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quired 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 amilated 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 file one Form BE-35 quarterly for each foreign subsidiary, afflate or branch, in lieu of Forms BE-577 or 578, as applicable. The instructions as to ownership and consolidations listed for Forms BE-577 and 678 also apply to filing on Form BE-35.
Form BE-578B. One Form BE-578B is to be filled quarterly for each foreign branch of a United States banking institution. Separate reports should be filled for each foreign branch; consolidated reports may however be filed where a United States bank has several branches operating in the same country.
Form BE-5781. One Form BE-5781 is to be filed annually for each foreign branch or subsidiary of a United States insurance firm. Beparate reports should be filed for each foreign branch; consolidated reports may however be filled where a United States insurance company has several branches operating in the same country.
Form BE-577A. One Form BE-577A 18 to be filed annually covering the foreign organizations in which the reporter and its domestic amliates own in excess of 10 percent, but less than 25 percent, of voting stock, or equivalent ownership in unincorporated foreign enterprises.
Form BE-577S. Reports covering transactions between primary and secondary foreign corporations (see $ 803.8(a) for definitions) are to be filed 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 60 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 amliated 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 cor
porations 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 be filled 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 organization but excluding branch operations in the United States of foreign banks or insurance companies.
Form BE-606B. One Form BE-6063 is to be filed quarterly for each United States branch of a foreign banking institution. Where a 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 annually beginning with a report covering the calendar or fiscal year 1961; reports on Forms BE-577, BE-578, BE-35, BE578B, 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 par
ent organization and its affiliates, to the (b) Foreign direct investments in the extent they are included in the Treasury United States-(1) Exemption based on foreign exchange forms. However, data value. If the value of a business organicovering earnings, income, fees or other zation (other than a U.S. branch or charges remitted or credited, or perma- agency of a foreign bank) otherwise renent investments not includible in the quired to report is less than $2,000,000 Treasury forms, should be reflected in at the beginning of the current calendar the Commerce forms.
year, such a person or business organi. (b) United States insurance com- zation is not required to report. The panies. United States insurance com- value is to be determined by the book panies should file annual reports on value of the foreign owner's holdings in Form BE-5781 covering their transac- the securities, surplus accounts, and litions with their foreign subsidiaries or ability accounts of the reporter. For branches, or on Form BE-6061, covering banks, reports are required if total assets their transactions with their foreign par- exceed $3,000,000. ent companies or head offices.
(2) Certain property exempted. Re$ 803.4 Exemptions.
ports are not required for foreign-owned
assets in the United States not employed (a) United States direct investments in connection with a United States busiabroad. (1) Exemption based on value
ness enterprise controlled abroad. Asof property. A reporter whose property sets of religious bodies, charitable in foreign countries otherwise subject to
organizations or other non-profit reporting has an aggregate value of less
organizations are exempt from reportthan $2,000,000, at the beginning of the
ing, except for the interest of such groups current calendar year based on the value in United States enterprises primarily of holdings of securities, equity in sur
conducting business for profit. Real or plus accounts, and intercompany in
personal property acquired for personal debtedness or net branch investment in
use or occupancy by a foreign owner is foreign countries, is not required to re
exempt from reporting. However, inport. Value is to be determined by the
terests in real property in the United book value as carried on the books of
States acquired for business purposes by the foreign organization converted into
a foreign owner must be reported, exUnited States dollars. Reports for indi
cept as otherwise exempted by this vidual foreign subsidiaries, affiliates, or
section. branches (other than banks) which are
(c) International receipts and payinactive, or have a book value of less than
ments of royalties, license fees, etc. $25,000 at the beginning of the calendar
Reports on Form BE-93 are not required year, can be omitted with a note to that
if the respondent's annual foreign reeffect. For foreign branches of banks,
ceipts and payments, combined, of the reports are required if either (i) the book
types covered by the form, are less than value exceeds $25,000, or (ii) the total
$25,000 in the year covered by the report. assets exceed $2,000,000. (2) Certain persons exempted regard
§ 803.5 General definitions. less of the amount or kind of property. For the purpose of these reports, the Report need not be made by any person following definitions are prescribed: who is within any of the following (a) Person. “Person” shall include categories.
an individual, partnership, association, (i) Members of the Armed Forces of
corporation, estate or trust or other the United States serving outside con- organization. tinental United States;
(b) Person subject to the jurisdiction (ii) Citizens of the United States who of the United States. (1) Any person permanently reside in a foreign country;
ordinarily residing in the United States. (iii) Officers or employees of foreign (2) Any corporation or other organigovernments and members of the im- zation created or organized under the mediate families of such persons, pro- laws of the United States or any State, vided they are not citizens of the United
territory, district, or possession thereof. States;
(3) Any other resident of the United (iv) Religious bodies, charitable or- States including branches of foreign organizations and other nonprofit organi- ganizations, real property, leaseholds, zations, except for the interests of such sole proprietorships and partnerships. groups in foreign organizations conduct- (c) United States. United States shall ing business for profit.
mean the 50 States, the District of Columbia, the Commonwealth of Puerto (a) The reporting organization owns Rico, and any territory or possession of 25 percent or more of the voting securithe United States.
ties, or (d) Foreign. Foreign shall mean sub- (b) The reporting organization owns ject to the jurisdiction of a country less than 25 percent of the voting securiother than the United States, and when ties but affiliates, either domestic or applied to persons shall also mean not foreign, or the reporting organization ordinarily residing within the United own additional voting securities which States.
when added to the amount owned by the (e) Affiliates. (1) Any group of per- reporting organization total 25 percent sons who ordinarily exercise their voting or more, or rights in a business organization as a (c) The reporting organization owns unit.
none of the voting securities but does (2) In relation to any corporation own bonds, notes, or other certificates of or other organization issuing stock or indebtedness or has direct dealings by similar securities, any person who, di- exchange of merchandise or rendering rectly or indirectly, owns, controls, or services, and 25 percent or more of the holds with power to vote, 10 percent or voting securities are owned by affiliates more of the outstanding voting securi- (domestic or foreign) of the reporting ties thereof.
organization. (3) As to any other organization, any (ii) Any partnership in which a perperson who owns or controls 10 percent son subject to the jurisdiction of the or more of the comparable ownership United States is one of the partners, rights therein.
whether general, special, limited, or
otherwise. Any corporation or other business or.
