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pdfOMB No. 0608-0067: Approval Expires xx/xx/2009
BEA Use Only
Control Number
Form BE-125
U.S. Department of Commerce
Bureau of Economic Analysis
QUARTERLY SURVEY OF TRANSACTIONS IN SELECTED SERVICES
AND INTANGIBLE ASSETS WITH FOREIGN PERSONS
(This report is mandatory and confidential.)
Name and address of U.S. reporter –
Enter or correct as necessary
10001
10002
10003
10004
Complete and file this form or file electronically at www.bea.gov/efile.
Assistance is available at (202) 606-5588, M-F 8:30 A.M. – 5:00 P.M., eastern time.
How to file:
Step 1. Verify or correct name and address of the U.S. reporter named in the mailing label and complete Part 1.
Step 2. Complete Part 2 and Schedules A, B, and C based on the instructions given in Part 2.
Step 3. File the completed form within 45 days after the close of each fiscal quarter
(or within 90 days after the close of the final quarter of your fiscal year) .
By mailing to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50 (SSB)
Washington D.C. 20230
delivering to:
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50 (SSB)
Shipping and Receiving Section M-100
1441 L Street, N.W.
Washington D.C. 20005
faxing to :
(202) 606-5318
or file electronically at:
www.bea.gov/efile
Part 1 – Section A
1. Person to consult concerning questions about this report
1. Name
2. Title
3. Telephone number (
4. Fax number (
)
3. Certification – The undersigned official certifies that this report
has been prepared in accordance with the applicable instructions, is
complete, and is substantially accurate except that, in accordance with
IV. G of the General Instructions, estimates may have been prepared
where the data are not available from customary accounting records or
precise data could not be obtained without undue burden.
)
5. E-mail address
2.
May we use e-mail to correspond with you to discuss
questions relating to this form, including questions that may
contain information about your company that you may
consider confidential? (Note: Electronic mail is not
inherently confidential. We will treat information we receive
as confidential but your e-mail is not necessarily secure
against interception by a third party.)
1 [ ] Yes
2 [ ] No
Authorized official’s signature
Print or type name and title
Date
Section B – Determination of Reporting Status
If sales to foreign persons of an individual type of
intangible asset or service exceeded $6 million last
fiscal year or are expected to exceed $6 million this
fiscal year, then for that type of transaction, you
must (a) check “yes” on the appropriate row(s) of
column 1 of Table 1; and (b) report transactions for
the most recent quarter by individual foreign country
on Schedule A and/or C, as appropriate.
If sales of an individual type of intangible asset or
service were $6 million or less last fiscal year and
are expected to be $6 million or less this fiscal year,
then for that type of transaction, you must check
“no” and either complete the Basis for Not Reporting
Data or report the data voluntarily. You are
encouraged to report the data voluntarily, because
these data will make the aggregate totals more
complete and accurate. To provide more detailed
information report voluntary data on Schedule A
and/or C, as appropriate.
For Table 1, mark (X) “Yes” or “No” next to each
type of transaction, to indicate whether your
company’s total transactions with foreign persons
exceeded $6 million for the last fiscal year or are
expected to exceed $6 million for this fiscal year.
NOTE: Reporting status is based on annual
transactions (actual and/or expected), but amounts
reported on the schedules are for the most recent
quarter.
SALES TO (RECEIPTS FROM) AFFILIATED AND UNAFFILIATED FOREIGN PERSONS
Had total
transactions
Types of transactions
exceeding
$6 million
If yes,
during the
report
last fiscal
country
year or
detail for
expected to
quarterly
exceed $6
transactions
million this
on:
fiscal year?
Transaction
(check box)
Code
Yes
No
Receipts for intangible assets
1. Rights related to industrial processes and products
Schedule A
2. Rights related to books, compact discs, audio tapes, etc.
Schedule A
3. Rights related to trademarks, etc.
Schedule A
4.
Rights related to performances and events pre-recorded on
motion picture film and TV tape
Schedule A
5.
Rights related to broadcast and recording of live
Schedule A
performances and events
6. Rights related to general use computer software
Schedule A
7. Business format franchising fees
Schedule A
8. Other intangible assets
Schedule A
Receipts for selected services
9. Accounting, auditing, and bookkeeping services
Schedule A
10. Advertising services
Schedule A
11. Auxiliary insurance services
Schedule A
12. Computer and data processing services
Schedule A
13. Construction services
Schedule C
14. Data base and other information services
Schedule A
15. Educational and training services
Schedule A
Table 1
16.
Engineering, architectural, and surveying services
17.
Financial services
18.
19.
Industrial engineering services
Industrial-type maintenance, installation, alteration, and
training services
20.
21.
Legal services
Management, consulting, and public relations services
(including expenses allocated by U.S. parent to its foreign
affiliates)
Merchanting services
Mining services
Operational leasing services
Trade-related services, other than merchanting services
22.
23.
24.
25.
26.
Performing arts, sports, and other live performances,
presentations, and events
27.
28.
29.
30.
Premiums paid on primary insurance
Losses recovered on primary insurance
Research, development, and testing services
Telecommunications services
31.
Other selected services*
Schedule C
Schedule A
Schedule A
Schedule A
Schedule A
Schedule A
Schedule C
Schedule A
Schedule A
Schedule A
Schedule A
Schedule A
Schedule A
* Sales of other selected services include all services transactions that are not separately listed above and are not specifically excluded. This category includes
(but is not limited to) funding (U.S. receipts) of the news-gathering costs of broadcasters, news-gathering costs of the print media or of broadcast program
material other than news, production costs of motion pictures, and to maintain sales promotion and representation offices including government tourism and
business promotion offices. Also included are sales of account collection services; agricultural services; employment agency and temporary help supply
services; language translation services; mailing, reproduction, and commercial art; business-to-business medical services such as radiology examination
services (medical services provided to individual patients rather than to businesses are excluded); salvage services; satellite photography and remote
sensing/satellite imagery services; security services; space transport (includes satellite launches and transport associated with scientific experiments or space
passenger transport); transcription services; and waste treatment and depollution services. Sales of other selected services exclude sales of financial services
(which are covered on a separate BEA survey); income on financial instruments (including interest, dividends, capital gains, etc.); taxes, penalties and fines,
gifts or grants; and transportation of freight or passengers; and travel-related services provided to individual travelers (including hotel accommodation and
restaurant meals). See instructions for a definition of services and a fuller discussion of the coverage of this survey.
If purchases from foreign persons of an individual
type of intangible asset or service exceeded $4
million last fiscal year or are expected to exceed
$4 million this fiscal year, then for that type of
transaction, you must (a) check “yes” on the
appropriate row(s) of column 1 of Table 2; and
(b) report transactions for the most recent quarter
by individual foreign country on Schedule B.
If purchases of an individual type of intangible
asset or service were $4 million or less last fiscal
year and are expected to be $4 million or less this
fiscal year, then for that type of transaction, you
must check “no” and either complete the Basis for
Not Reporting Data or report the data voluntarily.
You are encouraged to report the data voluntarily,
because these data will make the aggregate totals
more complete and accurate. To provide more
detailed information report voluntary data on
Schedule B.
For Table 2, mark (X) “Yes” or “No” next to each
type of transaction, to indicate whether your
company’s total transactions with foreign persons
exceeded $4 million for the last fiscal year or are
expected to exceed $4 million for this fiscal year.
NOTE: Reporting status is based on annual
transactions (actual and/or expected), but amounts
reported on the schedules are for the most recent
quarter
PURCHASES FROM (PAYMENTS TO) FOREIGN PERSONS
Had total
transactions
exceeding
$4 million
during the
last fiscal
Types of transactions
year or
expected to
Transaction
exceed $4
Code
million this
fiscal year?
(check box)
Yes
No
Payments for intangible assets
1. Rights related to industrial processes and products
2. Rights related to books, compact discs, audio tapes, etc.
Table 2
3.
4.
5.
If yes,
report
country
detail for
quarterly
transactions
on:
Schedule B
Rights related to trademarks, etc.
Schedule B
Schedule B
Rights related to performances and events pre-recorded on
motion picture film and TV tape
Schedule B
9.
10.
11.
12.
13.
14.
15.
Rights related to broadcast and recording of live
performances and events
Rights related to general use computer software
Business format franchising fees
Other intangible assets
Payments for selected services
Accounting, auditing, and bookkeeping services
Advertising services
Auxiliary insurance services
Computer and data processing services
Construction services
Data base and other information services
Educational and training services
16.
Engineering, architectural, and surveying services
Schedule B
Schedule B
17.
