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Who must report.
Vessel operators shall report on Form (a) United States business invest-
BE-29,' Aircraft operators shall report ments abroad-(1) Basic requirement.
on Form BE-36.2

A report is required from every cor$ 802.3 Information to be furnished.

poration, partnership, individual, or any

other person or closely related group of The information required for balance

persons subject to the jurisdiction of the of-payments purposes consists of the

United States and ordinarily residing earnings of foreign operators from the

within the United States having: carriage of imports into the United

(i) Ownership of 25 percent or more States and their total expenses incurred

of the voting stock of foreign corporain the United States on both passenger

tions, either directly or together with and freight operations, including over

domestic or foreign affiliates (Forms head. Voluntary replies to questions 5,

BE-577 and BE-5778). See $ 803.2(a) 6, 7 and 8 on Form BE-29 (vessel oper

(1) for further detail. ators) regarding earnings on exports and

(ii) Ownership of at least 10 percent, movements in accounts due to or payable

but less than 25 percent, of the voting from home offices of foreign branches in

stock of foreign corporations, or the the United States are requested but are

equivalent interest in an unincorporated not required by law.

foreign enterprise, held either directly $ 802.4 Time and place of filing reports. or together with domestic affiliates Reports shall be filed annually on

(Form BE-577A). See $ 803.2(a) (1) or before March 31 of each year to

for further detail. cover operations of the preceding cal- (iii) Unincorporated foreign branches, endar year, except that a report covering

or other direct foreign operations conoperations for 1951 shall be filed on or ducted by a United States incorporated before June 30, 1952. Reports shall be

interprise or other business organization filed with the Department of Commerce,

in its own name in a foreign country. Office of Business Economics, Balance of This includes mining claims, oil concesPayments Division, Washington 25, D. C. sions, exploration and development ac

tivities or other property held by United PART 803_REPORTS ON FOREIGN

States persons directly or jointly with

others (Form BE-578). See $ 803.2(a) INVESTMENT AND ON INTER

(1) for further detail. NATIONAL RECEIPTS AND PAY

(2) Estates and trusts. Direct forMENTS OF ROYALTIES AND FEES eign investments held by a domestic esGENERAL INSTRUCTIONS

tate or trust, i.e., an estate or trust creSec.

ated under the laws of the United States 803.1 Who must report.

or any subdivision thereof, shall be re803.2 Forms to be used and frequency of ported by the fiduciary and not by & reports.

beneficiary. Such property must be re803.3 Reporting by banks and insurance

ported whether or not any beneficiary companies. 803.4 Exemptions.

is subject to the laws of the United 803.5 General definitions.

States or any subdivision thereof. 803.6 Specific definitions.

(3) Persons beneficially interested in 803.7 Estimates.

property. If direct foreign investments 803.8 Space not needed.

beneficially owned by a person subject Special filing procedures.

to the jurisdiction of the United States 809.10 Number of reports. 803.11 Time and place of filing reports.

were held by or in the name of another, Information regarding preparation

only the person having the beneficial of reports.

interest shall report, except as specifiAUTHORITY: The provisions of this Part 803

cally provided above regarding domestic Issued under R.S. 161; 5 U.S.C. 22. Interpret

estates and trusts. or apply sec. 8, 59 Stat. 515; 22 U.S.C. 2868,

(4) More than one person owning an E.O. 10033, 14 F.R. 561, 3 CFR, 1949 Supp.

interest in the same foreign

organization. SOURCE: The provisions of this Part 803

Each owner is required to report if the appear at 27 F.R. 3846, Apr. 21, 1962, unless otherwise noted.

aggregate ownership of the affiliated per

sons in the foreign organization totals 25 1 Flled with the Office of the Federal Reg

percent or more of the voting securities. ister as part of the original document.

However, combined reports may be filed

to cover the transactions of more than

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one owner. Where combined reports are (3) Insurance companies. Reports for filed, all owners other than the re- U.S. branches or subsidiaries of foreign porter(s) filing the full report remain insurance companies are required on liable for the report.

Form BE-6061. (5) Insurance companies. Reports (4) Consolidated reports. If a reporter for foreign branches or subsidiaries are held a controlling interest in other United required on Form BE-5781.

States enterprises engaged in the same (6) Motion picture companies. United type of business and is required to reStates producers or distributors of mo- port, the information requested in the tion pictures operating in foreign coun- reporting forms may be consolidated for tries through subsidiaries, affiliates or such reporter and enterprises, provided branches, may file quarterly reports on

all accounts are fully consolidated. A Form BE-35 in lieu of Forms BE-577 list of the enterprises included in the and BE-578; however, Forms BE-5778 consolidations must be provided. and BE-577A must be filed annually, if

(c) International receipts and payapplicable.

ments of royalties, license fees, rentals, (b) Foreign business investment in the

etc. United States individuals and firms United States-(1) Basic requirement.

