BE-13 2014 Supporting Statement Part B

Supporting Statement for the BE-13
Survey of New Foreign Direct Investment in the United States
OMB Control Number 0608-0035
B. Collections of Information Employing Statistical Methods
1. Describe (including a numerical estimate) the potential respondent universe and any
sampling or other respondent selection method to be used. Data on the number of entities
(e.g. establishments, State and local governmental units, households, or persons) in the
universe and the corresponding sample are to be provided in tabular form. The tabulation
must also include expected response rates for the collection as a whole. If the collection has
been conducted before, provide the actual response rate achieved.
The potential universe is all U.S. business enterprises in which i) a foreign direct investment in
the United States relationship is created, ii) an existing U.S. affiliate of a foreign parent
establishes a new U.S. legal entity, expands its U.S. operations, or acquires a U.S. business
enterprise, or iii) a U.S. business enterprise that previously filed a BE-13B or BE-13D
indicated that the established or expanded entity is still under construction. These entities must
report on the BE-13 survey if the cost (or expected cost) of the acquisition, establishment, or
expansion exceeds $3 million. For those that do not meet the $3 million filing threshold, selected
data items will be reported on the BE-13 Claim for Exemption. BEA expects to receive reports
from approximately 1,350 U.S. business enterprises per year which includes 200 exemption
claims.
Based on BEA’s experience with other surveys of foreign direct investment in the United States,
BEA expects that nearly the entire universe of data required to be reported by respondents will
ultimately be reported, although some of these data will not be reported in time for inclusion in
the first (preliminary) published estimate.
BE-13 Universe and Response Rate
Form Type
Universe

Estimated
number of
respondents
1,350

Sample:
BE-13A - Acquisition
BE-13B - Establishment
BE-13C - Merger
BE-13D - Expansion
BE-13E - Cost Update
Total

450
150
100
50
400
1,150

Non-sample:
BE-13 Claim for Exemption
Total respondents

200
1,350

Expected response rate

90.0%

This information collection employs statistical methods for the purpose of expanding data
reported on Forms BE-13 Claim for Exemption to the same level of data reported on other BE-13
forms. For the preliminary release, estimates are also made to account for nonresponse. The
methods, which are described in more detail in B.2 below, are well-established and have been
used in previous surveys of foreign direct investment in the United States.
See B.3 below for a discussion of response rates.
2. Describe the procedures for the collection, including: the statistical methodology for
stratification and sample selection; the estimation procedure; the degree of accuracy
needed for the purpose described in the justification; any unusual problems requiring
specialized sampling procedures; and any use of periodic (less frequent than annual) data
collection cycles to reduce burden.
The Section 515 Information Quality Guidelines apply to this information. The information is
collected according to documented procedures in a manner that reflects standard practices
accepted by the relevant economic/statistical communities. BEA conducts a thorough review of
the survey input data using sound statistical techniques to ensure the data quality before the final
estimates are released. The data are collected and reviewed according to documented procedures
and best practices and on-going review by the appropriate supervisor. The quality of the data are
validated using computerized edit checks to detect potential errors and to otherwise ensure that
the data are accurate, reliable, and relevant for the estimates being made. Data are routinely
revised as more complete source data become available. The collection and use of this
information complies with all applicable information quality guidelines, i.e., OMB, Department
of Commerce, and those of the Bureau of Economic Analysis.
The criteria for determining which affiliates must be reported are described in B.1., above. Final
estimates are based on tabulations of reports received, supplemented by estimates for U.S.
business enterprises that fall below the reporting thresholds for the survey. Preliminary estimates
include, in addition, an estimate for delinquent reports that is based upon historical relationships
between the values reported in time for the preliminary estimates and the values ultimately
reported.
A high degree of accuracy is needed for the purposes stated in the justification.
No unusual problems have been encountered that would require the use of specialized sampling
procedures.
3. Describe the methods used to maximize response rates and to deal with nonresponse.
The accuracy and reliability of the information collected must be shown to be adequate for
the intended uses. For collections based on sampling, a special justification must be
provided if they will not yield “reliable” data that can be generalized to the universe
studied.
Several steps will be taken to maximize response rates. Based on a variety of sources of
information, including databases of mergers, acquisitions, and establishments, and articles
appearing on the internet or in newspapers, periodicals, or other reference publications, BEA

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attempts to identify potential respondents. BEA sends potential respondents a letter to inform
them of their reporting obligation. If a response to the letter is not received within 45 days, BEA
will send a follow-up letter and, if necessary, contact the respondent by telephone to inform them
of the reporting requirements. Because one of the major purposes of the survey is to update the
universe of foreign-owned U.S. companies, all leads are pursued for possible reporting.
Any person specifically contacted by BEA must respond in writing by filing either a completed
form BE-13 or a valid exemption claim. As stated in B.1. above, BEA expects that, in terms of
dollars, nearly the entire universe of data required to be reported by respondents will ultimately
be reported, although some of these data will not be reported in time for inclusion in the first
(preliminary) published estimate.

4. Describe any tests of procedures or methods to be undertaken. Tests are encouraged as
effective means to refine collections, but if ten or more test respondents are involved OMB
must give prior approval.
To date, no tests were conducted (aside from giving respondents the opportunity to comment on
proposed changes, as described in A.8, above). BEA is making arrangements for the Census
Bureau’s Response Improvement Research Staff (RIRS) to conduct a cognitive review of the
BE-13 survey forms. BEA plans to implement recommendations from RIRS for improvements to
the design and other aspects of the survey beginning in 2016.
5. Provide the name and telephone number of individuals consulted on the statistical
aspects of the design, and the name of the agency unit, contractor(s), grantee(s), or other
person(s) who will actually collect and/or analyze the information for the agency.
The survey is designed and conducted within BEA by the Direct Investment Division (DID). For
further information, contact Barbara K. Hubbard, Chief, DTPB, via email at
[email protected] or by phone at 202-606-9846.

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