18.
19.
Financial services
Industrial engineering services
Industrial-type maintenance, installation, alteration, and
training services
Schedule B
20.
21.
Legal services
Management, consulting, and public relations services
(including expenses allocated by a foreign parent to its U.S.
affiliates)
Merchanting services
Mining services
Operational leasing services
Trade-related services, other than merchanting services
6.
7.
8.
22.
23.
24.
25.
26.
Performing arts, sports, and other live performances,
presentations, and events
27.
28.
29.
30.
Premiums paid on primary insurance
Losses recovered on primary insurance
Research, development, and testing services
Telecommunications services
31.
Other selected services*
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
Schedule B
* Purchases of other selected services include all services transactions that are not separately listed above and are not specifically excluded.
This category includes (but is not limited to) funding (U.S. payments) of the news-gathering costs of broadcasters, news-gathering costs of the
print media or of broadcast program material other than news, production costs of motion pictures, and to maintain sales promotion and
representation offices including government tourism and business promotion offices. Also included are purchases of account collection
services; agricultural services; employment agency and temporary help supply services; language translation services; mailing, reproduction,
and commercial art; business-to-business medical services such as radiology examination services (medical services provided to individual
patients rather than to businesses are excluded); salvage services; satellite photography and remote sensing/satellite imagery services; security
services; space transport (includes satellite launches and transport associated with scientific experiments or space passenger transport);
transcription services; and waste treatment and depollution services. Purchases of other selected services exclude purchases of financial
services by financial services firms (which are covered on a separate BEA survey); income on financial instruments (including interest,
dividends, capital gains, etc.); taxes, penalties and fines, gifts or grants; and transportation or freight or passengers; and travel-related services
provided to individual travelers (including hotel accommodation and restaurant meals). See instructions for a definition of services and a fuller
discussion of the coverage of this survey.
Part 2
1. What period does this quarterly report cover?
Beginning date ….
Month
Day
Year
Ending date….
Month
Day
Year
2007
2. Enter the 4-digit code that best describes the major activity of the U.S. reporter from the Summary of Industry Classifications
found on pages xxx and xxx of the General Instructions.
3. What is the primary Employer Identification Number used by the U.S. reporter to file U.S. income or payroll taxes?
4. Was the U.S. reporter in existence, as an independent company, during the entire reporting period?
1 [ ] Yes – Skip question 5
2 [ ] No – If purchased by another U.S. company complete 5 below. Otherwise, complete the report for the time that
you were in existence and, in comments section below, explain why you did not exist as a separate
company for a part of the period
5.
During the reporting period identified in 1, did another U.S. person or entity own more than 50 percent of the voting stock of the U.S.
reporter named in the mailing label on page 1?
1 [ ] Yes – Enter the name and address of the controlling U.S. person or entity in the box below, check box B of the
Basis For Not Reporting Data below, and please return this form according to the instructions on page 1.
Name
Street
City
State
Zip Code
2 [ ] No – Continue with completion of the form.
Comments:
Basis For Not Reporting Data – Mark (X) in one box (A-E) if you are not reporting data on Schedules A - C
1. The U.S. Reporter has not reported data on any schedule of this form because it –.
A [ ] Was not in existence at any time during the reporting period.
B [ ] Was owned to the extent of more than 50% of its voting stock by another U.S. person for the entire reporting period.
C [ ] Had no transactions, either sales or purchases, of the types covered, with foreign persons.
D [ ] Had transactions, either sales or purchases, of the types covered but the value of these transactions did not exceed the threshold for mandatory
reporting (either for sales or purchases) and the U.S. reporter does not choose to report voluntarily. The total amount of these transactions with foreign persons
for the most recent fiscal or calendar quarter, for all services or intangible assets combined, was approximately
Sales
Purchases
2. The U.S. Reporter has reported data (sales and/or purchases) on one or more schedules of this form, but the U.S. Reporter also has not reported some
transactions listed in tables 1 and 2, because –
E [ ] The value of transactions in one or more individual types covered did not exceed the threshold for mandatory reporting, and the U.S. Reporter
chooses not to report these transactions (sales and/or purchases) voluntarily. The total amount of transactions with foreign persons for the quarter indicated in
question 1 above, for all services and intangible assets combined, not reported on any schedules of this form, was approximately
Sales
Purchases
SCHEDULE A – SALES OF SELECTED SERVICES AND INTANGIBLE ASSETS TO FOREIGN PERSONS
• If sales to (receipts from) foreign persons of a particular type of intangible asset or service exceeded $6 million in the past fiscal
year or are expected to exceed $6 million in the current fiscal year, then you are required to report transactions by country for
the most recent quarter for that type of transaction on Schedule A. The all countries total should be reported on line 33 with the
country detail reported on lines 1 through 32. If you need additional pages to report the country detail, then make additional
copies of this schedule.
• If sales to (receipts from) foreign persons of a particular type of intangible asset or service were $6 million or less in the past
fiscal year and are expected to be $6 million or less in the current fiscal year, then you are requested to report transactions by
country for the most recent quarter for that type of transaction on Schedule A. The all countries total may be reported on line
33 with the country detail reported on lines 1 through 32, or you may report only the all countries total on line 34.
Enter the transaction code associated with the type of transaction, instead of the complete title of the transaction, in the column
heading on Schedule A. See V. of the General Instructions for complete descriptions of the transactions covered. If you are
reporting transactions for more than three types of intangible assets or services, then make additional copies of this schedule
or use the overflow sheets provided in BE-125 package.
Separate transactions for a type of service based on your relationship with the purchaser. For example, if you provided advertising
services to a foreign affiliate and to an unaffiliated foreign person, then you would enter “10” for advertising services under the
heading “Transaction code” and enter the appropriate dollar amounts in the columns under “Foreign affiliates” and “Unaffiliated
foreign persons.”
If you report data under transaction code 8, other intangible assets or transaction code 31, other selected services, then specify
the major type of intangible asset or service sold on line 35.
Note that sales of transaction code 13, construction services; transaction code 16, engineering, architectural, and
surveying services; and transaction code 23, mining services should be reported on Schedule C.
Transaction
Code
1.
2.
3.
4.
5.
6.
7.
8.
Types of Transactions
Receipts for intangible assets
Rights related to industrial processes and products
Rights related to books, compact discs, audio tapes, etc
Rights related to trademarks, etc.
Rights related to performances and events pre-recorded on motion picture film
and TV tape
9.
10.
11.
Rights related to broadcast and recording of live performances and events
Rights related to general use computer software
Business format franchising fees
Other intangible assets
Sales of selected services
Accounting, auditing, and bookkeeping services
Advertising services
Auxiliary insurance services
12.
14.
15.
18.
Computer and data processing services
Data base and other information services
Educational and training services
Industrial engineering services
19.
Industrial-type maintenance, installation, alteration, and training services
20.
Legal services
21.
22.
24.
25.
26.
29.
30.
31.
Management, consulting, and public relations services (including expenses
allocated by U.S. parent to its foreign affiliates)
Merchanting services
Operational leasing services
Trade-related services, other than merchanting services
Performing arts, sports, and other live performances, presentations, and events
Research, development, and testing services
Telecommunications services
Other selected services
SCHEDULE A -- U.S. Reporter's Sales of Selected Services and Intangible Assets to Foreign Persons
SALES TO
Foreign
affiliates
Transaction code
Transaction code
___________
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
___________
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
Foreign
affiliates
Unaffiliated
foreign persons
BEA USE ONLY
Mandatory data
1.
Australia
2.
Belgium
3.
Brazil
4.
Canada
5.
China
6.
France
7.
Germany
8.
Hong Kong
9.
India
10.
Israel
11.
Italy
12.
Japan
13.
Luxembourg
14.
Mexico
15.
Netherlands
16.
Philippines
17.
Saudi Arabia
18.
South Korea
19.
Spain
20.
Sweden
21.
Switzerland
22.
Taiwan
23.
United Kingdom
24.
Venezuela
Other – Specify country
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
All countries, total
Voluntary data – complete if
total sales for type of
transaction are $6 million or
less annually.
If you reported data under transaction code 8 , Other intangible assets or transaction code 31, Other selected services, specify the major
type of intangible asset or service:
SCHEDULE B – PURCHASES OF SELECTED SERVICES AND INTANGIBLE ASSETS FROM FOREIGN PERSONS
• If purchases from (payments to) foreign persons of a particular type of intangible asset or service exceeded $4 million in the
past fiscal year or are expected to exceed $4 million in the current fiscal year, then you are required to report transactions by
country for the most recent quarter for that type of transaction on Schedule B. The all country total should be reported on line
33 with the country detail reported on lines 1 through 32. If you need additional pages to report the country detail, then make
additional copies of this schedule.
