U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES : lo the Surveys Conducted by the Bureau of Economic Analysis U.S. DEPARTMENT OF COMMERCE Economics and Statistics Administration Bureau of Economic Analysis *>*Tl«<* U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES A Guide to the Surveys Conducted by the Bureau of Economic Analysis Pennsylvania State Uniwmlfy Libraries MAY 1 9 1998 Documents Coiiection U.S. Depository Copy March 1998 U.S. DEPARTMENT OF COMMERCE William M. Daley, Secretary • • • • ECONOMICS AND STATISTICS A DM I N I STRATI ON ECONOMICS AND STATISTICS ADMINISTRATION Lee Price, Acting Under Secretary for Economic Affairs f . .V . -. ; WM ' m ^ *.-•*. •■ ■ OftCMC **"*! J BUREAU OF ECONOMIC ANALYSIS J. Steven Landefeld, Director Rosemary D. Marcuss, Deputy Director Citation U.S. Department of Commerce. Bureau of Economic Analysis. U.S. Interna- tional Transactions in Private Services: A Guide to the Surveys Conducted by the Bureau of Economic Analysis. Washington, DC. U.S. Government Printing Office, March 1998. Acknowledgments This publication was prepared by Sylvia E. Bargas, un- der the direction of Obie G. Whichard, Assistant Chief of the International Investment Division, and Anthony J. DiLullo, Assistant Chief of the Balance of Payments Division. R. David Belli, Chief of the International Investment Division, Christopher L. Bach, Chief of the Balance of Payments Division, and Betty L. Barker, former Chief of the International Investment Division, provided general oversight for the project. Robert P. Parker, Chief Statisti- cian of the Bureau of Economic Analysis, and Gerald A. Pollack, Associate Director for International Economics, provided guidance for the project. The staff of both the Balance of Payments Division and the International Investment Division contributed to the preparation of this publication. In the Balance of Payments Division, Michael A. Mann, Chief of the Current Account Services Branch, contributed to the development of the project and offered comments and suggestions. Edward F. Dozier of the Current Account Services Branch wrote the section on the surveys of transportation services. In the International Investment Division, David H. Galler, Chief of the Special Surveys Branch, Ralph Kozlow, former Chief of the Special Sur- veys Branch, and Christopher J. Emond, of the Special Surveys Branch, provided information about the sur- veys of selected services and of specialized services and offered comments. M. Gretchen Gibson of the Current Business Analysis Division edited the text and coordinated the production of this publication. Eric B. Manning typeset the text and the tables. W. Ronnie Foster designed the cover. in Digitized by the Internet Archive in 2013 http://archive.org/details/usinternationaltOOunit Contents Acknowledgments iii Introduction 1 Availability of the estimates 2 Legal authority and confidentiality 2 Methodology of the Surveys 7 Coverage 7 The reporters 8 Classification of services 8 Definitions of international transactions 9 Reporting periods , 9 The preliminary and revised estimates 10 Preparing the estimates 10 Surveys of Selected Services 11 Services covered 11 Appendix 15 Specialized Surveys of Services 61 Survey of construction and related services 61 Services covered 61 Survey of reinsurance and other insurance transactions 62 Transactions covered 62 Surveys of financial services 62 Services covered 63 Survey of royalties, license fees, and other transactions for intangible rights 64 Transactions covered • 64 Appendix 65 Surveys of Transportation Services 115 Survey of U.S. expenses of foreign ocean carriers 115 Transactions covered 115 Preparing the estimates 115 Survey of revenues and foreign expenses of U.S. ocean carriers 116 Transactions covered 116 Preparing the estimates 116 Survey of U.S. revenues and expenses of foreign airlines 117 Transactions covered 117 Preparing the estimates 117 Survey of U.S. airlines' foreign revenues and expenses 118 Transactions covered 118 Preparing the estimates 118 Appendix 119 Introduction The Bureau of Economic Analysis (BEA) is the primary collector of data on U.S. international transactions in pri- vate services. It uses the data collected to compile the U.S. international transactions (or balance of payments) accounts, the national income and product accounts, and the input-output accounts. Other Government agencies use the data to help formulate U.S. trade policy, to ana- lyze the impact of that policy and the policies of foreign countries on international trade in services, and to sup- port trade promotion activities. The data are also used by companies engaged in services trade, private researchers, international organizations, and the general public. In recent years, BEA has greatly improved the source data used to prepare the estimates of private services, which represent an increasingly important and rapidly growing area of economic activity. As shown in the ta- ble below, U.S. exports of private services have increased from $77.2 billion in 1986 to $221.2 billion in 1996, or an average of 1 1 . 1 percent a year, and U.S. imports of pri- vate services have increased from $66.4 billion to $ 143. 1 billion, or an average of 8.0 percent a year. Overall, the U.S. position in international markets for private services is strong: In 1996, the United States had a $78.1 billion surplus on cross-border transactions in private services, compared with a $ 1 9 1 .2 billion deficit on trade in goods. U.S. Trade in Private Services, 1986-96 Exports Imports Billions of dollars Aver- age annual percent change Billions of dollars Aver- age annual percent change 1986 1996 1986 1996 Total Travel Passenger fares Other transportation Royalties and license fees Other private services 77.2 20.4 5.6 15.8 8.1 27.3 221.2 69.9 20.6 27.2 30.0 73.6 11.1 13.1 13.9 5.6 14.0 10.4 66.4 25.9 6.5 17.8 1.4 14.8 143.1 48.7 15.8 28.5 7.3 42.8 8.0 6.5 9.3 4.8 18.0 11.2 Many of the improvements to the BEA data on private services began in the mid-1980's when the legislation under which data on international investment had been collected — the International Investment Survey Act of 1976 — was amended to authorize the collection of data on trade in services and was redesignated the Interna- tional Investment and Trade in Services Survey Act. The improvements have taken several forms: Surveys that had been voluntary became mandatory; survey coverage of financial services and other business, professional, and technical services was improved through the institution of new surveys; data collected by other Government agen- cies and by trade associations were used to develop or improve estimates of several services, such as travel, ed- ucational, and medical services; definitions were revised to conform more closely to international guidelines; and estimating methodologies were developed for the prepa- ration of estimates of trade in services on a monthly basis rather than only on a quarterly or annual basis. Addi- tionally, the geographic detail in which the estimates are available was recently expanded. Many of these improvements have been possible due to new or improved surveys of transactions with "unaf- filiated foreigners" — that is, with foreign residents that have no direct investment relationship with the U.S. party to the transaction. 1 BEA conducts 11 surveys of these transactions. This Guide has been prepared to provide more detailed information on these surveys. In addition to giving general information about the classification, defi- nitions, and release schedules of the surveys, it provides details for each survey on the transactions covered, the frequency of the surveys, the numbers of respondents, and the methods that BEA uses to prepare the estimates. While the surveys mainly cover U.S. residents' trans- actions with unaffiliated foreign residents, in a few cases, data on transactions with affiliated foreigners — that is, transactions between U.S. parent companies and their foreign affiliates or between U.S. affiliates of foreign companies and their foreign parent groups — are also covered in these surveys. For the most part, how- ever, transactions with affiliated foreigners are collected in BEA's surveys of U.S. direct investment abroad and foreign direct investment in the United States; methodolo- gies for these surveys are provided in BEA's publications 1 . Direct investment exists when a business enterprise located in one coun- try is directly or indirectly owned or controlled by a person (in the broad, legal sense, including a company) in 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. I U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES of the final results of its quinquennial benchmark surveys of direct investment. : Availability of the estimates Estimates based on the results of the BEA services sur- veys are published annually in the Survey of Current Business in an article on U.S. international sales and purchases of private services; the article also includes es- timates of sales by affiliates. 3 The Survey article includes annual estimates of most types of services transactions for which the surveys collect data, as well as a geographic disaggregation for most items. For example, the article that was published in 1997 presents estimates by type of service (see table 1) and by geographic area (see table 2) for 1986—96; it also presents country-by-type-of-service detail for 1993—96. As BEA becomes aware of new serv- ices in which there may be significant international trade, it adds them to its surveys. The annual estimates for 1986 forward — including the latest revisions and country-by-type-of-service detail for all years — are also available on diskette and online (see the box "Data Availability"). Summary annual and quarterly estimates for the major components of services in the balance of payments ac- counts are published quarterly in the Survey as part of the U.S. international transactions accounts. 4 Legal authority and confidentiality Reporting in the surveys is mandatory under the Inter- national Investment and Trade in Services Survey Act 2. For information about these surveys, see Foreign Direct Investment in the United States: 1992 Benchmark Survey, Final Results (Washington, DC: U.S. Government Printing Office, 1995); and U.S. Direct Investment Abroad: 1994 Benchmark Survey. Final Results (Washington, DC: U.S. Government Printing Office, forthcoming in spring 1998). The U.S. Bureau of the Census also collects some data on U.S. sales of services to foreigners in its quinquennial economic censuses. The census data are limited to exports by establishments classified as primarily engaged in services activities. Thus, services exported by establishments classified in goods-producing industries are not captured. BEA does not use the census data directly in compiling the U.S. international transactions accounts, but it does use them in maintaining and improving the sample frames for its services surveys. 3. For example, see "U.S. International Sales and Purchases of Private Services: U.S. Cross-Border Transactions in 1996 and Sales by Affiliates in 1995," Survey 77 (October 1997): 95-138. Since 1 990, an article on these transactions has been published annually in the Survey. It was published in the September issues in 1990-95 and in the November issue in 1 996; beginning with 1 997, it will usually be published in the October issue. To subscribe to the Survey, call the Superintendent of Documents, U.S. Government Printing Office at 202-5 1 2-1 800. 4. See "Table 3. — Private Service Transactions" in the articles on U.S. international transactions in the January, April, July, and October 1996 and 1997 issues of the Survey. Before 1996, the articles were published in the March, June. September, and December issues. (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended). This act protects the confidentiality of the data of the companies that report. The assurance of confiden- tiality is essential to securing the cooperation of reporters and thus to maintaining the integrity of the statistical system. Except by the prior written permission of the reporter, the data collected in the surveys cannot be published or released in any form that would enable the reporter or the reporter's data to be identified. In order to ensure confidentiality, the data are aggregated and then evaluated before publication in order to determine whether they can be disclosed. If it is determined that a data cell must be suppressed, a "D" is shown for that data cell in the published tables. The act specifies that the data collected in the surveys may only be used for statistical and analytical purposes. Access to the data is limited to officials and employees (including consultants and contractors and their employ- ees) of Government agencies that are designated by the President to perform functions under the act. Certain other Government agencies may be granted access to the data under the Foreign Direct Investment and Inter- national Financial Data Improvements Act of 1990, but only for limited statistical purposes. BEA is prohibited from granting another agency access to the data for tax, investigative, or regulatory purposes. As with all government collections of information, the BEA surveys must be approved by the Office of Manage- ment and Budget under the Paperwork Reduction Act. As part of the survey design and clearance process, users and Data Availability The estimates of the U.S. international transactions of private services that are based on the data collected in these surveys are available on the Internet on the Web site of the Bureau of Economic Analysis (BEA) at . They are also available online to subscribers to STAT-USA of the U.S. Department of Commerce; to subscribe to STAT-USA, call 202-482-1986, or go to . The annual estimates are also available from BEA on a diskette that is updated annually. The diskette also includes estimates of sales of services by affiliates. The estimates for 1986— 96 are available on the diskette that was produced in October 1 997; the product number for this diskette is IDN-0172, and the price is $20.00. To order the diskette using MasterCard or Visa, call the BEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666. To order by mail, send a check payable to "Bu- reau of Economic Analysis,BE-53" to BEA Order Desk, Bureau of Economic Analysis, BE— 53, U.S. Department of Commerce, Washington, DC 20230. A GUIDE TO THE SURVEYS survey respondents are given an opportunity to comment on proposed data collections. BEA publishes notices about planned surveys in the Federal Register, in these notices, comments on any aspects of the data collections are requested, and all comments received are considered. In the design of its surveys, BEA makes every effort to strike a reasonable and appropriate balance between the needs of data users for complete, accurate, detailed, and timely data and the concerns of respondents about the burdens imposed by the reporting requirements. Table 1. — Private Services Transactions by Type, 1986-96 [Millions of dollars] Line Exports 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Total private services ' Travel Overseas Canada ... Mexico .... Passenger tares Other transportation Freight Port services Other Royalties and license fees Affiliated U.S parents' transactions . US affiliates' transactions Unaffiliated Industrial processes Other Other private services Affiliated services U.S. parents' transactions U.S. affiliates' transactions Unaffiliated services Education Financial services Insurance, net Premiums Losses Telecommunications Business, professional, and technical services Accounting, auditing, and bookkeeping services Advertising Agricultural services Computer and data processing services Construction, engineering, architectural, and mining services Data base and other information services Industrial engineering Installation, maintenance, and repair of equipment Legal services Mailing, reproduction, and commercial art Management of health care facilities Management, consulting, and public relations services Medical services Miscellaneous disbursements Personnel supply services Research, development, and testing services Sports and performing arts Training services Other business, professional, and technical services 2 Other unaffiliated services 3 77,167 20,385 15,650 2,701 2.034 5,582 15,784 4,651 10,574 559 8,113 6,174 5,994 180 1,939 n.a. n.a. 27,303 8,385 5,577 2,808 18.918 3,495 3,301 1,385 3.424 2,039 1.827 4,428 21 94 4 985 759 124 98 1,033 97 ( D ) 1 306 490 n.a. ( D ) 282 32 73 4.482 86,921 23,563 18,044 3.309 2,210 7,003 17,471 5,205 11,575 692 10,183 7,897 7,668 229 2,285 1,592 693 28,701 8,494 5,658 2,836 20,208 3,821 3,731 1,573 3,615 2,042 2,111 4,280 27 109 7 649 668 133 304 1,087 147 22 327 516 n.a. 38 177 11 60 n.a. 4.692 101,076 29,434 22,314 4,150 2,970 8,976 19,811 6,259 12,820 732 12,146 9,501 9,238 263 2,645 1,863 782 30,709 9,568 6,808 2,760 21,141 4,142 3,831 847 3,534 2.687 2,196 5,426 37 145 4 1,198 790 196 278 1,276 272 29 (') 344 541 n.a. ( D ) 231 ( D ) 54 n.a. 4.699 117,990 36,205 26.939 5,340 3,926 10,657 21,106 6,913 13.318 876 13,818 10,961 10,612 349 2,857 1,947 910 36,204 12,296 9,117 3,179 23,908 4,575 5,036 103 3.117 3,015 2,519 6,152 124 145 3 978 939 205 219 1,717 397 9 300 588 n.a. 2 375 43 109 n.a. 5,524 137,224 43,007 30 806 7,093 5,108 15,298 22,745 8,063 13,662 1,020 16,634 13,250 12,867 383 3,385 2,333 1,052 39,540 13,622 9,532 4.090 25.918 5,126 4,417 230 3,388 3,158 2,735 6,951 119 130 4 1,031 867 283 473 2,031 451 8 354 630 n.a. 1 384 47 138 n.a. 6.459 152,413 48,385 34.518 8,500 5,367 15,854 23,331 8,356 13.979 996 17,819 14,106 13,523 583 3,712 2,434 1,278 47,024 14,539 9,976 4,563 32,486 5,679 5,012 491 3.365 2,874 3,291 1 1 ,249 168 274 56 1,738 1,478 442 363 2,574 1,309 18 22 870 672 89 160 602 71 345 n.a. 6.764 163,926 54,742 40,864 8,182 5,696 16,618 22,616 8,450 13,088 1,078 19,656 15,658 14,925 733 3,997 2,525 1,472 50,294 16,823 10.479 6,344 33.471 6,186 4,034 682 3,852 3,170 2,885 11,994 164 315 54 1,902 1,935 641 212 2,744 1,358 14 22 728 708 97 127 611 43 320 n.a. 7.690 172,357 57,875 45,298 7,458 5,119 16,611 23,050 8,682 13,364 1,005 20,304 15,688 14,936 752 4,616 2,820 1,796 54,517 16,813 10.902 5,911 37,704 6.738 4,999 1,020 3,981 2,961 2,785 13,446 164 338 47 2,308 2,407 694 268 2,978 1,442 12 19 826 750 222 113 464 77 319 n.a 8,717 184,195 58,417 47,299 6,252 4,866 17,083 24,941 9,697 14,180 1,065 22,661 17,793 16,768 1,025 4,869 3.026 1.843 61,093 18,651 12,138 6,513 42,442 7,175 5,763 1,676 4,921 3,245 2.865 15,893 132 487 30 2,796 2,474 1,026 575 3,497 1,617 10 18 1,134 794 222 85 522 86 388 n.a. 9.070 204,165 63,395 54,331 6,207 2,857 19,125 27,412 11,420 14,810 1,184 27,383 21,670 20,210 1,460 5,713 3,583 2,131 66,850 20,272 12,795 7,477 46,578 7,512 7,029 1.390 5,524 4,133 3,183 17.765 208 558 30 3,197 2,848 1,463 757 3.179 1,664 4 18 1,456 841 240 94 660 116 432 n.a. 9,699 221,224 69,908 60.144 6,763 3,001 20,557 27,216 11,161 14,691 1,364 29,974 23,760 21,916 1,844 6,214 3,979 2,235 73,569 22,810 13,763 9,047 50.759 7,807 8,034 2,121 6.179 4,058 3,405 19,247 238 59/ 12 3,142 2,990 1,629 840 3,716 1,910 14 18 1,473 872 272 150 750 146 3/0 107 10,145 See footnotes at the end of the table. 4 U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Table 1. — Private Services Transactions by Type, 1986-96 — Continued [Millions of dollars] Imports 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 Total private services Travel Overseas Canada ... Mexico .... Passenger fares Other transportation Freight Port services Other Royalties and license fees Affiliated U.S. parents' transactions U.S. affiliates' transactions Unaffiliated Industrial processes Other Other private services Affiliated services U.S. parents' transactions U.S. affiliates' transactions Unaffiliated services Education Financial services Insurance, net Premiums Losses Telecommunications Business, professional, and technical services Accounting, auditing, and bookkeeping services Advertising Agricultural services Computer and data processing services Construction, engineering, architectural, and mining services Data Case and other information services Industrial engineering Installation, maintenance, and repair of equipment Legal services Mailing, reproduction, and commercial art Management of health care facilities Management, consulting, and public relations services Medical services Miscellaneous disbursements Personnel supply services Research, development, and testing services Sports and performing arts Training services Other business, professional, and technical services 2 Other unaffiliated services 1 66.421 25.913 20,311 3,034 2,568 6,505 17,817 11,888 5.254 674 1,401 917 118 799 484 n.a. n.a. 14,785 3,915 2,391 1,524 10,870 433 1,769 2,201 7,217 5.016 3.253 1,253 29 77 5 3? 301 23 75 467 40 12 C) 60 n a n.a. 25 76 21 7 n a 1,961 75,506 29,310 23,313 2,939 3.058 7,283 19,057 11,993 6,392 673 1,857 1,309 168 1,141 547 436 111 17,999 5,357 3,050 2,307 12,643 452 2,077 3,241 8,538 5.297 3,736 1.319 37 128 7 74 163 25 103 496 56 9 67 n.a. n.a. 7 114 25 9 n.a. 1,818 82,441 32,114 25.260 3.232 3,622 7,729 20,969 13.147 7.099 724 2,601 1,426 141 1,285 1,175 487 19.028 6.043 3.461 2,582 12,985 539 1,656 2,628 8,954 6,326 4,576 1.848 31 188 4 107 307 39 133 616 98 9 2 73 n.a. n.a. 10 182 40 10 n.a. 1,737 87,001 33,416 25.746 3.394 4.276 8,249 22,260 13.306 8,176 778 2,528 1,703 71 1.632 824 568 256 20,548 7.911 4,783 3,128 12,637 586 2,056 823 9,909 9,086 5,172 1,971 22 228 2 46 443 31 53 704 81 8 C) 143 n.a. n.a. 10 133 54 13 n.a. 2,028 100,570 37,349 28,929 3,541 4,879 10,531 25,168 14,353 9,920 895 3,135 2,206 239 1,967 931 666 265 24,387 9,118 5,334 3,784 15,269 658 2,475 1,910 10.222 8,312 5.583 1,891 57 243 (*) 44 170 54 74 714 111 8 C) 135 n a n a 5 210 48 17 n a 2,752 102,671 35,322 26,506 3,705 5,111 10,012 25,204 13,881 10,421 902 4,035 2,955 166 2,789 1,080 796 284 28,098 9,732 5,260 4,472 18.366 698 2,669 2,467 11,207 8,740 6,608 2,785 89 301 22 116 315 51 30 538 244 38 13 271 n.a. 342 15 241 84 77 n.a. 3,139 104,157 38,552 29,838 3,554 5,160 10,556 24,894 13,784 10,197 914 5,089 3,396 189 3,207 1,694 818 876 25,066 9,640 5,355 4,285 15,426 720 986 1,324 11,738 10,414 6,052 2,835 104 450 21 141 261 72 112 191 311 37 13 243 n.a. 395 14 225 145 101 n.a. 3.509 111,947 40,713 31.859 3.692 5,162 11,313 25,746 14,846 10,005 895 4,819 3,386 234 3,152 1.433 1.054 379 29,356 10,677 5,721 4,956 18,680 767 1,371 3,095 12,093 8,998 6,365 3,350 103 646 18 304 319 110 142 175 321 33 11 287 n.a. 371 13 239 156 101 n a 3,733 122,620 43,782 34,534 3,914 5,334 12,885 27,255 16,324 10,013 919 5,560 3,776 261 3,515 1.784 1,034 750 33,138 1 1 ,860 5,948 5,912 21,278 816 1,654 4,034 14,075 10.041 6,928 3,628 130 728 14 244 280 141 100 164 383 17 12 321 n.a. 538 3 294 122 137 n.a. 4,217 134,523 46,053 36,418 4,319 5,316 14,433 28,249 16.759 10.579 911 6,503 5,128 448 4,680 1,373 962 411 39,285 13,597 6,820 6,777 25,689 949 2,472 5,383 15,187 9,804 7,773 4,691 170 718 17 422 339 172 160 204 468 27 16 475 n.a. 852 4 358 134 156 n.a. 4,420 143,086 48,739 38,162 4,606 5,971 15,776 28,453 16,879 10,792 783 7,322 5.301 553 4,748 2,021 1,126 895 42,796 16,026 7,505 8,521 26,770 1,041 3,184 4.387 15.473 1 1 ,086 8.385 5,253 199 971 12 334 489 174 188 315 516 56 20 543 n.a. 799 12 322 125 136 41 4,520 n.a. Not available • Less than $500,000. D Suppressed to avoid disclosure of data of individual companies. 1. Corresponds to lines 1 and 28 (exports and imports of private services) of table 3 of the U.S. international transactions accounts. 2, Other business, professional, and technical services consists of language translation area- services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services. 3. Exports include mainly expenditures of foreign governments and international organiza- tions in the United States. Imports include mainly wages of foreign residents temporarily em- ployed in the United States and of Canadian and Mexican commuters in the U.S. border A GUIDE TO THE SURVEYS Table 2. — Private Services Transactions by Area and Country, 1986-96 [Millions of dollars] Exports 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 All countries' Canada Europe Belgium-Luxembourg France Germany 2 Italy Netherlands Norway Spain Sweden Switzerland United Kingdom , Other Latin America and Other Western Hemisphere South and Central America Argentina .- Brazil Chile Mexico Venezuela Other Other Western Hemisphere Bermuda Other Africa, Middle East, and Asia and Pacific Alrica South Africa Other Middle East Israel Saudi Arabia Other Asia and Pacific Australia China Hong Kong India Indonesia Japan Korea, Republic of Malaysia New Zealand Philippines Singapore Taiwan Thailand Other International organizations and unallocated Addenda: European Union 5 Eastern Europe" 77,167 8,532 25,281 1,046 2,940 4,091 1,885 1,934 6.554 13,915 11.124 3.890 936 2.791 25,916 1,626 10,333 3,523 21,013 327 86,921 9,434 30,684 1,048 3.682 5,295 2.178 2,114 8,443 14,252 11,537 3,962 841 2,714 28,618 1,872 12,439 3,927 25,569 342 101,076 10,762 36,207 1,235 3,916 5.989 2,491 2,458 10,169 15,781 13,061 4,643 925 2,720 33,713 2,343 14,898 4,612 29,774 452 117,990 13,381 42,115 1,503 4,675 6,262 2,716 2,593 12,515 17,879 15,099 6,218 1,042 2,781 39,721 2,865 18,452 4,900 34,687 745 137,224 15,743 48,716 1,796 5,573 7,489 3,324 3,281 13,050 21,718 18,126 7,875 1,284 3,593 45,726 3.302 21,260 5,325 39,530 1,009 152,413 17,818 54,041 1,971 6,208 8.925 3,719 3,582 14,160 24,530 20.801 8,842 1,576 3,728 51,656 3,257 24,093 4,368 44,495 1,188 163,926 17,697 60,557 2,322 7,081 10,930 4,512 3,736 1,119 2,444 1,754 2,953 15,795 7,915 26,213 22,665 1,814 2,462 614 9,491 2,007 6,283 3,549 415 3,132 55,561 2,348 474 1,874 4,109 947 1,379 1,785 49,104 3,504 1,609 2,239 1,103 775 25.622 3,418 722 768 1.040 2,159 3,169 764 2,214 3,874 51.285 1.223 172,357 17,366 62,517 2,223 6,882 11,407 4,097 4,112 1,244 2,247 1,729 2,990 17,230 8,352 28,652 24,689 2,166 2,901 770 9.341 2.444 7,075 3,963 533 3,427 59,423 2.449 505 1,944 4,256 1.155 1260 1,841 52,718 3,604 2,021 2,353 1.151 899 26.856 3.792 766 801 1,322 2.418 3,465 1,026 2,240 4,383 52.635 1.657 184,195 17,251 65,567 2,517 6,508 11 405 4,154 5,106 1.135 2.660 1,714 3.409 17,327 9,635 31,722 26,894 2.454 3,627 1,115 9,870 2,129 7,701 4,829 743 4,086 65,141 2,636 624 2,014 5,121 1,529 1,870 1,721 57,384 3,729 2,213 2,673 1,230 854 28,877 4,686 867 815 1.226 2,718 4,164 997 2,335 4,508 54,381 2,198 204,165 18,247 73,090 2.719 7.991 12,919 4,569 5,927 1,207 3.013 1,917 3,594 18.546 10,694 32,113 26,825 2,448 4,839 985 7,290 2,489 8,771 5,289 603 4,686 75,744 2,957 800 2,158 5.935 1,726 2,101 2,107 66,852 4,273 2,647 3,033 1,323 1,287 33,275 5,988 1,074 979 1.123 3.285 4.552 1.199 2.815 4,970 64,093 2.614 221,224 19,951 80,230 2,800 8,749 13,790 4,750 6,421 1.358 3,151 2,413 3,918 20,482 12,397 34,073 28,183 2.793 5,142 1,174 7,923 2,312 8,839 5,889 793 5,095 81,280 3,184 967 2,217 5.524 1.978 1.759 1.787 72,572 4,575 3.090 3,307 1,459 1,440 35.253 7.886 1,377 1,049 1,165 3,928 4,240 1,312 2,492 5,691 69.809 3,028 See footnotes at the end of the table. U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Table 2. — Private Services Transactions by Area and Country, 1986-96 — Continued [Millions of dollars] Imports 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 All countries Canada Europe Belgium-Luxembourg France Germany 2 Italy Netherlands Norway Spain Sweden Switzerland United Kingdom Other Latin America and Other Western Hemisphere South and Central America Argentina Brazil Chile Mexico Venezuela Other Other Western Hemisphere Bermuda Other Africa. Middle East, and Asia and Pacific Africa South Afnca Other Middle East Israel Saudi Arabia Other Asia and Pacific Australia China Hong Kong India Indonesia Japan Korea. Republic of Malaysia New Zealand Philippines Singapore Taiwan Thailand Other International organizations and unallocated Addenda: European Union " Eastern Europe J 66,421 6,440 24,254 607 2.283 3999 2,264 1,038 7,577 14,316 8.755 4,895 494 5,561 19,494 1,169 6.676 20.507 350 75,506 6,989 28,443 562 2,695 5.217 2,516 1.311 8.959 16,096 10.131 5,542 549 5,966 22,164 1.510 7,544 1,817 24.063 483 82,441 8,500 31,030 628 2,948 5.562 2.880 1.326 9.460 16,566 11.074 5.874 627 5,494 23,823 1,650 8.415 2,524 25,938 515 87,001 8,801 33,226 823 3,535 6.081 2.874 1,618 9.864 17,912 12,167 6,936 505 5,745 24,482 1,756 8.955 2,582 28,223 594 100,570 9,307 40,030 1,027 4,187 6,852 3,485 1,945 1 1 ,624 20,298 14,305 8,279 670 5,993 28,225 2.301 10,564 2,706 33,552 815 102,671 9,937 39,489 962 3,959 6.461 3,315 2,169 12,155 21,495 15.105 8.877 602 6.389 29,680 2,394 11,861 2,069 33,085 1,075 104,157 9,671 40,351 1,039 4.765 6.407 3,185 2,486 1.081 1.515 804 1.718 10.596 6.752 22,385 15.671 451 684 332 9,482 636 4,085 6,713 1,520 5,193 29,428 1,529 199 1.330 2,081 1,023 342 713 25,818 2.231 1.152 1,439 667 451 10,653 2,008 274 527 789 698 1.997 396 2,541 2,322 33,480 1,632 111,947 10,291 44,682 1,059 4.966 6,849 3,156 2,222 1.457 1,081 969 1,957 13,700 7,263 22,954 15.920 467 738 360 9.756 718 3,891 7.034 1.279 5.751 32,098 1.579 232 1,347 2,201 1,076 343 781 28,317 2.184 1.420 1.355 723 440 1 1 ,844 2,257 308 541 857 952 2,404 384 2.649 1,923 36,844 1,537 122,620 11,180 49,026 1.248 5.671 7,294 3.446 2.585 1.397 1.144 875 2,303 14,627 8,429 25,309 17,437 573 913 408 10.467 754 4.324 7,872 1,779 6.093 35,352 1,974 295 1.677 2.259 1.189 308 760 31,119 1,913 1.560 1.896 800 449 12,572 2,611 359 569 1,038 1.173 2,680 482 3.017 1,754 40,044 1.998 134,523 12,542 53,604 1,522 6,175 7,895 3.732 3,171 1.178 1.092 858 2,259 16.359 9.366 27,212 18,234 578 1,185 417 10,687 701 4,666 8,978 2,751 6.227 38,873 1,983 404 1.579 2,680 1,170 563 947 34,210 2.139 1.762 1.939 885 453 13,739 3,335 462 589 1,128 1.233 2,884 704 2.955 2,290 46.129 2,235 143,086 13,818 55,815 1,611 6.309 8,586 3,724 3,238 1,254 1.190 871 2,512 17,128 9,401 30,070 19,788 695 1,429 507 1 1 ,562 728 4.863 10,281 3,810 6,471 40,356 2,172 473 1.698 2,963 1,399 514 1,050 35,221 2.403 1.972 2,545 1,059 554 13,245 3.881 484 589 1,298 1.723 2,683 820 1.966 3,026 47,852 2,241 1 See footnote 1, table 1. 