Commerce Department Reinstates Mandatory Reporting Requirements for Certain Foreign Direct Investments in U.S. Companies and Real Estate

On November 24, 2014, the Department of Commerce’s Bureau of Economic Analysis (BEA) reinstated mandatory Form BE-13 (Survey of New Foreign Direct Investment in the United States), which collects new foreign direct investment (FDI) survey data on the acquisition, establishment, or expansion of U.S. businesses by foreign investors. FDI is defined as a foreign person’s ownership or control, directly or indirectly, of a 10% or greater voting interest in a U.S. business, which includes U.S. legal entities, branch offices, and real estate (improved or unimproved), except for residential real estate held exclusively for personal use and not-for-profit-making purposes. The obligation to submit the required Form BE-13 filing applies to the U.S. business in which the investment is made (the U.S. affiliate), not to the foreign investor, and the filing also must include information on certain of the U.S. affiliate’s subsidiaries. Moreover, the filing requirement applies irrespective of whether BEA has contacted the parties about the transaction.

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