• If purchases from (payments to) foreign persons of a particular type of intangible asset or service were $4 million or less in the
past fiscal year and are expected to be less than $4 million in the current fiscal year then you are requested to report transactions
by country for the most recent quarter for that type of transaction on Schedule B. The all countries total may be reported on line
33 with the country detail reported on lines 1 through 32, or you may report only the all countries total only on line 34.
Enter the transaction code associated with the type of transaction, instead of the complete title of the transaction, in the column
heading on Schedule B. See V. of the General Instructions for complete descriptions of the transactions covered. If you are
reporting transactions for more than three types of intangible assets or services, then make additional copies of this schedule
or use the overflow sheets provided in BE-125 package.
If you report data under transaction code 8, other intangible assets or transaction code 31, other selected services, then specify
the major type of intangible asset or service purchased on line 35.
Separate transactions for a type of service based on your relationship with the seller. For example, if you purchased advertising
services from a foreign affiliate and from an unaffiliated foreign person, then you would enter “10” for advertising services under
the heading “Transaction code” and enter the appropriate dollar amounts in the columns under “Foreign affiliates” and “Unaffiliated
foreign persons.”
Transaction
Code
Types of Transactions
1.
2.
3.
4.
5.
Purchases of intangible assets
Rights related to industrial processes and products
Rights related to books, compact discs, audio tapes, etc.
Rights related to trademarks, etc.
Rights related to performances and events prerecorded on
motion picture film and TV tape
9.
10.
11.
12.
13.
14.
15.
Rights related to broadcast and recording of live
performances and events
Rights related to general use computer software
Business format franchising fees
Other intangible assets
Purchases of selected services
Accounting, auditing, and bookkeeping services
Advertising services
Auxiliary insurance services
Computer and data processing services
Construction services
Data base and other information services
Educational and training services
16.
Engineering, architectural, and surveying services
17.
18.
19.
Financial services
Industrial engineering services
Industrial-type maintenance, installation, alteration, and
training services
20.
21.
Legal services
Management, consulting, and public relations services
(including expenses allocated by a foreign parent to its
U.S. affiliates)
Mining services
Operational leasing services
Trade-related services, other than merchanting services
6.
7.
8.
23.
24.
25.
26.
Performing arts, sports, and other live performances,
presentations, and events
27.
28.
29.
30.
Premiums paid on primary insurance
Losses recovered on primary insurance
Research, development, and testing services
Telecommunications services
31.
Other selected services
SCHEDULE B -- U.S. Reporter's Purchases of Selected Services and Intangible Assets from Foreign Persons
PURCHASES FROM
Foreign
affiliates
Transaction code
Transaction code
___________
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
___________
Foreign
parent(s) &
foreign
affiliates of
foreign
parent(s)
Unaffiliated
foreign persons
Foreign
affiliates
Unaffiliated
foreign persons
BEA USE ONLY
Mandatory data
1.
Australia
2.
Belgium
3.
Brazil
4.
Canada
5.
China
6.
France
7.
Germany
8.
Hong Kong
9.
India
10.
Israel
11.
Italy
12.
Japan
13.
Luxembourg
14.
Mexico
15.
Netherlands
16.
Philippines
17.
Saudi Arabia
18.
South Korea
19.
Spain
20.
Sweden
21.
Switzerland
22.
Taiwan
23.
United Kingdom
24.
Venezuela
Other – Specify country
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
All countries, total
Voluntary data – complete if
total purchases for type of
transaction are $4 million or
less annually.
If you reported data under transaction code 8 , Other intangible assets or transaction code 31, Other selected services, specify the major
type of intangible asset or service:
SCHEDULE C – SALES OF CONSTRUCTION SERVICES; ENGINEERING, ARCHITECTURAL, AND SURVEYING
SERVICES; AND MINING SERVICES TO FOREIGN PERSONS
• If sales to foreign persons (gross operating revenues) of a particular type of service exceeded $6 million in the past fiscal year or
are expected to exceed $6 million in the current fiscal year, then you are required to report transactions by country for the most
recent quarter for that type of transaction on Schedule C. The all countries total should be reported on line 33 with the country
detail reported on lines 1 through 32. If you need additional pages to report the country detail, then make additional copies of
this schedule.
• If sales to foreign persons (gross operating revenue) of a particular type of service were $6 million or less in the past fiscal year
and are expected be to $6 million or less in the current fiscal year, then you are requested to report transactions by country for
the most recent quarter for that type of transaction on Schedule C. The all countries total may be reported on line 33 with the
country detail reported on lines 1 through 32, or you may report only the all countries total only on line 34.
Enter the transaction code associated with the type of transaction, instead of the complete title of the transaction, in the column
heading on Schedule C. See V. of the General Instructions for complete descriptions of the transactions covered. If you are
reporting transactions for more than two types of transactions, then make additional copies of this schedule or use the overflow
sheet provided in BE-125 package.
Separate transactions for a type of service based on your relationship with the purchaser. For example, if you provided construction
services
to a foreign affiliate and to an unaffiliated foreign person, then you would enter “13” for construction services under the heading
“Transaction code” and enter the appropriate dollar amounts for gross operating revenues, goods exports, and/or foreign expenses
or disbursements in the columns under “Foreign affiliates” and “ Unaffiliated foreign persons.”
Gross operating revenues – Report revenues (sales) as recorded on your books for the value of services provided and/or
construction completed during the reporting period (not when actual payment is received).
Merchandise exports – Report the value of merchandise exports from the United States during the reporting period that were made in
connection with projects. Exports should include the value of equipment, supplies, materials, etc., and should equal the amounts
reported on the Shippers Export Declarations filed with the U.S. Bureau of Customs plus the cost of transporting the goods to foreign
destinations. Exclude temporary exports of equipment or other goods that are intended to be returned to the United States in
substantially the same condition as when exported.
Foreign expenses or disbursements – Report salaries and wages transmitted or disbursed abroad; expenses or outlays for services
(including purchases from foreign subcontractors), material, and equipment purchases abroad; and other foreign expenses (e.g., local
taxes and fees for permits). (Do not report purchases of material and equipment for import into the United States.)
Transaction
Code
13.
16.
23.
Type of transaction
Construction services
Engineering, architectural, and surveying services
Mining services
SCHEDULE C -- U.S. Reporter's Sales of Construction Services; Engineering, Architectural, and Surveying Services; and Mining Services to
Foreign Persons (Only transactions codes 13,16, and 23 are to be reported on this schedule.)
Foreign affiliates
SALES TO
Gross
operating
revenues
(sales)
BEA USE ONLY
Mandatory data
1.
Australia
2.
Belgium
3.
Brazil
4.
Canada
5.
China
6.
France
7.
Germany
8.
Hong Kong
9.
India
10.
Israel
11.
Italy
12.
Japan
13.
Luxembourg
14.
Mexico
15.
Netherlands
16.
Philippines
17.
Saudi Arabia
18.
South Korea
19.
Spain
20.
Sweden
21.
Switzerland
22.
Taiwan
23.
United Kingdom
24.
Venezuela
Other – Specify
Country
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
All countries,
total
Voluntary data –
complete if total
sales for type of
transaction are
$6 million or
less annually.
Goods
exports
Foreign
expenses
or
disbursements
Transaction code
__________
Foreign parent(s) & foreign affiliates
of foreign parent(s)
Foreign
expenses
Gross
operating
or
Goods
disburserevenues
exports
ments
(sales)
Unaffiliated foreign persons
Foreign
expenses
Gross
operating
or
Goods
disburserevenues
exports
ments
(sales)
Public reporting burden for this BE-125 report is estimated to average 16
hours per response. This burden includes time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed,
and completing and reviewing the collection of information. Send comments
regarding this burden estimate to Director, Bureau of Economic Analysis (BE1), U.S. Department of Commerce, Washington, DC 20230; and to the Office
of Management and Budget, Paperwork Reduction Project 0608-0067,
Washington, DC 20503.
