Annual Survey of U.S. Direct Investment Abroad

BE-11 Instructions

OMB NO. 0608-0053: APPROVAL EXPIRES 11/30/2018

U.S. DEPARTMENT OF COMMERCE

(REV. 01/2018)

BUREAU OF ECONOMIC ANALYSIS

2017 ANNUAL SURVEY OF U.S. DIRECT INVESTMENT ABROAD
INSTRUCTIONS
The Annual Survey of U.S. Direct Investment Abroad is conducted
to secure current economic data on the operations of U.S. parent
companies and their foreign affiliates. Reports filed in this survey
should be consistent with those filed in the 2016 BE-11 Annual
Survey of U.S. Direct Investment Abroad in regard to concepts and
definitions, accounting methods, affiliate and reporter consolidations,
etc. However, filing this report is not contingent upon having filed a
2016 BE-11.
Electronic filing option (eFile) – Forms that can be
transmitted to BEA electronically will be available on the BEA Web
site: www.bea.gov/efile. If you eFile, please do not submit paper
reports.
I. REPORTING REQUIREMENTS
A response is required from persons (as defined in subsection
801.2(c) of 15 C.F.R. pt. 801) subject to the reporting requirements of
the BE-11 survey. Persons contacted by BEA concerning their being
subject to reporting, either by sending them a report form or by
written inquiry, must respond pursuant to section 801.3 of 15 C.F.R.
pt. 801 and instructions accompanying a report form. This may be
accomplished by submitting by May 31, 2018: 1) a completed
“BE-11 Claim for Not Filing” or certifying in writing that they had no
direct investment within the purview of the reporting requirements
of the BE-11 survey; or 2) a properly completed BE-11 report, as
required.
Penalties – Whoever fails to report shall be subject to a civil
penalty of not less than $2,500, and not more than $25,000, and
to injunctive relief commanding such person to comply, or both.
Whoever willfully fails to report shall be fined not more than $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 (22 U.S.C. 3105).
These civil penalties are subject to inflationary adjustments. Those
adjustments are found in 15 C.F.R. 6.4.
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act, unless that collection
of information displays a currently valid OMB Control Number. The
control number for this survey, 0608-0053, appears at the top of
each form.
Forms comprising a BE-11 report are:
• Form BE-11A – Report for U.S. Reporter;
• Form BE-11B – Report for each majority-owned foreign affiliate
of U.S. Reporter with assets, sales, or net income greater than
$60 million (positive or negative);
• Form BE-11C – Report for each minority-owned foreign affiliate
of U.S. Reporter with assets, sales, or net income greater than
$60 million (positive or negative);
• Form BE-11D – Report for foreign affiliate(s) established or
acquired by the U.S. Reporter with assets, sales, or net income
greater than $25 million, but not greater than $60 million (positive
or negative);
• BE-11 Claim for Not Filing
See I.B.2.d. and I.C. for an exception to this filing requirement.
For definition of terms, see Section II of these instructions.

A. Who must report – A BE-11 report is required of any U.S.
person that had a foreign affiliate at the end of the U.S.
person’s 2017 fiscal year that is not exempt as detailed in I.C. on
page 4 of the Instruction Booklet.
B. Forms for U.S. Reporter and foreign affiliates
1. Form BE-11A – Report for U.S. Reporter
a. Basic requirements – Form BE-11A must cover the
fully consolidated U.S. domestic business enterprise
(banking and nonbanking). See I.B.1.b for the definition of
“fully consolidated U.S. domestic business enterprise.”
The U.S. Reporter must file a complete Form BE-11A
if any one of the following three items of the fully
consolidated U.S. domestic business enterprise was
greater than $300 million (positive or negative) at the end
of, or for, the Reporter’s 2017 fiscal year:
(1) total assets,
(2) sales or gross operating revenues excluding sales
taxes, or
(3) net income after provision for U.S. income taxes.
The U.S. Reporter must complete only items 1 through
30 and items 60 through 62 of Form BE-11A if no one
of the three items listed above for the fully consolidated
U.S. domestic business enterprise was greater than
$300 million (positive or negative) at the end of, or for, the
Reporter’s 2017 fiscal year.
The U.S. Reporter, whether filing a complete or partial
BE-11A, must also complete a Form BE-11B, BE-11C
or BE-11D, as appropriate, for each nonexempt foreign
affiliate. See I.B.2 and I.C.
b. Definition of “fully consolidated U.S. domestic
business enterprise” – The fully consolidated U.S.
domestic business enterprise is defined as: 1) the U.S.
business enterprise whose voting securities are not owned
more than 50 percent by another U.S. business enterprise,
and 2) proceeding down each ownership chain from that
U.S. business enterprise, any U.S. business enterprise
(including Foreign Sales Corporations located in the United
States) whose voting securities are more than 50 percent
owned by the U.S. business enterprise above it. This
consolidation excludes foreign branches and all
other foreign affiliates.
c. Calculation of ownership percentage – A U.S.
Reporter’s ownership interest in a foreign business
enterprise may be directly held, indirectly held, or both. It is
directly held if the U.S. Reporter itself holds the ownership
interest in a foreign business enterprise.