2 Prior to 1990, this line includes data only (or the Federal Republic of Germany Begin- ning in 1990. this line also includes the former German Democratic Republic, 3. The European Union comprises Belgium. Denmark, France. Germany, Greece, Ireland. Italy. Luxembourg, Netherlands. Portugal. Spain, United Kingdom, Austria, Finland, and Swe- den. The last three countries joined the Union on January 1, 1995, The estimates prior to 1995 do not reflect the addition of these three countries. 4. Eastern Europe comprises Albania, Armenia, Azerbaijan. Belarus, Bulgaria. Czech Re- public, Estonia, Georgia. Hungary, Kazakhstan. Kyrgyzstan. Latvia, Lithuania, Moldova, Po- land, Romania, Russia, Slovakia. Taiikstan, Turkmenistan, Ukraine, and Uzbekistan. NOTE. — The full country and area detail shown in the stub is available only since 1992. Methodology of the Surveys The Bureau of Economic Analysis (BEA) collects data on U.S. international transactions in private services with unaffiliated foreigners through 1 1 surveys. These sur- veys fall into three broad categories: (1) The surveys of "selected" services, which cover mainly business, professional, and technical services; (2) the specialized surveys of services, which cover construction, engi- neering, architectural, and mining services, insurance services, financial services, and royalties and license fees; and (3) the surveys of transportation services. This section presents general information about the coverage of the surveys, who reports in the surveys, the classification system used for the services, the identifica- tion of international transactions, the reporting periods of the surveys, the preparation of the survey-based estimates, and the revision of the estimates. More specific information about each survey is pres- ented in the three following sections: The surveys of selected services, the specialized surveys of services, and the surveys of transportation services. In each section, in- formation is provided about the services that are covered by each survey, the criteria for reporting, the frequency with which the surveys are conducted, the number of re- ports that are filed, and the method of deriving estimates from the data collected. An appendix to each section in- cludes copies of the survey forms and instructions. For a list of the surveys and the services covered by each survey, see table 3. Coverage Most of BEA's services surveys attempt to reach virtu- ally the entire population of U.S. persons (in the broad, legal sense including companies) with transactions in the covered services. However, for BEAs surveys of selected services and its surveys of financial services, a comprehensive effort to reach the entire population via benchmark, or census, surveys is made only once every 5 years in order to reduce the reporting burden in the interim years. The benchmark surveys (BE-20 Table 3. — BEA Services Surveys by Type of Service Covered Number Title Line items from table 1 BE-20 Benchmark Survey of Selected Services Transactions With Unaffiliated Foreign Persons. 24(m), 26(m), 27(m) 35, 36, 37, 38, 39, 48 28, 40, 30, 41, 31 43, 32, 44, 33, 34(m), 45, 46, 47, BE-22 Annual Survey of Selected Services Transactions With Unaffiliated Foreign Per- sons. 24(m), 26(m), 27(m) 36, 37, 38, 41, 42, 28, 43, 30, 45, 31, 46, 33, 47, 34(m), 35, 48 BE-47 Annual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons. 34(x) BE-48 Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insur- ance Companies With Foreign Persons. 26, 27 BE-80 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons. 24 BE-82 Annual Survey of Financial Services Transactions Between U.S. Financial Serv- ices Providers and Unaffiliated Foreign Persons. 24 BE-93 Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons. 16, 17 BE-29 Foreign Ocean Carriers' Expenses in the United States 9(x) BE-30 Ocean Freight Revenues and Foreign Expenses of United States Carriers 8(x), 9(m), 10 BE-36 Foreign Airline Operators' Revenues and Expenses in the United States 8(m), 9(x), 10(x) BE-37 U.S. Airline Operators' Foreign Revenues and Expenses 6, 8(x), 9(m), 10(m) m Imports only, x Exports only. U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES for selected sen ices and BE-80 for financial services) are mailed to a relatively large number of potential respondents in an effort to collect complete data and to identify as many transactors as possible. The mailing lists for BEA"s benchmark surveys include U.S. persons who have previously filed a report and all U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The lists are derived from information from Government sources, industry associations, business directories, and various periodicals. The benchmark surveys have reporting thresholds that BEA feels result in the capture of essentially the entire universe of transactions in the covered services. Re- spondents whose transactions fall below these reporting thresholds are exempt from reporting data by type of service, but in claiming an exemption, they must provide estimates of the aggregate value of their transactions for all covered services combined. BEA periodically reviews the data obtained from the exemption claims to determine whether these reporting thresholds are set at appropriate levels. In the years between benchmark surveys, BEA con- ducts annual sample surveys (BE-22 for selected services and BE-82 for financial services), which have a higher re- porting threshold than the benchmark surveys and which, in the case of the BE-22, cover a smaller number of data items. The threshold for the sample surveys is tested against the results of each benchmark survey and other available information to determine whether the threshold remains at an appropriate level to capture the bulk of the population. To ensure that the published estimates cover the en- tire universe of transactions in nonbenchmark years as well as in benchmark years, BEA generally adds, to the reported data, estimates for transactions of compa- nies exempt from filing the annual surveys and estimates for transactions in services not covered by the an- nual surveys. The published estimates of financial services include an estimate for transactions of com- panies exempt from filing the annual surveys. The published estimates of the selected services include an estimate for transactions in types of services not re- ported annually. For companies required to report on the benchmark surveys of selected services but whose transactions fall below the reporting threshold for the annual surveys, transactions have tended to be small and fairly evenly divided between exports and imports, and no estimates have been included for them; how- ever, data for these companies are reexamined after each benchmark survey to determine if estimates should be introduced. The reporters The reporters are U.S. persons — mainly companies — that engage in transactions with unaffiliated foreign residents on their own behalf or on behalf of others and who meet the criteria for reporting in each survey 1 In most cases, the U.S. parties to the transactions report. In a few cases, however, U.S. agents or intermediaries may report the transactions of their U.S. or foreign clients. When a transaction between a U.S. person and an unaf- filiated foreign person is facilitated by an intermediary, who a sale is to, or who a purchase is from, is determined on the basis of who the U.S. person considers itself to have a claim on for payment, in the case of a sale, or who it has a liability to, in the case of a purchase. If the U.S. person has a claim on, or a liability to, the unaffiliated foreign person or an intermediary that is itself an unaffil- iated foreign person, the transaction must be reported by the U.S. person. If the U.S. person has a claim on, or a liability to, an intermediary that is another U.S. person, the transaction is not reportable, because it is not an in- ternational transaction; however, in such a case, the U.S. intermediary must report the transaction with the foreign person. Classification of services The classification of services is mainly based on broad "standard components" for services that are recom- mended in the International Monetary Fund's Balance of Payments Manual? Many of the categories in the surveys also correspond to the categories in a classifica- tion system for trade in services that has been developed jointly by the Organisation for Economic Co-operation and Development (OECD) and Eurostat, the statistical office of the European Union. This system includes all of the Manual's standard components for services, with further breakdowns within some components. Finally, the definitions for some categories were adapted from the International Surveys Industry (ISI) classifications developed by BEA. 3 When a sale or purchase consists of both goods and services or of several services that cannot be unbundled 1. Transactions with affiliated foreigners are covered by BEA's direct investment surveys. 2. International Monetary Fund, Balance 0/ Payments Manual, 5th edition (Washington, DC: International Monetary Fund, 1993): 37-50. 3. Bureau of Economic Analysis, Guide to Industry and Foreign Trade Classifications for International Surveys (Washington, DC: Bureau of Eco- nomic Analysis, 1987). The ISI classifications that are currently used were adapted from the 1987 Standard Industrial Classification (SIC). Over the next few years, revised ISI classifications based on the new North American Indus- trial Classification System will replace the SIC-based classifications in BEA's survey work. A GUIDE TO THE SURVEYS (that is, the goods or services are not separately valued), it is classified either on the basis of which part of the transaction accounts for most of the value or on the basis of the reporter's customary practice. While this proce- dure results in the omission of some transactions and an overstatement of others, the biases are offsetting so that at the aggregate level, the estimates probably are relatively unbiased. These bundled transactions are not separately identified, and it is not possible to adjust the data for ei- ther services or goods to correct for any bias that may remain. Definitions of international transactions The definitions that underlie the transactions in private services covered by BEA's surveys are the same as those underlying the balance of payments accounts. 4 An international transaction is a transaction between a resident and a nonresident, or "foreigner." Thus, a U.S. international transaction is a transaction between a U.S. person and a foreign person. 5 Affiliates of multinational companies are regarded as residents of the countries where they are located rather than of the countries of their owners. Thus, sales abroad by foreign affiliates of U.S. companies are transactions between foreign persons, and sales in the United States by U.S. affiliates of foreign companies are transactions between U.S. persons. Neither type of sale is a U.S. international transaction. 6 In most cases, a transaction clearly is, or is not, an in- ternational transaction. However, in some cases in which the seller provides the service in the country of the pur- chaser, questions may arise as to whether the transaction should be regarded as an international transaction or as a local sale by a foreign affiliate. If the company's operation in the country of the pur- chaser is incorporated in that country, then it is regarded as an affiliate. However, if the operation is unincorporated, BEA uses several criteria to determine if the operation should be regarded as that of an affiliate. In the following list of criteria, the example used is that of the foreign op- 4. For detailed information about the methodology used for the accounts, see The Balance of Payments of the United States: Concepts, Data Sources, and Estimating Procedures (Washington, DC: U.S. Government Printing Office, 1 990). Changes in methodology that have been made since that publication are published in annual articles in the Survey — in the June issue for 1 990-95 and in the July issue thereafter. For example, see "U.S. International Transactions: Revised Estimates for 1974-96" Survey 77 (July 1997): 43-55. 5. A U.S. person resides in, or is subject to the jurisdiction of, the United States. A foreign person resides outside the United States or is subject to the jurisdiction of another country. 6. Sales by affiliates represent another important channel for the interna- tional delivery of services. BEA collects data on these transactions in its direct investment surveys and publishes the estimates in the annual article on U.S. international sales and purchases of private services in the Survey. eration of a U.S. company, but the criteria are analogous for the U.S. operation of a foreign company. • In general, an unincorporated foreign operation of a U.S. company is considered to be a foreign affiliate if the operation (1) pays foreign income taxes; (2) has a substantial physical presence abroad (for example, plant and equipment or employees); (3) maintains financial records so that it can prepare its own fi- nancial statements, including an income statement and balance sheet (not just a record of disbursements and receipts); (4) takes title to the goods it sells and receives the revenues from its sales; or (5) receives funds for its own account from customers for the services it performs. • An unincorporated foreign operation of a U.S. com- pany is generally not considered to be a foreign affiliate if the operation (1) pays no foreign income taxes; (2) has limited physical assets or employ- ees permanently located abroad; (3) has no financial statements; (4) conducts business abroad only for the U.S. company's account and not for its own account (for example, sales promotion or public relations ac- tivities); and (5) receives funds to cover its expenses only from the U.S. person. In such cases the opera- tions are considered those of the U.S. company, and its sales within the country are recorded in the U.S. international transactions accounts as exports to that country. Reporting periods For all the surveys except the four transportation surveys, the reporting period used is the fiscal year of the reporter. In most cases, the reporter's fiscal year coincides with the calendar year, so that the published statistical aggregates track calendar year activity fairly closely. Using the fiscal year rather than the calendar year is intended to ease the burden on reporters that use fiscal year accounting records in completing their reports. The fiscal year of the reporter is the reporter's financial- reporting year that ends in the calendar year covered by the survey. For example, if the reporter's financial- reporting year was from October 1, 1996 to September 30, 1997, all the transactions in that period are reported as transactions in 1997. All reports must be filed by March 3 1st of the next year — March 31, 1998, in the example. The calendar year is the reporting period used for two of the surveys of transportation services, and the calendar quarter is the reporting period for the other two. The report for a calendar year must be filed within 90 days after the end of the year. The report for a calendar quarter must be filed within 50 days after the end of the quarter. U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES The preliminary and revised estimates BEA"s preliminary estimates are usually released in the year (or quarter) following the period covered by the survey. The first revisions are released in the following year (or quarter), and additional revisions may be made in subsequent periods. In some cases, when new survey data become available, the estimates for periods preceding the period covered by the survey are also revised. The principal difference between the preliminary pub- lished estimates and the revised published estimates is the size of the estimate included for transactions that had not been reported when the estimates were prepared but that, based on the previous year's transactions, are be- lieved likely to have been above the exemption level. The estimate for missing reports, which ensures that the pub- lished estimates are as complete as possible, is largest for the preliminary estimates. In the first revision — as well as in any subsequent revisions — of the published estimates, the estimate for missing reports is largely re- placed by reported transactions, as reports received after the preliminary estimates were prepared are incorporated; however, even the revised estimates generally include some estimate for missing reports. Preparing the estimates Before the estimates are prepared, the data reported in the surveys have to pass a number of edit checks. When pos- sible, the data for a reporter are reviewed for consistency with related data from other parts of the report, with data from related reports, with comparable data reported by other reporters, and with related data from other sources. For some services, the data obtained from BEA's surveys are combined with information from other Gov- ernment agencies; for example, as described in the section on the surveys of transportation services, the preparation of some of the estimates of transportation services use in- formation, such as the volume of goods shipped to or from the United States, from the U.S. Bureau of the Census. For all services except those covered by the transporta- tion surveys, two similar, general procedures are used to prepare the annual estimates: One is used when the es- timate is derived from the results of a BEA survey that attempts to reach virtually the entire universe of transac- tions in the covered services — the two benchmark surveys and all the annual surveys except the two annual sample surveys; the other procedure is used when the estimate is derived from the results of one of BEA's annual sample surveys of selected services and financial services. Estimates derived from the results of a BEA survey that attempts to reach virtually the entire universe of trans- actions in the covered services are calculated as the sum of the following: (1) The transactions reported for the service on the survey and (2) the estimate for missing reports. Estimates derived from the results of one of BEA's annual sample surveys are calculated as the sum of the following: (1) The transactions reported for the service on the survey, (2) the estimate for missing reports, and (3) the estimate for transactions that are reported on the benchmark survey but not on the annual survey. The estimate for missing reports is extrapolated from the delinquent reporters' transactions in the previous year on the basis of the growth rate for reported transactions classified in the same service and geographic area, and adjustments are made for outliers or unusual transactions. The estimate for transactions that are reported only on the benchmark survey covers — in the case of the selected services survey — transactions in the types of services that are not reported on the annual survey. (As mentioned earlier, no estimate has yet been made for transactions that fall below the reporting threshold for the annual survey.) The estimate is extrapolated from the transactions for the prior year (extrapolated or reported) on the basis of the growth rate for transactions in similar types of services. In the case of the survey of financial services, the estimate covers transactions that fall below the reporting threshold for the annual survey. The estimate is based upon the exempt reporter's total services transactions reported on the exemption form and is allocated by type of service based on the distribution observed in the most recent benchmark survey. For both the selected services survey and the survey of financial services, adjustments are made for outliers or unusual transactions. For services covered by the four surveys of trans- portation services, the procedures used to prepare the annual estimates vary (see "Preparing the estimates" in the section "The Surveys of Transportation Services"). The preliminary quarterly estimates of most services for which only annual survey coverage is available are de- rived from the annual estimates by extrapolation; the revised quarterly estimates are derived from the annual estimates by interpolation. Surveys of Selected Services The Bureau of Economic Analysis (BEA) conducts two surveys of transactions in selected services: The Bench- mark Survey of Selected Services Transactions With Unaffiliated Foreign Persons (BE-20) and the Annual Sur- vey of Selected Services Transactions With Unaffiliated Foreign Persons (BE-22). The two surveys mainly cover business, professional, and technical services. As of the date of this publication, the benchmark survey collects data on transactions in 32 categories of services, and the annual survey collects data on transactions in 28 categories of services. Data for some services collected in the benchmark survey are more detailed than those collected in the annual survey. Some of the services categories in both the benchmark survey and the annual survey cover only sales or only purchases, generally because the purchases or the sales are covered in other surveys. The benchmark survey is conducted once every 5 years. The first three surveys covered transactions in 1986, 1991, and 1996, respectively; the next survey will cover trans- actions in 2001. The annual surveys for nonbenchmark years have been conducted since 1987. All U.S. persons whose total transactions — in either sales or purchases — in any of the covered services exceed $500,000 during the relevant fiscal year are required to report data by type of service in the benchmark survey. All U.S. persons whose total sales or purchases of any of the covered services exceed $1 million in the relevant fiscal year are required to report data by type of service in the annual surveys. 1 U.S. persons meeting these criteria must supply data on the amount of their total sales or total purchases of each type of service in which their transactions exceeded the threshold amount. Except for sales of merchanting services, the data must also be disaggregated by country. U.S. persons whose total transactions in each type of service are at or below the threshold are requested to 1. This criterion for reporting was first adopted for the 1991 benchmark survey. For the 1986 benchmark survey and the annual surveys for 1987-90, the criteria for reporting status was based on the amount of each transaction in a given type of service, and the exemption level was $250,000 per transaction. The present criterion that is based on the total transactions in a given type of service was adopted in order to improve the coverage of services for which individual transactions may be small (less than $250,000) but for which the total transactions may be significant. voluntarily provide an estimate, not disaggregated by country, for each type of service. If they choose not to provide estimates by type of service, they must — in claim- ing an exemption — provide estimates of their total sales and total purchases for all covered services combined. The 1996 benchmark survey was sent to 6,505 U.S. persons. 2 When the preliminary 1996 estimates were prepared, 2,522 had submitted usable reports, 2,946 had claimed exemption, 413 were determined to no longer exist, and the remainder were delinquent or submitted un- usable reports. The 1995 annual survey was sent to 4,324 U.S. persons. When the first revision of the 1995 esti- mates was prepared, 1,560 had submitted usable reports, 2, 1 80 had claimed exemption, 284 were determined to no longer exist, and the remainder were delinquent. In the first revision of the benchmark-survey-based es- timates for all the covered services combined, reported transactions usually account for over 95 percent of both receipts and payments. The estimate for missing reports is the remainder. In the first revision of the annual-survey-based esti- mates, reported transactions usually account for about 90 percent of receipts and 95 percent of payments. The es- timates for missing reports and for transactions reported only on the benchmark survey account for the remainder. Services covered Agricultural services consist of soil preparation serv- ices, crop services, veterinary and other animal services, farm labor and management services, and landscape and horticultural services. These services are reported only in the benchmark survey. Research, development, and testing services consist of laboratory and other physical research, product de- velopment services, and product testing services. These services include experiments and research and develop- ment activities aboard spacecrafts; they exclude medical and dental laboratory services. 2. The surveys are sent to U.S. persons who have previously filed a re- port and to U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The mailing list is derived from information from Government sources, industry associations, business directories, and various periodicals. 1 I 12 U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Management, consulting, and public relations serv- ices consist of the following services: All management services except the management of health care facil- ities (which is reported separately in the benchmark survey), consulting services except computer consulting services and engineering consulting services for actual or proposed construction and mining projects, and pub- lic relations services except those that are a part of an advertising campaign. 3 See also Computer and data-processing services, Construction, engineering, architectural, and mining services, and Advertising services. Management of health care facilities consists of the management of hospitals, nursing homes, and other health care facilities. However, if operating staff (such as doctors and nurses) is also provided, these activities are usually only reported in BEA's direct investment surveys. This service is reported only in the benchmark surveys. Accounting, auditing, and bookkeeping services consist of accounting, bookkeeping, and related audit- ing services. Data-processing and tabulating services are included in Computer and data-processing services. Legal services consist of legal advice and other legal services, including the fees paid by insurance companies as compensation for claims adjustment services. Educational and training services consist of educa- tional and training services provided on a contract or fee basis. These services exclude training services provided by a manufacturer in connection with the sale of a good (which are included in Industrial-type maintenance, installation, alteration, and training services) and tu- ition and fees paid by individual students to educational institutions. Mailing, reproduction, and commercial art services consist of the following: Direct-mail advertising services; mailing services, such as remailing services in direct-mail advertising; commercial photography, art, and graphic services; address list compilation; and stenographic serv- ices. These services are only reported in the benchmark surveys. Employment agencies and temporary help supply services consist of employment services and the provision of temporary help and personnel to perform services on a contract or fee basis. The transactions consist of the fees paid for these services and include the compensation of workers on the payroll of the agency. These services are only reported in the benchmark surveys. Industrial engineering services consist of engineer- ing services related to the design of movable products. 