2017 BE-12 Supporting Statement Part B - final

Supporting Statement for the BE-12 Benchmark Survey
of Foreign Direct Investment in the United States
OMB Control Number 0608-0042
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.
This survey is a benchmark survey, or census. A Form BE-12A, BE-12B, or BE-12C is required
for all U.S. affiliates whose data are not consolidated or merged into a BE-12 report filed by
another U.S. affiliate. BEA estimates it will mail the survey to approximately 22,700 U.S.
companies. BEA estimates the universe of U.S. affiliates is 20,200 companies and that 2,500
companies that are contacted will not meet the criteria to be in the universe and will file a BE-12
Claim for Not Filing.
2017 BE‐12 Universe and Response Rate

Universe
  BE‐12A
  BE‐12B
  BE‐12C

Estimated 
number of 
respondents
                 20,200
                    2,200
                    2,000
                 16,000

BE‐12 Claim for Not Filing

                    2,500

Total respondents

                 22,700

Form Type

Response rate in terms of assets of 
2007 BE‐12 survey

98.8%

Response rate in terms of assets of 
2012 BE‐12 survey

96.0%

Expected response rate in terms of 
assets of 2017 BE‐12 survey

98.0%

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.

This information collection employs statistical methods for the purpose of expanding the data
reported for the smallest foreign affiliates to the same level of detail reported for the largest
affiliates. Specifically, for majority-owned U.S. affiliates reporting on Form BE-12B or BE-12C,
BEA will estimate the additional detail that would have been filed on Form BE-12A. For
minority-owned U.S. affiliates reporting on Form BE-12C, BEA will estimate the additional
detail that would have been filed on Form BE-12B. Thus, filing by these affiliates on Form BE12B or BE-12C will not affect the amount of detail that can be published for majority-owned and
minority-owned affiliates. In general, the estimation will be accomplished by prorating reported
data, such as total assets, among subcomponents that are not reported, using the distribution
observed in the next higher size class of companies.
Estimates for missing reports or reports that do not pass data quality requirements will be derived
by extrapolating forward their reported data from earlier years on the basis of year-to-year
movement in the data reported by other affiliates.
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. In December 2017, BEA will provide
respondents with advance notice of the survey by mailing them an announcement of the
upcoming survey. The announcement will ask respondents to verify their mailing address and
status as a reporter. It will also alert them to the availability of electronic filing. In March 2018,
BEA will send another letter to all potential respondents.
Any person specifically contacted by BEA must respond, by filing either a completed form or a
Claim for Not Filing by May 31, 2018 (or by June 30, 2018 for reporting companies that use
BEA’s eFile system). Non-respondents will be sent follow-up notices and, in the event of
continued nonresponse, may be referred to the Office of the General Counsel for further action,
including possible referral to the Justice Department.
The response rates described in B.1., together with the estimation procedures described in B.2.,
will provide information of sufficient accuracy and reliability for the intended purpose.
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.
BEA sent the planned changes to selected respondent companies and data users and requested
their feedback. No respondents have submitted comments.
Many of the questions BEA is proposing to add to the survey have been collected in the past on
the BE-12 (such as the state-level data), on other survey forms of the same survey (such as the
supplements that will be added to the C form, which are already included on the A and B forms),

2

or on other surveys (such as the information that ties the BE-12 benchmark data more closely to
the related BE-605 quarterly data).
The only questions that are truly new are the questions on the Legal Entity Identifier and the
stock exchange and ticker symbol. BEA believes that these questions will be clear to survey
respondents, but has not conducted testing to confirm this. These questions are only included on
the A and B forms to minimize respondent burden. Adding these questions to the benchmark
survey is in itself a test to help BEA determine whether it would be of value to add them to other
BEA surveys in the future.
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 Patricia Abaroa, Chief, DID, via email at [email protected]
or by phone at 301-278-9591.

3