It is indirectly held if, for example, the U.S. Reporter holds
an ownership interest in another foreign business enterprise
that, in turn, owns the given foreign business enterprise.
The U.S. Reporter must sum all direct and indirect lines
of ownership interest in the foreign business enterprise to
determine whether it holds a foreign business enterprise to
the extent of 10 percent or more, directly or indirectly.
Note – An associated group is deemed to be one U.S.
Reporter. See II.C. for the definition of an associated group.
A U.S. Reporter’s percentage of indirect ownership
interest in a given foreign business enterprise is the
product of the direct ownership percentage that the U.S.
Reporter has in the first foreign business enterprise in
the ownership chain, multiplied by that first enterprise’s
direct ownership percentage in the second enterprise in
the chain, multiplied by the direct ownership percentages
for all other intervening enterprises in the ownership
chain, multiplied by the last intervening enterprise’s direct
ownership percentage in the given foreign business
enterprise. To illustrate, assume the U.S. Reporter owned
50 percent of foreign business enterprise A directly, and
that A owned 75 percent of foreign business enterprise
B which, in turn, owned 80 percent of foreign business
enterprise C. Then the U.S. Reporter’s percentage
of indirect ownership of B would be 37.5 percent
(the product of the first two percentages), its indirect
ownership of C would be 30 percent (the product of all
three percentages), and B and C (as well as A) would be
considered foreign affiliates of the U.S. Reporter.

50%

Indirect Ownership
Percentage of C
50% * 75% * 80% = 30%

Indirect Ownership
Percentage of B
50% * 75% = 37.5%

75%

Foreign
Affiliate B
80%

Foreign
Affiliate C

d. Other requirements for filing Form BE-11A
(1) Foreign affiliate is owned by only part of the
fully consolidated U.S. domestic business
enterprise – The U.S. Reporter is deemed to be the
fully consolidated U.S. domestic business enterprise
even if only one entity in the consolidated U.S.
enterprise directly owns the foreign affiliate.
(2) U.S. Reporter that is an individual, estate,
trust, or nonprofit organization – A U.S. Reporter
that is an individual, estate, trust, or religious,
charitable, or other nonprofit organization, and that
owns a foreign affiliate directly, rather than through a
U.S. business enterprise, should complete only items 1
and 5 of Form BE-11A. Required Forms BE-11B,
BE-11C or BE-11D must be filed as appropriate.

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(4) U.S. Reporter owned by a foreign person (See
II.J) – A U.S. Reporter that is a U.S. affiliate of a foreign
person and that is filing a BE-12, 2017 Benchmark Survey
of Foreign Direct Investment in the United States should only
complete items 1–8 and 34–37 of Form BE-11A. If the U.S.
Reporter is filing a BE-12B, or BE-12C, in lieu of the BE-12A,
it should complete the entire Form BE-11A. See also III.B.
(5) Joint ownership of foreign affiliate – If two or
more U.S. Reporters jointly own, directly or indirectly, a
foreign affiliate, each U.S. Reporter must file a Form
BE-11A.
2. Forms BE-11B, BE-11C, and BE-11D – Report for foreign
affiliates. The coverage of the forms is summarized in the chart
below.

Ownership

U.S Reporter

Foreign
Affiliate A

(3) U.S. business enterprise owned by an individual,
estate, trust, or nonprofit organization – If a U.S.
individual, estate, trust, or nonprofit organization owns more
than 50 percent of a U.S. business enterprise that, in turn,
owns a foreign affiliate, then the U.S. Reporter is deemed to
be the U.S. business enterprise, not the individual, etc. The
BE-11 report should be filed by, and Form BE-11A should
be for, the U.S. business enterprise, not the individual, etc.
However, direct financial transactions or positions, if any,
by the individual, etc., with the foreign affiliate must be
included in the business enterprise’s report.

U.S. Dollar
Amount
At least one of the
three items* is
greater than $300
million (+ or -).
At least one of
the three items* is
greater than $60
million (+ or -), but no
one is greater than
$300 million
(+ or -).
Foreign affiliate
established or
acquired during fiscal
year 2017 and at
least one of the three
items* is greater than
$25 million (+ or -)
but no one item is
greater than $60
million
(+ or -).

MINORITYOWNED FOREIGN
AFFILIATE

MAJORITYOWNED
FOREIGN
AFFILIATE

≥ 10
and
≤ 50%

> 50%

BE-11B, except Part III

BE-11C
BE-11B, except Part IV

BE-11D

* Total assets, sales or gross operating revenues
excluding sales taxes, and net income (loss), after
provision for foreign income taxes of the foreign
affiliate.
Exception – A Form BE-11B or BE-11C must be filed for
a foreign affiliate of the U.S. Reporter that owns another
non-exempt foreign affiliate of that U.S. Reporter, even if
the foreign affiliate parent is otherwise exempt.

BE-11 INSTRUCTIONS (REV. 01/2018)

Note – Unless otherwise stated, whenever reference is made
to the financial or operating data of a foreign affiliate, such as
assets, sales, or net income, the data are to represent 100
percent of the foreign affiliate’s operations and not just the
portion, if less than 100 percent, owned by the U.S. Reporter(s).
Also, include equity investment in unconsolidated foreign
affiliates and do not eliminate an affiliate’s receivables due from
its parent or from other affiliated persons from the affiliate’s total
assets when applying the exemption criteria for this report.
a. Basic requirement for Form BE-11B – A BE-11B must
be filed for each majority-owned foreign affiliate, whether held
directly or indirectly, for which any one of the following three
items was greater than $60 million (positive or negative) at the
end of, or for, the affiliate’s 2017 fiscal year:
(1) total assets,

The following rules should be used in determining which
foreign business enterprises may be consolidated into
one foreign affiliate form:
Are the business
enterprises located in the
same country?

NO

Do not
consolidate

YES
Are the business enterprises
in the same 4-digit
International Surveys
Industry (ISI) classification
or integral parts of the same
business operation?