2. Voluntary reporting – If, during the U.S. person’s fiscal year, the U.S.
person’s total sales were $6,000,000 or less and total purchases were
$4,000,000 or less in any of the types of services or intangible assets listed
in V. of these General Instructions, for the past fiscal year and for the
current fiscal year, then the U.S. person is requested to provide an estimate
of the total for each type of service or intangible asset on the appropriate
schedule(s). Provision of this information is voluntary. The estimates may
be judgmental, that is, based on recall, without conducting a detailed
records search. Voluntary data should be entered onto line 34 of Schedule
A or C for sales and Schedule B for purchases for the type of service or
intangible asset transaction that you are reporting. (If information on the
countries of the transactions is available, it would be helpful if the
transactions were reported on lines 1 through 33 on Schedule A, B, or C;
however, disaggregation by country is not required.) Reporters who elect to
file pursuant to the voluntary reporting option must complete Parts 1 and 2
of the form.
Purpose – The Quarterly Survey of Transactions in Selected Services and
Intangible Assets with Foreign Persons is conducted by the Department of
Commerce to obtain data on the size and economic significance of these
transactions. A prior quarterly survey, BE-25 Quarterly Survey of
Transactions Between U.S. and Unaffiliated Foreign Persons in Selected
Services and in Intangible Assets has been conducted since 2004, but covered
only transactions with unaffiliated foreign persons. The information collected
will be used to help support trade negotiations, formulate U.S. policy, and
analyze the impact of that policy and the policies of foreign countries, on
international trade in services. The data will also be used in compiling the
U.S. international transactions and national income and product accounts.
Authority – This survey is being conducted under the authority of the
International Investment and Trade in Services Survey Act
(P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended– hereinafter
"the Act"), and the filing of reports is mandatory under Section 5(b)(2) of the
Act (22 U.S.C. 3104). Regulations for the survey may be found in 15 CFR
Part 801.
Penalties -- Whoever fails to report may be subject to a civil penalty of
not less that $2,500, and not more than $25,000, and to injunctive relief
commanding such person to comply, or both. These civil penalties are
subject to inflationary adjustments. Those adjustments are found in 15
CFR 6.4.Whoever willfully fails to report shall be fined not more that
$10,000 and, if an individual, may be imprisoned for not more than one
year, or both. Any officer, director, employee, or agent of any corporation
who knowingly participates in such violations, upon conviction, may be
punished by a like fine, imprisonment, or both. (See 22 U.S.C. 3105.)
Notwithstanding the above, a U.S. person is not subject to any
penalty for failure to report if a valid Office of Management and Budget
(OMB) control number is not displayed on the form; such a number
(0608-0067) is displayed at the top of the first page of this form.
3. Exemption – A U.S. person that receives this form from BEA but
is not required to report data on a mandatory basis, and that has no
transactions in the types covered elects not to report data on a voluntary
basis, must complete Parts 1 and 2, including the “Basis for Not Reporting
Data.”
B. BE-125 Definition of Services -- Services transactions consist of receipts
and payments for services as commonly defined and understood (examples
are given below) as well as transactions in certain other “intangibles” or
“nonvisibles”, including transactions in patents and copyrights, and charges
that may be recorded in business accounting records under variety of
names, such as allocated expenses, headquarter expenses, or miscellaneous
charges. (However, not all services transactions are covered by the BE-125
survey – see below for a list of exclusions.) For example, services
transactions include receipts and payments for the following categories of
services:
1.
Education, financial, construction, telecommunications, and other
private services, including rents under operating leases.
Rights to use or acquire or sell intangible assets such as patents,
trademarks, copyrights, formulae, etc.
Charges that companies assess against their foreign units for overhead,
management services, R&D, advertising, and other support activities.
2.
3.
Services transactions exclude the following categories:
Confidentiality – The Act provides that your report to this Bureau is
CONFIDENTIAL and may be used only for analytical or statistical purposes.
Without your prior written permission, the information filed in your report
CANNOT be presented in a manner that allows it to be individually identified.
Your report CANNOT be used for purposes of taxation, investigation, or
regulation. Copies retained in your files are immune from legal process.
1.
Purchases or sales of goods. Trade in goods involves products that have
a physical form, and includes purchases or sales of electricity.
Purchases or sales of financial instruments, including stocks, bonds,
financial derivatives, loans, mutual fund shares, and negotiable CDs.
(However, securities brokerage is a service.) Also excludes premiums
(and losses or benefits) on insurance policies and annuities.
Income on financial instruments (interest, dividends, capital gain
distributions, etc).
Compensation paid to, or received by, employees.
Taxes, penalties and fines, gifts or grants (sometimes called “unilateral
transfers”).
2.
NOTES –
1.
2.
A single original copy of this report must be filed with the Bureau of
Economic Analysis (BEA); please use the copy with the address label
if such a labeled copy has been provided.
Currency amounts should be reported in U.S. dollars rounded to
thousands (omitting 000). EXAMPLE - If the amount is $1,000,000,
report as $1,000. Amounts less than $500.00 round to "0" and
should, therefore, be omitted.
I. WHO IS TO REPORT AND GENERAL COVERAGE
A.
Who is to report and transactions to be reported
1. Mandatory reporting – A BE-125 report is required from each U.S.
person (See General Instruction II. G. for definition of person.) that had
sales in excess of $6,000,000 or purchases in excess of $4,000,000 with
foreign persons in any of the services or intangible assets listed in V. of
these General Instructions during the U.S. person’s prior fiscal year or for
which sales or purchases are expected to exceed that amount during the
current fiscal year. The determination of whether a U.S. person is subject to
this mandatory reporting requirement may be judgmental, that is, based on
the judgment of knowledgeable persons in a company who can identify
reportable transactions on a recall basis, with a reasonable degree of
certainty without conducting a detailed records search. Reporters who must
report sales pursuant to this mandatory requirement must complete Table 1
and Schedules A and/or C of this form, and reporters who must report
purchases pursuant to this mandatory requirement must complete Table 2
and Schedule B of this form. The total amounts of transactions applicable
to a particular schedule are to be entered in the appropriate column(s) on
line 33 of the schedule. In addition, these amounts must be distributed
above line 33 to the country(ies) involved in the transaction(s).
3.
4.
5.
For additional clarifications of reporting requirements, please read the BE-125
survey instructions, or call (202) 606-5588.
C. BE-125 definition of sales (receipts) or purchases (payments)
It should be noted that an item other than sales or purchases may be used as
the measure of a given service for purposes of determining whether the
threshold for mandatory reporting of the service is exceeded. Note that in
several cases – advertising; telecommunications; performing arts, etc.;
merchanting; miscellaneous disbursements (included in transaction number
31 in V. of these General Instructions); – measures other than, or in
addition to, sales or purchases of services should be used. See V. of these
General Instructions for an explanation of what measure should be applied
in determining whether you are subject to the BE-125 survey’s mandatory
reporting requirements for a given service.
D.
Clarification of coverage and special situations
1.
Reporting period – Form BE-125 is a quarterly report; one report
is to be filed for each fiscal quarter of the year.
2.
Date of recording transactions – Transactions are to be reported
on an accrual basis. However, telecommunications services should
be reported on a settlement basis.
Withholding taxes – Data should be reported gross of U.S. and
foreign withholding taxes.
3.
4.
5.
6.
7.
8.
9.
Services covered regardless of where performed – Services sold
to, or purchased from, foreign persons should be reported
regardless of whether the services were performed in the United
States or abroad.
Services or intangible assets bundled with goods or with other
services and not separately valued – When a sale or purchase
consists of both goods and services or intangible assets, or of
several services or intangible assets, that cannot be unbundled (i.e.,
the goods and/or services/intangible assets are not separately
valued), it should be classified based on whichever accounts for a
majority of the value or on the basis of the reporter’s customary
practice.
Accounting for purchases – Purchases of services or intangible
assets should be included without regard to whether they are
charged as an expense on the income statement, capitalized, or
charged to inventories.
Partnerships – A partnership is a business enterprise and must
report if it has transactions covered by this survey. The report must
be for, and the data and information must cover, the partnership as
a whole, not just the activities of an individual partner.
Projects with U.S. Government nonmilitary agencies – Report
information on services that are provided abroad for U.S.
Government nonmilitary agencies, such as the Agency for
International Development and the United States Information
Agency, or that are part of an aid or technical cooperation program
of the Government with foreign persons. However, do not report
services provided to the U.S. Department of Defense or any of its
agencies, such as the Army Corps of Engineers.
International organizations – Report transactions with
international organizations, which, according to balance of
payments conventions, are considered foreign persons even
if they are headquartered in the United States. Enter the
abbreviated designation, “Int’l Org.” as the name of the country of
the foreign party to the transaction.