3. U.S. sales of engineering consulting services are included in the survey of construction, engineering, architectural, and mining services; see the section "Specialized Surveys of Services." For engineering and architectural services related to immovable products, see Construction, engineering, architectural, and mining services. For computer sys- tems engineering, see Computer and data-processing services. Industrial-type maintenance, installation, alter- ation, and training services consist of maintenance services for machinery and equipment, including such activities as the periodic overhaul of turbines and loco- motives, the extinguishing of natural gas well fires, and the maintenance of refineries; small maintenance work on structures, such as buildings, dams, and highways; and installation and training services that are provided by a manufacturer in connection with the sale of goods when the price of these services is not incorporated into the price of the goods that is entered on the declaration filed with the U.S. Customs Service. Before 1996, this category also included minor repair services; these serv- ices were removed in 1 996, primarily to avoid duplication with other data sources. See also Construction, engineering, architectural, and mining services and Educational and training services. Performing arts, sports, and other live perfor- mances, presentations, and events are events, such as concerts, operas, ballets, and professional baseball, bas- ketball, and soccer games. The transactions consist of the fees for these events that are reported by management companies, booking agents, promoters, and presenters who receive or pay the fees and the fees that are reported by U.S. performers — such as entertainers, orchestras, bal- let companies, and teams — if they receive the fees directly from the foreign person rather than through a manage- ment company. These fees are net of allowances for expenses. Sale or purchase of rights to natural resources and lease bonus payments consist of the sales of the rights to natural resources except surface land in the United States and abroad and the acquisitions of these rights. The transactions consist of the receipts from the sales of the rights, the payments for the acquisitions of these rights, and the payments of lease bonuses. 4 Use or lease of rights to natural resources, excluding lease bonus payments are the receipts and the payments for the use or the lease of the rights to natural resources except surface land in the United States and abroad and include royalties for oil and mining production. Miscellaneous disbursements or outlays are disburse- ments or outlays that are not classified elsewhere and that fund activities abroad by U.S. persons and activ- 4. These transactions are capital, rather than services, transactions. They are collected in this survey as an expedient. A GUIDE TO THE SURVEYS 13 ities in the United States by foreign persons. These transactions include disbursements or outlays to fund news-gathering costs of broadcasters and the print me- dia; production costs of motion picture companies and companies engaged in the production of broadcast pro- gram material other than news; commissions and "finder's fees" to independent agents (added in 1996); and the costs of maintaining tourism, business promotion, and representative offices. These transactions also include disbursements by U.S. persons to participate in foreign trade shows. Premiums paid on purchases of primary insurance consist of the premiums (net of cancellations) paid by U.S. persons to unaffiliated foreign insurance carriers for primary insurance. The insured assets may be located in the United States or abroad. 5 Losses recovered on purchases of primary insur- ance consist of the losses recovered on primary insurance purchased by U.S. persons from unaffiliated foreign insurance carriers. 6 Construction, engineering, architectural, and min- ing services consist of U.S. purchases of the following services: 7 The construction of buildings and of projects, such as highways, bridges and tunnels, docks and piers, pipelines, and communication and power lines; spe- cialized construction activities, such as the erection of structural steel for bridges and buildings and on-site plumbing, painting, electrical work, masonry, and car- pentry; engineering services for construction and mining projects; architectural services; land-surveying services; and mining services, including oil and gas field services. These services include work on proposed projects, such as feasibility studies. For engineering services that relate to the design of movable products, see Industrial engineering. For computer systems engineering, see Computer and data-processing services. Merchanting services — which were introduced in the benchmark survey for 1996 — consist of buying goods (such as crude oil, grain, and other commodities) abroad and reselling them to unaffiliated foreign persons. The goods do not undergo significant processing between the time they are purchased and the time they are sold. The transaction is reported as the difference between the cost of the goods and the resale price of the goods. As of 5. Sales of primary insurance and sales and purchases of reinsurance between U.S. persons and affiliated and unaffiliated foreign insurance com- panies are reported in the annual survey of reinsurance and other insurance transactions; see the section "Specialized Surveys of Services." 6. The losses incurred on insurance sold to foreign persons by U.S. in- surance carriers are reported in the annual survey of reinsurance and other insurance transactions. 7. Sales of these services are reported in the survey of construction, engineering, architectural, and mining services. the date of this publication, estimates for these services have not yet been published (and thus are not shown in table 1). Financial services consist of purchases of credit- related services and other financial services by nonfi- nancial U.S. firms. 8 The surveys collect data on U.S. payments for three categories of financial services: (1) Credit-related services, (2) securities transactions, and (3 ) other financial services. Advertising services consist of preparing and plac- ing advertising in media. Transactions in these services include both agency fees and charges for media space and time. They exclude transactions with U.S. affiliates of foreign clients or of foreign advertising agencies and transactions that are with foreign persons and that are effected by foreign affiliates of U.S. advertising agencies. The benchmark survey collects the following detail for U.S. sales of advertising services: ( 1 ) Gross billings to un- affiliated foreign clients, (2) gross income received from unaffiliated foreign clients, and (3) direct sales (that is, sales that are not arranged by an ad agency) to unaffiliated foreign persons by media companies. The data for gross billings are added to the data for direct sales to derive the estimates for the receipts that are included in the interna- tional transactions accounts. In the annual survey, data are only collected on the total of these two items. (The gross income item provides supplemental information on the activities of advertising agencies.) Computer and data-processing services consist of the following five categories of services: ( 1 ) Data entry, batch and remote processing, and tabulation; (2) computer systems analysis, design, engineering, and custom pro- gramming; (3) integrated hardware and software systems; and (4) other computer services, such as timesharing, maintenance, and repair. 9 In the benchmark survey, data are collected on U.S. receipts for each category. In the annual survey, data are collected only on total receipts for the four categories combined. The value of prepackaged general-use software that is shipped to or from the United States is excluded, because this software is reported on customs documents as trade in goods. 8. The purchases and sales, or receipts, of U.S. firms that are providers of financial services are reported in the surveys of financial services; see the section "Specialized Surveys of Services." 9. This list reflects the annual survey as of 1997. In the annual surveys before 1997, computer and data-processing services included royalties and license fees for general-use computer software. In the surveys for 1997 and subsequent years, these transactions will be reported on BEA's survey of royal- ties and license fees rather than in the annual survey of selected services. This change will also be made to the benchmark survey for 2001 . 14 U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Before 1996, these services included the operational leasing of computer and data-processing equipment. Beginning with the 1996 benchmark survey, this serv- ice is included in the newly introduced category of operational-leasing services. Database and other information services consist of the following four categories of services: (1) Business and economic database services, including business news, stock quotations, and financial information services; (2) medical, legal, technical, demographic, bibliographic database services and other, similar database services; (3) general news services, such as those purchased from a news syndicate; and (4) other information services, in- cluding reservation systems and credit-reporting systems. Transactions for the use of airline reservation systems also include the booking fees from foreign carriers for direct access, or for access through a travel agent, to a reservation system. In the benchmark survey, data are collected on U.S. receipts for each category. In the annual survey, data are collected only on total receipts for the four categories combined. Telecommunications services consist of the follow- ing five categories of services: (1) Message telephone services provided by communications common carriers; (2) private, leased channel services; (3) telex and tele- gram services and other jointly provided basic services; (4) value-added, or enhanced services, such as elec- tronic mail, voice mail, code and protocol processing, management of data networks, facsimile services, and videoconferencing services; and (5) support services, such as the maintenance and repair of telecommunica- tions equipment, ground station services, capacity leasing for transiting, and the launching of communications satellites. In the benchmark survey, data are collected on U.S. receipts for each category. In the annual survey, data are collected only on total receipts for the five categories combined. Operational-leasing services — which were intro- duced in the benchmark survey for 1996 — consist of the following services: (1) Rentals of computer and data-processing equipment; (2) the leasing of transporta- tion equipment, such as ships, aircraft, railway cars, containers, rigs, and automobile fleets without crew or operators; 10 and (3) the leasing of all other machinery and equipment. Receipts and payments under leases that have been capitalized (capital leases) are excluded. As of the date of this publication, estimates for these services have not yet been published (and thus are not shown in table 1). In the benchmark survey, data are collected on U.S. receipts for each category. In the annual survey, data are collected only on total receipts for the three categories combined. Other private services consist of language translation services, security services, collection services, actuar- ial services, salvage services, satellite photography, and cleanup services for oil spills and toxic waste sites. These services have been included since the 1996 benchmark survey. 1 0. The leasing of transportation equipment is also covered by BEA's trans- portation surveys. As of the publication date of this guide, BEA was reviewing the information on leasing of transportation equipment reported on all of these surveys in order to develop guidelines to eliminate the duplication. APPENDIX Benchmark Survey of Selected Services Transactions With Unaffiliated Foreign Persons (BE— 20) Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons (BE— 22) OMB No. 0608-0058: Approval Expires 11/30/99 form BE-20 (10-24-96) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS 1996 BEA USE ONLY Control number 11 Public reporting burden for this collection of information is estimated to vary from 4 to 500 hours per response, with an average of 12 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management ana Budget, Paperwork; Reduction Project 0608-0058, Washington, DC 20503. EQQI m Secti | U.S. Department of Commerce ! Bureau of Economic Analysis BE-50(SSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50ISSB) Shipping and Receiving Section M-100 1441 L Street, NW | Washington, DC 20005 NAME AND ADDRESS, CERTIFICATION, AND DETERMINATION OF REPORTING STATUS Section A — Name and address Name and principal address of U.S. Reporter — Enter or correct as necessary. BEA USE ONLY NOTE — A single original copy of this report must be filed with the Bureau of Economic Analysis (BEA); please use the copy with the address label if such a labeled copy has been provided. Important Read General Instructions, which contain definitions, before completing form. Data to be provided in this report should represent the U.S. Reporter's 1996 fiscal year. A. REPORTING REQUIREMENTS — See I. A. of the General Instructions for . who must report and transactions to be reported. B. HOW TO REPORT — This form contains two Parts and eight Schedules, A-H. Part I (Name and Address, Certification, and Determination of Reporting Status) requests information needed to determine whether a report is required and which schedules apply. This Part should be completed by all U.S. persons who receive the survey, including those who are filing pursuant to the mandatory reporting requirement of the survey, those who are reporting data on a voluntary basis, and those who are claiming exemption from reporting any data. Part II (Identification of U.S. Reporter) requests information about the reporting entity, and should be completed only by U.S. persons subject to the survey's mandatory reporting requirement or who are reporting data on a voluntary basis. Each of the Schedules A-H covers one or more specified services and is to be completed only if a U.S. Reporter has transactions of the type(s) covered by the individual schedule. On a given schedule, Reporters subject to the survey's mandatory reporting requirement should complete Section A. Reporters who are reporting data on a voluntary basis (see I.A.2. of the General Instructions) are requested to complete Section B of the applicable schedule(s). The Exemption Claim is on page 3. A U.S. person who receives this report from BEA and who does not meet the criteria for mandatory reporting, and elects not to report data in the voluntary section of any schedule, must nevertheless complete and submit the Exemption Claim. Most respondents who are subject to the survey's mandatory reporting requirements, or who elect to report data voluntary, will report data on Schedules A, B, and/or C; these schedules are included in every packet mailed to every potential respondent. In contrast, Schedules D through H are applicable only to a limited number of potential survey respondents; these schedules are included only in the packets mailed to respondents who BEA has identified as being most likely to have engaged in the service covered by a particular schedule. (For example, Schedule D covers U.S. sales of advertising services, and U.S. advertising agencies and media companies are the primary recipients of this schedule.) If you are subject to the mandatory reporting requirements of a given schedule (or if you choose to report data voluntarily on a schedule) but did not receive a copy of that schedule in your mailing packet, please contact BEA at the telephone or fax number given in D., below. C. OPTIONAL CHECKLIST — For the convenience of Reporters, an "Optional Checklist" (Supplement A) has been provided with this survey to help companies determine, without a records search, whether or not the "parts" or units of their company had reportable transactions, either sales or purchases, with unaffiliated foreign persons in FY 1996. This "Optional Checklist" is for internal use by companies only and should not be returned to BEA. D. ASSISTANCE — Telephone (202) 606-5588 during office hours ■ to 4:00 p.m. eastern time, or fax your request to (202) 606-5318. 8:00 a.m. E. DUE DATE — A completed report on Form BE-20 is due no later than March 31, 1997. F. GENERAL NOTES Bil. Mil. Thous. 1,335 1. Currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). EXAMPLE — If amount is $1,334,615.00, report as 2. If an item is between + or - $500.00, enter "0." AUTHORITY — This survey is being conducted pursuant to the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101—3108, as amended by P.L. 98-573 and P.L. 101-533 — hereinafter "the Act"), and the filing of reports is mandatory pursuant to Section 3104 of the Act. CONFIDENTIALITY — The Act provides that your report to this Bureau is CONFIDENTIAL. It may be used only for analytical or statistical purposes and CANNOT be used for purposes of taxation, investigation, or regulation. The Act also provides that copies retained in your files are immune from legal process. PENALTIES — Whoever fails to report may 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. (See Section 3105 of the Act .) Notwithstanding the above, a U.S. person is not subject to any penalty for failure to report if a valid Office of Management and Budget (OMB) control number is not displayed on the form; such a number (0608-0058) is displayed on this form. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VI. F of the General Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Authorized official's signature Print or type name and title TELEPHONE NUMBER Area code Number Extension Date m Section B — Determination of reporting status (Mandatory reporting) Separately for sales (receipts) and purchases (payments), mark (X) "Yes" or If "Yes" is marked for any type of service, for either sales or purchases, "No" beside each type of service listed below to indicate whether your complete and return to BEA, Part 1 (Sections A and B) and Part II of this form, company's total transactions with unaffiliated foreign persons exceeded and the appropriate schedule(s). $500,000. See VII. of the General Instructions for a detailed description of each type of service. If "No" is marked for all activities, for both sales and purchases, complete and The U.S. Reporter may rely on the "Optional Checklist" provided in Supplement return to BEA, Part 1 (Sections A, B, and either Section C or the exemption A to complete this item. claim), and appropriate schedule(s). Type of service SALES (RECEIPTS) PURCHASES (PAYMENTS) Had total transactions exceeding $500,000? If "Yes" Report data on — Had total transactions exceeding $500,000? If "Yes" Report data on — Yes No Yes No 1. Agricultural services Schedule A Schedule B 2. Research, development, and testing services Schedule A Schedule B 3. Management, consulting, and public relations services Schedule A Schedule B 4. Management of health care facilities Schedule A Schedule B 5. Accounting, auditing, and bookkeeping services Schedule A Schedule B 6. Legal services Schedule A Schedule B 7. Educational and training services Schedule A Schedule B 8. Mailing, reproduction, and commercial art Schedule A Schedule B 9. Employment agencies and temporary help supply services Schedule A Schedule B 10. Industrial engineering services Schedule A Schedule B 11. Industrial-type maintenance, installation, alteration, and training services Schedule A Schedule B 12. Performing arts, sports, and other live performances, presentations, and events Schedule A Schedule B 13. Sale or purchase of rights to natural resources, and lease bonus payments Schedule A Schedule B 14. Use or lease of rights to natural resources, excluding lease bonus payments Schedule A Schedule B 15. Disbursements to fund news-gathering costs of broadcasters Schedule A Schedule B 16. Disbursements to fund news-gathering costs of print media Schedule A Schedule B 17. Disbursements to fund production costs of motion pictures Schedule A Schedule B 18. Disbursements to fund production costs of broadcast program material other than news Schedule A Schedule B 19. Disbursements to maintain government tourism and business promotion offices Schedule A Schedule B 20. Disbursements for sales promotion and representation Schedule A Schedule B 21. Disbursements to participate in foreign trade shows Not reportable Schedule B 22. Premiums paid on purchases of primary insurance Not reportable Schedule B 23. Losses recovered on purchases of primary insurance Not reportable Schedule B 24. Construction, engineering, architectural, and mining services Not reportable Schedule B 25. Merchanting services Schedule A Not reportable 26. Financial services Not reportable Schedule C 27. Advertising services Schedule D Schedule B 28. Computer and data processing services Schedule E Schedule B 29. Data base and other information services Schedule F Schedule B 30. Telecommunications services Schedule G, Part I Schedule G, Part II 31. Operational leasing services Schedule H Schedule B 32. Other private services* Schedule A Schedule B *Other private services (i.e., service number 32) consist of language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and toxic waste cleanup services. • Section C — Determination of reporting status (Voluntary reporting) For sales and purchases separately, if a U.S. person's total transactions in a given type of service listed in Part 1, Section B, of this form are 5500,000 or less, the U.S. person may voluntarily report the total for each type of service, not distributed by individual foreign country, on line 32, Section B, of the appropriate schedules. These estimates may be judgmental, that is, not based on a search of accounting records but instead on the recollection of knowledgeable persons within the company who are in a position to know whether any significant transactions in the particular service(s) were engaged in during the year and, if so, the approximate total amount(s) of such transactions. Information provided on these transactions will make the survey results more complete and will better ensure that all types of services are adequately represented in any negotiations or other policy initiatives supported by the survey data. Mark IX) one 1 Q The U.S. Reporter is reporting some data voluntarily on line 32, Section B of the appropriate schedule(s). 2 CD The U.S. Reporter is not reporting in the voluntary part of the survey. Page 2 FORM BE-20 (10-24-96) EXEMPTION CLAIM The U.S. Reporter is not reporting data on any schedule of this form because it — Mark (X) appropriate box. A LJ Was not in existence at any time during the reporting period. B D Is owned to the extent of more than 50% of its voting stock by another U.S. enterprise. Specify parent corporation Name Address - - Number and street City State ZIP Code (If the U.S. Reporter is a corporation, the data in this report are to be for the fully consolidated domestic enterprise. If a corporation is owned to the extent of more than 50 percent of its voting stock by another U.S. corporation, the parent corporation should file this report. For exceptions, see I.D. of the General Instructions.) C U Had no transactions, either sales or purchases, of the types covered, with unaffiliated foreign persons. D LJ Had transactions, either sales or purchases, of the types covered but the value of each type did not exceed $500,000 and the U.S. Reporter does not wish to report the data voluntarily. The total amount of these transactions, for all services combined, was approximately Report in thousands of U.S. dollars Sales Purchases If you marked (X) a box in this exemption claim — STOP HERE and return this form to BEA. IDENTIFICATION OF U.S. REPORTER Annual report for fiscal year ending 11001 Month T Day Year 96 2. Industry classification - Enter 3-digit code from the Summary of Industry Classifications. 11002 ► 3. Major activity of the U.S. Reporter and product or service involved in that activity 11003 4. Primary Employer Identification (El) Number used by the U.S. Reporter to file U.S. income or payroll taxes FORM BE-20 (10-24-96) Page 3 GENERAL INSTRUCTIONS Purpose -The Benchmark Survey of Selected Services Transactions with Unaffiliated Foreign Persons - 1996 is conducted by the Department of Commerce to obtain data on the size and economic significance of these transactions. The prior benchmark survey was conducted for 1991. The information will be used to help support trade negotiations, formulate U.S. policy, and analyze the impact of that policy and the policies of foreign countries, on international trade in services. The data will also be used in compiling the U.S. balance of payments and national income and product accounts. I. WHO IS TO REPORT AND GENERAL COVERAGE A. Who is to report and transactions to be reported 1 . Mandatory reporting - A BE-20 report is required from each U.S. person who had transactions (either sales or purchases) in excess of $500,000 with unaffiliated foreign persons in any of the services listed in VII. of these General Instructions during the U.S. person's 1996 fiscal year. The determination of whether a U.S. person is subject to this mandatory reporting requirement may be judgmental, that is, based on the judgement of knowledgeable persons in a company who can identify reportable transactions on a recall basis, with a reasonable degree of certainty without conducting a detailed manual records search. The "Optional Checklist" (Supplement A) described in IV. of the General Instructions may be used to facilitate data collection from the various parts of the reporter's organization. Reporters who must file pursuant to this mandatory reporting requirement must complete Parts I and II of the form and all applicable schedules. The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 1 of the schedule. In addition, these amounts must be distributed below line 1 to the country(ies) involved in the transaction(s). 2. Voluntary reporting - If, during the U.S. person's fiscal year, the U.S. person's total transactions (either sales or purchases) in any of the types of services listed in VII. of these General Instructions are $500,000 or less, the U.S. person is requested to provide an estimate of the total for each type of service. Provision of this information is voluntary. The estimates may be judgmental, that is, based on recall, without conducting a detailed manual records search. The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 32 of the schedule. (If information on the countries of the transactions is available, the transactions may instead be reported by country in the mandatory section; however, disaggregation by country is not required.) Reporters who elect to file pursuant to the voluntary reporting option must complete Parts I and II of the form. 3. Exemption - A U.S. person receiving this form from BEA who is not required to report data in the mandatory section of any schedule, and who elects not to report data in the voluntary section of any schedule, must complete the "Person to Consult" and certification sections on page 1 and the exemption claim on page 3 of the form. B. BE-20 definition of sales (receipts) or purchases (payments) It should be noted that an item other than sales or purchases may be used as the measure of a given service for purposes of determining whether the threshold for mandatory reporting of the service is exceeded. Note that in several cases - advertising; telecommunications; performing arts, etc.; merchanting; miscellaneous disbursements (services numbered 15-21 in VII. of these General Instructions); and rights to natural resources (services numbered 13 and 14) - measures other than, or in addition to, sales or purchases of services should be used. See VII. of these General Instructions for an explanation of what measure should be applied in determining whether you are subject to the BE-20 survey's mandatory reporting requirements for a given service. C. Clarification of coverage and special situations 1. Reporting period - The reporting period is the U.S. Reporter's 1996 fiscal year (see definition in II. M. below). 