NO

Do not
consolidate

(2) sales or gross operating revenues excluding sales taxes,
or
(3) net income (loss) after provision for foreign income taxes.
Affiliates with assets, sales, or net income greater than $300
million, positive or negative, are required to report more
information on the form than smaller affiliates.
b. Basic requirement for Form BE-11C – A BE-11C must
be filed for each minority-owned foreign affiliate owned
directly or indirectly, at least 10 percent, but not more than
50 percent, by all U.S. Reporters of the affiliate combined, for
which any one of the three items listed in I.B.2.a. above
was greater than $60 million (positive or negative), at the end
of, or for, the affiliate’s 2017 fiscal year.
c. Basic requirement for Form BE-11D – A BE-11D must
be filed for foreign affiliates of the U.S. Reporter, established
or acquired in 2017, whether held directly or indirectly, for
which any one of the three items listed in I.B.2.a. above
was greater than $25 million (positive or negative) but for
which no one of these items was greater than $60 million
(positive or negative) at the end of, or for, the affiliate’s 2017
fiscal year.
d. Exception to the basic requirement - A BE-11B or
BE-11C must be filed for a foreign affiliate of the U.S. Reporter
that owns another non-exempt foreign affiliate of that U.S.
Reporter, even if the foreign affiliate parent is otherwise
exempt.
e. Other requirements for filing Forms BE-11B,
BE-11C or BE-11D –
(1) Rules for consolidation of foreign affiliate –
A U.S. Reporter who participates in BEA’s BE-577
Quarterly Survey of U.S. Direct Investment Abroad, Direct
Transactions of a U.S. Reporter with Foreign Affiliate, should
consolidate foreign business enterprises on Forms BE-11B,
BE-11C and BE-11D in the same manner as on Form
BE-577.

BE-11 INSTRUCTIONS (REV. 01/2018)

YES
Are the business enterprises
owned by the same immediate
parent(s) with the same
ownership percentage(s)?

Is one of the business
enterprises 100% owned
by the other business
enterprise?

NO

YES

YES

Are the business
enterprises foreign bank
branches?

YES

NO

Must be
consolidated

May
consolidate

May
consolidate

NO
Do not
consolidate

Note – Foreign business enterprises that have an equity
investment in an unconsolidated business enterprise should
report that investment using the equity method of accounting.
See also IV.C.
(2) Reporting of foreign affiliates owned by more than
one U.S. Reporter – If the foreign affiliate is owned directly
and/or indirectly, through another foreign affiliate, by more than
one U.S. Reporter, the U.S. Reporter with the highest percentage
of ownership in the foreign affiliate (direct and indirect combined)
must file a complete Form BE-11B on which all Parts have
been completed. The other U.S. Reporter(s) with total direct and
indirect ownership of 10 percent or more must file a partial
form.
If no one of the U.S. Reporters owns a greater share of the
foreign affiliate than the other U.S. Reporter(s), then the U.S.
Reporters must decide which one will file the complete Form
BE-11B and which one(s) will file a partial Form BE-11B.
A partial form consists of:
• BE-11B Part I, items 1–18 and Part V.

Page 3

The U.S. Reporter filing a complete BE-11B for a foreign
affiliate owned by more than one U.S. Reporter should note that
data must be reported by transactor. If the U.S. Reporter filing
the complete BE-11B cannot, or prefers not to, obtain from the
affiliate data about the other U.S. Reporter(s) of the affiliate,
then each U.S. Reporter is required to report its own data.
If two or more Reporters jointly own a foreign affiliate that is
required to be reported on Form BE-11C, only the U.S.
Reporter having the highest percentage ownership (direct and
indirect combined) in the foreign affiliate must file the form.
(3) Reporting when there is more than one foreign
affiliate in a chain of ownership – A Form BE-11B or
BE-11C must be filed for a foreign affiliate of the U.S. Reporter
that owns another nonexempt foreign affiliate of that U.S.
Reporter, even if the foreign affiliate parent is otherwise exempt,
i.e., a Form BE-11B or BE-11C must be filed for all affiliates
upward in a chain of ownership.
(4) Relationship between Form BE-11A and Forms
BE-11B, BE-11C, and BE-11D – The term “U.S. Reporter”
is defined to mean the fully consolidated U.S. domestic
business enterprise; therefore, on Forms BE-11B, BE-11C,
and BE-11D, when data on trade and financial relationships
between the U.S. Reporter and the foreign affiliate are
requested, the data must reflect the foreign affiliate’s
relationship with the entire U.S. enterprise, not merely with
one division, operating unit, or part.
C. Exempt affiliates – A foreign affiliate is exempt from being
reported if none of its exemption level items exceeds $60
million (positive or negative) and it is not required to be filed
on Form BE-11D. See I.B.2.c.
However, a form BE-11B or BE-11C must be filed for a foreign
affiliate of the U.S. Reporter that owns another nonexempt foreign
affiliate of that U.S. Reporter, even if the foreign affiliate
parent is otherwise exempt. That is, all affiliates upward in the
chain of ownership must be reported.

Change in fiscal year
1. New fiscal year ends in calendar year 2017 – A U.S.
Reporter that changed the ending date of its financial
reporting year should file a 2017 BE-11 report that covers the
12 month period prior to the new fiscal year end date. The
following example illustrates the reporting requirements.
Example 1: The U.S. Reporter had a June 30, 2016 fiscal
year end date but changed its 2017 fiscal year end date to
March 31. The U.S. Reporter should file a 2017 BE-11 report
covering the 12 month period from April 1, 2016 to
March 31, 2017.
The ending balance sheet amounts reported must be the
correct balances as of March 31, 2017.
2. No fiscal year ending in calendar year 2017 – If a
change in fiscal year results in the U.S. Reporter not having
a fiscal year that ended in calendar year 2017, the U.S.
Reporter should file a 2017 BE-11 report that
covers 12 months. The following example illustrates the
reporting requirements.
Example 2: The U.S. Reporter had a December 31, 2016
fiscal year end date but changed its next fiscal year end date
to March 31. Instead of having a short fiscal year ending in
2017, the U.S. Reporter decides to have a 15 month fiscal
year running from January 1, 2017 to March 31, 2018. The
U.S. Reporter should file a 2017 BE-11 report covering a
12 month period ending in calendar year 2017, such as the
period from April 1, 2016 to March 31, 2017.
In this example, the ending balance sheet amounts reported
must be the correct balances as of March 31, 2017.
For 2018, assuming no further changes in the fiscal year end
date occur, the U.S. Reporter should file a BE-11 report covering
the 12 month period from April 1, 2017 to March 31, 2018.

