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U.S. Commerce Department Revives Dormant Form BE-13: Foreign Direct Investment Reporting Requirement

The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) has reinstated a previously dormant reporting requirement via Form BE-13 for certain new foreign direct investment in the United States. The reporting requirement applies retroactively. Qualifying investment transactions that occurred during 2014 prior to Nov. 26, 2014, must be reported by Jan. 12, 2015. Qualifying investment transactions that occurred on or after Nov. 26, 2014, are required to be reported within 45 days of the qualifying transaction.

U.S. companies required to file Form BE-13 (or Form BE-13 Claim for Exemption) may file a request for an extension with BEA. Unlike BEA reports relating to foreign investment, the Form BE-13 is mandatory for all U.S. businesses subject to the reporting requirement, regardless of whether the U.S. businesses have been specifically contacted by BEA.

1) Description of Form BE-13 Filing Requirement

The purpose of Form BE-13 is to capture new investment transactions in which:

A foreign direct investment in the United States relationship is created; or

An existing U.S. company in whom a foreign company owns directly or indirectly 10 percent or more of the voting securities:

Establishes a new legal entity;

Expands its U.S. operations; or

Acquires a U.S. business enterprise.Failure to timely report Form BE-13 may trigger civil and/or criminal penalties.

2) How to Comply with the New Measures

Any U.S. company involved in, or the recipient of, foreign direct investment activities should review the Form BE-13 reporting requirements and should assess, with counsel, whether new investment activities that occurred in 2014 constitute activity that must be reported to the BEA via Form BE-13. Further, U.S. companies with current or proposed foreign direct investment should familiarize themselves with the BEA reporting requirements, generally, and work with counsel to determine whether any other BEA reporting requirements may be triggered by current or future foreign direct investment activity.

©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume V, Number 24


About this Author

Cyril Brennan, Greenberg Traurig Law Firm, Washington DC, International Trade Law Attorney

Cyril (Cy) Brennan focuses his practice on international trade regulation and compliance, with an emphasis on U.S. export controls and economic sanctions. Cy handles matters regarding the International Traffic in Arms Regulations (ITAR), the Export Administration Regulations (EAR), U.S. sanctions programs administered by the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s anti-boycott regulations. In addition, he represents clients before the Committee on Foreign Investment in the United States (CFIUS), and advises clients...

Renee Latour, Greenberg Traurig Law Firm, Washington DC, Corporate Law Attorney

Renee A. Latour focuses her practice on international trade regulation with an emphasis on compliance with U.S. export controls and economic sanctions. Renee assists clients on matters related to international trade that arise under the jurisdiction of various U.S. governmental agencies, including the Departments of Commerce, State, Treasury, and Defense. She advises on U.S. export control laws, anti-boycott laws and special sanctions maintained by the U.S. Government against various countries including Iran, Cuba and Sudan.

Renee also assists clients with matters relating to issues arising under the anti-bribery and record-keeping provisions of the Foreign Corrupt Practices Act (FCPA), the OECD Convention and the United Nations (UN) Convention Against Corruption. Additionally, she assists clients in designing and implementing internal compliance policies and procedures and conducting cross-border export and sanctions regulatory due diligence, particularly in the context of mergers and acquisitions. Renee also counsels on the Exon-Florio provisions of the Committee on Foreign Investment in the United States (CFIUS), and assists clients in mitigating foreign ownership, control or influence (FOCI) under the applicable national industrial security regulations.