2. Date of recording transactions - Except for telecommunications services, transactions are to be reported on an accrual basis. Telecommunications transactions are to be reported on a settlements basis. 3. Withholding taxes - Data should be reported gross of U.S. and foreign withholding taxes. 4. Services covered regardless of where performed - Services sold to, or purchased from, unaffiliated foreign persons should be reported regardless of whether the services were performed in the United States or abroad. 5. Services bundled with goods or with other services and not separately valued - When a sale or purchase consists of both goods and services, or of several services, that cannot be unbundled (i.e., the goods and/or services are not separately valued), it should be classified based on whichever accounts for a majority of the value or on the basis of the Reporter's customary practice. 6. Accounting for purchases - Purchases of services should be included without regard to whether they are charged as an expense on the income statement, capitalized, or charged to inventories. 7. Partnerships - A partnership is a business enterprise and must report if it has covered transactions. The report must be for, and the data and information must cover, the partnership as a whole, not just the activities of an individual partner. 8. Contractor reporting responsibility - On all schedules, U.S. prime contractors are to report the full value of a transaction (contract) with an unaffiliated foreign person. U.S. subcontractors, including independent consultants, to a U.S. prime contractor are not to report their share of a contract with an unaffiliated foreign person. 9. Projects with U.S. Government nonmilitary agencies - Report information on services that are provided abroad for U.S. Government nonmilitary agencies, such as the Agency for International Development and the United States Information Agency, or that are part of an aid or technical cooperation program of the Government with foreign persons. However, do not report services provided to the U.S. Department of Defense or any of its agencies, such as the Army Corps of Engineers. Also, do not report receipts for services on projects arranged through the Foreign Military Sales program of the Department of Defense. 10. International organizations - Report transactions with international organizations, which, according to balance of payments conventions, are considered unaffiliated foreign persons even if they are headquartered in the United States. Enter the abbreviated designation, "Int'l Org.", as the name of the country the project is with. D. Consolidation If the U.S. Reporter is a corporation, Form BE-20 is required to cover reportable transactions for the fully consolidated U.S. domestic enterprise consisting of (i) the U.S. corporation whose voting securities are not owned more than 50 percent by another U.S. corporation, and, proceeding down each ownership chain from that U.S. corporation, (ii) any U.S. corporation (including a Foreign Sales Corporation located in the United States) whose voting securities are more than 50-percent owned by the U.S. corporation above it. The fully consolidated U.S. domestic enterprise excludes foreign branches and other foreign affiliates. Conditions may exist that would lead a U.S. corporation to exclude certain majority-owned (more than 50-percent owned) domestic subsidiaries from financial statements used in reports to shareholders. If such a subsidiary has covered transactions, it must file a report under its own name, and the subsidiary will be considered the U.S. Reporter for purposes of completing that form. The U.S. owner, however, is responsible for ensuring that the required Forms BE-20, both for itself and for the subsidiary, are filed with BEA on a timely basis. Such a subsidiary's filing deadline is the same as that of its U.S. owner. Page 4 FORM BE-20 Instructions (10-24-96) GENERAL INSTRUCTIONS - Continued II. DEFINITIONS A. Services mean economic activities whose outputs are other than tangible goods. This term includes, but is not limited to, banking, other financial services, insurance, transportation, communications and data processing, retail and wholesale trade, advertising, accounting, construction, design, engineering, management consulting, real estate, professional services, entertainment, education, and health care. B. U.S. Reporter is the U.S. person filing a report in this survey (see I.D. for further clarification). C. 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. D. 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. E. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. F. Business enterprise means any organization, association, branch or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph E above.) G. Direct investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting securities of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. H. Parent means a person of one country who, directly or indirectly, owns or controls 10 per centum or more of the voting stock of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise. 2. Foreign parent means the foreign person, or the first person outside the United States in a foreign chain of ownership, which has direct investment in a U.S. business enterprise, including a branch. I. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. J. 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 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. K. Affiliated foreign person means, with respect to a given U.S person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. L. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph K above. M. 1996 fiscal year is the U.S. Reporter's financial reporting year that has an ending date in calendar year 1996. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in calendar year 1996, its 1996 fiscal year is deemed to be the same as calendar year 1996. N. Country means, for purposes of this survey, the country of location of the foreign person with whom a transaction has occurred. III. GUIDELINES FOR CATEGORIZING ACTIVITIES A. Distinguishing between unaffiliated and affiliated transactions This survey covers U.S. persons' direct services transactions, both sales and purchases, with unaffiliated foreign persons - that is, with foreign persons that are neither the foreign affiliate nor the foreign parent of the U.S. person filing the report. For definitions of terms, see II. above. Examples of reportable transactions are: 1. A transaction between a U.S. person and an unaffiliated foreign person. 2. A transaction between one U.S. person and another U.S. person's foreign affiliate. Such a transaction is reportable by the first U.S. person. 3. A transaction between a U.S. parent of a foreign affiliate, or a U.S. affiliate of a foreign parent, and an unaffiliated foreign person (whether or not the latter is affiliated with other U.S. persons). Such a transaction is reportable by the U.S. parent or the U.S. affiliate. Examples of transactions that are not reportable are: 1. A transaction between a U.S. person (U.S. parent) and its foreign affiliate. 2. A transaction between a U.S. person (U.S. affiliate) and its foreign parent or other member of the affiliated foreign group. 3. A transaction between a U.S. person's foreign affiliate and another foreign person. Such a transaction is not reportable because it is a foreign-to-foreign transaction. 4. A transaction between a U.S. person and another U.S. person (whether or not either or both parties are affiliated with foreign persons). Such a transaction is not reportable because it is a U.S.-to-U.S. transaction. Transactions between U.S. parents and their foreign affiliates, and between foreign affiliates and other foreign persons, are already reportable in the surveys of U.S. direct investment abroad (BE-10, BE-11, and BE-577). Transactions between U.S. affiliates and their foreign parents or other members of their affiliated foreign groups are already reportable in the surveys of foreign direct investment in the United States (BE-12, BE-13, BE-15, BE-605, and BE-605 (BANK)). B. Foreign activities of a U.S. person that do not constitute a foreign affiliate Transactions with unaffiliated foreign persons by or through a foreign "activity" of a U.S. person that is not a foreign affiliate must be reported on the BE-20, if the activities are in covered types of services. Any of the services covered by this survey may also be provided at a foreign location through a foreign affiliate. Such transactions are not reportable in this survey. Before completing this survey, therefore, reporters must determine whether or not the services are conducted through a foreign activity that is not a foreign affiliate or through a foreign affiliate. Although the definitions of direct investment and foreign affiliate in II. above, together with the discussion in III. A. above, should be sufficient to determine whether a given foreign activity is or is not a foreign affiliate, in a number of cases the determination may be difficult. Several factors to be considered are given below. If you still cannot determine if the activity or operation is an affiliate, call (202) 606-5588 for additional guidance. Also, if you think that an activity or operation currently reported as an affiliate is incorrect, please call and a determination of future reporting status will be made. FORM BE-20 Instructions (10-24-96) Page 5 GENERAL INSTRUCTIONS - Continued B. Foreign activities of a U.S. person that do not constitute a foreign affiliate - Continued If a U.S. person's foreign activity or operation is incorporated abroad, it is a foreign affiliate. If a U.S. person's foreign activity or operation is not incorporated abroad, its status is based on the weight of the evidence when the factors listed below are considered. An unincorporated foreign activity or operation generally would be considered a foreign affiliate if it: (i) pays foreign income taxes; (ii) has a substantial physical presence abroad (e.g., plant and equipment or employees); (iii) maintains separate financial records that would permit the preparation of financial statements, including an income statement and balance sheet (not just a record of disbursements and receipts); (iv) takes title to the goods it sells and receives revenues therefrom; or (v) receives funds for its own account from customers for services it performs. An unincorporated foreign activity or operation generally would not be considered a foreign affiliate if it: (i) conducts business abroad only for the U.S. person's account and not for its own account (e.g., sales promotion or public relations type of activities); (ii) has no separate financial statements; (iii) receives funds to cover its expenses only from the U.S. person; (iv) pays no foreign income taxes; and (v) has limited physical assets, or employees, permanently located abroad. Note that a diverse group of activities that do not constitute foreign affiliates are covered by services numbered 15-21 in VII. of these General Instructions. For activities that are covered by these services, the respondent is asked to provide a breakdown by country of the total amount of the funding for these activities. C. U.S. activities of a foreign person that do not constitute a U.S. affiliate Criteria for determining which U.S. activities do or do not constitute a U.S. affiliate of a foreign person are parallel to those in III.B. above. D. Determining who must report a transaction when an intermediary is involved At times, transactions between a U.S. person and an unaffiliated foreign person may be arranged by, billed through, or otherwise facilitated by, an intermediary. The intermediary may be U.S. or foreign, and may be affiliated or unaffiliated with the U.S., or the foreign, person. A determination of who a sale is to, or who a purchase is from, shall be made on the basis of who the U.S. person considers itself to have a claim on for payment, in the case of a sale, or who it has a liability to, in the case of a purchase. For a sale, if the U.S. person looks to the unaffiliated foreign person for payment, then the transaction is between the U.S. person and unaffiliated foreign person, and is to be reported by the U.S. person. If the U.S. person looks to the intermediary for payment, and the intermediary, in turn, looks to the foreign person for payment, then whether either transaction is reportable, and who it is to be reported by, depends on the location of the intermediary and the relationship between the U.S. person and the intermediary. If the intermediary is a foreign person, then the U.S. person would report the transaction, provided the intermediary is not affiliated with the U.S. person. (If they are affiliated, then the transaction is not reportable in this survey.) If the intermediary is a U.S. person, then the initial transaction between the original U.S. person and the intermediary is U.S.-to-U.S. and not reportable in the survey. However, the intermediary must report the transaction with the foreign person, provided the intermediary is not affiliated with the foreign person. (If they are affiliated, then the transaction is not reportable in this survey.) The reportability of a purchase would be determined in a similar manner. IV. OPTIONAL CHECKLIST OF SERVICES TRANSACTIONS BETWEEN COMPANY UNIT AND UNAFFILIATED FOREIGN PERSONS For the convenience of reporters, an "Optional Checklist" is provided in Supplement A, to help diversified companies determine, without a records search, whether or not the "parts" or units of the company had reportable services transactions, either sales or purchases, with unaffiliated foreign persons in 1996. If, for any sales or purchases category, a "part" or unit of the company answers "Yes" to the question of whether it had a transaction in a particular type of service, that "part" or unit must be included in the company's report under the survey's mandatory reporting requirement if the U.S. Reporter's total transactions in that service exceed $500,000. (See I.A.1. of these General Instructions.) Even if the U.S. Reporter's total transactions are $500,000 or less, a "Yes" answer to the question of whether the "part" or unit had any transactions can be used to help determine if the transactions of that "part" or unit should be included in the company's report on a voluntary basis. (See I. A. 2. of these General Instructions.) Companies should reproduce the checklist for distribution to their "parts" or units if they decide to use it in preparing their reports. The checklist is optional; it is for the internal use of reporters only and should not be returned to BEA with Form BE-20. Some companies may find it advantageous to adapt the "Optional Checklist" to accommodate their own particular corporate structure or data collection procedures. V. RELATED FORMS Persons receiving this form should be aware of ten other forms on services that are required to be filed on a mandatory basis with BEA (see 15 CFR, Part 801, Sections 9(b) and 9(c)). BE-22 Annual Survey of Selected Services Transactions with Unaffiliated Foreign Persons BE-29 Foreign Ocean Carriers' Expenses in the United States BE-30 Ocean Freight Revenues and Foreign Expenses of United States Carriers BE-36 Foreign Airline Operators' Revenues and Expenses in the United States BE-37 U.S. Airline Operators' Foreign Revenues and Expenses BE-47 Annual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons BE-48 Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies with Foreign Persons BE-80 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons BE-82 Annual Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons BE-93 Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons The types of transactions reportable on those forms are not covered by this survey. To receive a copy of forms BE-29, BE-30, BE-36, and BE-37, telephone BEA at (202) 606-9559. To receive a copy of forms BE-22, BE-47, BE-48, BE-80, BE-82, and BE-93, telephone BEA at (202) 606-5588. VI. REPORTING PROCEDURES A. Due date - A completed BE-20 report, consisting of Parts I and II and, as appropriate, either the applicable Schedule(s) or an exemption claim, is due on March 31, 1997. B. Extension - Requests for an extension of the reporting deadline will not normally be granted. However, in a hardship case, a written request for an extension will be considered provided it is received at least 15 days before the due date of the report and enumerates substantive reasons necessitating the extension. BEA will provide a written response to such a request. C. For assistance or additional copies of the forms - Telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time, or fax your request to (202) 606-5318. D. Original and file copies - A single original copy of each form or schedule must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. In addition, 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 a period of not less than 3 years beyond the form's original due date. Page 6 FORM BE-20 Instructions (10-24-96) GENERAL INSTRUCTIONS - Continued VI. REPORTING PROCEDURES - Continued E. Where to send report - Reports filed by mail through the U.S. Postal Service should be sent to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Washington, DC 20230. Reports filed by direct private delivery should be directed to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Shipping and Receiving Section, Room M-100, 1441 L Street, NW, Washington, DC 20005. F. Estimates - If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. VII. SERVICES COVERED The following types of services are covered by this survey: 1. Agricultural services (Report receipts on Schedule A and payments on Schedule B): Soil preparation services, crop services, veterinary and other animal services, farm labor and management services, and landscape and horticultural services. 2. Research, development, and testing services (Report receipts on Schedule A and payments on Schedule B): Commercial and noncommercial research, product development services, and testing services. Include fees for the conduct of experiments or performance of research and development activities aboard spacecraft. Excludes medical and dental laboratory services. 3. Management, consulting, and public relations services (Report receipts on Schedule A and payments on Schedule B): Management services, except management of health care facilities (report under service number 4); consulting services, except consulting engineering services related to actual or proposed construction or mining services projects (report purchases under service number 24, and report sales on BEA Form BE-47 - see V. of these General Instructions) and computer consulting (report under service number 28); and public relations services, except those that are an integral part of an advertising campaign (report under service number 27). However, if both operating staff and management are provided, the activity generally should be reported on BEA's direct investment surveys rather than on this survey. 4. Management of health care facilities (Report receipts on Schedule A and payments on Schedule B): Management of hospitals, nursing homes, and other health care facilities. However, if both operating staff and management are provided, the activity generally should be reported on BEA's direct investment surveys rather than on this survey. 5. Accounting, auditing, and bookkeeping services (Report receipts on Schedule A and payments on Schedule B): Excludes data processing and tabulating services (report under service number 28). 6. Legal services (Report receipts on Schedule A and payments on Schedule B): Legal advice or other legal services. Insurance companies should include fees for claim adjustment expenses. 7. Educational and training services (Report receipts on Schedule A and payments on Schedule B): Educational or training services provided on a contract or fee basis. Excludes tuition and fees charged to individual U.S. and foreign students by educational institutions. Also excludes training done by a manufacturer in connection with the sale of a good (report under service number 1 1 ). 8. Mailing, reproduction, and commercial art (Report receipts on Schedule A and payments on Schedule B): Direct mail advertising services; mailing services, such as remailing services in connection with direct mail advertising; commercial photography, art, and graphic services; address list compilation; and stenographic services. 9. Employment agencies and temporary help supply services (Report receipts on Schedule A and payments on Schedule B): Employment services and provision of temporary help and personnel to perform services on a contract or fee basis. Where workers are carried on the payroll of the agency, includes amounts received or paid for the compensation of workers as well as agency fees. FORM BE-20 Instructions (10-24-96) 10. Industrial engineering services (Report receipts on Schedule A and payments on Schedule B): Engineering services related to the design of movable products, including product design services. Includes services performed with the assistance of computers, such as computer-assisted design work. Excludes engineering and architectural services that relate to immovable products, such as those that relate to actual or proposed construction or mining services projects (report purchases under service number 24, and report sales on BEA Form BE-47 - see V. of these General Instructions). 11. Industrial-type maintenance, installation, alteration, and training services (Report receipts on Schedule A and payments on Schedule B): Maintenance services primarily to machinery and equipment. May also include small maintenance work on buildings, structures, dams, highways, etc., but only to the extent that the work is not reportable under service number 24. Would include such services as the periodic overhaul of turbines, the extinguishment of natural gas well fires, and refinery maintenance. Excludes computer maintenance and repair (report under service number 28). Installation and training services include only installation, startup, and training services provided by a manufacturer in connection with the sale of a good. Do not include such services where the cost is included in the price of the goods and not separately billed, or is declared as a part of the price of the goods on the import or export declaration filed with the U.S. Customs Service; however, services provided at a price over and above that entered on the declaration should be included. These services would be reported elsewhere if not received in connection with the purchase of goods. For example, installation of machinery and equipment is normally considered a construction activity, and training personnel in the use of new machinery would ordinarily be reported as an educational or training service. 12. Performing arts, sports, and other live performances, presentations, and events (Report receipts on Schedule A and payments on Schedule B): Fees received (net of allowances for foreign expenses) or paid (net of allowances for U.S. expenses) for performing arts, sports, etc. To be reported by (a) U.S. management companies, booking agents, promoters, and presenters who received funds from or paid funds to foreign persons, for performance and events, and (b) U.S. performers who received funds directly from a foreign person rather than through a U.S. management company or similar entity. (As used here, "performers" means entertainers, sports teams, orchestras, dance companies, lecturers, and similar persons or performing groups.) 13. Sale or purchase of rights to natural resources, and lease bonus payments (Report receipts on Schedule A and payments on Schedule B): Receipts from the sale of, or payments for the acquisition of, rights to natural resources located in the United States and abroad, and lease bonus payments. Excludes sales or purchases of rights to surface land. 14. Use or lease of rights to natural resources, excluding lease bonus payments (Report receipts on Schedule A and payments on Schedule B): Receipts or payments for the use of rights to natural resources located in the United States and abroad, including oil or mining production royalties. Excludes lease bonus payments (report under service number 13) and sales or purchases of rights to surface land. Note for services numbered 15-21: Where a set of related expenditures was made in several countries, but your recordkeeping does not permit a precise allocation of expenses among individual countries, estimates are acceptable. If no basis for such estimates exists, then it is permissible to record the expenditures against the country in which the activities were centered or headquartered. For example, a news correspondent may conduct news-gathering activities in several countries. Although it would be preferable to report news-gathering expenses in each of the several countries, all of the expenses may, if necessary, be recorded against the country where the foreign news bureau is headquartered, or where the correspondent had the largest outlays. 15. Disbursements to fund news-gathering costs of broadcasters (Report receipts on Schedule A and payments on Schedule B): U.S. broadcasters' outlays to fund operations of their foreign news bureaus and for support of correspondents in foreign countries, and foreign broadcasters' outlays to fund operations of their U.S. news bureaus and for support of correspondents in the United States. (See note above.) Page 7 GENERAL INSTRUCTIONS - Continued VII. SERVICES COVERED - Continued 16. Disbursements to fund news-gathering costs of print media (Report receipts on Schedule A and payments on Schedule B): Outlays by U.S. newspapers, news syndicates, and news magazines for the operation of their foreign news bureaus, and outlays by foreign newspapers, news syndicates, and news magazines for the operation of their U.S. news bureaus. (See note above service number 15.) 17. Disbursements to fund production costs of motion pictures (Report receipts on Schedule A and payments on Schedule B): Foreign production costs of U.S. motion picture companies, and U.S. production costs of foreign motion picture companies. (See note above service number 15.) 18. Disbursements to fund production costs of broadcast program material other than news (Report receipts on Schedule A and payments on Schedule B): Foreign production costs of U.S. companies engaged in the production of broadcast material other than news, and U.S. production costs of foreign companies engaged in the production of broadcast material other than news. Includes disbursements to fund the production and/or the broadcast of such programs; for example, includes both the disbursements for broadcasting professional or amateur athletic sporting events, and the disbursements for production of the events themselves. (See note above service number 15.) 19. Disbursements to maintain government tourism and business promotion offices (Report receipts on Schedule A and payments on Schedule B): Funding to maintain State tourism and business promotion offices located abroad, and funding to maintain foreign government sponsored tourism and business promotion offices located in the United States. (See note above service number 15.) 