An affiliate’s receivable due from its parent or from other affiliated
persons should not be eliminated from total assets when applying
the exemption criteria for preparing this report.

B. Affiliate means a business enterprise located in one
country which 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.

If you filed a form for an affiliate in 2016 that is exempt in 2017 and
for which you received a pre-printed form or is listed in the eFile
system as required, then complete Part II of the “Claim for Not
Filing” and on page 3 provide the required information. If all of your
affiliates are exempt in 2017, complete Part I of a “Claim for Not
Filing.”

C. Associated group means two or more persons who,
by the appearance of their actions, by agreement, or by an
understanding, exercise their voting privileges in a concerted
manner to influence the management of a business enterprise.
Each of the following are deemed to be associated groups:

A foreign affiliate can also be exempt if ALL of the following apply:
1) the foreign affiliate is a private fund, AND 2) the private fund
foreign affiliate does not own, directly or indirectly through another
business enterprise, an “operating company” – i.e., a business
enterprise that is not a private fund or a holding company— in
which the consolidated U.S. reporter owns at least 10 percent of
the voting interest, AND 3) If the U.S. reporter owns the private
fund indirectly (through one or more other business enterprises),
there are no “operating companies” between the consolidated U.S.
reporter and the indirectly-owned foreign private fund. For more
information regarding private funds visit www.bea.gov/privatefunds.
II. DEFINITIONS
A. 2017 fiscal year is the U.S. Reporter’s or the foreign affiliate’s
financial reporting year that has an ending date in calendar year
2017. U.S. Reporters or affiliates having a “52/53 week” fiscal year
that ended within the first week of January 2018, are considered to
have a 2017 fiscal year for purposes of filing this survey, and should
report December 31, 2017 as their 2017 fiscal year end. A business
enterprise that does not have a financial reporting year, or does
not have a financial reporting year ending in calendar year 2017, is
deemed to have a fiscal year identical to calendar year 2017.

Page 4

1. members of the same family,
2. a business enterprise and one or more of its officers
or directors,
3. members of a syndicate or joint venture, or
4. a corporation and its domestic subsidiaries.
D. Banking covers business enterprises engaged in deposit
banking or closely related functions, including commercial
banks, Edge Act corporations engaged in international or
foreign banking, foreign branches and agencies of U.S. banks
whether or not they accept deposits abroad, savings and loans,
savings banks, bank holding companies, and financial holding
companies under the Gramm-Leach-Bliley Act.
Banks located on U.S. Military bases abroad servicing base
personnel are not considered “foreign” and should not be
reported on Form BE-11B, BE-11C, or BE-11D.
Activities of subsidiaries of a bank or bank holding company
that may not be banks but provide support to the bank parent
company, such as real estate subsidiaries set up to hold the
office buildings occupied by the bank parent company, are
considered bank activities.

BE-11 INSTRUCTIONS (REV. 01/2018)

E. Branch means the operations or activities conducted by a
person in a different location in its own name rather than through
an incorporated entity.
F. 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.
G. 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.
H. Foreign affiliate means an affiliate located outside the United
States in which a U.S. person has direct investment. See II.R.
I. Foreign affiliate parent means a U.S. Reporter’s foreign
affiliate which has an equity interest in another foreign affiliate of
the U.S. Reporter.
J. Foreign person (See II.Q.) means any person resident outside
the United States or subject to the jurisdiction of a country other
than the United States. See III.D.
K. Fully consolidated U.S. domestic business
enterprise means:
1. the U.S. business enterprise whose voting securities are
not owned more than 50 percent by another U.S. business
enterprise, and
2. proceeding down each ownership chain from that U.S.
business enterprise, any U.S. business enterprise (including
Foreign Sales Corporations located in the United States)
whose voting securities are more than 50 percent owned
by the U.S. business enterprise above it. This consolidation
excludes foreign branches and all other foreign affiliates.
Note – A U.S. Reporter that is not a bank but owns a majority
interest in a U.S. bank must consolidate its banking activities
when filing its Form BE-11A.
L. Intercompany means between a U.S. Reporter and its foreign
affiliates.
M. Intermediary means an agent, nominee, manager, custodian,
trust, or any person acting in a similar capacity.
N. Lease is an arrangement conveying the right to use property,
plant, or equipment (i.e., land and/or depreciable assets), usually
for a stated period of time.
1. Capital lease – A long-term lease under which a sale of
the asset is recognized at the inception of the lease. These
may be shown as lease contracts or accounts receivable on
the lessor’s books. The assets would not be considered to be
owned by the lessor.
2. Operating lease – Generally, a lease with a term which is
less than the useful life of the asset and in which a transfer of
ownership is not contemplated.
O. Majority-owned foreign affiliate means a foreign affiliate
in which the combined direct and indirect ownership interest of
ALL U.S. REPORTERS of the affiliate exceeds 50 percent.
P. Minority-owned foreign affiliate means a foreign affiliate
in which the combined direct and indirect ownership interest of at
least one U.S. Reporter is 10 percent or more, but the combined
direct and indirect ownership interests of all U.S. Reporters of the
affiliate is 50 percent or less.
Q. Person (as the term is used in the broad legal sense)
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).
BE-11 INSTRUCTIONS (REV. 01/2018)

