Imminent Commerce Department Due Dates for Mandatory Reporting of Cross-Border Investments and Activities
The U.S. Department of Commerce requires any U.S. company with “non-U.S. affiliate(s),” broadly defined, during 2014, to file a Form BE-10 survey with the Commerce Department by May 29, 2015, regardless if the company is contacted by the Commerce Department.
The definition of a non-U.S. affiliate includes indirect ownership or control of at least 10% of the voting stock of a non-U.S. business enterprise, including any unincorporated branch for any period of time during 2014. Every U.S. company that had a non-U.S. affiliate during 2014 will be required to take some action with respect to the BE-10 survey.
In addition, certain inbound investments by a non-U.S. company may be considered “reportable transactions” that have to be disclosed to the Commerce Department, on Form BE-13, within 45 days of such a transaction.
Beyond the typical commercial enterprises, with the globalization of the economy many private equity funds are likely to own companies based in the U.S. that have some activities or subsidiaries outside the U.S. These funds will also be required to file the BE-10 survey whether or not they are contacted by the Commerce Department.
As is often the case with U.S. international reporting requirements, formidable penalties may apply for non-compliance.