Dec. 10, 1953.

craft are chartered to other foreign 8 802.1 Who must report.

operators, the owner should report his (a) (1) A report is required from or on

expenses in the United States, if any, and behalf of every foreign individual or

the operator should report the freight or

charter revenue earned from the shiporganization incorporated, licensed or otherwise granted permission in coun

pers of merchandise and his expenses in

the United States. tries other than the United States to

(d) If foreign-owned vessels or airoperate vessels or aircraft if engaged in

craft are chartered to a United States carrying goods or passengers to or from

operator, the owner should report his exthe United States. Agents or operating

penses in the United States, if any. agents must respond where acting for

(e) Reports submitted by agents foreign operators, unless the operator should include all disbursements achas his own office in the United States to counted for directly by them to the forwhich the agent is accountable or unless eign company at its foreign office; if subthe operator elects to report directly agents report through a principal agent from his home ofice.

in the same or another location, the

principal agent should file a consolidated report on behalf of the foreign company. § 802.2 Forms to be used.

Vessel operators shall report on Form BE-29, Aircraft operators shall report on Form BE-36.1 $ 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. 8 802.4 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, D.C. 20230.

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. § 803.1

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 United States and ordinarily residing within the United States having:

(i) 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 affliates (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 a 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.



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 filing procedures. 803.10 Number of reports. 803.11 Time and place of filing reports. 803.12 Information regarding preparation

of reports.

1 Filed with the Office of the Federal Reg. ister as part of the original document.

(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 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-5778 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 indirectly 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 en. terprise has knowledge of the direct or 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 & 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 filed 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 affiliate has transactions with, or in. terests in, the same foreign corporation, consolidated reports should be filed; consolldated reports may also be filed where several foreign subsidiaries operate in the same country and industry. Reports are also re

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