R. Private Fund refers to the same class of financial entities
that must report to the Securities and Exchange Commission
as private funds on Form PF: “any issuer that would be an
investment company as defined in section 3 of the Investment
Company Act of 1940 but for section 3(c)(1) or 3(c)(7) of …
[that] Act.”
S. U.S. direct investment abroad means the ownership or
control, directly or indirectly through a foreign affiliate, by
one U.S. person of 10 percent or more of the voting securities
of an incorporated foreign business enterprise or an equivalent
interest in an unincorporated foreign business enterprise,
including a branch.
T. U.S. person means any person resident in the United States or
subject to the jurisdiction of the United States. See III.D.
U. U.S. Reporter means the U.S. person that has direct investment in a foreign business enterprise, including a branch. The
U.S. Reporter is the fully consolidated U.S. domestic enterprise.
See II.K.
V. 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.
III. CLARIFICATION OF COVERAGE
A. Determining existence of a foreign affiliate – In
general, a U.S. person’s foreign operation or activity is considered a foreign affiliate if it is legally or functionally separable
from the domestic operations or activities of the U.S. person. In
most cases, it is clear whether the foreign operation or activity
constitutes an affiliate. For example, if the operation or activity
is incorporated abroad – as most are – it is always considered a
foreign affiliate. Even if it is unincorporated, the foreign operation
or activity is usually legally or functionally separable from the
U.S. person’s domestic operations or activities. In cases where
it is not clearly separable, the determination of whether the
operation or activity constitutes a foreign affiliate is made on a
case-by-case basis, depending on the weight of the evidence.
The following characteristics would indicate that an operation or
activity is a foreign affiliate:
1. it pays foreign income taxes,
2. it has a substantial physical presence abroad, as evidenced
by plant and equipment, or employees permanently located
abroad,
3. it has separate financial records that would allow preparation
of financial statements, including a balance sheet and income
statement. (A mere record of disbursements to, or receipts
from, the foreign operation or activity would not constitute a
“financial statement” for this purpose.), or
4. it takes title to the goods it sells and receives revenues from
the sale, or it receives funds from customers for its own
account for services it performs.
The following characteristics would indicate that an operation or
activity is probably not a foreign affiliate:
1. it engages only in sales promotion or public relations activities
on behalf of the U.S. person,
2. it conducts business abroad only for the U.S. person’s account,
not for its own account,
3. it has no separate financial records that allow the preparation
of financial statements,
4. its expenses are paid by the U.S. parent,
5. it is not subject to foreign income taxes, and
6. it has limited physical assets or few employees permanently
located abroad.
Page 5

B. U.S. Reporter owned by a foreign person – A U.S.
business enterprise that is a U.S. Reporter in this BE-11 survey
may also be a U.S. affiliate of a foreign person that must report in
the BE-12, 2017 Benchmark Survey of Foreign Direct Investment
in the United States. This could be the case if the U.S. business
enterprise owns foreign affiliates and is also owned 10 percent
or more, directly or indirectly, by a foreign person. In such cases,
the U.S. business enterprise should report in this survey for
any foreign business enterprise it owns or controls, directly or
indirectly, at least 10 percent or more, but should not report other
property of its foreign owner. (A foreign business enterprise that
is jointly owned by the U.S. Reporter and the foreign owner of the
U.S. Reporter should be considered a foreign affiliate of the U.S.
Reporter provided the U.S. Reporter has a 10 percent or more
ownership interest.) For purposes of the BE-11 survey,
consider the foreign owner of the U.S. Reporter and
the directly and indirectly owned foreign affiliates of
the foreign owner (other than those held through the
U.S. Reporter), as unaffiliated foreign persons. See
also I.B.1.d.(4).
C. Partnerships – Most partnerships are either general or limited
partnerships. The determination of percentage of voting interest
in a general or limited partnership is based on who controls the
partnership. The percentage of voting interest is NOT based on
the percentage of ownership in the partnerships equity.
A general partnership usually consists of at least two general
partners who together control the partnership. Unless a clause to
the contrary is contained in the partnership agreement a general
partnership is presumed to be controlled equally by each of the
general partners.
A limited partnership usually consists of at least one general
partner and one limited partner. The general partner usually
controls a limited partnership, and therefore, has 100 percent
voting interest in the limited partnership. Limited partners do
not normally exercise any control over a partnership. Therefore,
unless a clause to the contrary is contained in the partnership
agreement, limited partners are presumed to have zero voting
interest in a partnership.
Note – Cross-border holdings of limited partnerships are included
in the annual Department of Treasury International Capital (TIC)
securities data reports (TIC SHL(A), TIC SHA(A), and TIC SLT)
and purchases and sales of limited partnerships with foreign
counterparties should be included on the TIC S report.

D. Determining country of residence or jurisdiction of
individuals – An individual is considered a resident of, and
subject to the jurisdiction of, the country in which it is physically
located, subject to the following qualifications:
1. individuals who reside, or expect to reside, outside their
country of citizenship for less than one year are considered
to be residents of their country of citizenship,
2. individuals who reside, or expect to reside, outside their
country of citizenship for one year or more are considered
to be residents of the country in which they are residing.
There are two exceptions to this rule:
a. individuals (and their immediate families) who either
own or are employed by a business in their country of
citizenship and who are residing outside of that country
for one year or more in order to conduct business for the
enterprise are considered residents of their country of
citizenship if they intend to return within a reasonable
period of time.
b. individuals who reside outside their country of citizenship
because they are government employees (such as
diplomats, consular officials, members of the armed
forces, and their immediate families) are considered
residents of their country of citizenship regardless of their
length of stay.

