2022 BE-12 Supporting Statement Part B_final

Supporting Statement
U.S. Department of Commerce
Bureau of Economic Analysis
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 26,400 U.S.
companies. BEA estimates the universe of U.S. affiliates is 23,700 companies and that 2,700
companies that are contacted will not meet the criteria to be in the universe and will file a BE-12
Claim for Not Filing.

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. For additional information on BEA’s
estimation methods please see the U.S. International Economic Accounts Concepts and Methods
available on BEA’s web site.
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. First, BEA will provide respondents
with advance notice of the survey by mailing them an announcement of the upcoming survey as
soon as possible after the survey has been approved by OMB. 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. Later, in March, all companies will receive notification by mail
of their obligation to file the BE-12 survey. BEA encourages respondents to file electronically
but will also post PDF forms online that can be downloaded and filed by mail or fax. A
completed form or a Claim for Not Filing is required by May 31, 2023 (or by June 30, 2023 for
reporting companies that use BEA’s eFile system). BEA has dedicated staff available to answer
respondent questions via email or phone. 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.

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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.
No tests were conducted (aside from giving respondents the opportunity to comment on
proposed changes, as described in A.8.).
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 Multinational Operations Branch
(MOB) of the Direct Investment Division (DID). For further information, contact Kirsten Brew,
Chief, MOB, via email at [email protected] or by phone at 301-278-9152. The survey
proposal was reviewed and approved by BEA’s Source Data Improvement and Evaluation
Program (SDIEP). The SDIEP coordinator is Tiffany Burrell, (301) 278-9618.

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