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, porte liable
(6) State tion iries brand Pora and and apple
(6. Unit A re SPEC
in W divid troll
$ 802.2 Forms to be used.
Who must report.
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
rect! Suche but i bers lease priet indi
forei State Com
Stat trus custe fore diar for info BE the ques matStat
terp indi only SUCE repo UniUni oth OWO Or OWL
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.
excluding branches of banks or insurance
panies Form GODS
of prein for report than curre
of ho. plus
debte foreig port. book the i Unite vidua brand inact
companies which are reportable on Forms foreign person(s) or organization (8) and Its
owned directly by a foreign person or organ.
United States branch, consolidated reports
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
effect repor value asset
Repc mho categ
BOVE med vide Stat
gan zati STOL
( Uni va! 220 Age qui: at t rea
(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
ganiz Tepor requis organ the fa more In co eign Form
State incor to th contr izatic conn
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
(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