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E. Foreign affiliate operating completely outside its
country of incorporation – If a foreign affiliate conducts all
its operations from, and is located in, a single foreign country
that is different from its country of incorporation, it is deemed to
be operating totally outside its country of incorporation. File a
single BE-11B, BE-11C report or report on the BE-11D, for the
entity in the country of operation treating it as an incorporated
foreign affiliate; do not file for the entity in the foreign country
of incorporation. If, however, the foreign affiliate has any of the
following in the country of incorporation:
1. bank account,
2. employees,
3. property, plant, or equipment, or
4. sales,
it is considered to have operations in its foreign country of
incorporation and, therefore, a separate report must be filed for
the entity in that country.
If a foreign affiliate incorporated abroad conducts its operations
from, and has locations in, more than one foreign country, a
separate Form BE-11B, BE-11C, or entry on BE-11D must be filed
for each foreign country in which it has operations, and a separate
Form BE-11B, BE-11C, or entry on BE-11D must be filed for the
entity in the foreign country of incorporation, treating the entity as
an incorporated foreign affiliate in that country.
If a foreign affiliate incorporated abroad conducts its business
operations from, and is located in, the United States, you must
file a Form BE-11B, BE-11C or BE-11D entry to report the equity
investment in the affiliate and the affiliate’s income. Show country
of incorporation as country of location and report the affiliate
as a holding company (ISI code 5512). You must report
the operating business enterprise located in the United States on
the BE-12, 2017 Benchmark Survey of Foreign Direct Investment
in the United States.
F. Agencies and representative offices – Foreign
representative offices, agents and employees of a U.S. person
are not considered to be foreign affiliates, and therefore, they
should not be reported on Forms BE-11B, BE-11C or BE-11D.
However, a U.S. Reporter’s disbursements to maintain foreign
sales and representative offices must be reported on Form
BE-125, Quarterly Survey of Transactions in Selected Services
and Intangible Assets with Foreign Persons. Copies of Form
BE-125 are available by writing to BEA at: Bureau of Economic
Analysis, Balance of Payments Division, BE-50 (SSB), 4600 Silver
Hill Rd., Washington, DC 20233, by telephoning (301) 278-9507
or by accessing the BEA Web site at www.bea.gov. (Under
“International,” select “Survey Forms and Related Materials”
and then “U.S. International Services Transactions.”) A foreign
presence of a U.S. person is considered a foreign sales promotion
or representative office if:
1. it has no assets (other than office furniture) held either in its
own name or in the name of the U.S. person,
2. to the extent that its employees are compensated by
commissions, the commissions arise only from sales or
business that the employees generate for the U.S. person,
3. it does not produce revenue (other than funds from the U.S.
person to cover its expenses), and
4. it is engaged only in sales promotion, representational
activities, public relations activities, or the gathering of market
information, on behalf of the U.S. person.
Note – A foreign presence that produces revenue for its own
account (instead of, or in addition to, producing revenue for the
account of its U.S. parent) from goods or services it provides
to unaffiliated persons is considered a foreign affiliate and is
subject to the reporting requirements on this BE-11 survey.

BE-11 INSTRUCTIONS (REV. 01/2018)

G. Real estate – The ownership of foreign real estate is defined
to be a business enterprise and, if foreign real estate is owned
by a U.S. person, it is a foreign affiliate of a U.S. Reporter.
A Form BE-11B, BE-11C or BE-11D is required unless the
enterprise is otherwise exempt.
Real estate that is normally included in the property, plant, and
equipment account of a foreign affiliate is not to be reported as a
separate affiliate.
Residential real estate held exclusively by a U.S. person for
personal use and not for profit-making purposes is
not subject to the reporting requirements. A primary residence
abroad that is leased to others while the owner is a U.S. resident,
but which the owner intends to reoccupy, is considered
real estate held for personal use.
Ownership of foreign residential real estate by a business
enterprise, the sole purpose of which is to hold the real estate
for the personal use of the owner(s) of the business enterprise,
is considered to be real estate held for personal use and
therefore not subject to the reporting requirements.
If a U.S. person has a direct or indirect voting ownership interest
of 10 percent or more in a joint venture, partnership, etc., that is
formed to own and hold, develop, or operate real estate, the joint
venture, partnership etc., in its entirety, not just the U.S. person’s
share, is a foreign affiliate and must be reported unless
otherwise exempt.
H. Airlines and ship operators – U.S. airlines’ and ship
operators’ foreign stations, ticket offices, and terminal and port
facilities that provide services only to their own operations are
not foreign affiliates and are not subject to the reporting
requirements. Reports are required when such facilities produce
significant revenues from services provided to unaffiliated
persons.
I. Estates, trusts, and intermediaries
1. A U.S. estate is a person (see II.Q.) and, therefore, may have
direct investment; the estate, not the beneficiary, is
considered to be the U.S. Reporter. Thus, ownership of a
foreign affiliate by a U.S. estate shall be reported by the
administrator, executor, etc., of the estate and not by the
beneficiary.
2. A trust, either U.S. or foreign, is a person (see II.Q.), but is
not a business enterprise. The trust is considered to be the
same as an intermediary, and should report as outlined in
III.I.3. For reporting purposes, the beneficiary(ies) of the trust,
is (are) considered to be the owner(s) for purposes of
determining the existence of direct investment, except in two
cases: (1) if there is, or may be, a reversionary interest, and
(2) if a corporation or other organization creates a trust
designating its shareholders or members as beneficiaries. In
these two cases, the creator(s) of the trust is (are) deemed to
be the owner(s) of the investments of the trust (or succeeding
trusts where the presently existing trust has evolved out of a
prior trust), for the purposes of determining the existence and
reporting of direct investment.
This procedure is adopted to fulfill statistical purposes of this
survey and does not imply that control over an enterprise
owned or controlled by a trust is, or can be, exercised by the
beneficiary(ies) or creator(s).