20. Disbursements for sales promotion and representation (Report receipts on Schedule A and payments on Schedule B): Funding to maintain sales promotion and representative offices, and commissions or "finder's fees" to unaffiliated (independent) sales agents. Sales promotion offices typically have few assets other than office furniture; to the extent that their employees are compensated by commissions, the commissions arise only from sales or business that the employees generate for their U.S. or foreign parents; they do not produce revenue, other than funds from their parents to cover their expenses; and they are engaged only in sales promotion, representational, public-relations-type activities, or the gathering of market information, on behalf of their parents. If an office produces revenues for its own account from goods or services it provides to unaffiliated persons, then it is considered a U.S. or foreign affiliate and is subject to the reporting requirements for BEA's direct investment surveys. (See note above service number 15.) 21. Disbursements to participate in foreign trade shows (Report payments/expenditures on Schedule B; receipts are not reportable); Foreign expenses incurred by U.S. persons participating in foreign trade shows. (See note above service number 15.) Note for services numbered 22-23: When you report either service number 22 or 23, also report the other service. If there are transactions in one of these services but not in the other, enter "N/A" in the appropriate column of Schedule B, line 1 or 32. 22. Premiums paid on primary insurance (Report payments of premiums on Schedule B; do not report receipts of premiums): Premiums (net of cancellations) paid to unaffiliated foreign insurance carriers for primary insurance. Excludes reinsurance transactions. A U.S. Reporter should not report direct transactions with a foreign insurance company that is its foreign affiliate; such transactions are to be reported on direct investment survey BE-577. A U.S. Reporter should, however, report direct transactions with a foreign insurance company that is an affiliate of another U.S. company, as the U.S. Reporter and the foreign insurance company are unaffiliated. (See note above.) 23. Losses recovered on primary insurance (Report the recovery of losses on purchases of primary insurance as a positive amount on Schedule B; payments of losses by U.S. insurance companies are covered on BEA Form BE-48, and should not be reported on this BE-20 form): Losses recovered on insurance purchased from unaffiliated foreign insurance carriers. 'See note above service number 22.) Page 3 24. Construction, engineering, architectural, and mining services (Report purchases on Schedule B; sales are covered on BEA Form BE-47, and should not be reported on this BE-20 form): Includes purchases of the following types of services: Services of general contractors in the fields of building and heavy construction; construction work by special trade contractors, such as the erection of structural steel for bridges and buildings and on-site electrical work; architectural, engineering, and land-surveying services; and mining services, including oil and gas field services. Includes only those engineering services purchased in conjunction with construction and mining services projects; industrial engineering services, such as product design services, should be reported under service number 10. Includes services purchased in connection with proposed projects (e.g., feasibility studies) as well as projects that are actually being carried out. 25. Merchanting services (Report sales/receipts on Schedule A; purchases/payments are not reportable): For this service, only the value of merchanting services for all foreign countries combined (i.e., the global total for all foreign merchanting services) must be reported; data by individual foreign country may be reported voluntarily. The value of merchanting services is equal to the difference between your cost for, and the resale price of, goods (such as crude oil, grain, and other commodities) that are both purchased and resold abroad; that is, the goods are neither imported to, nor exported from, the United States, and they do not undergo significant processing during the time between when they are purchased and resold. Without regard to whether you initially purchased the goods from an affiliated or unaffiliated foreign person, report data only for those transactions where you resold goods to an unaffiliated foreign person (i.e., a person who is neither your foreign affiliate nor a member of your foreign parent group). The data that are voluntarily reported by individual foreign country should be reported according to the individual foreign countries to which the goods were resold (and not the foreign countries from which the goods were purchased). 26. Financial services (Report purchases on Schedule C; sales are covered on BEA Form BE-82, and should not be reported on this BE-20 form): Purchases from foreigners of financial services by U.S. firms, or domestic subsidiaries of U.S. firms, that are not financial services intermediaries or providers. Includes credit-related fees, fees on securities transactions, and fees for other financial services. See Schedule C for a more detailed description of the types of transactions that are covered. 27. Advertising services (Report receipts on Schedule D and payments on Schedule B): Preparation of advertising and placement of such advertising in media, including charges for media space and time. Schedule D, Sales of Advertising Services, is to be filed by U.S. Reporters that are advertising agencies or media companies, or that include such an agency or company within the consolidated reporting entity. See Schedule D for detailed guidelines concerning the reporting of data on receipts. For purchases of advertising services, U.S. Reporters that are advertising agencies should report on Schedule B only funds paid to foreign advertising agencies and media companies on behalf of their clients. U.S. Reporters other than advertising agencies should report only purchases made directly from foreign advertising agencies and media companies. Do not report purchases made through a U.S. advertising agency. Also, do not report purchases made through the U.S. office of a foreign advertising agency if your payment is made to the U.S. office. Include the value of reciprocal exchanges - i.e., transactions involving barter. On Schedule D, value your sales to the foreign participant in the reciprocal exchange at market rates, not at the actual cost of performing the services. On Schedule B, value your purchases from the foreign participant at the same amount as the sales reported on Schedule D. 28. Computer and data processing services (Report receipts on Schedule E and payments on Schedule B): Data entry, processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services; rights to distribute general use software, and rights to reproduce or use general use software that was electronically transmitted or made by the customer from a master copy (exclude purchases and sales of prepackaged computer software physically shipped to or from the United States); integrated hardware/software systems; and other computer services (such as timesharing, maintenance, and repair). Exclude operational leasing of computer and data processing equipment, which should be reported under service number 31. FORM BE-20 Instructions (10-24-96) : : : GENERAL INSTRUCTIONS - Continued VII. SERVICES COVERED - Continued 29. Data base and other information services (Report receipts on Schedule F and payments on Schedule B): Business and economic data base services, including business news, stock quotation, and financial information services; medical, legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those purchased from a news syndicate; and other information services, including reservation systems and credit reporting systems. Include nonbulk subscriptions to, newspapers and periodicals. For airline reservation systems, include booking fees from foreign carriers for the use of your reservation system, whether accessed directly or by a U.S. or foreign travel agent. 30. Telecommunications services (Report receipts and payments on Schedule G): Includes services of the following types: (1) Message telephone services, (2) private leased channel services; (3) telex, telegram, and other jointly-provided (basic) services; (4) value-added (enhanced) services; and (5) telecommunications support services. Report receipts in Part I of Schedule G, and report payouts in Part II of Schedule G. 31. Operational leasing services (Report receipts on Schedule H and payments on Schedule B): Rentals for computer and data processing equipment; transportation equipment (such as ships, aircraft, railway cars, containers, rigs, automobile fleets, etc.) without crew or operators (if crew or operators are also provided, the fee is considered to be for transportation services, which are not reportable on the BE-20 but may be reportable on other BEA forms - see V. of these General Instructions); and all other machinery and equipment. This category excludes rentals under leases that have been capitalized (capital leases), and rentals of any items other than machinery and equipment. (For example, it excludes rentals of office buildings and other real estate, film rentals, and employee leasing.) 32. Other private services (Report receipts on Schedule A and payments on Schedule B): Report transactions in the following types of services: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services; i.e., this category excludes transactions in services not on this list. When reporting data under this service number, also identify on Schedule A or Schedule B, as appropriate, the specific type of service from the list above accounting for the largest share of the reported total. FORM BE-20 Instructions (10-24-96) Page 9 SCHEDULE A — SALES OF SELECTED SERVICES TO UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER • Section A is required to be completed for a given type of service or activity if your total sales to foreign persons of that service, or your total receipts from foreign persons for that activity, exceed $500,000. • Section B is requested to be completed for a given type of service or activity if your total sales to foreign persons of that service, or your total receipts from foreign persons for that activity, are $500,000 or less. NOTE - In determining exemption, except for transactions in rights to natural resources, the $500,000 threshold should be separately applied to each of the services listed below. For transactions in rights to natural resources, the $500,000 threshold should be applied to the sum of services numbered 13 and 14. Enter the number associated with the service, instead of the complete title of the service, in the column heading on Schedule A. See VII. of the General Instructions for complete descriptions of the services covered. It should be noted that sales of advertising services are reported on Schedule D, sales of computer and data processing services are reported on Schedule E, sales of data base and other information services are reported on Schedule F, sales (and purchases) of telecommunications services are reported on Schedule G, and sales of operational leasing services are reported on Schedule H. Service number Service 1 Agricultural services 2 Research, development, and testing services 3 Management, consulting, and public relations services 4 Management of health care facilities 5 Accounting, auditing, and bookkeeping services 6 Legal services 7 Educational and training services 8 Mailing, reproduction, and commercial art 9 Employment agencies and temporary help supply services 10 Industrial engineering services 11 Industrial-type maintenance, installation, alteration, and training services 12 Performing arts, sports, and other live performances, presentations, and events 13 Sale of rights to natural resources, and lease bonus payments 14 Use or lease of rights to natural resources, excluding lease bonus payments 15 Disbursements to fund news-gathering costs of broadcasters 16 Disbursements to fund news-gathering costs of print media 17 Disbursements to fund production costs of motion pictures 18 Disbursements to fund production costs of broadcast program material other than news 19 Disbursements to maintain government tourism and business promotion offices 20 Disbursements for sales promotion and representation 25 Merchanting services 32 Other private services - Enter the total amount of fees you received for sales of all of the following services combined: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services. If you are subject to the survey's mandatory reporting requirement and you reported data under this service number, identify from the services listed the one that accounts for the largest share of the data reported. ■? Page 10 FORM BE-20 (10-24-96) BEA USE ONLY Control number A SCHEDULE A — SALES OF SELECTED SERVICES TO UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Service number: Service number: Service number: Service number: Service number: Service number: (1) (2) (3) (4) (5) (6) (7) (8) Section A - MANDATORY A1000 Complete if total sales of the given type of service exceed $500,000. 1. All countries, total ► ooi 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 2. Australia 002 1 601 2 3 4 5 6 7 8 3. Belgium 003 1 302 2 3 4 5 6 7 8 4. Brazil ° 04 1 202 2 3 4 5 6 7 8 5. Canada 005 1 100 2 3 4 5 6 7 8 6. France ooe 1 307 2 3 4 5 6 7 8 7. Germany 007 1 308 2 3 4 5 6 7 8 8. Hong Kong oos 1 611 2 3 4 5 6 7 8 9. Israel 009 1 504 2 3 4 5 6 7 8 10. Italy oio 1 314 2 3 4 5 6 7 8 11. Japan on 1 614 2 3 4 5 6 7 8 12. Luxembourg 012 1 316 2 3 4 5 6 7 8 13. Mexico 013 1 213 2 3 4 5 6 7 8 14. Netherlands ou 1 319 2 3 4 5 6 7 8 15. Philippines 015 1 623 2 3 4 5 6 7 8 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 8 17. South Korea 017 1 626 2 3 4 5 6 7 8 18. Spain 018 1 323 2 3 4 5 6 7 8 19. Sweden 019 1 324 2 3 4 5 6 7 8 20. Switzerland 020 1 325 2 3 4 5 6 7 8 21. Taiwan 021 1 628 2 3 4 5 6 7 8 22. United Kingdom 022 1 327 2 3 4 5 6 7 8 23. Venezuela 023 1 219 2 3 4 5 6 7 8 Other — Specify (Use additional copied sheets as necessary) 24. 024 1 2 3 4 5 6 7 8 25. 025 2 3 4 5 6 7 8 26. 026 2 3 4 5 6 7 8 . 27. 027 2 3 4 5 6 7 8 28. 028 2 3 4 5 6 7 8 29. 029 2 3 4 5 6 7 8 30. 030 2 3 4 5 6 7 8 31. 031 2 3 4 5 6 7 8 Section B - VOLUNTARY Complete if total sales of the given type of service are $500,000 or less. 32. All countries, total ► 032 1 709 2 3 NOTE - I you must f total (cross-bo complete the W 4 der) sales of a < \NDATORY sec 5 given type of se lion above, and 6 •vice exceed $5( line 32 must be 7 )0,000, left blank. 8 BEA USE ONLY 033 1 2 3 4 5 6 7 8 EJOllKW 3RM BE-20 (10-24-96) s r Pac je 11 SCHEDULE B - PURCHASES OF SELECTED SERVICES FROM UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER • Section A is required to be completed for a given type of service or activity if your total purchases of that service, or outlays for that activity, exceed $500,000. • Section B is requested to be completed for a given type of service or activity if your total purchases of that service, or outlays for that activity, are $500,000 or less. NOTE - In determining exemption, except for transactions in rights to natural resources, the $500,000 threshold should be separately applied to each of the services listed below. For transactions in rights to natural resources, the $500,000 threshold should be applied to the sum of services numbered 13 and 14. For purchases of primary insurance, for which premiums paid and losses recovered are required to be reported in separate columns, both premiums paid and losses recovered (services numbered 22 and 23) must be reported if either premiums paid or losses recovered exceed $500,000. If there are transactions in one of these services but not in the other, enter "N/A" in the appropriate column of this schedule, line 1 or 32. Enter the number associated with the service, instead of the complete title of the service, in the column heading on Schedule B. See VII. of the General Instructions for complete descriptions of the services covered. It should be noted that purchases of financial services are reported on Schedule C, and that purchases of telecommunications services are reported on Schedule G. Service number Service 1 Agricultural services 2 Research, development, and testing services 3 Management, consulting, and public relations services 4 Management of health care facilities 5 Accounting, auditing, and bookkeeping services 6 Legal services 7 Educational and traininq services 8 Mailing, reproduction, and commercial art 9 Employment agencies and temporary help supply services 10 Industrial engineering services 11 Industrial-type maintenance, installation, alteration, and training services 12 Performing arts, sports, and other live performances, presentations, and events 13 Purchase of rights to natural resources, and lease bonus payments 14 Use or lease of rights to natural resources, excluding lease bonus payments 15 Disbursements to fund news-gathering costs of broadcasters 16 Disbursements to fund news-gathering costs of print media 17 Disbursements to fund production costs of motion pictures 18 Disbursements to fund production costs of broadcast program material other than news 19 Disbursements to maintain government tourism and business promotion offices 20 Disbursements for sales promotion and representation 21 Disbursements to participate in foreign trade shows 22 Premiums paid on purchases of primary insurance 23 Losses recovered on purchases of primary insurance 24 Construction, engineering, architectural, and mining services 27 Advertising services 28 Computer and data processing services 29 Data base and other information services 31 Operational leasing services 32 Other private services - Enter the total amount of fees you paid for purchases of all of the following services combined: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services. If you are subject to the survey's mandatory reporting requirement and you reported data under this service number, identify from the services listed the one that accounts for the largest share of the data reported. -^ Page 12 FORM BE-20 (10-24-9 BEA USE ONLY Control number B SCHEDULE B — PURCHASES OF SELECTED SERVICES FROM UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 PAYMENTS! TO BEA USE ONLY (1) REPORT IN THOUSANDS OF U.S. DOLLARS Service number: (3) Service number: (4) Service number: (5) Service number: (6) Service number: (7) Service number: (8) Section A - MANDATORY B1000 Complete if total purchases of the given type of service exceed $500,000. 1. All countries, total ► 001 2. Australia 002 601 3. Belgium 302 4. Brazil 202 5. Canada 100 6. France 307 7. Germany 007 308 8. Hong Kong 611 9. Israel 009 504 10. Italy 314 11. Japan 614 12. Luxembourg 012 316 13. Mexico 213 14. Netherlands 014 319 15. Philippines 623 16. Saudi Arabia 511 17. South Korea 017 626 18. Spain 323 19. Sweden 019 324 20. Switzerland 325 21. Taiwan 628 22. United Kingdom 022 327 23. Venezuela 219 Other — Specify (Use additional copied sheets as necessary) 24. 25. 025 26. 27. 027 28. 29. 029 30. 31. 031 Section B - VOLUNTARY Complete if total purchases of the given type of service are $500,000 or less. NOTE - If total (cross-border) purchases of a given type of service exceed $500,000, you must complete the MANDATORY section above, and line 32 must be left blank. 32. All countries, total 032 709 BEA USE ONLY 033 DRM BE-20 (10-24-96) Page 13 form BE-20 (Schedule C) l10-24-96t SCHEDULE C - PURCHASES OF FINANCIAL SERVICES FROM UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER • Section A is required to be completed if your total purchases of financial services exceed $500,000. • Section B is requested to be completed if your total purchases of financial services are $500,000 or less. This schedule covers direct purchases from foreigners of financial services by U.S. firms that are not financial services intermediaries or providers. For example, financial services purchased directly from foreigners by a U.S. manufacturing firm are covered, but services purchased by a U.S. bank or other U.S. financial services intermediary or provider are not covered. For a consolidated U.S. enterprise that is comprised of both financial and nonfinancial subsidiaries, this schedule pertains only to transactions of the subsidiaries that are not financial services intermediaries or providers. Thus, for example, an auto manufacturer that owns a finance company should complete the financial services questions only for the manufacturing part of the firm. Although financial services intermediaries are exempt from reporting on this schedule, they must report their purchases and sales of nonfinancial services on the other BE-20 schedules, and must report their purchases and sales of financial services on BEA Form BE-82 (see V. of the General Instructions), as appropriate. U.S. financial services intermediaries or providers that are exempt from reporting on this schedule are: Depository institutions; nondepository credit institutions; security and commodity brokers, dealers, exchanges, and services providers; insurance carriers and pension funds; insurance agents, brokers, and services providers; investment offices, trusts, oil royalty traders, patent owners and lessors, and real estate investment trusts; and holding companies of financial services intermediaries. This list is similar to the finance and insurance part of Division H in the 1987 Standard Industrial Classification Manual, except that Division H includes all holding companies, not just holding companies of financial services intermediaries. Column (3), Credit-related fees - Include fees for establishing, maintaining, or arranging credits, letters of credit, bankers acceptances, mortgages, factoring services, loan guarantees, etc., that are commonly provided by foreign banking establishments. Include fees paid directly and fees that are withheld or deducted from your proceeds by the foreign person. For example, for factoring services, the fee may be calculated as the difference between the proceeds you received from the sale of your receivables and the face amount of the receivables sold; for arranging credits, letters of credit, etc., it may be calculated as the difference between the proceeds you received from the loan, letter of credit, etc. (after deduction of the fee) and your liability to the foreign lending establishment. Report credit-related fees in the accounting period in which they are incurred, whether or not expensed in that accounting period. Exclude interest on your obligations, because interest is a payment for the use of loan proceeds and is not a fee for the establishment, maintenance, or arrangement of credit. Column (4), Fees on securities transactions - Include commissions and other fees for securities transactions (including transactions in derivatives) or futures trading, such as brokerage, underwriting, private placements, etc. Fees for such services would commonly be paid to foreign investment banks and securities brokers or dealers. Include fees that can be calculated from transactions records or other documentation issued by the investment bank or security broker or dealer. Omit, rather than attempt to estimate, these fees if they cannot be calculated, from such documentation. (For example, a dealer's markup on bond purchases and sales cannot be directly estimated from transactions records issued by a securities dealer.) Column (5), Fees for other financial services - Include fees for asset/liability management, debt renegotiation, and other financial services. Exclude real estate management services. (Report such services in the BE-20 service category, "Management, consulting, and public relations services.") For entries in this column, describe the type of financial service that accounts for the largest share of the data reported, j? Page 14 FORM BE-20 (10-24-9 I BEA USE ONLY Control number C SCHEDULE C — PURCHASES OF FINANCIAL SERVICES FROM UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER j BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS — 1996 NOTE - Total purchases of financial services are calculated as the sum of columns (3) through (5) PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Credit-related fees (3) Fees on securities transactions (4) Fees for other financial services (5) (1) (2) Section A - MANDATORY | Complete if total purchases of | financial services exceed i $500,000. 1. All countries, C1001 total ► 1 2 5 3 4 2. Australia 002 1 601 2 3 4 5 3. Belgium 003 1 302 2 3 4 5 4. Brazil °° 4 1 202 2 3 4 5 5. Canada 005 1 100 2 3 4 5 6. France 006 1 307 2 3 4 5 7. Germany 007 1 308 2 3 4 5 8. Hong Kong °os 1 611 2 3 4 5 9. Israel °09 1 504 2 3 4 5 10. Italy 010 1 314 2 3 4 5 11. Japan 011 1 614 2 3 4 5 12. Luxembourg 012 1 316 2 3 4 5 13. Mexico 013 1 213 2 3 4 5 14. Netherlands ou 1 319 2 3 4 5 15. Philippines 015 1 623 2 3 4 5 16. Saudi Arabia 016 1 511 2 3 4 5 17. South Korea 017 1 626 2 3 4 5 18. Spain 018 1 323 2 3 4 5 19. Sweden 019 1 324 2 3 4 5 20. Switzerland 020 1 325 2 3 4 5 21. Taiwan 021 1 628 2 3 4 5 22. United Kingdom 022 1 327 2 3 4 5 23. Venezuela 023 1 219 2 3 4 5 Other — Specify (Use additional copied sheets as necessary) 24. 024 1 2 3 4 5 25. ° 25 2 3 4 5 26. 026 2 3 4 5 27. 027 2 3 4 5 28. ° 28 2 3 4 5 29. 029 2 3 4 5 30. 03 ° 2 3 4 5 31. 031 2 3 4 5 Section B - VOLUNTARY Complete if total purchases of financial services are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTI (the s TORY E - If total (cross-border) purchases of all types of f jm of columns 3 through 5) exceed $500,000, you section above, and line 32 must be left blank. nancial services combined must complete the MANDA- 5 3 4 BEA USE ONLY 033 1 2 3 4 5 ' FORM BE-20 (10-24-96) Pac je 15 OMB No. 0608-0058: Approval Expires 11/30/99; =opv BE-20 - Supplement A u.s. department of commerce (10-24-96) BUREAU OF ECONOMIC ANALYSIS SUPPLEMENT A — OPTIONAL CHECKLIST OF SERVICES TRANSACTIONS BETWEEN COMPANY UNIT AND UNAFFILIATED FOREIGN PERSONS BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS — 1996 This checklist is provided with the BE-20 survey for the internal use and convenience of Reporters only and is not to be returned to BEA. The purpose of this checklist is to facilitate the determination of whether or not the "parts" or units of a given U.S. company had any of the various services transactions covered by the survey, either sales (receipts) or purchases (payments), with unaffiliated foreign persons during the respondent's fiscal year. (The term "persons" includes business enterprises, governments, individuals, and other organizations and entities.) For companies with diverse operations, this checklist should be directed to persons in the various parts of the company who are knowledgeable about the parts' sales and purchasing activities and who can say, in their judgement, with a reasonable degree of certainty without conducting a records search, whether or not a part engaged in covered transactions. Because companies organize their operations and accounting systems in different ways, these parts of a company might variously be referred to as profit centers, business units, divisions, subsidiaries, plant sites, establishments, operating centers, etc., or some combination thereof. All parts of the domestic company must be covered, although all need not be given the checklist, since some might already be known by headquarters to have, or not have, reportable transactions. Definitions of the various types of services are on the reverse side of this checklist. Note that in several cases - advertising; telecommunications; performing arts, etc.; merchanting; miscellaneous disbursements (services numbered 15-21); and rights to natural resources (services numbered 13 and 14) - measures other than, or in addition to, sales of services and purchases of services should be used in completing the checklist. The guidelines listed below apply to this checklist. 1. Both sales and purchases of services should relate to the company's 1996 fiscal year. 2. Transactions by the U.S. operations ONLY are covered. Transactions by or with foreign branches or subsidiaries (foreign affiliates) of the U.S. company are NOT covered, NOR are transactions by or with a foreign parent company. 3. In reporting purchases, include items meeting the above criteria, without regard to whether they were charged as an expense on the income statement, capitalized, or charged to inventories. 