10. Internet transactions – Reporting requirements are
determined by who the transactions are with and not by
where the services are performed or the location of the
buyer and seller at the time of the transaction. Thus,
reportable transactions include those conducted over
the Internet or other networks.
holding companies from Sector 55 of the North American Industry
Classification System United States, 2002.
D.
U.S. reporter is the U.S. person filing a report in this survey (see I.E.
for further clarification).
E.
United States, when used in a geographic sense, means the several
States, the District of Columbia, the Commonwealth of Puerto Rico, and
all territories and possessions of the United States.
F.
Foreign, when used in a geographic sense, means that which is situated
outside the United States or which belongs to or is characteristic of a
country other than the United States.
G.
Person means any individual, branch, partnership, associated group,
association, estate, trust, corporation, or other organization (whether or
not organized under the laws of any State), and any government
(including a foreign government, the United States Government, a State
or local government, and any agency, corporation, financial institution,
or other entity or instrumentality thereof, including a government
sponsored agency).
1.
2.
H.
Business enterprise means any organization, association, branch or
venture which exists for profit making purposes or to otherwise secure
economic advantage, and any ownership of any real estate. (A business
enterprise is a "person" within the definition in paragraph G above.)
I.
Direct investment means the ownership or control, directly or
indirectly, by one person of 10 percent or more of the
voting securities of an incorporated business enterprise or an equivalent
interest in an unincorporated business enterprise.
J.
Parent means a person of one country who, directly or indirectly, owns
or controls 10 percent or more of the voting stock of an incorporated
business enterprise, or an equivalent ownership interest in an
unincorporated business enterprise, which is located outside that
country.
1.
E.
Consolidation
If the U.S. Reporter is a corporation, please complete Form BE-125 to
cover reportable transactions for the fully consolidated U.S. domestic
enterprise consisting of (i) the U.S. corporation whose voting securities
are not owned more than 50 percent by another U.S. corporation, and,
proceeding down each ownership chain from that U.S. corporation, (ii)
any U.S. corporation whose voting securities are more than 50-percent
owned by the U.S. corporation above it.
2.
Affiliated foreign group means (i) the foreign parent, (ii) any foreign
person, proceeding up the foreign parent’s ownership chain, which owns
more than 50 percent of the person below it up to and including that
person which is not owned more than 50 percent by another foreign
person, and (iii) any foreign person, proceeding down the ownership
chain(s) of each of these members, which is owned more than 50 percent
by the person above it.
L.
Affiliate means a business enterprise located in one country that is
directly or indirectly owned or controlled by a person of another country
to the extent of 10 percent or more of its voting stock for an incorporated
business or an equivalent interest for an unincorporated business,
including a branch.
II. DEFINITIONS
A.
B.
C.
Services are economic activities whose outputs are other than tangible
goods. This term includes, but is not limited to, banking, other financial
services, insurance, transportation, communications and data processing,
retail and wholesale trade, advertising, accounting, construction, design,
engineering, management consulting, real estate, professional services,
entertainment, education, and health care.
Financial services include trading, issuing, dealing, underwriting, lending,
custody, etc., of financial instruments; financial advisory or management
services; credit-related services (including establishing, maintaining, or
arranging credits, letters of credit, lines of credit, mortgages, etc.); financial
rating services; electronic funds transfer services; insurance services; etc.
These services typically are performed by firms classified in Sector 52 –
Finance and Insurance – of the North American Industry Classification
System United States, 2002 (see II.C. below).
Financial services provider - Except for Monetary Authorities (i.e.,
Central Banks) the definition of financial services providers used for this
survey is identical in coverage to Sector 52, Finance and Insurance, and
U.S. parent means the U.S. person that has direct investment in a
foreign business enterprise.
Foreign parent means the foreign person, or the first person
outside the United States in a foreign chain of ownership, which
has direct investment in a U.S. business enterprise, including a
branch.
K.
The fully consolidated U.S. domestic enterprise excludes foreign
branches and other foreign affiliates.
Conditions may exist that would lead a U.S. corporation to exclude
certain majority-owned (more than 50-percent owned) domestic
subsidiaries from financial statements used in reports to shareholders. If
such a subsidiary has covered transactions, it must file a report under its
own name, and the subsidiary will be considered the U.S. reporter for
purposes of this survey.
United States person means any person resident in the United
States or subject to the jurisdiction of the United States.
Foreign person means any person resident outside the United
States or subject to the jurisdiction of a country other than the
United States.
1.
2.
Foreign affiliate means an affiliate located outside the United
States in which a U.S. person has direct investment.
U.S. affiliate means an affiliate located in the United
States in which a foreign person has direct investment.
M.
Affiliated foreign person means, with respect to a given U.S. person, (i)
a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the
foreign parent or other member of the affiliated foreign group of which
the U.S. person is a U.S. affiliate.
N.
Unaffiliated foreign person means, with respect to a given U.S. person,
any foreign person that is not an affiliated foreign person as defined in
paragraph M above.
O.
Fiscal year is the U.S. reporter’s financial reporting year.
P.
Country means, for purposes of this survey, the country of
location of the foreign person with whom a transaction has
occurred.
III. GUIDELINES FOR CATEGORIZING ACTIVITIES
A.
Distinguishing between unaffiliated and affiliated transactions
This survey covers U.S. persons’ direct transactions, both sales
and purchases, with affiliated and unaffiliated foreign persons.
Examples of affiliated transactions are:
1.
A transaction between a U.S. person (U.S. parent) and its
foreign affiliate.
2.
A transaction between a U.S. person (U.S. affiliate) and its
foreign parent(s) or member(s) of the affiliated foreign group(s).
Examples of unaffiliated transactions are:
1.
2.
A transaction between a U.S. person and an unaffiliated
foreign person.
A transaction between one U.S. person and another U.S.
person’s foreign affiliate. Such a transaction is reportable
by the first U.S. person.
A determination of whom a sale is to, or who a purchase is from, shall be
made on the basis of whom the U.S. person considers itself to have a claim on
for payment, in the case of a sale, or whom it has a liability to, in the case of a
purchase. For a sale, if the U.S. person looks to the foreign person for
payment, then the transaction is between the U.S. person and the foreign
person, and is to be reported by the U.S. person. If the U.S. person looks to the
intermediary for payment, and the intermediary, in turn, looks to the foreign
person for payment, then whether either transaction is reportable, and who it is
to be reported by, depends on the location of the intermediary and the
relationship between the U.S. person and the intermediary.
If the intermediary is a foreign person, then the U.S. person would report the
transaction, as a transaction with a foreign person.
If the intermediary is a U.S. person, then the initial transaction between the
original U.S. person and the intermediary is domestic-to-domestic and not
reportable in the survey. However, the intermediary must report the
transaction with the foreign person.
The reportability of a purchase would be determined in a similar manner.
IV. REPORTING PROCEDURES
A.
Examples of transactions that are not reportable are:
1.
2.
B.
A transaction between a U.S. affiliate of a foreign parent
and another U.S. person.
B.
A transaction between a U.S. parent’s foreign affiliate and
another foreign person.
Foreign activities of a U.S. person that do not constitute a foreign
affiliate
Although the definitions of direct investment and foreign affiliate in
II. above, together with the discussion in III.A. above, should be sufficient to
determine whether a given foreign activity is or is not a foreign affiliate, in a
number of cases the determination may be difficult. Several factors to be
considered are given below. If you still cannot determine if the activity or
operation is an affiliate, call (202) 606–5588 for additional guidance.
C.
E.
If a U.S. person’s foreign activity or operation is incorporated
abroad, it is a foreign affiliate.
F.
If a U.S. person’s foreign activity or operation is not incorporated abroad, its
status is based on the weight of the evidence when the factors listed below are
considered.
U.S. Department of Commerce
Bureau of Economic Analysis
BE-50(SSB)
Washington, DC 20230
An unincorporated foreign activity or operation generally would be
considered a foreign affiliate if it: (i) is subject to foreign income taxes;
(ii) has a substantial physical presence abroad (e.g., plant and equipment or
employees); (iii) maintains separate financial records that would permit the
preparation of financial statements, including an income statement and
balance sheet (not just a record of disbursements and receipts); (iv) takes title
to the goods it sells and receives revenues there from; or (v) receives funds for
its own account from customers for services it performs. Transactions with
this type of entity should be reported under “Foreign affiliates.”
An unincorporated foreign activity or operation generally would not be
considered a foreign affiliate if it: (i) conducts business abroad only for the
U.S. person’s account and not for its own account (e.g., sales promotion or
public relations type of activities); (ii) has no separate financial statements;
(iii) receives funds to cover its expenses only from the U.S. person; (iv) is not
subject to foreign income taxes; and (v) has limited physical assets, or
employees, permanently located abroad. Transactions with this type of entity
should be reported under “Unaffiliated foreign person.”