BE-11 INSTRUCTIONS (REV. 01/2018)

3. Intermediary
a. If a particular U.S. direct investment abroad is held,
exercised, administered, or managed by a U.S.
intermediary, such intermediary is responsible for
reporting the required information for, and in the name of,
its principal or shall instruct the principal to submit the
required information. Upon instructing the principal, the
intermediary shall be released from further liability to
report, provided it has informed BEA of the date such
instructions were given and the name and address of the
principal, and has supplied the principal with any
information in the possession of, or which can be secured
by, the intermediary that is necessary to permit the
principal to complete the required reports. When acting in
the capacity of an intermediary, the accounts or
transactions of the U.S. intermediary with the foreign
affiliate are considered as accounts or transactions of the
U.S. principal with the foreign affiliate. To the extent such
transactions or accounts are unavailable to the principal,
they may be required to be reported by the intermediary.
b. If a U.S. person holds a foreign affiliate through a foreign
intermediary, the U.S. person is considered to own the
foreign affiliate directly and all accounts or transactions of
the U.S. person with the intermediary are considered to
be with the foreign affiliate.
IV. GENERAL INSTRUCTIONS
A. Accounting methods and records – Follow generally
accepted U.S. accounting principles unless otherwise specified
in the instructions. Corporations should generally use the same
methods and records that are used to generate reports to
stockholders, except where otherwise instructed. Generate
reports for unincorporated persons on an equivalent basis.
Financial Accounting Standards Board Accounting Standards
Codification Topics are referred to as “FASB ASC” in the
instructions.
B. Translation of foreign currency financial and
operating data into U.S. dollars
1. Financial statements – Translate foreign affiliate
financial statements, i.e., balance sheets and income
statements, not maintained in U.S. dollars from the host
country currency to U.S. dollars using FASB ASC 830 (FAS
52), as would be required to incorporate foreign statements
into the U.S. Reporter’s financial statements for reports to
shareholders.
2. Other financial and operating data of foreign
affiliate – According to FASB ASC 830 (FAS 52),
“Revenue and expense transactions shall be translated
in a manner that produces approximately the same dollar
amounts that would have resulted had the underlying
transactions been translated into dollars on the dates they
occurred.”
Since separate translation of each transaction is usually
impractical, the specific result can be achieved by using an
average rate for the period.
On Forms BE-11B and BE-11C, certain revenue and
expense transactions that may not be translated separately
for the financial statements, such as employee compensation
and exports and imports, must be reported. Translate these
transactions in a manner consistent with that used to translate
the financial statements into U.S. dollars.

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C. Method of accounting for equity investments –
Forms BE-11B, BE-11C and BE-11D – Report a foreign
affiliate parent’s equity investments of 20 percent or more in
unconsolidated foreign affiliates, including all unconsolidated
majority-owned foreign affiliates, using the equity method of
accounting. Report equity investments of less than 20 percent,
in accordance with FASB ASC 320 (FAS 115) or cost basis of
accounting. See important note on foreign affiliate consolidation
rules under instruction I.B.2.e.
Note – If it is determined that there is a material difference
between the “equity” and the “cost” methods and the data should
have been filed using the “equity” method, BEA will require that
the data be refiled.
D. Industry classification – A list and explanation of the
industry classifications used are given in the Guide to Industry
Classifications for International Surveys, 2012,
(BE-799), which is available at www.bea.gov/naics2012.
E. Estimates – If actual data are not available, or only partial
data are available, provide estimates and label as such. When
data items cannot be fully subdivided as required, provide totals
and an estimated breakdown of the totals.
Certain sections of Forms BE-11A and BE-11B require data that
may not be maintained in your customary accounting records.
Providing precise data in these areas may require substantial
burden beyond what is intended by BEA. This may be especially
true for:
• BE-11A, Part III, Section B – Distribution of sales or gross
operating revenues by whether the sales were goods, services,
or investment income;
• BE-11A, Part IV, – Exports and imports of the U.S. Reporter on
a shipped basis;
• BE-11B, Part III, Section B, and Part IV, Section D – Distribution
of sales or gross operating revenues, by transactor and by
whether the sales were goods, services, or investment income;
• BE-11B, Part V – Exports and imports of the foreign affiliate on
a shipped basis.
Data provided in these sections may be reasonable estimates
based upon the informed judgment of persons in the responding
organization, sampling techniques, prorations based on related
data, etc. Consistently apply estimating procedures used on all
BEA surveys.
F. Space on form insufficient – When space on a form is
insufficient to permit a full answer to any item, submit the required
information on supplementary sheets, appropriately labeled and
referenced to the item number and the form.
G. Specify – When asked to “specify” amounts reported for certain
data items, give the type and dollar amount of the major items
included in the data item.
V. U.S. EXPORTS AND IMPORTS OF GOODS
When there is a material difference between the “charged” and
“shipped” bases and the data have not been filed on the “shipped”
basis, or the necessary adjustments have not been made to
approximate a “shipped” basis, then BEA will require the data to be
refiled.
Differences between the “charged” and “shipped” bases may be
substantial. A major difference arises when the U.S. Reporter buys
goods in country A and sells them in country B, but the goods are