4. "Foreign" means that which is situated outside the United States and its territories and possessions. Therefore, transactions with companies located in the United States that have foreign parents are NOT includable; and transactions with foreign affiliates of other U.S. companies ARE includable. 5. Foreign persons are considered to be "unaffiliated" if (a) the U.S. company's ownership percentage (direct and indirect) in the foreign person is less than 10 percent or (b) the foreign person's ownership percentage (direct and indirect) in the U.S. company is less than 10 percent. (Questions as to whether a particular foreign company is affiliated or unaffiliated should be referred to the person named in the box below.) 6. Reportable transactions are determined by the above criteria, without regard to WHERE the services were performed. For example, services performed abroad by a respondent are covered if the respondent's U.S. operations performed the services instead of a foreign affiliate. Similarly, purchases of services from unaffiliated foreign persons are includable without regard to WHERE such services were performed. Person in company headquarters to contact concerning questions about this survey. Name TELEPHONE Area code Number Extension OPTIONAL SALES AND PURCHASES CHECKLIST For each service listed, for both sales and purchases, mark (X) "Yes" or "No" as to whether, in your judgement, your part of the company had any transactions with unaffiliated foreign persons during the fiscal year. If the answer is "Yes," enter the estimated amount of the transactions in column (c) (SALES) or column (f) (PURCHASES). Type of service SALES (RECEIPTS) Had any transactions? Yes (a) No (b) Estimated amount Report in dollars (0 PURCHASES (PAYMENTS) Had any transactions? Yes (d) No (e) Estimated amount Report in dollars^ i Agricultural services Research, development, and testing services J3 _4 _5 7 _8 _9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Management, consulting, and public relations services Management of health care facilities II. Accounting, auditing, and bookkeeping services Legal services Educational and training services Mailing, reproduction, and commercial art . Employment agencies and temporary help supply services Industrial engineering services Industrial-type maintenance, installation, alteration, and training services Performing arts, sports, and other live performances, presentations, and events . Purchase or sale of rights to natural resources, and lease bonus payments Use or lease of rights to natural resources, excluding lease bonus payments Disbursements to fund news-gathering costs of broadcasters Disbursements to fund news-gathering costs of print media Disbursements to fund production costs of motion pictures Disbursements to fund production costs of broadcast program material other than news Disbursements to maintain government tourism and business promotion offices Disbursements for sales promotion and representation Disbursements to participate in foreign trade shows Not reportable Premiums paid on primary insurance Not reportable Losses recovered on primary insurance Not reportable Construction, engineering, architectural, and mining services Not reportable Merchanting services Not reportable . Financial services Not reportable . Advertising services 13. Si Computer and data processing services Data base and other information services Telecommunications services Operational leasing services . Other private services DEFINITIONS OF TYPES OF SERVICES Agricultural services- Soil preparation services, crop services, veterinary and other animal services, farm labor and management services, and landscape and horticultural services. Research, development, and testing services - Commercial and noncommercial research, product development services, and testing services. Include fees for the conduct of experiments or performance of research and development activities aboard spacecraft. Excludes medical and dental laboratory services. Management, consulting, and public relations services - Management services, except management of health care facilities (see service number 4); consulting services, except consulting engineering services related to actual or proposed construction or mining services projects (see service number 24) and computer consulting (see service number 28); and public relations services, except those that are an integral part of an advertising campaign (see service number 27). 4. Management of health care facilities - Management of hospitals, nursing homes, and other health care facilities. 5. Accounting, auditing, and bookkeeping services- Excludes data processing and tabulating services (see service number 28). 6. Legal services- Legal advice or other legal services. Insurance companies should include fees for claim adjustment expenses. 7. Educational and training services - Educational or training services provided on a contract or fee basis. Excludes tuition and fees charged to individual U.S. and foreign students by educational institutions. Also excludes training done by a manufacturer in connection with the sale of a good (see service number 11). Mailing, reproduction, and commercial art- Direct mail advertising services; mailing services, such as remailing services in connection with direct mail advertising; commercial photography, art, and graphic services; address list compilation; and stenographic services. Employment agencies and temporary help supply services - Employment services and provision of temporary help and personnel to perform services on a contract or fee basis. Where workers are carried on the payroll of the agency, includes amounts received or paid for the compensation of workers as well as agency fees. Industrial engineering services - Engineering services related to the design of movable products, including product design services. Includes services performed with the assistance of computers, such as computer-assisted design work. Excludes engineering and architectural services that relate to immovable products, such as those that relate to actual or proposed construction or mining services projects (see service number 24). Industrial-type maintenance and repair, installation, alteration, and training services- Maintenance services primarily to machinery and equipment. May also include small maintenance work on buildings, structures, dams, highways, etc., but only to the extent that the work is not reportable under item 24. Would include such services as the periodic overhaul of turbines, the extinguishment of natural gas well fires, and refinery maintenance. Excludes computer maintenance and repair (see service number 28). Installation and training services include only installation, startup, and training services provided by a manufacturer in connection with the sale of a good. Do not include such services where the cost is included in the price of the goods and not separately billed, or is declared as a part of the price of the goods on the import or export declaration filed with the U.S. Customs Service; however, services provided at a price over and above that entered on the declaration should be included, these services would be reported elsewhere if not received in connection with the purchase of goods. For example, installation of machinery and equipment is normally considered a construction activity, and training personnel in the use of new machinery would ordinarily be reported as an educational or training service. Performing arts, sports, and other live performances, presentations, and events - Fees received (net of allowances for fc reign expenses) or paid (net of allowances for U.S. expenses) for performing arts, sports, etc. To be reported by (a) U.S. management companies, booking agents, promoters, and presenters who received funds from or paid funds to foreign persons, for performances and events, and (b) U.S. performers who received funds directly from a foreign person rather than through a U.S. management company or similar entity. (As used here, "performers" means entertainers, sports teams, orchestras, dance companies, lecturers, and similar persons or performing groups.) Sale or purchase of rights to natural resources, and lease bonus payments - Receipts from the sale of, or payments for the acquisition of, rights to natural resources located in the United States and abroad, and lease bonus payments. Excludes sales or purchases of rights to surface land. 14. Use or lease of rights to natural resources, excluding lease bonus payments - Receipts or payments for the use of rights to natural resources located in the United States and abroad, including oil or mining production royalties. Excludes lease bonus payments (see service number 13) and sales or purchases of rights to surface land. 15-21. Miscellaneous disbursements - Disbursements or outlays to fund news-gathering costs of broadcasters and the print media; production costs of motion picture companies and companies engaged in the production of broadcast program material other than news; commissions and "finder's fees" to independent agents; and costs of maintaining tourism, business promotion, and representative offices, and for participating in foreign trade shows. 22. Premiums paid on primary insurance - Applies only to insurance purchased from foreign insurance carriers. Equals premiums paid minus cancellations. Excludes reinsurance transactions. 23. Losses recovered on primary insurance - Applies only to claims recovered on purchases of primary insurance from foreign insurance carriers. 24. Construction, engineering, architectural, and mining services - Covers only purchases of the following types of services: Services of general contractors in the fields of building and heavy construction; construction work by special trade contractors, such as the erection of structural steel for bridges and buildings and on-site electrical work; architectural, engineering, and land-surveying services; and mining services, including oil and gas field services. Includes only those engineering services purchased in conjunction with construction and mining services projects; industrial engineering services, such as product design services, should be reported under service number 10. Includes services purchased in connection with proposed projects (e.g., feasibility studies) as well as projects that are actually being carried out. 25. Merchanting services - Sales of merchanting services are equal to the difference between your cost and the resale price of goods (such as crude oil, grain, and other commodities) that are both purchased and resold abroad; that is, the goods are neither imported to, nor exported from, the United States, and they do not undergo significant processing during the time between when they are purchased and resold. Without regard to whether the goods were initially purchased from an affiliated or unaffiliated foreign person, includes only transactions where the goods were resold to an unaffiliated foreign person. 26. Financial services - Purchases from foreigners of financial services by U.S. firms, or domestic subsidiaries of U.S. firms, that are not financial services intermediaries or providers. Includes credit-related fees, fees on securities transactions, and fees for other financial services. 27. Advertising services - Preparation of advertising and placement of such advertising in media, including charges for media space and time. An advertising agency selling services should use gross billings to unaffiliated foreigners in completing the checklist. 28. Computer and data processing services - Data entry, processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services; rights to distribute general use software, and rights to reproduce or use general use software that was electronically transmitted or made by the customer from a master copy (exclude purchases and sales of prepackaged computer software physically shipped to or from the United States); integrated hardware/software systems; and other computer services (e.g., timesharing, maintenance, and repair). Exclude operational leasing of computer and data processing equipment, which should be reported under service number 31. 29. Data base and other information services - Business and economic data base services, including business news, stock quotation, and financial information services; medical, legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those purchased from a news syndicate; and other information services, including reservation systems and credit reporting systems. For airline reservation systems, include booking fees from foreign carriers for the use of your reservation system, whether accessed directly or by a U.S. or foreign travel agent. 30. Telecommunications services - Includes services of the following type: (1) Message telephone services; (2) private leased channel services; (3) telex, telegram, and other jointly-provided (basic) services; (4) value-added (enhanced) services; and (5) support services. 31 . Operational leasing services - Includes rentals for computer and data processing equipment; transportation equipment (such as ships, aircraft, railway cars, containers, rigs, automobile fleets, etc.) without crew or operators; and all other machinery and equipment. Excludes rentals under leases that have been capitalized (capital leases), rentals of transportation equipment with crew, and rentals of any items other than machinery and equipment. (For example, excludes rentals of office buildings and other real estate, film rentals, and employee leasing.) 32. Other private services - Includes transactions in only the following types of services: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services; i.e., this category excludes transactions in services not on this list. 'age 2 FORM BE-20-Supplement A (10-24-96) BEA USE ONLY Control number D SCHEDULE D — SALES OF ADVERTISING SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS — 1996 NOTE - Total sales of advertising services are calculated as the sum of columns (3) and (5). U.S. REPORTER'S SALES TO UNAFFILIATED FOREIGN PERSONS RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Gross billings to unaffiliated foreign clients (3) Gross income received from unaffiliated foreign clients (4) Direct sales to unaffiliated foreign persons by media companies (not arranged by an ad agency) (5) (D (2) Section A - MANDATORY Complete if total sales of advertising services exceed $500,000. 1. All countries, D1001 total ► 1 2 3 4 5 2. Australia 002 1 601 2 3 4 5 3. Belgium 003 1 302 2 3 4 5 4. Brazil 00i 1 202 2 3 4 5 5. Canada 005 1 100 2 3 4 5 6. France 006 1 307 2 3 4 5 7. Germany 007 1 308 2 3 4 5 8. Hong Kong oos 1 611 2 3 4 5 9. Israel 009 1 504 2 3 4 5 10. Italy oio 1 314 2 3 4 5 11. Japan on 1 614 2 3 4 5 12. Luxembourg ° 12 1 316 2 3 4 5 13. Mexico 013 1 213 2 3 4 5 14. Netherlands oh 1 319 2 3 4 5 15. Philippines 015 1 623 2 3 4 5 16. Saudi Arabia oi6 1 511 2 3 4 5 17. South Korea on 1 626 2 3 4 5 18. Spain 018 1 323 2 3 4 5 19. Sweden 019 1 324 2 3 4 5 20. Switzerland 020 1 325 2 3 4 5 21. Taiwan 021 1 628 2 3 4 5 22. United Kingdom 022 1 327 2 3 4 5 23. Venezuela 023 1 219 2 3 4 5 Other — Specify (Use additional copied sheets as necessary) 24. ° 24 1 2 3 4 5 25. 025 2 3 4 5 26. ° 26 2 3 4 5 27. ° 27 2 3 4 5 28. ° 28 2 3 4 5 29. ° 29 2 3 4 5 30. 03 ° 2 3 4 5 31. 031 2 3 4 E Section B - VOLUNTARY Complete if total sales of advertising services are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If total (cross-bore must complete the MANDA 3 ier) s Tom ales of advertising services exceed $500,000, you f section above, and line 32 must be left blank. 4 5 BEA USE ONLY 033 1 2 3 4 5 FORM BE-20 (10-24-96) > OMB No. 0608-0058: Approval Expires 11/30/99 form BE-20 (Schedule D) (8-13-96) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS SCHEDULE D — SALES OF ADVERTISING SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 INSTRUCTIONS • Section A is required to be completed if your total sales of advertising services to unaffiliated foreign persons exceed $500,000. • Section B is requested to be completed if your total sales of advertising services to unaffiliated foreign persons are $500,000 or less. This schedule is to be completed only by advertising and media firms. Columns (3) and (4) are to be completed by U.S. Reporters that are advertising agencies (or that include such an agency within the consolidated reporting entity, in which case the columns are to be completed with reference only to the transactions of the agency). Sales by media companies (e.g., broadcasters, publishers, etc.) that are arranged through U.S. advertising agencies are presumed to be reflected in billings of the advertising agencies; thus, in order to avoid duplication, they should not be reported by the media suppliers. U.S. advertising agencies should report only direct transactions with unaffiliated foreign clients. Exclude transactions that are with the U.S. affiliates of foreign clients, rather than directly with foreign clients; such transactions are considered domestic (U.S.-to-U.S.) and are, therefore, outside the scope of the survey. Report gross billings to unaffiliated foreign clients and gross income from sales to unaffiliated foreign clients. Gross billings include all charges to clients, whether for media space and time, outside purchases (of photography, art work, etc.) made on behalf of clients, or charges for inside services (i.e., services performed inside the agency by the agency's own employees). Gross income includes agency commissions, charges for outside services, and charges for inside services; it excludes charges for media space and time. Both measures exclude charges for services other than advertising, such as public relations services or market research not directly associated with an advertising campaign. Such services should be reported on Schedule A. Column (5) of this schedule is to be completed only by media companies, such as broadcasters and publishers, or companies that include a media company within the consolidated reporting entity, to report direct sales of advertising services to unaffiliated foreign persons, including foreign advertising agencies. For each column, indicate the value of reciprocal exchanges (that is, transactions involving barter) at market rates, not at the actual costs of performing the services. For services provided to you under these arrangements, complete the BE-20 schedules (e.g., Schedule B) pertaining to the types of services purchased, as appropriate. Value the purchases reported on the other BE-20 schedules at the same amounts as the sales reported on this schedule. FORM BE-20 (10-24-96) BEA USE ONLY Control number E SCHEDULE E — SALES OF COMPUTER AND DATA PROCESSING SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS — 1996 NOTE - Total sales of computer and data processing services are calculated as the sum of columns (3) through (7). U.S. REPORTER'S SALES TO UNAFFILIATED FOREIGN PERSONS RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Data entry, processing, and tabulation (3) Computer systems analysis, design, engineering, and custom programming (4) General use computer software royalties and license fees (5) Integrated hardware/software systems (6) Other computer services* (7) (1) (2) Section A - MANDATORY Complete if total sales of computer and data processing services exceed $500,000. 1. All countries, eiooi total >■ 1 2 3 4 5 6 7 2. Australia 002 1 601 2 3 4 5 6 7 3. Belgium 003 1 302 2 3 4 5 6 7 4. Brazil °° 4 1 202 2 3 4 5 6 7 5. Canada 005 1 100 2 3 4 5 6 7 6. France 006 1 307 2 3 4 5 6 7 7. Germany 007 1 308 2 3 4 5 6 7 8. Hong Kong oos 1 611 2 3 4 5 6 7 9. Israel °09 1 504 2 3 4 5 6 7 10. Italy 010 1 314 2 3 4 5 6 7 11. Japan 011 1 614 2 3 4 5 6 7 12. Luxembourg 012 1 316 2 3 4 5 6 7 13. Mexico 013 1 213 2 3 4 5 6 7 14. Netherlands 014 1 319 2 3 4 5 6 7 15. Philippines ° 15 1 623 2 3 4 5 6 7 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 17. South Korea on 1 626 2 3 4 5 6 7 18. Spam 018 1 323 2 3 4 5 6 7 19. Sweden 019 1 324 2 3 4 5 6 7 20. Switzerland 020 1 325 2 3 4 5 6 7 21. Taiwan 021 1 628 2 3 4 5 6 7 22. United Kingdom 022 1 327 2 3 4 5 6 7 23. Venezuela 023 1 219 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary) 24. ° 24 1 2 3 4 5 6 7 25. ° 25 2 3 4 5 6 7 | 26. ° 26 2 3 4 5 6 7 27. 027 2 3 4 5 6 7 I 28. ° 28 2 3 4 5 6 7 29. ° 29 2 3 4 5 6 7 30. 030 2 3 4 5 6 7 31. 031 2 3 4 5 6 7 Section B - VOLUNTARY Complete if total sales of computer and data process- ing services are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If tot exceed $500, ( must be left b 3 al (cross-border) Sc )00, you must com ank. 4 lies of computer ar plete the MANDAT 5 d data processing DRY section above services , and line 32 6 7 BEA USE ONLY 033 1 2 3 4 5 6 7 Indicate on a separate sheet, referenced to this category, the nature of any services reported in this column. FORM BE-20 110-24-96) "-■ OMB No. 0608-0058: Approval Expires 11/30/99 form BE-20 (Schedule E) (10-24-96) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS SCHEDULE E — SALES OF COMPUTER AND DATA PROCESSING SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 INSTRUCTIONS • Section A is required to be completed if your total sales of computer and data processing services to unaffiliated foreign persons exceed $500,000. • Section B is requested to be completed if your total sales of computer and data processing services to unaffiliated foreign persons are $500,000 or less. Complete this schedule if, during the reporting period, you had receipts from unaffiliated foreign persons for computer or data processing services. Column (3), Data entry, processing, and tabulation - Include both batch and remote processing services. Column (4), Computer systems analysis, design, engineering, and custom programming Column (5), General use computer software royalties and license fees - Include receipts for the rights to distribute general use software, and rights to reproduce or use general use computer software that was electronically transmitted or made by your customer from a master copy. Thus, this item includes negotiated licensing fees from customers who reproduced copies of your general use software for their local area network computer systems, and excludes the value of prepackaged general use software that was physically shipped from the United States and included in U.S. merchandise trade statistics. Exclude royalties and fees related to custom programming (reportable in column (4)). Column (6), Integrated hardware/software systems- Include systems consisting of purchased computers and peripheral equipment that are then matched with software products or custom software in order to provide complete information systems for customers. (However, see the discussion of services bundled with goods in I.C.5 of the General Instructions.) Do not include hardware manufactured by the seller of the integrated system. Column (7), Other computer services- Include timesharing, maintenance, repair, etc. However, report the leasing of computer and data processing equipment on Schedule H, Operational Leasing Services. Exclude computer or data processing services incidental to the performance of other services, such as accounting, product design, mailing services, data base and other information services, etc. Such services are to be reported on other BE-20 schedules. FORM BE-20 (10-24-96) BEA USE ONLY Control number F SCHEDULE F — SALES OF DATA BASE AND OTHER INFORMATION SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 NOTE - Total sales of data base and other information services are calculated as the sum of columns (3) through (6). U.S. REPORTER'S SALES TO UNAFFILIATED FOREIGN PERSONS RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Business and economic data base services (3) Medical, legal, technical, demographic, bibliographic, and similar data base services (4) General news services (5) Other information services* (6) (1) (2) Section A - MANDATORY Complete if total sales of data base and other information services exceed $500,000. 1. All countries, F1001 total ► 1 2 3 4 5 6 2. Australia ° 02 1 601 2 3 4 5 6 3. Belgium °03 1 302 2 3 4 5 6 4. Brazil 004 1 202 2 3 4 5 6 5. Canada ° 05 1 100 2 3 4 5 6 6. France 006 1 307 2 3 4 5 6 7. Germany ° 07 1 308 2 3 4 5 6 8. Hong Kong °°8 1 611 2 3 4 5 6 9. Israel °°9 1 504 2 3 4 5 6 10. Italy ° 1 ° 1 314 2 3 4 5 6 11. Japan 011 1 614 2 3 4 5 6 12. Luxembourg ° 12 1 316 2 3 4 5 6 13. Mexico oi3 1 213 2 3 4 5 6 14. Netherlands ou 1 319 2 3 4 5 6 15. Philippines ° 15 1 623 2 3 4 5 6 16. Saudi Arabia 016 1 511 2 3 4 5 6 17. South Korea 017 1 626 2 3 4 5 6 18. Spain 018 1 323 2 3 4 5 6 19. Sweden 019 1 324 2 3 4 5 6 20. Switzerland 020 1 325 2 3 4 5 6 21. Taiwan 021 1 628 2 3 4 5 6 22. United Kingdom 022 1 327 2 3 4 5 6 23. Venezuela 023 1 219 2 3 4 5 6 Other — Specify (Use additional copied sheets as necessary) 24. ° 24 1 2 3 4 5 6 25. ° 25 2 3 4 5 6 26. 026 2 3 4 5 6 27. fj27 2 3 4 5 6 28. 028 2 3 4 5 6 29. 029 2 3 4 5 6 30. 030 2 3 4 5 6 31. 