The Quarterly Survey of U.S. Direct Investment AbroadâTransactions of U.S. Reporter with Foreign Affiliate (Form BE-577) obtains quarterly data on transactions and positions between U.S.-owned foreign business enterprises and their U.S. parents, except certain private funds. The survey is a sample survey that covers all foreign affiliates above a size-exemption level. The sample data are used to derive universe estimates in nonbenchmark years from similar data reported in the BE-10, Benchmark Survey of U.S. Direct Investment Abroad, which is conducted every five years. The data are essential for the preparation of the U.S. international transactions accounts, the national income and product accounts, the input-output accounts, and the international investment position of the United States. The data are needed to measure the size and economic significance of direct investment abroad, measure changes in such investment, and assess its impact on the U.S. and foreign economies.
The Bureau of Economic Analysis (BEA) proposes changes to the reporting requirements and content of the survey. BEA proposes to increase the reporting threshold for indirectly-owned foreign affiliates from $1 million in intercompany debt balances to $10 million. These foreign affiliates must also have total assets, annual sales or gross operating revenues, or annual net income (loss) after the provision for foreign income taxes greater than $60 million. We estimate that this threshold increase will exempt approximately 1,700 foreign affiliates from the BE-577 survey. These affiliates account for less than 1 percent of intercompany debt and their balances will be estimated using data reported on the benchmark survey.
Additionally, BEA proposes to add a question for each debt category (receivables and payables) on the currency composition of intercompany debt. BE-577 survey respondents will be asked to provide the amount of debt denominated in U.S. dollars, euros, yen, and other currencies. These data will allow BEA to produce international investment position statistics by currency, as recommended by the G-20 Data Gaps Initiative II.
Both of these changes will take effect with the BE-577 survey that is due for the first quarter of 2020 (the fiscal quarter ending closest to March 30). BEA expects that the collection of information will be approved for fourth quarter of 2019 (the fiscal quarter ending closest to December 31), when the current approval expires. The current version of the BE-577 survey, without the changes discussed above, will be used by respondents to report for the fourth quarter of 2019.
The estimated annual respondent burden for this collection is 83,200 hours; the estimated respondent burden for the previous collection was 66,880 hours. The increase in the estimated respondent burden is due to the growth in the number of reporting U.S. parents and foreign affiliates since the survey was last cleared, partially offset by an increase in threshold. BEA increased the threshold for indirectly-owned foreign affiliates to report from $1 million in intercompany debt balances to $10 million. We estimate that this increase in threshold will exempt 1,700 foreign affiliates from the reporting requirements of the BE-577 survey. Without this change, burden would have increased to 90,020 hours. Additionally, BEA plans to add two new questions on the currency composition of intercompany debt to the survey. We expect the additional burden from these questions to be minimal and not change the average burden of the survey.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form BE-577 Quarterly Survey of U.S. Direct Investment Abroad: Direct Transactions of U.S. Reporter With Foreign Affiliate
BEA-Survey Messages-Justification.docx
BE-577 A-Justification_2020_final.doc
Quarterly Survey of U.S. Direct Investment Abroad: Direct Transactions of U.S. Reporter With Foreign Affiliate