who have entered into agreements with A report is required to be filed with re- residents or governments of foreign spect to every business enterprise subject

countries to sell or buy outright or proto the jurisdiction of the United States vide or be provided with the use of in which foreign persons, either as in

intangible assets or rights such as patdividuals or as affiliates hold a con

ents, techniques, processes, formulae, detrolling interest, or which is controlled signs, trademarks, copyrights, franchises, in the manner indicated in subparagraph

manufacturing rights, and other similar (2) of this paragraph directly or indi- intangible property or rights shall report rectly by a foreign person or persons.

on Form BE-93. Such business enterprises shall include, NOTE: Film royalties, oil royalties, and but not be limited to, corporations, part- other natural resources (mining) royalties nerships, investments in real property, are not reportable on this form. leaseholds, estates, trusts, and sole pro

Companies leasing or renting machinery, prietorships or other forms of outright

equipment, etc., should also respond on individual ownership.

this form. (2) Foreign beneficial interest. If the foreign controlling interest in a United

$ 803.2 Forms to be used and frequency States business enterprise, including

of reports. commercial real property, is held, ex- (a) Each reporter is required to subercised or administered by a United mit reports on the following forms, as States estate, trust (including irrevocable applicable. (1) United States direct intrusts), nominee, agent, representative, vestments abroad: custodian, or other intermediary of the

Forin BE-577. One Form BE-577 18 to be foreign beneficial owners, such interme

filed quarterly for each foreign corporation diary shall be responsible for reporting directly owned by the reporter and/or its for the business enterprise the required domestic and foreign affiliates to the extent information on Form BE-605, BE-606, of at least 25 percent of total outstanding BE-606B or BE-6061, or shall instruct voting stock. Where more than one domesthe United States business enterprise in

tic affiliate has transactions with, or inquestion to submit the required infor

terests in, the same foreign corporation, conmation. This does not relieve the United

solidated reports should be filled; consoll

dated reports may also be filled where several States business enterprise of responsi

foreign subsidiaries operate in the same bility for reporting if such business en

country and industry. Reports are also reterprise has knowledge of the direct or

quired for direct transactions with foreign indirect foreign controlling interest, but enterprises in which 25 percent or more of only one report should be filed for each the voting stock is held through primary such enterprise. For the purposes of this foreign enterprises, report, accounts or transactions of a Form BE-578. One Form BE-578 is to be United States business enterprise with a Alled quarterly for each foreign branch and United States estate, trust, nominee or other direct foreign operations of American other intermediary of foreign beneficial reporters, including mining claims, oll con. owners shall be considered as accounts cessions held directly or jointly with others or transactions with such beneficial and other property such as real estate but owners.

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companies which are reportable on Forms foreign person(s) or organization (8) and Its
BE-578B and BE_5781 respectively. Separate United States or foreign amllates.
reports should be filed for each foreign Form BE-606. One Form BE-606 is to be
branch. Where a reporter, or several al- fled quarterly for each United States branch
lated American corporations, has (or have) of a foreign business organization, or for
branches operating in the same country, or & leaseholds, real property or other United
joint interest in one or more branches, con- States unincorporated business property
solidated reports may be filed.

owned directly by a foreign person or organ.
Form BE-35. United States motion picture ization but excluding branch operations in
producers or distributors may elect to flo the United States of foreign banks or insur-
one Form BE-35 quarterly for each foreign ance companies.
subsidiary, aflate or branch, in lieu of Forms Form BE-606B. One Form BE-606B is to
BE-577 or 578, as applicable. The instruc- be filed quarterly for each United States
tions as to ownership and consolidations branch of a foreign banking institution.
listed for Formas BE-577 and 578 also apply Where a foreign bank has more than one
to filing on Form BE-35.

United States branch, consolidated reports
Form BE-578B. One Form BE-578B is to may be Aled.

Form BE-6061. be filled quarterly for each foreign branch of

One Form BE-6061 is to a United States banking institution. Sepa

be filed annually for each United States rate reports should be filled for each foreign branch of a foreign insurance firm, or for branch; consolidated reports may however

United States insurance companies 25 perbe filled where a United States bank has sev- cent or more of whose voting stock is held by eral branches operating in the same country.

foreign owners. Form BE-5781. One Form BE-5781 is to be

(3) International payments of royalfiled annually for each foreign branch or

ties, fees, etc. subsidiary of a United States Insurance firm. Separate reports should be filed for each Form BE-93. One Form BE-93 is to be filed foreign branch; consolidated reports may annually by each United States person or however be filed where a United States in. firm receiving from foreigners, or paying to surance company has several branches op- foreigners, royalties, licensing fees, rentals, erating in the same country.

etc., arising from the use, purchase or sale of Form BE-577A. One Form BE-577A is to Intangible assets or rights. be filled annually covering the foreign or

(b) Frequency of reports. Reports on ganizations in which the reporter and its domestic affiliates own in excess of 10 per

Forms BE-577S, BE-577A, BE-5781, cent, but less than 25 percent, of voting stock,

BE-6061 and BE-93 must be filed anor equivalent ownership in unincorporated nually beginning with a report covering foreign enterprises.