C.
U.S. activities of a foreign person that do not constitute a U.S.
affiliate
Due date – A completed BE-125 report, consisting of Parts 1 and 2 and,
as appropriate, either the applicable schedule(s) or the Basis for not
Reporting Data section, is due within 45 days after the close of each
fiscal quarter (or within 90 days after the close of the final quarter of
your fiscal year).
For assistance or additional copies of the forms – Phone (202) 606–
5588 between 8:30 a.m. and 5:00 p.m., eastern time. A copy of the
form may be downloaded from www.bea.gov/bea/surveys/iussurv.htm.
To receive a copy of frequently asked questions (FAQ’s) send an E-mail
to [email protected] or go to www.bea.gov to view the BE-125
FAQ’s.
Extension – Requests for an extension of the reporting deadline will
not normally be granted. However, in a hardship case, a written
request for an extension will be considered if it is received at least
15 days before the due date. BEA will provide a written response to
such a request. Requests for extensions may also be sent via Email to [email protected].
Original and file copies – A single original copy of the form must be
filed with BEA. Please use the copy with the address label if such a
labeled copy has been provided. In addition, each U.S. reporter must
retain a copy of its form for three years to facilitate resolution of
problems.
Where to send the report – Send reports filed by mail through the U.S.
Postal Service to:
Direct reports filed by private delivery service to:
U.S. Department of Commerce
Bureau of Economic Analysis, BE-50(SSB)
Shipping & Receiving Section M-100
1441 L Street, N.W.
Washington, DC 20005
Fax the report to: (202) 606-5318.
Reports may also be filed electronically at www.bea.gov/efile.
G.
Estimates – If actual figures are not available, report estimates and label
them as such.
V. SERVICES COVERED
A.
Transactions in Intangible Assets
Report receipts on Schedule A and payments on Schedule B.
Criteria for determining which U.S. activities do or do not constitute a U.S.
affiliate of a foreign person are parallel to those in III.B. above.
1.
D.
Determining who must report a transaction when an intermediary is
involved
At times, transactions between a U.S. person and a foreign person may be
arranged by, billed through, or otherwise facilitated by, an intermediary. The
intermediary may be U.S. or foreign, and may be affiliated or unaffiliated with
the U.S., or the foreign, person.
Rights related to industrial processes and products — Include license
fees, royalties, and other fees received or paid for the use, sale, or purchase
of intangible assets, including patents, trade secrets, and other proprietary
rights, that are used in connection with, or related to, the production of
goods. (For example, include "maintenance" fees paid to foreign
governments for the continuation of patent rights.) If the charge for the
process, design, etc., is subsumed in a contract for technical or
professional services, the receipt or payment generally should be reported
under the proper transaction number for that service.
2.
A sponsor of an international sporting event, such as the
Olympics, should include payments of sponsorship fees if the right
to use a trademark, such as the Olympic logo, in advertising, or to
place such a trademark on merchandise is conveyed. Fees paid
for the display of the payers logo or trademark are reported under
transaction code 10 as advertising payments. Exclude fees
received or paid under a business format franchise (which
are reportable under transaction code 7).
Rights related to performances and events pre-recorded on motion
picture film and TV tape — Include royalties, rentals, license fees, and
other funds received or paid, including those from outright sales and
purchases, for the rights to display, reproduce, or distribute material prerecorded on motion picture film or television tape. Include payments and
receipts for all uses, including theatrical, cable, broadcast television, and
non-theatrical.
5. Rights related to broadcasting and recording of live performances and
events — Include receipts and payments for rights to record and/or
broadcast "live" artistic performances, sports events, and other live
performances or events. Payments (or receipts) for the acquisition (or sale)
of rights to broadcast a major live performance or event, such as the
Olympics, often extend over several years prior to the event. The
cumulative amount of payments over all the years is to be reported on this
form as an acquisition or sale of broadcast rights only in a single year in
which the event is actually held. The prior-year payments are considered to
be deposits with the organization (such as the International Olympic
Committee) selling the broadcast rights, and should be reported on the
Department of Treasury’s TIC C-form. Inquiries about the TIC C-form
survey should be directed to the Federal Reserve Bank of New York (as
contractor for the Treasury Department) at (212) 720-2542.
6.
In Schedule A, U.S. franchisors should report receipts from both foreign
outlets and foreign master licensees. In the case of fees received from a
foreign master licensee, report only the net fees received from foreign
outlets. Include receipts from "company-owned" outlets abroad. Include
receipts from jointly owned outlets.
Rights related to books, compact discs, audio tapes, etc. —Include
royalties and other fees received or paid for the rights to perform,
broadcast, reproduce, and sell as books, compact discs, audio tapes, etc., or
otherwise use copyrighted material and other intellectual property.
Exclude fees for the right to display, reproduce, or distribute pre-recorded
television tape or motion picture film; such charges should be reported
under transaction code 4.
3. Rights related to trademarks — Include receipts and payments
for the rights to sell products under a particular trademark, brand
name, or signature. Include the initial fee and annual fees for the
domain name registration for the Internet and the receipt and
payment from the sale of a previously registered name. Include
fees for sponsorship of other events if the fee is for the right to
use the logo or trademark of the payee.
4.
based upon sales or other measures.
In Schedule B, U.S. outlets and master licensees should report payments
made directly to foreign franchisors. U.S. outlets should not report
payments to U.S. master licensees, as these are domestic (U.S.-to-U.S.)
transactions. Payments by a "company-owned" U.S. outlet to a foreign
owner should be reported.
8.
B. Transactions in Selected Services
Report receipts on Schedule A (except transaction codes 13, 16,
and 23) and payments on Schedule B. Report receipts for transaction
codes 13, 16, and 23 on Schedule C.
9.
Excludes
Under purchases of advertising services, U.S. reporters that are
advertising agencies should report only funds paid to foreign
advertising agencies and media companies on behalf of their clients.
U.S. Reporters other than advertising agencies should report only
purchases made directly from foreign advertising agencies and
media companies. Do not report purchases made through a U.S.
advertising agency. Also, do not report purchases made through the
U.S. office of a foreign advertising agency if your payment is
made to the U.S. office.
Include the value of reciprocal exchanges; i.e., transactions
involving barter. On Schedule A, value your sales to the foreign
participant in the reciprocal exchange at market rates, not at the
actual cost of performing the services. On Schedule B, value your
purchases from the foreign participant at the same amount as the
sales reported on Schedule A.
7. Business format franchising fees — Fees received and paid by the U.S.
reporter under business format franchising agreements with foreign
persons.
Receipts and payments should be reported net of advertising
allowances and other deductions retained by franchisees from
gross franchise fees. Include receipts and payments for one-time
"up front" charges to new franchisees as well as ongoing fees
Accounting, auditing, and bookkeeping services data processing and tabulation services.
10. Advertising services - Preparation of advertising and
placement of such advertising in media, including charges for
media space and time. Include advertising banners on web pages.
An advertising agency selling such services should report gross
billings to unaffiliated foreigners. Sales by media companies
(e.g., broadcasters, publishers, etc.) that are arranged through
U.S. advertising agencies are presumed to be reflected in billings
of the advertising agencies; thus, in order to avoid duplication,
they should not be reported by the media suppliers. U.S.
advertising agencies should report only direct transactions with
foreign clients. Exclude transactions that are with the
U.S. affiliates of foreign clients, rather than directly with foreign
clients; such transactions are considered domestic (U.S.-to-U.S.)
and, therefore, outside the scope of this survey. Exclude charges
for services other than advertising, such as public relations services
or market research not directly associated with an advertising
campaign. Such services should be reported under transaction
code 21. U.S. media companies should report only direct sales of
advertising services to unaffiliated foreign persons; they should not
report advertising arranged by U.S. advertising agencies, including
U.S. affiliates of foreign advertising agencies.
Rights to general use computer software — Include receipts
and payments for rights to distribute general use software, and
rights to reproduce or use general use computer software that was
electronically transmitted or made from a master copy. This item
includes licensing fees for reproducing copies of general use
software for local area network computer systems, and excludes
that value of prepackaged general use software not intended for
use on a server in a LAN environment that was physically shipped
to or from the United States and included in merchandise trade
statistics. Exclude fees for custom software and programming
services, which are reportable under transaction code 12.