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shipped directly from country A to country B. Because the goods
did not physically enter or leave the United States, they are not U.S.
trade. However, when the U.S. Reporter records the transactions
on its books, it shows a purchase charged to it from country A and
a sale charged by it to country B. If the U.S. Reporter’s trade data in
this survey were prepared on the “charged” basis, the purchase and
sale would appear incorrectly as a U.S. import and a U.S. export,
respectively. Other differences arise when the U.S. Reporter charges
the sale of its products to a foreign affiliate in one country, but ships
the goods directly from the United States to an unaffiliated foreigner in
another country. If the data are on the “shipped” basis, this transaction
constitutes a U.S. export to an unaffiliated foreigner, not to the foreign
affiliate and should not be recorded on the form for the foreign affiliate.
If a material difference exists between the “charged” and “shipped”
bases, trade must be reported on the “shipped” basis. To do this, the
U.S. Reporter may have to derive the data from export and import
declarations filed with U.S. Customs and Border Protection or from
shipping and receiving documents, rather than from accounting
records, or may have to otherwise adjust its data from a “charged” to
a “shipped” basis.
A. Timing. Only include goods actually shipped between the
United States and the affiliate during FY 2017 regardless of
when the goods were charged or consigned. For example,
include goods shipped by the U.S. Reporter to the affiliate in FY
2017 that were charged or consigned in FY 2018 but exclude
goods shipped to the affiliate in FY 2016 that were charged or
consigned to the affiliate in FY 2017.
B. Trade of the U.S. Reporter. Goods shipped by, or to, the
U.S. Reporter, whether or not actually charged or consigned by,
or to, the U.S. Reporter, are considered to be trade of the U.S.
Reporter.
C. Trade of a foreign affiliate. Goods shipped by, or to, a
foreign affiliate, whether or not actually charged or consigned by,
or to, the foreign affiliate are considered to be trade of the
foreign affiliate.
D. By (or to) whom goods were shipped. Shipment by, or
to, an entity refers to the physical movement of goods to or from
the U.S. customs area by, or to, that entity regardless of by, or
to whom the goods were charged or consigned. For example, if
the U.S. Reporter charges goods to a German affiliate but ships
them to an Italian affiliate, the goods should be recorded as
U.S. exports shipped by the U.S. Reporter on the Form BE-11B
or BE-11C, of the Italian affiliate, but not on that of the German
affiliate. Similarly, if goods were charged by the U.S. Reporter to
an affiliate but shipped to the affiliate by another U.S. person, the
goods should be considered a U.S. export shipped by “other U.S.
persons,” not by the U.S. Reporter, on the affiliate’s Form BE-11B
or BE-11C.
Note – Goods shipped by an independent carrier or a
freight forwarder at the expense of an entity are
shipments by that entity.
E. Valuation of exports and imports. Value U.S. exports and
imports f.a.s. (free alongside ship) at the port of exportation. This
includes all costs incurred up to the point of loading the goods
aboard the export carrier at the U.S. or foreign port of
exportation, including the selling price at the interior point of
shipment (or cost if not sold), packaging costs, and inland freight
and insurance. It excludes all subsequent costs, such as loading
costs, U.S. and foreign import duties, and freight and insurance
from the port of exportation to the port of entry.

BE-11 INSTRUCTIONS (REV. 01/2018)

VI. FILING THE BE-11
A. Due date – A fully completed and certified BE-11 report
comprising Form BE-11A and Forms BE-11B, BE-11C or
BE-11D (as required) is due to be filed with BEA by May 31,
2018.
B. Extensions – For the timely dissemination of the survey
results, it is important that your report be filed by the due date.
However, a written request for an extension will be considered
provided it is received no later than the original due date of the
report and enumerates substantive reasons necessitating the
extension. BEA will provide a written response to such requests.
C. Assistance – For assistance, telephone (301) 278-9418
or e-mail BEA at be10/[email protected].
D. Retention of copies – Each U.S. Reporter must retain a copy
of its report to facilitate resolution of problems. These copies
should be retained by the U.S. Reporter for at least 3 years after
the report’s original due date.
E. Electronic filing option (eFile) – Forms that can be
transmitted to BEA electronically will be available on the BEA
Web site: www.bea.gov/efile. If you eFile, please do not submit
paper reports.

G. Confidentiality – The information filed in this report may be
used only for analytical and statistical purposes and access to
the information shall be available only to officials and
employees (including consultants and contractors and their
employees) of agencies designated by the President to perform
functions under the Act. The President may authorize the
exchange of the information between agencies or officials
designated to perform functions under the Act, but only for
analytical and statistical purposes. No official or employee
(including consultants and contractors and their employees)
shall publish or make available any information collected under
the Act in such a manner that the person to whom the
information relates can be specifically identified. Reports and
copies of reports prepared pursuant to the Act are confidential
and their submission or disclosure shall not be compelled
by any person without the prior written permission of the
person filing the report and the customer of such person
where the information supplied is identifiable as being derived
from the records of such customer (22 U.S.C. 3104). Per
the Cybersecurity Enhancement Act of 2015, your data are
protected from cybersecurity risks through security monitoring
of the BEA information systems.
H. Annual stockholders’ report – Business enterprises
issuing annual reports to stockholders should furnish copies of
these reports for FY 2017 when filing the BE-11 report.

F. Where to send the report – Send reports filed by mail
through the U.S. Postal Service to:
Bureau of Economic Analysis
Direct Investment Division, BE-69(A)
4600 Silver Hill Road
Washington, DC 20233
Send reports filed by direct private delivery to:
Bureau of Economic Analysis
Direct Investment Division, BE-69(A)
4600 Silver Hill Road
Suitland, MD 20746

BE-11 INSTRUCTIONS (REV. 01/2018)

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