the calendar or fiscal year 1961; reports Form BE-5778. Reports covering transac- on Forms BE-577, BE-578, BE-35, BEtions between primary and secondary foreign 578B, BE-605, BE-606 and BE-606B must corporations (see $ 803.8(a) for definitions)

be filed quarterly beginning with a report are to be filled on an annual basis. Separate

for the first calendar or fiscal quarter of reports should be filled for each secondary

1962. foreign corporation owned through a primary foreign corporation and Its foreign affiliates

§ 803.3 Reporting by banks and insurfor which the United States equity amounts

ance companies. to 26 percent or more of its voting securities. However, a reportable interest is deemed to (a) United States banks, including exist only if the United States parent owns agencies of foreign banks, reporting on 60 percent or more of the voting stock of the

Forms BE-577, 577

A, 5775, 578B, 605 or primary foreign corporation and it in turn owns at least 50 percent of the voting stock

606B. In order to avoid duplication of of the secondary foreign organization. Trans

claims or liabilities reported on Treasury actions of domestic afiliated companies di

Foreign Exchange Forms B-1 and B-2, rectly with such secondary foreign corporations should be treated as primary relation

intercompany or branch accounts reships, and are reportable on Form BE-577

ported on the Commerce forms listed on a quarterly basis. Combined reports may

above should exclude accounts with or be filled where several secondary foreign cor

investments in foreign branches or subporations operating in the same country are owned by the same primary foreign corpora

sidiaries or accounts with a foreign partion. (See also $ 803.6(a)(2)).

ent organization and its affiliates, to the

extent they are included in the Treasury (2) Foreign direct investments in the United States.

foreign exchange forms. However, data

covering earnings, income, fees or other Form BE-605. One Form BE-605 is to be fled quarterly for each United States corpo

charges remitted or credited, or permaration 25 percent or more of whose voting

nent investments not includible in the stock is owned directly or indirectly by a

Treasury forms, should be reflected in
the Commerce forms.

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(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 11tions with their foreign subsidiaries or ability accounts of the reporter. For branches, or op 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 (1) 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.

(111) Oficers 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 conducting business for profit.

(c) United States. United States shall

mean the 50 States, the District of Co(b) Foreign direct investments in the United States (1) Exemption based on

lumbia, the Commonwealth of Puerto value. If the value of a business organi

Rico, and any territory or possession of zation (other than a U.S. branch or

the United States. agency of a foreign bank) otherwise re

(d) Foreign. Foreign shall mean subquired to report is less than $2,000,000

ject to the jurisdiction of a country at the beginning of the current calendar other than the United States, and when year, such a person or business organi- applied to persons shall also mean not

86-032-68-27

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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 Any corporation or other business or

otherwise. ganization of which a person was an af

(iii) Branch: The interest of any perfiliate also shall be deemed to be affiliates

son subject to the jurisdiction of the of each other.

United States in property in any foreign (f) Control or controlling interest.

country allocated to or held in the name Control or controlling interest shall

or for the use of any branch, depot, or mean, for the statistical purposes of

office outside of the United States mainthese reports, the direct ownership and/

tained by such person for the transaction or indirect ownership through inter

of any of his business. Foreign operamediaries or affiliates of 25 percent or

tions conducted by United States cormore of the voting securities of a cor

porations in their own names and not poration or of other ownership equities

through foreign incorporated companies in other types of organizations. Indirect

are to be reported as branch operations. control should be deemed to exist only if

(iv) Any business enterprise or real the United States parent owns 50 percent

property owned outright by a resident of or more of the voting stock of the pri

the United States. mary foreign corporation and it in turn

(2) "Secondary foreign organization" owns at least 50 percent of the voting

shall include the following organizastock of the secondary foreign corpora

tions: tion.

(i) A foreign organization allied with (g) Parent. Parent shall mean any

the reporter through the ownership of at person or affiliated group of persons di

least 50 percent of its voting securities rectly owning 25 percent or more of the

or other certificates of ownership by a voting securities of a corporation or of

primary foreign organization, which in other ownership equities in other types

turn is owned by the reporting organiof organizations. In some cases there

zation to the extent of at least 50 percent may be more than one parent.

of its voting stock, giving the U.S. re§ 803.6 Specific definitions.

porter an ownership of at least 25 per

cent of the secondary foreign organiza(a) Terms relating to the reporting of

tion. United States direct investments abroad. (ii) Branches of primary foreign or(1) Primary foreign organizations shall ganizations located in countries other include the following organizations lo

than the primary organization have to be cated in or under the jurisdiction of a

reported separately. However, branches foreign country:

or subsidiaries of a primary foreign or(1) Any foreign corporation ganization located in the same country which

and engaged in the same type of business (a) The reporting organization owns

as the primary organization may be com25 percent or more of the voting securi

bined and one report submitted covering ties, or

the activities of all of these organiza(b) The reporting organization owns

tions. The report must be a consolidated less than 25 percent of the voting securi

report showing the total activities of all ties but affiliates, either domestic or

organizations and not a report of the foreign, of the reporting organization

primary organization showing only the

investment of the primary in the second

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