Business format franchising is characterized by an ongoing
business relationship between franchisor and franchisee that
includes not only the product, service, and trademark, but the entire
business format itself. This may include a marketing strategy and
plan, operating manuals and standards, quality control, and
continuing two-way communications. Exclude receipts and
payments for the use of trademarks (reportable under transaction
code 3), except where such trademarks are part of a business
format franchise, even if the fees are nominally considered to be
"franchising" fees.
Other intangible assets — Include receipts and payments involving
intangible assets not classified in one of the preceding categories.
Include receipts or payments by communications carriers to secure
capacity by indefeasible right of users (IRU’s). For entries in this
column, please specify on line 35 the type of intangible right involved.
11.
Auxiliary insurance services – Agent’s commissions,
insurance brokering and agency services, insurance consulting
services, evaluation and adjustment services, actuarial services,
salvage administration services, and regulatory and monitoring
services on indemnities and recovery services. Non-insurance
companies report these transactions on the BE-125. Insurance
companies report these transactions on the BE-45, Quarterly
Survey on Insurance Transactions by U.S. Insurance Companies
with Foreign Persons.
12.
Computer and data processing services — Data entry processing
(both batch and remote), and tabulation; computer systems analysis,
design, and engineering; custom software and programming services
(including web design); integrated hardware/software systems; and other
computer services (timesharing, maintenance, web site management, and
repair). Exclude operational leasing of computer and data processing
equipment (include in transaction code 24); rights to use, distribute, or
reproduce general use software (include in transaction code 6); and
prepackaged computer software physically shipped to or from the United
States and reported on the import or export declaration filed with the
U.S. Customs and Border Protection.
13. Construction services — Services of general contractors in the
field of building and heavy construction; construction work by special
trade contractors, such as the erection of structural steel for bridges
and buildings and on-site electrical work.
14. Data base and other information services — Business and
economic data base services, including business news, stock
quotation, and financial information services; medical, legal,
technical, demographic, bibliographic, and similar data base
services; general news services, such as those purchased from a
news syndicate; direct non-bulk subscriptions (including online) to
newspapers and periodicals; and other information services,
including reservation systems and credit reporting and authorization
systems. For airline reservation systems, include booking fees
from foreign carriers for the use of your reservation system,
whether accessed directly or by a U.S. or foreign travel agent.
15.
Educational and training services – Educational or training
services provided or acquired on a contract or fee basis. Includes
tuition and fees charged when the institutions provide the
educational service through distance learning technologies using
the Internet. Excludes tuition and fees charged to U.S. and foreign
persons by educational institutions when the students travel to the
institution for study. Also excludes training provided by a manufacturer
in connection with the sale of a good (report under transaction code
19).
16.
Engineering, architectural, and surveying services — Includes
architectural, engineering and land-surveying services. Includes
those engineering services performed in conjunction with
construction and mining services projects. Includes services
purchased in connection with proposed projects (e.g., feasibility
studies) as well as projects that are actually being carried out.
Industrial engineering services, such as product design services,
should be reported under transaction code 18.
17. Financial services (purchases only) – Include payment of creditrelated fees, fees on securities transactions, and fees for other
financial services. This service is to be reported by non-financial
services companies only. Financial services companies would report
this service on form BE-85. A copy of the form can be downloaded
from www.bea.gov/bea/surveys/iussurv.htm.
Credit related fees include fees for establishing, maintaining, or
arranging credits, letters of credit, bankers acceptances, mortgages,
factoring services, loan guarantees, etc., that are commonly
provided by foreign banking establishments. Include fees paid
directly and fees that are withheld or deducted from your proceeds
by the foreign person. For example, for factoring services, the fee
may be calculated as the difference between the proceeds you
received from the sale of your receivables and the face amount of
the receivables sold; for arranging credits, letters of credit, etc., it
may be calculated as the difference between the proceeds you
received from the loan, letter of credit, etc. (after the deduction of
the fee) and your liability to the foreign lending establishment.
Report credit-related fees in the accounting period in which they are
incurred, whether or not expensed in that accounting period.
Exclude interest on your obligations, because interest is a payment
for the use of the loan proceeds and is not a fee for the
establishment, maintenance, or arrangement of credit.
Fees on securities transactions include commissions and other fees
for securities transactions (including transactions in derivatives) or
future trading, such as brokerage, underwriting, private placements,
etc. Fees for such services would commonly be paid to foreign
investment banks and securities brokers or dealers. Include fees
that can be calculated from transactions records or other
documentation issued by the investment bank or security broker or
dealer. Omit, rather than attempt to estimate, these fees if they
cannot be calculated from such documentation. (For example, a
dealer’s markup on bond purchases and sales cannot be directly
estimated from transactions records issued by a securities dealer.)
Fees for other financial services include fees for asset/liability
management, debt renegotiation, and other financial services.
Exclude leasing (operational leasing services are included in
transaction code 24), and real estate management services
(management, consulting, and public relations services are included
in transaction code 21).
18. Industrial engineering services — Engineering services related to the
design of movable products, including product design services. Excludes
engineering and architectural services that relate to actual or proposed
construction services projects (reportable under transaction code 16).
Excludes computer systems engineering (reportable under transaction
code 12). Includes, however, services performed with the assistance of
computers, such as computer-assisted design work.
19. Industrial-type maintenance, installation, alteration, and
training services — Maintenance services primarily to
machinery and equipment. May also include small
maintenance work on buildings, structures, dams, highways, etc.,
but only to the extent that the work is not reported under transaction
code 13. Includes such services as the periodic overhaul of
turbines, the extinguishment of natural gas well fires, and refinery
maintenance. Excludes computer maintenance (report under
transaction code 12). Installation and training services include only
installation, startup, and training services provided by a
manufacturer in connection with the sale of a good. Do not include
such services where the cost is included in the price of the goods
and not separately billed, or is declared as a part of the price of the
goods on the import or export declaration filed with the U.S.
Customs and Border Protection; however, services provided at a price
over and above that entered on the declaration should be included. These
services would be reported elsewhere if not received in connection
with the purchase of goods. For example, installation of machinery
and equipment is normally considered a construction activity, and
training personnel in the use of new machinery would ordinarily be
reported as an educational or training service.
20. Legal services - Legal advice or other legal services.
21. Management, consulting, and public relations services (including
allocated expenses) — Management services; consulting services, except
consulting engineering services related to actual or proposed construction
projects (report under transaction number 16) and computer consulting
(report under transaction number 12); and public relations services, except
those that are an integral part of an advertising campaign (report under
transaction code 10). Includes expenses allocated by a parent to an
affiliate for which the parent paid for services (advertising, accounting,
legal, etc.) from a third party. Includes services provided by a parent to an
affiliate for which the parent performed administrative services
(accounting, legal, etc.) in-house and are passed through to the affiliate as
management or administrative expense.
22. Merchanting services (Receipts only) – Sales of merchanting
services are equal to the difference between your cost and the
resale price of goods (such as crude oil, grain, and other
commodities) that are both purchased and resold abroad; that is,
the goods are neither imported to, nor exported from, the United
States and they do not undergo significant processing during the
time between when they are purchased and resold. Without regard
to whether you initially purchased the goods from an affiliated or
unaffiliated foreign person, report data for those transactions according
to the company’s relationship with the foreign entity (foreign affiliate,
foreign parent(s) and foreign affiliates of foreign parent(s) group(s),
or unaffiliated foreign person) to which the goods were resold. The
data that are voluntarily reported by individual foreign
country should be reported according to the individual foreign
countries to which the goods were resold (and not the foreign
countries from which the goods were purchased).
23. Mining services – Includes drilling wells for oil or gas field
operations; exploration, including prospecting and taking ore
samples; grading and building foundations at well locations; well
surveying; and making geological observations. Includes services
purchased in connection with proposed projects (e.g. feasibility
studies) as well as projects that are actually being carried out.
24. Operational leasing — Rentals for computer and data processing
equipment; transportation equipment (such as ships, aircraft, railway cars,
containers, rigs automotive fleets, etc.) without crew or operators (If crew
or operators are provided, the fee is considered to be for transportation
services which may be reportable on BEA forms BE-9, BE-30, or BE-37.
Go to www.bea.gov/bea/surveys/iussurv.htm to determine which forms
cover your particular transportation services.); and rentals of other
machinery and equipment. Include fees from rentals of furniture, coinoperated machines, construction equipment (without operators) and
electronic equipment except computers. This category excludes rentals
under leases that have been capitalized (capital leases), rentals of any
items other than machinery and equipment. (For example, it excludes
rentals of office buildings and other real estate, film rentals, and employee
leasing).
