December 7, 2021

Volume XI, Number 341

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December 06, 2021

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The Bureau of Economic Analysis Reporting Requirements for Foreign Direct Investment: Still Time for Timely Filing

In September of 2014, new foreign investment reporting requirements from the Department of Commerce’s Bureau of Economic Analysis (BEA) became effective.  The new regulations require the BEA to collect data on the acquisition or establishment of U.S. business enterprises by foreign investors and the expansion of existing U.S. affiliates of foreign companies to establish a new production facility. 

The reporting requirement is retroactive, and reports for all qualifying transactions that occurred in 2014 were due on January 12, 2015.  However, because many entities are only now learning about the new requirements the BEA will consider granting extensions to those who request them by February 27, 2015.

U.S. entities that have received direct foreign investment need to make sure to comply with the new reporting requirements, because a failure to make required reports could result in civil or criminal penalties.

Background on BEA Reporting

The BEA is collecting this data in form BE-13, Survey of New Foreign Direct Investment in the United States.  Foreign direct investment is defined as the ownership or control by one foreign entity of 10 percent or more of the voting securities of an incorporated U.S. business enterprise, or an equivalent interest of an unincorporated U.S. business enterprise, including a branch.

A BE-13 report is required of any U.S. company in which (1) a foreign direct investment in the United States relationship is created; (2) an existing U.S. affiliate of a foreign parent establishes a new U.S. legal entity, expands its U.S. operations, or acquires a U.S. business enterprise, or; (3) a U.S. business enterprise that previously filed a BE-13B or BE-13D indicating that the established or expanded entity is still under construction.  In all cases, the reporting requirement only attaches when the total cost of the transaction, expansion or new entity is greater than $3 million.

The BE-13 report is due no later than 45 days after the transaction is completed.  For transactions that occurred from January 1, 2014 through November 26, 2014, the new regulations are retroactive, and all reports from these transactions were due by January 12, 2015.

© 2021 Bracewell LLPNational Law Review, Volume V, Number 44
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About this Author

Josh Zive, Legislative Regulatory Advocacy attorney, Bracewell law firm
Senior Principal

Josh Zive is a senior principal at Bracewell with an eclectic background in legislative and regulatory advocacy, campaign finance and ethics laws, strategic communications and issues related to international trade and economic sanctions. He works closely with associations and companies involved in legal and political controversies to craft and deliver arguments that can be successful with legal, political and public audiences. No matter the forum or the specific controversy, Josh strives to serve as trusted counsel for his clients and to provide timely and practical...

202-828-5838
Caitlin Tweed, Attorney, Energy Regulatory, Bracewell Law Firm
Associate

Caitlin Tweed focuses on energy regulatory matters and public policy issues. She works with clients in the natural gas, oil, Liquefied Natural Gas (LNG), and electric industries. She works with clients to obtain Federal Energy Regulatory Commission (FERC) and state authorizations related to major projects, rates and proposed transactions. She also assists clients with FERC compliance and transmission matters.

202-828-1722
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