BE-120 V1 Version 1 Supplement

Supplemental Questionnaire on Sales of Services Based on Mode of Supply
1

Did you report any sales of services (transaction codes 9 through 41) on
XXXX

2

Schedules A or C ?

1

1 ■ Yes – Continue to Question 2.

1

2 ■ No – You have completed this section of the survey. Continue to section x on page xx.

For the two largest service types reported (based on total sales), please estimate a percentage breakdown on how those services were
supplied in the table below. See the definitions below for more information.
Cross-border Mode of Supply

Transaction Type

Transaction Type

Mode 1. Supplied from the United States to a foreign customer
digitally, i.e. through internet/phone/email.

___ ___ ___ . ___ %

___ ___ ___ . ___ %

Mode 2. Supplied to a foreign customer temporarily located in
the United States

___ ___ ___ . ___ %

___ ___ ___ . ___ %

Mode 3. Supplied to a foreign customer by a U.S. employee,
temporarily working abroad.

___ ___ ___ . ___ %

___ ___ ___ . ___ %

Understanding Cross-border Modes of Supply
Services are typically delivered across the U.S. border in one of three ways:
• Supplied from the United States to a foreign customer digitally (Mode 1), where both the supplier and the consumer remain in their respective
territories (which would correspond to the traditional notion of trade). Services by the supplier are typically delivered digitally through the internet,
email, or telephone. For example, a law enterprise may deliver legal advice by phone to a consumer, or a physician may provide a medical
diagnosis to a patient via video conferencing.
Mode 1. Services delivered from the United States to a customer overseas

Country X

United States
Service supply

Client in Country X

The service crosses the border, but
the provider and purchaser do not.

United States
service supplier

EXAMPLE: An architecture firm in the United States provides plans and advice to clients in a foreign country through
internet/phone/mail.

• Supplied to a foreign customer temporarily located in the United States (Mode 2), where the consumer consumes the service outside his or
her home territory. For example, a foreign client may travel to the United States for professional services such as legal representation or consulting.
Travel to receive medical treatment or follow language courses are also covered. Services such as construction, maintenance or installation, where
only the property of the consumer is transported to the United States, are also covered.
Mode 2. Services delivered to an overseas customer, temporarily in the United States

Country X

United States
Service
supply

Client in Country X

The purchaser travels to the United
States to consume the service.

EXAMPLE: A non-resident travels to the United States to receive legal advice from a U.S. company.

United States
service supplier

Supplemental Questionnaire on Sales of Services Based on Mode of Supply – Continued
• Supplied to a foreign customer by a U.S. employee temporarily working abroad (Mode 3), where an individual (either the service supplier
himself, if he or she is a self-employed person, or his or her employee) is present abroad in order to supply a service. For example, a software
designer who travels abroad to oversee a six-month-long software development project, or when an engineering firm performs its services on-site
overseas, are covered. NOTE: Services performed by a U.S. Reporter’s foreign affiliate, or through a member of the U.S. Reporter’s foreign parent
group (i.e. when the U.S. Reporter has a commercial presence abroad) are NOT covered, and are not reportable on this survey.
Mode 3. Services delivered by a U.S. employee working overseas

Country X

United States
Service
supply

Client in Country X

Employee travels to the client's
country to provide the service

EXAMPLE: An employee of a U.S. IT firm is sent to Country X to deliver IT services.

United States
service supplier