(iii) Branch: The interest of any perganization of which a person was an af
son subject to the jurisdiction of the filiate also shall be deemed to be afiliates of each other.
United States in property in any foreign
country allocated to or held in the name (f) Control of controlling interest.
or for the use of any branch, depot, or Control or controlling interest shall
office outside of the United States mainmean, for the statistical purposes of
tained by such person for the transaction these reports, the direct ownership and/
of any of his business. Foreign operaor indirect ownership through inter
tions conducted by United States cormediaries or affiliates of 25 percent or
porations in their own names and not more of the voting securities of a cor
through foreign incorporated companies poration or of other ownership equities
are to be reported as branch operations. in other types of organizations. Indirect
(iv) Any business enterprise or real control should be deemed to exist only if the United States parent owns 50 percent
property owned outright by a resident of
the United States. or more of the voting stock of the pri
(2) "Secondary foreign organization" mary foreign corporation and it in turn
shall include the following organizaowns at least 50 percent of the voting
tions: stock of the secondary foreign corpora
(i) A foreign organization allied with tion.
the reporter through the ownership of at (g) Parent. Parent shall mean any
least 50 percent of its voting securities person or affiliated group of persons di
or other certificates of ownership by a rectly owning 25 percent or more of the
primary foreign organization, which in voting securities of a corporation or of
turn is owned by the reporting organiother ownership equities in other types
zation to the extent of at least 50 percent of organizations. In some cases there
of its voting stock, giving the U.S. remay be more than one parent.
porter an ownership of at least 25 per§ 803.6 Specific definitions.
cent of the secondary foreign organiza
tion. (a) Terms relating to the reporting of
(ii) Branches of primary foreign orUnited States direct investments abroad.
ganizations located in countries other (1) Primary foreign organizations shall
than the primary organization have to be include the following organizations lo
reported separately. However, branches cated in or under the jurisdiction of a or subsidiaries of a primary foreign orforeign country:
ganization located in the same country (i) Any foreign corporation of and engaged in the same type of business which
as the primary organization may be com
bined 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 organizations and not a report of the primary organization showing only the investment of the primary in the secondary organizations. Provide a list of all organizations included in such consolidations.
(3) “Associated" foreign organization: The ownership of at least 10 percent but less than 25 percent of the voting securities of a corporation, or an equivalent interest in an unincorporated foreign organization, held directly by the reporter and its United States affiliates, shall constitute association with that organization for the purposes of these reports. Note that separate reports are required for each "associated foreign organization." (When the ownership of the foreign organization is 25 percent or more, either entirely by the reporter or in conjunction with affiliates, the foreign organization must be reported on Form BE-577.)
(b) Terms relating to the reporting of foregoing direct investment in the United States. (1) “Branch" shall mean an unincorporated business enterprise subject to the jurisdiction of the United States controlled by a foreign person or organization, including all assets or liabilities connected with the operations of such a branch.
(2) "Reporter" shall mean the business enterprise for which a report is required. If the enterprise is in the nature of a leasehold or real property not identifiable by name, the report may be filed on behalf of the reporter by an agent or representative of the foreign beneficial owner or by such owner. $ 803.7 Estimates.
Every question on the reporting forms which a reporter is required to use in rendering his report must be answered. If the information is not available as specified in the form, a reasonable estimate should be entered, labeled as such. If there is no basis for such an estimate, state, “unknown" with an appropriate explanation. However, if and when the information becomes available, a supple
mentary report must be filed promptly with a full explanation. 8 803.8 Space not needed.
Space not needed or inapplicable for supplying requested information should be left entirely blank. When there is nothing to report under any question state "no" or "none." & 803.9 Special filing procedures.
When data specified on the reporting forms are not available to the reporter, or when consolidation beyond that specifically provided for above would reduce reporting burden without loss of significant information, the reporter may apply to the Balance of Payments Division of the Office of Business Economics, United States Department of Commerce, for consideration of the specific problem. & 803.10 Number of reports.
Only the original report should be filed. 803.11 Time and place of filing re
ports. Reports on Forms BE-577, BE-578, BE-35, BE-578B, BE-605, BE-606 and BE-606B shall be filed on a quarterly basis within 30 days of the close of the calendar or fiscal period used by the reporter except for the final quarter of the calendar or fiscal year when reports may be filed within 45 days. Reports on Form BE-577S, BE-577A, BE-5781, BE-6061 and BE-93 shall be filed on an annual basis within 90 days of the close of the calendar or fiscal year. Reports should be sent to the Department of Commerce, Office of Business Economics, BE-50, Washington, D.C. 20230. If additional time is needed to prepare the reports, a request for an extension of time should be addressed to the above ofice. $ 803.12 Information regarding prepa
ration of reports. Anyone desiring information concerning these reports, or copies of forms, may apply directly to the United States Department of Commerce, Office of Business Economics, BE-50, Washington, D.C. 20230. Each reporting form contains the specific instructions needed for completion.