25. Trade-related services, other than merchanting services – Auction
services (including online), transactions fees for business to business
(B2B) exchanges conducted over the Internet, and commissions or
"finders’ fees" to independent sales agents.
26. Performing arts, sports, and other live performances, presentations,
and events – (Report receipts on Schedule A and payments on Schedule
B): Fees received (net of allowances for foreign expenses) or paid (net of
allowances for U.S. expenses) for performing arts, sports, etc. To be
reported by (a) U.S. management companies, booking agents, promoters,
and presenters who received funds from or paid funds to foreign persons,
for performances and events, and (b) U.S. performers who received funds
directly from a foreign person rather than through a U.S. management
company or similar entity. (As used here “performers” means entertainers,
sports teams, orchestras, dance companies, lecturers, athletes who do not
play for sports teams, and similar persons or performing groups.)
Note for services numbered 27 and 28: When you report either transaction codes
number 27 or 28, also report the other service. If there are transactions in one of
these services but not in the other, label a column in Schedule B with the number
for the other service and enter "NA" in line 1 or 33.
27. Primary insurance premiums (purchases only) – Premiums (net
of cancellations) paid to foreign insurance carriers. A U.S. reporter
that is an insurance company should not report direct transactions
with a foreign insurance company. However, a U.S. reporter that is
not an insurance company and that purchased insurance from an
affiliated foreign insurance company (for example, a captive
insurance affiliate) should report those purchases here. (See note above.)
28. Losses recovered on primary insurance (purchases only) –
Losses recovered on insurance purchased from foreign
insurance carriers. A U.S. reporter that is an insurance company
should not report losses with a foreign insurance company.
However, a U.S. reporter that is not an insurance company and that
purchased insurance from an affiliated foreign insurance company
(for example, a captive insurance affiliate) should report losses recovered
here. (See note above transaction code 27.)
29. Research, development, and testing services — Commercial and
noncommercial research, product development services, and testing
services. Includes fees for the conduct of experiments or performance of
research and development activities aboard spacecraft. Excludes
medical and dental laboratory services.
30. Telecommunications services — Includes services of the
following types (to be reported in aggregate, rather than as
five separate types of services):
Message telephone services, telex, telegram, and other jointly
provided basic services — On Schedule A, report receipts from
foreign persons (communications companies and postal, telephone,
and telegraph agencies) for your share of revenues for transmitting
messages originating abroad to U.S. destinations. On Schedule B,
report payouts to foreign persons (communications companies and
PTT’s) for their share of revenues for transmitting messages
originating in the United States to foreign destinations. For
messages originating in foreign countries and routed through the
United States (for example, from Caribbean countries via the United
States to Western Europe), report receipts from the foreign person
originating the message and payouts to the country of destination.
Also report receipts for transmitting messages between foreign
points when not offered in connection with enhanced services, callback services, and other regulated services of the type reportable
to the FCC on Report 43.61.
Private leased channel services — On Schedule A, report
receipts from foreign persons for circuits and channels terminating
in the United States and for circuits and channels between foreign
points. On Schedule B, report payouts to foreign persons
(communications companies and PTT’s) for leased channels and
circuits terminating in foreign countries.
Value-added (enhanced) services — Telecommunications
services that add value or function above and beyond the
telecommunications transport services that deliver the value-added
services to end users. They can include (a) electronic mail, voice
mail, code and protocol processing, and management and
operation of data networks; (b) facsimile services and videoconferencing; (c) Internet connections (online access service
including Internet backbone, router services and broadband access
services); (d) satellite broadcasting, business communication, and
paging services provided by satellite connections; (e) telephony,
interactive voice response, virtual private networking, remote
access service, and voice over IP; and (f) other value-added
(enhanced) services.
Support services — Services related to the maintenance and repair
of telecommunications equipment and ground station services
Reciprocal exchanges — Include the value of reciprocal
exchanges; i.e., transactions involving barter. On Schedule A, value
your sales to the foreign participant in the reciprocal exchange at
market rates, not at the actual cost of performing the services. On
Schedule B, value your purchases from the foreign participant at the
same amounts as the sales reported on Schedule A.
31. Other selected services -- When reporting data under this transaction
code number, also identify the specific type of transaction from the list
below accounting for the largest share of the reported total. This category
does not include travel, transportation, insurance, financial services, and
expenditures by students and medical patients who are studying or seeking
treatment in a country different from their country of residence. This
category includes but is not limited to the following types of services:
Agricultural services -- Soil preparation services, crop services,
veterinary and other animal services, farm labor and management
services, and landscape and horticultural services.
(Note for miscellaneous disbursements: Where a set of
related expenditures was made in several countries, but your
recordkeeping does not permit a precise allocation of expenses
among individual countries, estimates are acceptable. If no basis
for such estimates exists, then you may record the expenditures against
the country in which the activities were centered or headquartered. For
example, a news correspondent may conduct news-gathering activities
in several countries. Although it would be preferable to report newsgathering expenses in each of the several countries, all of the expenses
may, if necessary, be recorded against the country where the foreign
news bureau is headquartered, or where the correspondent had the
largest outlays.
Disbursements to fund news-gathering costs of broadcasters - U.S.
broadcasters’ outlays to fund operations of their foreign news bureaus
and for support of correspondents in foreign countries, and foreign
broadcasters’ outlays to fund operations of their U.S. news bureaus and
for support of correspondents in the United States. (See note above.)
Disbursements to fund news-gathering costs of print media – Outlays
by U.S. newspapers, news syndicates, and news magazines for the
operation of their foreign news bureaus, and outlays by foreign
newspapers, news syndicates, and news magazines for the operation of
their U.S. news bureaus. (See note above.)
Disbursements to fund production costs of broadcast program
material other than news – Foreign production costs of U.S.
companies engaged in the production of broadcast material other than
news, and U.S. production costs of foreign companies engaged in the
production of broadcast material other than news. Includes
disbursements for broadcasting professional or amateur sporting events,
and the disbursements for production of the events themselves. (See
note above.)
Disbursements to fund production costs of motion pictures – Foreign
production costs of U.S. motion picture companies, and U.S. production
costs of foreign motion picture companies. (See note above.)
Disbursements to maintain government tourism and business
promotion offices – Funding to maintain State tourism and business
promotion offices located abroad, and funding to maintain foreign
government sponsored tourism and business promotion offices located
in the United States. (See note above.)
Disbursements for sales promotion and representation – Funding to
maintain sales promotion and representative offices. Sales promotion
offices typically have few assets other than office furniture; to the extent
that their employees are compensated by commissions, the commissions
arise only from sales or business that the employees generate for their
U.S. or foreign parents; they do not produce revenue, other than funds
from their parents to cover their expenses; and they are engaged only in
sales promotion, representational, and public-relations-type activities.
Report the funds to maintain this type of office as a transaction with an
affiliated entity as opposed to a transaction with an unaffiliated foreign
person. (See note above.)
Disbursements to participate in foreign trade shows (outlays only) –
Foreign expenses incurred by U.S. persons participating in foreign trade
shows. (See note above.)
Employment agencies and temporary help supply services –
Employment services and provision of temporary help and
personnel to perform services on a contract or fee basis. Where
workers are carried on the payroll of the agency, includes amounts
received or paid for the compensation of workers as well as agency
fees.
Mailing, reproduction, and commercial art -- Direct mail
advertising services; mailing services, such as re-mailing services
in connection with direct mail advertising; commercial
photography, art, and graphic services; address list compilation;
and stenographic services.
Medical services – Includes remote diagnostic services, and
remote monitoring of surgical procedures provided to patients,
practitioners, and medical institutions (telemedicine) and services
of medical laboratories that do not deal directly with patients.
Waste treatment and depollution services – Treatment of
radioactive and other waste, stripping of contaminated soil, cleaning
up of pollution including spills, restoration of mining sites, and
de-contamination and sanitation services. Includes all other
services that relate to the cleaning or restoring of the environment.
Other private services – Report transactions in the following types of
services: Language translation services, salvage services, security services,
collection services, satellite photography and remote sensing/satellite
imagery services, space transport (includes satellite launches, transport of
goods and people for scientific experiments, and space passenger transport),
and transcription services. Include services not elsewhere classified, except
travel, transportation, insurance, financial services, and expenditures by
students and medical patients who are studying or seeking treatment in a
country different from their country of residence.
| File Type | application/pdf |
| File Title | Microsoft Word - BE-125 design.doc |
| Author | Iicje1 |
| File Modified | 2006-11-21 |
| File Created | 2006-11-21 |