031 2 3 4 5 6 Section B - VOLUNTARY Complete if total sales of data base and other information services are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If total (cross-border) sales of data base and other infor exceed $500,000, you must complete the MANDATORY section must be left blank. mation services above, and line 32 3 4 5 6 BEA USE ONLY °" 1 2 3 4 5 6 'Indicate on a separate sheet, referenced to thi s category, the nature of any services reported in this column. I FORM BE-20 (10-24-96) OMB No. 0608-0058: Approval Expires 11/30/99 form BE-20 (Schedule F) (10-24-96) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS SCHEDULE F — SALES OF DATA BASE AND OTHER INFORMATION SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS — 1996 INSTRUCTIONS • Section A is required to be completed if your total sales of data base and other information services to unaffiliated foreign persons exceed $500,000. • Section B is requested to be completed if your total sales of data base and other information services to unaffiliated foreign persons are $500,000 or less. Report on this schedule receipts from unaffiliated foreign persons for data base or other information services, including receipts for access to your on-line data bases. Providers of Internet backbone services should report their transactions on Schedule G as telecommunications services, rather than on this schedule as information services, because they provide communications services that allow users access to other persons' data bases, and do not maintain a data base, or provide information services, themselves. Column (3), Business and economic data base services- General business and economic data base services, including business news services, stock quotation services, and financial information services. Column (4), Medical, legal, technical, demographic, bibliographic, and similar data base services Column (5), General news services - News services, such as those provided by a news syndicate. May include general business news but excludes news services that are primarily of a business nature, which should be reported in column (3). Column (6), Other information services- Includes airline, hotel, automobile rental, and other reservation systems; credit reporting and authorization systems; and other information services. For airline reservation systems, include booking fees from each foreign carrier for the use of your reservation system, whether a foreign carrier directly accessed it or accessed it only through a U.S. or foreign travel or booking agent. Report only the charge for the use of the data base or information service itself, and only where a separate, explicit charge is made for such use. In instances where the charge for use of the data base is not explicit, but is subsumed in the charge for some other service, such as fees for economic forecasting services, do not report the charge on this schedule. If, however, the other service is covered by another schedule, the charges should be included on that schedule. FORM BE-20 (10-24-96) OMB No. 0608-0058: Approval Expires 11/30/99 form BE-20 (Schedule G) (10-24-96 SCHEDULE G U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS RECEIPTS AND PAYMENTS FOR TELECOMMUNICATIONS SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TBANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 INSTRUCTIONS Section A of Part I (or Part II) is required to be completed if your total sales (or total purchases) telecommunications services to (or from) unaffiliated foreign persons exceed $500,000. of • Section B of Part I (or Part II) is requested to be completed if your total sales (or total purchases) of telecommunications services to (or from) unaffiliated foreign persons are $500,000 or less. Column (3), Message telephone services and Column (5), Telex, telegram, cable, and other jointly provided (basic) services- In Part I of this schedule, report receipts from foreign persons (including communications companies; postal, telephone, and telegraph agencies [PTT's]; users of wireless communication services; etc.) for your share of revenues for transmitting messages (including voice, data, video, images, etc.) originating abroad to or through U.S. destinations, or between foreign points. In Part II, report payouts to foreign persons for transmitting messages originating in, or routed through, the United States to foreign destinations. Report receipts and payments separately. (For example, for messages originating in a Caribbean country routed through the United States to Western Europe, report separately your receipts from the Caribbean country where the messages originated in Part I, and payouts to the country of destination in Part II.) Column (5) includes telex and telegram services, packet switched services when not offered in connection with enhanced services, and other regulated services of the type generally reportable to the FCC on Report 43.61 as facilities based or facilities resale services . If services above and beyond message transport services are provided, report your transactions in Column (6) of Part I or Part II, as appropriate, instead of in column (3) or (5). Column (4), Private leased channel services - In Part I, report receipts from foreign persons for circuits and channels terminating in the United States and for circuits and channels between foreign points. In Part II, report payouts to foreign persons (communications companies and PTT's) for leased channels and circuits terminating in foreign countries. Column (6), Value-added (enhanced) services - Telecommunications services that add value or function above and beyond the telecommunications transport services that deliver the value-added services to end users. They can include (a) electronic mail, voice mail, and code and protocol processing; (b) facsimile services and videoconferencing; (c) Internet connections (including Internet backbone and router services); and (d) other value-added services. Facsimile services and videoconferencing should be considered as value-added only if the company provides the facilities and equipment. A company that provides solely the telecommunications transmission for these services should report receipts and payouts under column (3) or (4). Column (7), Support services - Services related to the maintenance and repair of telecommunications equipment; ground station services (where the ground station is not an "affiliate"); capacity leasing for transiting; and launching of communications satellites. NOTES - For each column, include the value of reciprocal exchanges; i.e., transactions involving barter. In Part I, value your sales to the foreign participant in the reciprocal exchange at market rates, not at the actual cost of performing the services. In Part II, value your purchases from the foreign participant at the same amounts as the sales reported in Part I of this schedule. Receipts or payments by communications carriers to secure capacity by indefeasible rights of users (IRU's) are not to be reported on this schedule; they are to be reported on separate Form BE-93. Report columns (3), (4), and (5) on a settlements basis. FORM BE-20 <10-24-96i BEA USE ONLY Control number G1 SCHEDULE G — RECEIPTS AND PAYMENTS FOR TELECOMMUNICATIONS SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 NOTE - Total sales of telecommunications services are calculated as the sum of columns (3) through (7) of Part 1. I PARTI U.S. REPORTER'S RECEIPTS FROM, OR SALES TO, UNAFFILIATED FOREIGN PERSONS RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Message telephone services (3) Private leased channel services (4) Telex, telegram, and other jointly-provided (basic) services (5) Value added (enhanced) services* (6) Support services* (7) (1) (2) Section A - MANDATORY Complete if total sales of telecommunications services exceed $500,000. 1. All countries, giooi total ► 1 2 6 7 3 4 5 2. Australia 002 1 601 2 3 4 5 6 7 3. Belgium 003 1 302 2 3 4 5 6 7 4. Brazil 004 1 202 2 3 4 5 6 7 5. Canada 005 1 100 2 3 4 5 6 7 6. France 006 1 307 2 3 4 5 6 7 7. Germany 007 1 308 2 3 4 5 6 7 8. Hong Kong 008 1 611 2 3 4 5 6 7 9. Israel 009 1 504 2 3 4 5 6 7 10.- Italy 010 1 314 2 3 4 5 6 7 11. Japan on 1 614 2 3 4 5 6 7 12. Luxembourg 012 1 316 2 3 4 5 6 7 13. Mexico 013 1 213 2 3 4 5 6 7 14. Netherlands oh 1 319 2 3 4 5 6 7 15. Philippines 015 1 623 2 3 4 5 6 7 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 17. South Korea on 1 626 2 3 4 5 6 7 18. Spain 018 1 323 2 3 4 5 6 7 19. Sweden 019 1 324 2 3 4 5 6 7 20. Switzerland 020 1 325 2 3 4 5 6 7 21. Taiwan 021 1 628 2 3 4 5 6 7 22. United Kingdom 022 1 327 2 3 4 5 6 7 ! 23. Venezuela 023 1 219 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary) I 1 2 6 7 j 24. 024 3 4 5 I 25. ° 25 2 3 4 5 6 7 I 26. ° 26 2 3 4 5 6 7 I 27. ° 27 2 3 4 5 6 7 ; 28, ° 28 2 3 4 5 6 7 I 29. ° 29 2 3 4 5 6 7 I 30. 030 2 3 4 5 6 7 I 31. 031 2 3 4 5 6 7 I! Section B - VOLUNTARY !| Complete if total sales of i| telecommunications services U are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If total (cross-border) receipts for telecomn $500,000, you must complete the MANDATORY se left blank. nunications service :tion above, and lir s exceed le 32 must be 7 3 4 5 6 BEA USE ONLY 033 1 2 3 4 5 6 7 | *lndicate on a separate sheet, referenced to this category, the nature of any services reported in these columns. FORM BE-20 (10-24-96) BEA USE ONLY Control number G2 SCHEDULE G — RECEIPTS AND PAYMENTS FOR TELECOMMUNICATIONS SERVICES BY U.S. REPORTER — Continued BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 NOTE - Total purchases of telecommunications services are calculated as the sum of columns (3) through (7) of Part II. PART II U.S. REPORTER'S PAYOUTS TO, OR PURCHASES FROM, UNAFFILIATED FOREIGN PERSONS PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Message telephone services (3) Private leased channel services (4) Telex, telegram, and other jointly-provided (basic) services (5) Value added (enhanced) services* (6) Support services* (7) (1) (2) Section A - MANDATORY Complete if total sales of telecommunications services exceed $500,000. 1. All countries, kiooi total ► 1 2 3 4 5 6 7 2. Australia 002 1 601 2 3 4 5 6 7 3. Belgium 003 1 302 2 3 4 5 6 7 4. Brazil 004 1 202 2 3 4 5 6 7 5. Canada 005 1 100 2 3 4 5 6 7 6. France 006 1 307 2 3 4 5 6 7 7. Germany ° 07 1 308 2 3 4 5 6 7 8. Hong Kong oos 1 611 2 3 4 5 6 7 9. Israel °09 1 504 2 3 4 5 6 7 10. Italy 010 1 314 2 3 4 5 6 7 11. Japan on 1 614 2 3 4 5 6 7 12. Luxembourg 012 1 316 2 3 4 5 6 7 13. Mexico 013 1 213 2 3 4 5 6 7 14. Netherlands 014 1 319 2 3 4 5 6 7 15. Philippines 015 1 623 2 3 4 5 6 7 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 17. South Korea 017 1 626 2 3 4 5 6 7 18. Spain 018 1 323 2 3 4 5 6 7 19. Sweden 019 1 324 2 3 4 5 6 7 20. Switzerland 020 1 325 2 3 4 5 6 7 21. Taiwan 021 1 628 2 3 4 5 6 7 22. United Kingdom 022 1 327 2 3 4 5 6 7 23. Venezuela 023 1 219 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary) 1 2 24. 024 3 4 5 6 7 25. ° 25 2 3 4 5 6 7 26. ° 26 2 3 4 5 6 7 27. 027 2 3 4 5 6 7 28. 028 2 3 4 5 6 7 29. 029 2 3 4 5 6 7 30. ° 30 2 3 4 5 6 7 31. 031 2 3 4 5 6 7 Section B - VOLUNTARY Complete if total sales of telecommunications services are $500,000 or less. 32. All countries, total ► 032 1 709 2 N $ le OTE - If total (cross-border) payments for telecommunications services exceed 500,000, you must complete the MANDATORY section above, and line 32 must be ft blank. 3 4 5 6 7 BEA USE ONLY 033 1 2 3 4 5 6 7 Indicate on a separate sheet, referenced to this category, the nature of any services reported in these columns. FORM BE-20 (10-24-96) G2 1 BEA USE ONLY Control number H SCHEDULE H — SALES OF OPERATIONAL LEASING SERVICES TO UNAFFILIATED FOREIGN PERSONS BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED — | FOREIGN PERSONS — 1 996 , RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Rentals of computer and data processing equipment (3) Rentals of transportation equipment (without crew) (4) Rentals of other machinery and equipment* (5) (1) (2) Section A - MANDATORY Complete if total sales of operational leasing services exceed $500,000. 1. All countries, hiooi total ► 1 2 3 4 5 2. Australia ° 02 1 601 2 3 4 5 3. Belgium 003 1 302 2 3 4 5 4. Brazil 004 1 202 2 3 4 5 5. Canada 005 1 100 2 3 4 5 6. France 006 1 307 2 3 4 5 7. Germany 007 1 308 2 3 4 5 8. Hong Kong oos 1 611 2 3 4 5 9. Israel 009 1 504 2 3 4 5 10. -Italy oio 1 314 2 3 4 5 11. Japan on 1 614 2 3 4 5 12. Luxembourg ° 12 1 316 2 3 4 5 13. Mexico 013 1 213 2 3 4 5 14. Netherlands ou 1 319 2 3 4 5 15. Philippines 015 1 623 2 3 4 5 16. Saudi Arabia oie 1 511 2 3 4 5 17. South Korea on 1 626 2 3 4 5 18. Spain 018 1 323 2 3 4 5 "~~ 19. Sweden 019 1 324 2 3 4 5 20. Switzerland 020 1 325 2 3 4 5 21. Taiwan 021 1 628 2 3 4 5 22. United Kingdom 022 1 327 2 3 4 5 23. Venezuela 023 1 219 2 3 4 5 — i Other — Specify (Use additional copied sheets as necessary) \ 24. 024 1 2 3 4 5 - 1 25. ° 25 2 3 4 5 I 26. ° 26 2 3 4 5 ": 27. 027 2 3 4 5 -—"; 28. ° 28 2 3 4 5 - "J 29. ° 29 2 3 4 5 -—~" 30. 030 2 3 4 5 — -"' 31. 031 2 3 4 5 ""1 Section B - VOLUNTARY ! " Complete if total sales of stDc , operational leasing services are $500,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If total (cross-borc bined (the sum of columns MANDATORY section abo\ 3 ier) sales of all types of operat 3 through 5) exceed $500,000 'e, and line 32 must be left bla 4 ional leasing services com- , you must complete the nk. 5 «"-"1 1 BEA USE ONLY 033 1 2 3 "J 4 5 <*•■**' ^Indicate on a separate sheet, referenced to this category, the nature of any services reported in this column. " j)RM BE-20 (10-24-96) OMB No. 0608-0058: Approval Expires 11/30/9S form BE-20 (Schedule H) 00-24-96) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS SCHEDULE H — SALES OF OPERATIONAL LEASING SERVICES BY U.S. REPORTER BE-20, BENCHMARK SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS— 1996 INSTRUCTIONS • Section A is required to be completed if your total sales of operational leasing services exceed $500,000. • Section B is requested to be completed if your total sales of operational leasing services are $500,000 or less. This schedule covers the U.S. Reporter's receipts as a lessor of machinery or equipment under the terms of operational leases; that is, it excludes receipts for rentals under leases that have been capitalized. Disaggregate as follows, based upon the type of machinery or equipment being leased: Column (3), Rentals of computer and data processing equipment- Report receipts for the rental of computer hardware, or for the rental of hardware and peripheral equipment matched with software products or custom software to provide a complete information system for customers. Exclude sales of timesharing (see Schedule E, Sales of Computer and Data Processing Services). (However, see the discussion of bundling of services in I.C.5 of the General Instructions.) Column (4), Rentals of transportation equipment (without crew) - Report receipts from rentals of transportation equipment (such as ships, aircraft, railway cars, containers, rigs, automobile fleets, etc.) without crew or operators. (If both the transportation equipment and operators are provided, then the fee is considered to be for transportation services, which are not subject to reporting on this survey but may be reportable on other BEA forms - see V. of the General Instructions.) Column (5), Rentals of other machinery and equipment - Report receipts from rentals of types of machinery or equipment other than those reported in columns (3) and (4), such as furniture, coin-operated machines, construction equipment (without operators), oil field equipment (without operators), and electronic equipment except computers. (Rental of construction or oil field equipment with operators is covered on BEA Form BE-47.) Do not report rentals of items other than machinery or equipment. For example, do not report rentals of office buildings and other real estate, film rentals, and employee leasing. For entries in this column, identify the type of machinery or equipment that accounts for the largest share of the data reported, -g In- form BE-20 (10-24-1 s'"3 OMB No. 0608-0060: Approval Expires 11/30/2000 form BE-22 (9-16-97) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS MANDATORY CONFIDENTIAL ANNUAL SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS Public reporting burden for this collection of information is estimated to vary from 4 to 500 hours per response, with an average of 11.5 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0060, Washington, DC 20503. BEA USE ONLY Control number I2HI NAME, ADDRESS, AND DETERMINATION OF REPORTING STATUS 1. Name and principal address of U.S. Reporter - Enter or correct as necessary. MAIL REPORTS TO DELIVER REPORTS TO U.S. Department of Commerce Bureau of Economic Analysis BE-50ISSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Shipping and Receiving Section M-100 1441 L Street, NW Washington, DC 20005 Assistance - Telephone (202) 606-5588 during office hours - 8:00 a.m. to 4:00 p.m. eastern time. Due date - A completed BE-22 is due on March 31 of the calendar year following the one in which the U.S. Reporter's fiscal year ends. WHAT TO FILE - All persons who receive this form must complete Part I, and the "Person to Consult" and "Certification" blocks below. Reporters subject to the mandatory reporting requirement must also complete Part II and the mandatory section(s) of the appropriate schedule(s). Reporters that elect to voluntarily report data must complete Part II and the voluntary section(s) of the appropriate schedule(s). Recipients of this form that are exempt from reporting must complete the exemption claim on page 2. TO DETERMINE REPORTING STATUS, PLEASE READ THE ATTACHED GENERAL INSTRUCTIONS. BEA USE ONLY 2. Determination of reporting status If a U.S. person's total transactions (either sales or purchases) with unaffiliated foreign persons in any of the types of services listed on pages iv - v of the General Instructions exceed $1,000,000 during the U.S. person's fiscal year, a BE-22 report must be filed. If a U.S. person's total transactions (either sales or purchases) with unaffiliated foreign persons in a given type of service are $1,000,000 or less during the fiscal year, the U.S. person may voluntarily report the total for each type of service, not distributed by individual foreign country, on line 32 of the appropriate schedules. These estimates may be judgmental, that is, not based on a search of accounting records but instead on the recollection of knowledgeable persons within the company who are in a position to know whether any significant transactions in the particular service(s) were engaged in during the year, and if so, the approximate total amount(s) of such transactions. Information provided on these transactions will make the survey results more complete and will better ensure that all types of services are adequately represented in any negotiations or other policy initiatives supported by the survey data. Mark (X) one: LJ The U.S. Reporter is required to report data in the mandatory section of at least one of the schedules. LJ The U.S. Reporter is not required to report data in the mandatory section of any schedule, but elects to report data voluntarily on line 32 of at least one schedule. LJ The U.S. Reporter is not reporting data in either the mandatory or voluntary section of any schedule, and is filing an exemption claim. Complete the "PERSON TO CONSULT" and CERTIFICATION sections below and the exemption claim on page 2. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT — Enter name and address CERTIFICATION - The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VI. F of the General Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Authorized official's signature ELEPHONE IUMBER Area code Number Extension Print or type name and title Date EXEMPTION CLAIM - Complete only if Part I, item 2, box 3 was marked. The U.S. Reporter is not reporting data on any schedule of this form because it - Mark (X) appropriate box. A I I Was not in existence at any time during the reporting period. B I I Is owned to the extent of more than 50% of its voting stock by another U.S. enterprise. Specify parent corporation Name Address — Number and street City State ZIP Code (If the U.S. Reporter is a corporation, the data in this report are to be for the fully consolidated domestic enterprise. If a corporation is owned to the extent of more than 50 percent of its voting stock by another U.S. corporation, the parent corporation should file this report. For exceptions, see I.D. of the General Instructions.) C I I Had no transactions, either sales or purchases, of the types covered, with unaffiliated foreign persons. D I I Had transactions, either sales or purchases, of the types covered but the value of each type did not exceed $1,000,000 and the U.S. Reporter does not wish to report the data voluntarily. The total amount of the transactions, for all services combined, was approximately ► Report in thousands of U.S. dollars Sales $ Purchases $ If you marked (X) a box in this exemption claim - STOP HERE and return this form to BEA. 1. Annual report for fiscal year ending 11001 Month T Day Year 9 7 2. Industry classification - Enter 3-digit code from the Summary of Industry Classifications. 11002 3. Major activity of the U.S. Reporter and product or service involved in that activity 4. Primary Employer Identification (El) Number used by the U.S. Reporter to file U.S. income or payroll taxes — 11003 SCHEDULE A U.S. REPORTER'S SALES OF SELECTED SERVICES TO UNAFFILIATED FOREIGN PERSONS The mandatory section is required to be completed for a given type of service or activity if your total sales to foreign persons of that service, or your total receipts from foreign persons for that activity, exceed $1,000,000. The voluntary section is requested to be completed for a given type of service or activity if your total sales to foreign persons of that service, or your total receipts from foreign persons for that activity, are $1,000,000 or less. NOTE - In determining exemption, except for transactions in rights to natural resources, the $1,000,000 threshold should be separately applied to each of the services listed below. For transactions in rights to natural resources, the $1,000,000 threshold should be applied to the sum of services numbered 13 and 14. Enter the number associated with the service, instead of the complete title of the service, in the column heading on page 3. See VII. of the General Instructions for complete descriptions of the services covered. Service number Service 1 Advertising services 2 Computer and data processing services 3 Data base and other information services 4 Telecommunications services 5 Research, development, and testing services 6 Management, consulting, and public relations services 7 Accounting, auditing, and bookkeeping services 8 Legal services 9 Educational and training services 10 Industrial engineering services 11 Industrial-type maintenance, installation, alteration, and training services 12 Performing arts, sports, and other live performances, presentations, and events 13 Sale or purchase of rights to natural resources, and lease bonus payments 14 Use or lease of rights to natural resources, excluding lease bonus payments 15 Disbursements to fund news-gathering costs of broadcasters 16 Disbursements to fund news-gathering costs of print media 17 Disbursements to fund production costs of motion pictures 18 Disbursements to fund production costs of broadcast program material other than news 19 Disbursements to maintain government tourism and business promotion offices 20 Disbursements for sales promotion and representation 21 Disbursements to participate in foreign trade shows 26 Merchanting services 27 Operational leasing services 28 Other private services' *"Other private services" (i.e., service number 28) consist of language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and toxic waste cleanup services. Page 2 FORM BE-22 (9-16-97) ta -J SCHEDULE A - -L I.S. REPORTER'S SALES OF SELECTED SERVICES TO UNAFFILIATED FOREIGN PERSONS ~~~1 RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Service number: Service number: Service number: Service number: Service number: Service number: (D (2) (3) (4) (5) (6) (7) (8) MANDATORY aiooo Complete if total sales of the given type of service exceed . $1,000,000. 1 . All countries. 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 ^^ m total ' 001 -pr- 2. Australia 002 1 601 2 3 4 5 6 7 8 3. Belgium ° 03 1 302 2 3 4 5 6 7 8 -'-'- 4. Brazil °° 4 1 202 2 3 4 5 6 7 8 5. Canada oos 1 100 2 3 4 5 6 7 8 1 307 2 3 4 5 6 7 8 7. Germany 007 1 308 2 3 4 5 6 7 8 8. Hong Kong oos 1 611 2 3 4 5 6 7 8 9. Israel 009 1 504 2 3 4 5 6 7 8 10. Italy 010 1 314 2 3 4 5 6 7 8 11. Japan on 1 614 2 3 4 5 6 7 8 12. Luxembourg 012 1 316 2 3 4 5 6 7 8 13. Mexico 013 1 213 2 3 4 5 6 7 8 14. Netherlands oh 1 319 2 3 4 5 6 7 8 15. Philippines 015 1 623 2 3 4 5 6 7 8 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 8 17. South Korea 017 1 626 2 3 4 5 6 7 8 18. Spain ois 1 323 2 3 4 5 6 7 8 19. Sweden 019 1 324 2 3 4 5 6 7 8 |20. Switzerland 020 1 325 2 3 4 5 6 7 8 21. Taiwan 021 1 628 2 3 4 5 6 7 8 ~ 22. United Kingdom 022 1 327 2 3 4 5 6 7 8 23. Venezuela 023 1 219 2 3 4 5 6 7 8 Other — Specify _ (Use additional copied _ sheets as necessary) — 14. 024 1 2 3 4 5 6 7 8 — 55. 025 2 3 4 5 6 7 8 ~~ 56. 026 2 3 4 5 6 7 8 "" \1. 027 2 3 4 5 6 7 8 28. 028 2 3 4 5 6 7 8 ►9. 029 2 3 4 5 6 7 8 (0. 030 2 3 4 5 6 7 8 11. 031 2 3 4 5 6 7 8 - /OLUNTARY " Complete if total sales - >f the given type of J service are $1,000,000 __ >r less. " \2. All countries, - total ► 032 1 709 2 3 jiven type of ser ion above, and 6 vice exceed $1 ine 32 must be 7 million, eft blank. 8 NOTE - I you must < f total (cross-bor complete the Mfl 4 der) sales of a c iNDATORY sect 5 BEA USE ONLY 033 1 2 3 4 5 ST" 7 8 •^j *M BE-22 (9-16-97) Page 3 SCHEDULE B - U.S. REPORTER'S PURCHASES OF SELECTED SERVICES FROM UNAFFILIATED FOREIGN PERSONS The mandatory section is required to be completed for a given type of service or activity if your total purchases of that service, or outlays for that activity, exceed $1,000,000. The voluntary section is requested to be completed for a given type of service or activity if your total purchases of that service, or outlays for that activity, are $1,000,000 or less. NOTE - In determining exemption, except for transactions in rights to natural resources, the $1,000,000 threshold should be separately applied to each of the services listed below. For transactions in rights to natural resources, the $1,000,000 threshold should be applied to the sum of services numbered 13 and 14. For purchases of primary insurance, for which premiums paid and losses recovered are required to be reported in separate columns, both premiums paid and losses recovered (services numbered 22 and 23) must be reported if either premiums paid or losses recovered exceed $1,000,000. If there are transactions in one of these services but not in the other, enter "N/A" in the appropriate column of this schedule, line 1 or 32. Enter the number associated with the service, instead of the complete title of the service, in the column heading on page 5. See VII. of the General Instructions for complete descriptions of the services covered. Service number Service 1 Advertising services 2 Computer and data processing services 3 Data base and other information services 4 Telecommunications services 5 Research, development, and testing services 6 Management, consulting, and public relations services 7 Accounting, auditing, and bookkeeping services 8 Legal services 9 Educational and training services 10 Industrial engineering services 11 Industrial-type maintenance, installation, alteration, and training services 12 Performing arts, sports, and other live performances, presentations, and events 13 Sale or purchase of rights to natural resources, and lease bonus payments 14 Use or lease of rights to natural resources, excluding lease bonus payments 15 Disbursements to fund news-gathering costs of broadcasters 16 Disbursements to fund news-gathering costs of print media 17 Disbursements to fund production costs of motion pictures 18 Disbursements to fund production costs of broadcast program material other than news 19 Disbursements to maintain government tourism and business promotion offices 20 Disbursements for sales promotion and representation 21 Disbursements to participate in foreign trade shows 22 Premiums paid on purchase of primary insurance 23 Losses recovered on purchases of primary insurance 24 Construction, engineering, architectural, and mining services 27 Operational leasing services 28 Other private services* *"Other private services" (i.e., service number 28) consist of language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and toxic waste cleanup services. Note that purchases of financial services covered by this survey are to be reported on separate Schedule C, not on this schedule. Page 4 FORM BE-22 (9-16-97) SCHEDULE B - U.S. REPORTER'S PURCHASES OF SELECTED SERVICES FROM UNAFFILIATED FOREIGN PERSONS PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Service number: Service number: Service number: Service number: Service number: Service number: (1) (2) (3) (4) (5) (6) (7) (8) MANDATORY biooo Complete if total purchases of the given type of service exceed $1,000,000. 1. All countries. l 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 total * ° 01 2. Australia ° 02 1 601 2 3 4 5 6 7 8 3. Belgium 003 1 302 2 3 4 5 6 7 8 4. Brazil 004 1 202 2 3 4 5 6 7 8 5. Canada o°s 1 100 2 3 4 5 6 7 8 6. France ooe 1 307 2 3 4 5 6 7 8 7. Germany °07 1 308 2 3 4 5 6 7 8 8. Hong Kong oos 1 611 2 3 4 5 6 7 8 9. Israel 009 1 504 2 3 4 5 6 7 8 10. Italy 010 1 314 2 3 4 5 6 7 8 11. Japan on 1 614 2 3 4 5 6 7 8 12. Luxembourg 012 1 316 2 3 4 5 6 7 8 13. Mexico 013 1 213 2 3 4 5 6 7 8 14. Netherlands ou 1 319 2 3 4 5 6 7 8 15. Philippines 015 1 623 2 3 4 5 6 7 8 16. Saudi Arabia 016 1 511 2 3 4 5 6 7 8 17. South Korea 017 1 626 2 3 4 5 6 7 8 18. Spain 018 1 323 2 3 4 5 6 7 8 19. Sweden 019 1 324 2 3 4 5 6 7 8 20. Switzerland 020 1 325 2 3 4 5 6 7 8 21. Taiwan 021 1 628 2 3 4 5 6 7 8 22. United Kingdom 022 1 327 2 3 4 5 6 7 8 23. Venezuela 023 1 219 2 3 4 5 6 7 8 Other — Specify (Use additional copied sheets as necessary) 24. 024 1 2 3 4 5 7 8 6 25. 025 2 3 4 5 6 7 8 26. 026 2 3 4 5 6 7 8 27. 027 2 3 4 5 6 7 8 28. 028 2 3 4 5 6 7 8 29. 029 2 3 4 5 6 7 8 30. 030 2 3 4 5 6 7 8 31. 031 2 3 4 5 6 7 8 VOLUNTARY Complete if total purchases of the given type of service are !|$1, 000,000 or less. 32. All countries, total ► 032 1 709 2 3 NOTE - If you must c total (cross-bore omplete the MA 4 Jer) purchases c NDATORY secti 5 if a given type on above, and h 6 f service exceec ne 32 must be I 7 $1 million, eft blank. 8 221*0 BEA USE ONLY 033 1 2 3 4 5 T" 7 S~" )RM BE-22 (9-16-97) Page 5 SCHEDULE C - U.S. REPORTER'S PURCHASES OF FINANCIAL SERVICES FROM UNAFFILIATED FOREIGN PERSONS The mandatory section is required to be completed if your total purchases of financial services exceed $1,000,000. The voluntary section is requested to be completed if your total purchases of financial services are $1,000,000 or less. This schedule covers direct purchases from foreigners of financial services by U.S. firms that are not financial services intermediaries or providers. For example, financial services purchased directly from foreigners by a U.S. manufacturing firm are covered, but services purchased by a U.S. bank or other U.S. financial services intermediary or provider are not covered. For a consolidated U.S. enterprise that is comprised of both financial and nonfinancial subsidiaries, this schedule pertains only to transactions of the subsidiaries that are not financial services intermediaries or providers. Thus, for example, an auto manufacturer that owns a finance company should complete the financial services questions only for the manufacturing part of the firm. Although financial services intermediaries are exempt from reporting on this schedule, they must report their purchases and sales of nonfinancial services on the other BE-22 schedules, and must report their purchases and sales of financial services on BEA surveys of financial services transactions between financial services providers and unaffiliated foreign persons, as appropriate. U.S. financial services intermediaries or providers that are exempt from reporting on this schedule are: Depository institutions; nondepository credit institutions; security and commodity brokers, dealers, exchanges, and services providers; insurance carriers and pension funds; insurance agents, brokers, and services providers; investment offices, trusts, oil royalty traders, patent owners and lessors, and real estate investment trusts; and holding companies of financial services intermediaries. This list is similar to the finance and insurance part of Division H in the 1987 Standard Industrial Classification Manual, except that Division H includes all holding companies, not just holding companies of financial services intermediaries. Column (3), Credit-related fees - Include fees for establishing, maintaining, or arranging credits, letters of credit, bankers acceptances, mortgages, factoring services, loan guarantees, etc., that are commonly provided by foreign banking establishments. Include fees paid directly and fees that are withheld or deducted from your proceeds by the foreign person. For example, for factoring services, the fee may be calculated as the difference between the proceeds you received from the sale of your receivables and the face amount of the receivables sold; for arranging credits, letters of credit, etc., it may be calculated as the difference between the proceeds you received from the loan, letter of credit, etc. (after deduction of the fee) and your liability to the foreign lending establishment. Report credit-related fees in the accounting period in which they are incurred, whether or not expensed in that accounting period. Exclude interest on your obligations, because interest is a payment for the use of loan proceeds and is not a fee for the establishment, maintenance, or arrangement of credit. Column (4), Fees on securities transactions - Include commissions and other fees for securities transactions (including transactions in derivatives) or futures trading, such as brokerage, underwriting, private placements, etc. Fees for such services would commonly be paid to foreign investment banks and securities brokers or dealers. Include fees that can be calculated from transactions records or other documentation issued by the investment bank or security broker or dealer. Omit, rather than attempt to estimate, these fees if they cannot be calculated from such documentation. (For example, a dealer's markup on bond purchases and sales cannot be directly estimated from transactions records issued by a securities dealer.) Column (5), Fees for other financial services - Include fees for asset/liability management, debt renegotiation, and other financial services. Exclude leasing. (Report computer leasing in the BE-22 service category, "Operational leasing services.") Exclude real estate management services. (Report such services in the BE-22 service category, "Management, consulting, and public relations services.") For entries in this column, describe on the back of Schedule C the type of financial service that accounts for the largest share of the data reported. Page 6 FORM BE-22 (9-16-97) lil{ j.0) SCHEDULE C - U.S. REPORTER'S PURCHASES OF FINANCIAL SERVICES FROM UNAFFILIATED FOREIGN PERSONS NOTE - Total purchases of financial services are calculated as the sum of columns (3) through (5) PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Credit-related fees (3) Fees on securities transactions (4) Fees for other financial services (Specify largest type on reverse side of this schedule.) (5) (1) (2) MANDATORY Complete if total purchases of financial services exceed $1,000,000. 1 . All countries, C0001 1 2 3 4 5 total * 2. Australia °° 2 1 601 2 3 4 5 3. Belqium 003 1 302 2 3 4 5 4. Brazil °° 4 1 202 2 3 4 5 5. Canada 005 1 100 2 3 4 5 6. France °° 6 1 307 2 3 4 5 7. Germany 007 1 308 2 3 4 5 8. Hong Kong oos 1 611 2 3 4 5 9. Israel 009 1 504 2 3 4 5 10. Italy 010 1 314 2 3 4 5 11. Japan on 1 614 2 3 4 5 12. Luxembourg 012 1 316 2 3 4 5 13. Mexico 013 1 213 2 3 4 5 14. Netherlands ou 1 319 2 3 4 5 15. Philippines 015 1 623 2 3 4 5 16. Saudi Arabia 016 1 511 2 3 4 5 17. South Korea 017 1 626 2 3 4 5 18. Spain 018 1 323 2 3 4 5 19. Sweden 019 1 324 2 3 4 5 20. Switzerland 020 1 325 2 3 4 5 21. Taiwan 021 1 628 2 3 4 5 22. United Kingdom 022 1 327 2 3 4 5 23. Venezuela 023 1 219 2 3 4 5 Other — Specify (Use additional copied sheets as necessary) 24. 024 1 2 3 4 5 125. 025 2 3 4 5 26. 026 2 3 4 5 27. ° 27 2 3 4 5 28. ° 28 2 3 4 5 29. ° 29 2 3 4 5 30. ° 30 2 3 4 5 31. 031 2 3 4 5 VOLUNTARY Complete if total purchases of financial services are $1,000,000 or less. 32. All countries, total ► 032 1 709 2 NOTE - If total (cross-bore (the sum of columns 3 thro TORY section above, and I 3 er) purchases of all types of fi jgh 5) exceed $1 million, you ne 32 must be left blank. 4 nancial services combined nust complete the MANDA- 5 )!l BEA USE ONLY 033 1 2 3 4 5 ORM BE-22 (9-16-97) Page 7 SCHEDULE C - PURCHASES OF FINANCIAL SERVICES FROM UNAFFILIATED FOREIGN PERSONS If there is an entry in column (5) of Schedule C, specify below the type of financial service that accounts for the largest share of the data reported. Paqe 8 form be-22 0-16-971 GENERAL INSTRUCTIONS Purpose - Reports on this form are required in order to obtain reliable and up-to-date information on selected services transactions between U.S. persons and unaffiliated foreign persons. The information will be used to help support trade negotiations, formulate U.S. policy, and analyze the impact of that policy and the policies of foreign countries, on international trade in services. The data will also be used in compiling the U.S. balance of payments and national income and product accounts. Authority - The filing of reports for this survey is authorized by Section 3103(a) of the International Investment and Trade in Services Survey Act, P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101 to 3108, as amended (hereinafter "the Act"). Regulations for the survey may be foqnd in 15 CFR Part 801. Penalties - Whoever fails to report may 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 participated in such violations, upon conviction, may be punished by a like fine, imprisonment, or both. (See Section 3105 of the Act.) Notwithstanding the above, a U.S. person is not subject to any penalty for failure to report if a valid Office of Management and Budget (OMB) control number is not displayed on the form; such a number (0608-0060) is displayed on this form. Confidentiality - The Act provides that your report to this Bureau is CONFIDENTIAL. It also provides that your report may be used only for analytical or statistical purposes and CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. NOTES - 1. A single original copy of this report must be filed with the Bureau of Economic Analysis (BEA); please use the copy with the address label if such a labeled copy has been provided. 2. Currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). EXAMPLE - If the amount is $1,000,000, report as $1,000. Amounts less than $500.00 round to "0" and should, therefore, be omitted. I. WHO IS TO REPORT AND GENERAL COVERAGE A. Who is to report and transactions to be reported 1. Mandatory reporting - A BE-22 report is required from each U.S. person that had transactions (either sales or purchases) in excess of $1,000,000 with unaffiliated foreign persons in any of the services listed in VII. of these General Instructions during the U.S. person's fiscal year. The determination of whether a U.S. person is subject to this mandatory reporting requirement may be judgmental, that is, based on the judgement of knowledgeable persons in a company who can identify reportable transactions on a recall basis, with a reasonable degree of certainty without conducting a detailed manual records search. The "Optional Checklist" (Supplement A) described in IV. of the General Instructions may be used to facilitate data collection from the various parts of the reporter's organization. Reporters who must file pursuant to this mandatory reporting requirement must complete Parts I and II of the form and all applicable schedules. The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 1 of the schedule. In addition, these amounts must be distributed below line 1 to the country(ies) involved in the transaction(s). 2. Voluntary reporting - If, during the U.S. person's fiscal year, the U.S. person's total transactions (either sales or purchases) in any of the types of services listed in VII. of these General Instructions are $1,000,000 or less, the U.S. person is requested to provide an estimate of the total for each type of service. Provision of this information is voluntary. The estimates may be judgmental, that is, based on recall, without conducting a detailed manual records search. The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 32 of the schedule. (If information on the countries of the transactions is available, the transactions may instead be reported by country in the mandatory section; however, disaggregation by country is not required.) Reporters who elect to file pursuant to the voluntary reporting option must complete Parts I and II of the form. 3. Exemption - A U.S. person receiving this form from BEA that is not required to report data in the mandatory section of any schedule, and that elects not to report data in the voluntary section of any schedule, must complete the "Person to Consult" and certification sections on page 1 and the exemption claim on page 2 of the form. FORM BE-22 Instructions (9-16-97) B. BE-22 definition of sales (receipts) or purchases (payments) It should be noted that an item other than sales or purchases may be used as the measure of a given service for purposes of determining whether the threshold for mandatory reporting of the service is exceeded. Note that in several cases - advertising; telecommunications; performing arts, etc.; miscellaneous disbursements (services numbered 15-21 in VII. of these General Instructions); and rights to natural resources (services numbered 13 and 14) - measures other than, or in addition to, sales or purchases of services should be used. See VII. of these General Instructions for an explanation of what measure should be applied in determining whether you are subject to the BE-22 survey's mandatory reporting requirements for a given service. C. Clarification of coverage and special situations 1. Reporting period - Form BE-22 is an annual report; one report is to be filed for each fiscal year of the U.S. Reporter. The Reporter's fiscal year is its financial reporting year that has an ending date in a given calendar year. (See Definitions, II. M.) 2. Date of recording transactions - Except for telecommunications services, transactions are to be reported on an accrual basis. Telecommunications transactions are to be reported on a settlements basis. 3. Withholding taxes - Data should be reported gross of U.S. and foreign withholding taxes. 4. Services covered regardless of where performed - Services sold to, or purchased from, unaffiliated foreign persons should be reported regardless of whether the services were performed in the United States or abroad. 5. Services bundled with goods or with other services and not separately valued - When a sale or purchase consists of both goods and services, or of several services, that cannot be unbundled (i.e., the goods and/or services are not separately valued), it should be classified based on whichever accounts for a majority of the value or on the basis of the Reporter's customary practice. 6. Accounting for purchases - Purchases of services should be included without regard to whether they are charged as an expense on the income statement, capitalized, or charged to inventories. 7. Partnerships - A partnership is a business enterprise and must report if it has covered transactions. The report must be for, and the data and information must cover, the partnership as a whole, not just the activities of an individual partner. 8. Contractor reporting responsibility - On all schedules, U.S. prime contractors are to report the full value of a transaction (contract) with an unaffiliated foreign person. U.S. subcontractors, including independent consultants, to a U.S. prime contractor are not to report their share of a contract with an unaffiliated foreign person. 9. Projects with U.S. Government nonmilitary agencies - Report information on services that are provided abroad for U.S. Government nonmilitary agencies, such as the Agency for International Development and the United States Information Agency, or that are part of an aid or technical cooperation program of the Government with foreign persons. However, do not report services provided to the U.S. Department of Defense or any of its agencies, such as the Army Corps of Engineers. 10. International organizations - Report transactions with international organizations, which, according to balance of payments conventions, are considered unaffiliated foreign persons even if they are headquartered in the United States. Enter the abbreviated designation, "Int'l Org.", as the name of the country the project is with. D. Consolidation If the U.S. Reporter is a corporation. Form BE-22 is required to cover reportable transactions for the fully consolidated U.S. domestic enterprise consisting of (i) the U.S. corporation whose voting securities are not owned more than 50 percent by another U.S. corporation, and, proceeding down each ownership chain from that U.S. corporation, (ii) any U.S. corporation (including a Foreign Sales Corporation located in the United States) whose voting securities are more than 50-percent owned by the U.S. corporation above it. GENERAL INSTRUCTIONS - Continued D. Consolidation - Continued The fully consolidated U.S. domestic enterprise excludes foreign branches and other foreign affiliates. Conditions may exist that would lead a U.S. corporation to exclude certain majority-owned (more than 50-percent owned) domestic subsidiaries from financial statements used in reports to shareholders. If such a subsidiary has covered transactions, it must file a report under its own name, and the subsidiary will be considered the U.S. Reporter for purposes of completing that form. The U.S. owner, however, is responsible for ensuring that the required Forms BE-22, both for itself and for the subsidiary, are filed with BEA on a timely basis. Such a subsidiary's filing deadline is the same as that of its U.S. owner. II. DEFINITIONS A. Services mean economic activities whose outputs are other than tangible goods. This term includes, but is not limited to, banking, other financial services, insurance, transportation, communications and data processing, retail and wholesale trade, advertising, accounting, construction, design, engineering, management consulting, real estate, professional services, entertainment, education, and health care. B. U.S. Reporter is the U.S. person filing a report in this survey (see I.D. for further clarification). C. 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. D. 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. E. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. F. Business enterprise means any organization, association, branch or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph E above.) G. Direct investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting securities of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. H. Parent means a person of one country who, directly or indirectly, owns or controls 10 per centum or more of the voting stock of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise. 2. Foreign parent means the foreign person, or the first person outside the United States in a foreign chain of ownership, which has direct investment in a U.S. business enterprise, including a branch. I. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. J. 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 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. K. Affiliated foreign person means, with respect to a given U.S. person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. L. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph K above. M. Fiscal year is the U.S. Reporter's financial reporting year that has an ending date in a given calendar year. For example, fiscal year 19X1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in a given calendar year, its fiscal year is deemed to be the same as the calendar year. N. Country means, for purposes of this survey, the country of location of the foreign person with whom a transaction has occurred. III. GUIDELINES FOR CATEGORIZING ACTIVITIES A. Distinguishing between unaffiliated and affiliated transactions This survey covers U.S. persons' direct services transactions, both sales and purchases, with unaffiliated foreign persons -that is, with foreign persons that are neither the foreign affiliate nor the foreign parent of the U.S. person filing the report. For definitions of terms, see II. above. Examples of reportable transactions are: 1. A transaction between a U.S. person and an unaffiliated foreign person. 2. A transaction between one U.S. person and another U.S. person's foreign affiliate. Such a transaction is reportable by the first U.S. person. 3. A transaction between a U.S. parent of a foreign affiliate, or a U.S. affiliate of a foreign parent, and an unaffiliated foreign person (whether or not the latter is affiliated with other U.S. persons). Such a transaction is reportable by the U.S. parent or the U.S. affiliate. Examples of transactions that are not reportable are: 1. A transaction between a U.S. person (U.S. parent) and its foreign affiliate. 2. A transaction between a U.S. person (U.S. affiliate) and its foreign parent or other member of the affiliated foreign group. 3. A transaction between a U.S. person's foreign affiliate and another foreign person. Such a transaction is not reportable because it is a foreign-to-foreign transaction. 4. A transaction between a U.S. person and another U.S. person (whether or not either or both parties are affiliated with foreign persons). Such a transaction is not reportable because it is a U.S.-to-U.S. transaction. Transactions between U.S. parents and their foreign affiliates, and between foreign affiliates and other foreign persons, are already reportable in the surveys of U.S. direct investment abroad (BE-10, BE-11, and BE-577). Transactions between U.S. affiliates and their foreign parents or other members of their affiliated foreign groups are already reportable in the surveys of foreign direct investment in the United States (BE-12, BE-13, BE-15, BE-605, and BE-605 Bank). FORM BE-22 Instructions (9-16-97) GENERAL INSTRUCTIONS - Continued !. Foreign activities of a U.S. person that do not constitute a foreign affiliate Transactions with unaffiliated foreign persons by or through a foreign "activity" of a U.S. person that is not a foreign affiliate must be reported on the BE-22, if the activities are in covered types of services. Any of the services covered by this survey may also be provided at a foreign location through a foreign affiliate. Such transactions are not reportable in this survey. Before completing this survey, therefore, reporters must determine whether or not the services are conducted through a foreign activity that is not a foreign affiliate or through a foreign affiliate. Although the definitions of direct investment and foreign affiliate in II. above, together with the discussion in III. A. above, should be sufficient to determine whether a given foreign activity is or is not a foreign affiliate, in a number of cases the determination may be difficult. Several factors to be considered are given below. If you still cannot determine if the activity or operation is an affiliate, call (202) 606-5588 for additional guidance. Also, if you think that an activity or operation currently reported as an affiliate is incorrect, please call and a determination of future reporting status will be made. If a U.S. person's foreign activity or operation is incorporated abroad, it is a foreign affiliate. If a U.S. person's foreign activity or operation is not incorporated abroad, its status is based on the weight of the evidence when the factors listed below are considered. An unincorporated foreign activity or operation generally would be considered a foreign affiliate if it: (i) pays foreign income taxes; (ii) has a substantial physical presence abroad (e.g., plant and equipment or employees); (iii) maintains separate financial records that would permit the preparation of financial statements, including an income statement and balance sheet (not just a record of disbursements and receipts); (iv) takes title to the goods it sells and receives revenues therefrom; or (v) receives funds for its own account from customers for services it performs. An unincorporated foreign activity or operation generally would not be considered a foreign affiliate if it: (i) conducts business abroad only for the U.S. person's account and not for its own account (e.g., sales promotion or public relations type of activities); (ii) has no separate financial statements; (iii) receives funds to cover its expenses only from the U.S. person; (iv) pays no foreign income taxes; and (v) has limited physical assets, or employees, permanently located abroad. Note that a diverse group of activities that do not constitute foreign affiliates are covered by services numbered 15-21 in VII. of these General Instructions. For activities that are covered by these services, the respondent is asked to provide a breakdown by country of the total amount of the funding for these activities. . U.S. activities of a foreign person that do not constitute a U.S. affiliate Criteria for determining which U.S. activities do or do not constitute a U.S. affiliate of a foreign person are parallel to those in III.B. above. . Determining who must report a transaction when an intermediary is involved At times, transactions between a U.S. person and an unaffiliated foreign person may be arranged by, billed through, or otherwise facilitated by, an intermediary. The intermediary may be U.S. or foreign, and may be affiliated or unaffiliated with the U.S., or the foreign, person. A determination of who a sale is to, or who a purchase is from, shall be made on the basis of who the U.S. person considers itself to have a claim on for payment, in the case of a sale, or who it has a liability to, in the case of a purchase. For a sale, if the U.S. person looks to the unaffiliated foreign person for payment, then the transaction is between the U.S. person and unaffiliated foreign person, and is to be reported by the U.S. person. If the U.S. person looks to the intermediary for payment, and the intermediary, in turn, looks to the foreign person for payment, then whether either transaction is reportable, and who it is to be reported by, depends on the location of the intermediary and the relationship between the U.S. person and the intermediary. If the intermediary is a foreign person, then the U.S. person would report the transaction, provided the intermediary is not affiliated with the U.S. person. (If they are affiliated, then the transaction is not reportable in this survey.) If the intermediary is a U.S. person, then the initial transaction between the original U.S. person and the intermediary is domestic-to-domestic and not reportable in the survey. However, the intermediary must report the transaction with the foreign person, provided the intermediary is not affiliated with the foreign person. (If they are affiliated, then the transaction is not reportable in this survey.) The reportability of a purchase would be determined in a similar manner. IV.OPTIONAL CHECKLIST OF SERVICES TRANSACTIONS BETWEEN COMPANY UNIT AND UNAFFILIATED FOREIGN PERSONS For the convenience of reporters, an "Optional Checklist" is provided in Supplement A, to help diversified companies determine, without a records search, whether or not the "parts" or units of the company had reportable services transactions, either sales or purchases, with unaffiliated foreign persons in the fiscal year. If, for any sales or purchases category, a "part" or unit of the company answers "Yes" to the question of whether it had a transaction in a particular type of service, that "part" or unit must be included in the company's report under the survey's mandatory reporting requirement if the U.S. Reporter's total transactions in that service exceed $1,000,000. (See I.A.1. of these General Instructions.) Even if the U.S. Reporter's total transactions are $1,000,000 or less, a "Yes" answer to the question of whether the "part" or unit had any transactions can be used to help determine if the transactions of that "part" or unit should be included in the company's report on a voluntary basis. (See I. A. 2. of these General Instructions.) Companies should reproduce the checklist for distribution to their "parts" or units if they decide to use it in preparing their reports. The checklist is optional; it is for the internal use of reporters only and should not be returned to BEA with Form BE-22. Some companies may find it advantageous to adapt the "Optional Checklist" to accommodate their own particular corporate structure or data collection procedures. V. RELATED FORMS Persons receiving this form should be aware of nine other forms on services that are required to be filed on a mandatory basis with BEA (see 15 CFR, Part 801, Section 9. BE-20 Benchmark Survey of Selected Services Transactions With Unaffiliated Foreign Persons BE-29 Foreign Ocean Carriers' Expenses in the United States BE-30 Ocean Freight Revenues and Foreign Expenses of United States Carriers BE-36 Foreign Airline Operators' Revenues and Expenses in the United States BE-37 U.S. Airline Operators' Foreign Revenues and Expenses BE-47 Annual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons BE-48 Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies with Foreign Persons BE-80 Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons BE-82 Annual Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons BE-93 Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons The types of transactions reportable on those forms are not covered by this survey. To receive a copy of form BE-29, BE-30, BE-36, or BE-37, telephone BEA at (202) 606-9559. To receive a copy of form BE-20, BE-47, BE-48, BE-80, BE-82, or BE-93, telephone BEA at (202) 606-5588. VI. REPORTING PROCEDURES A. Due date - A completed BE-22 is due on March 31 of the calendar year following the one in which the U.S. Reporter's fiscal year ends. B. Extension - Requests for an extension of the reporting deadline will not normally be granted. However, in a hardship case, a written request for an extension will be considered provided it is received at least 15 days before the due date of the report and enumerates substantive reasons necessitating the extension. BEA will provide a written response to such a request. C. For assistance or additional copies of the forms - Phone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. D. Original and file copies - A single original copy of each form or schedule must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. In addition, 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 a period of not less than 3 years beyond the form's original due date. E. Where to send report - Reports filed by mail through the U.S. Postal Service should be sent to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Washington, DC 20230. Reports filed by direct private delivery should be directed to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Shipping and Receiving Section, Room M-100, 1441 L Street, NW, Washington, DC 20005. | FORM BE-22 Instructions (9-16-97) III GENERAL INSTRUCTIONS - Continued VI. REPORTING PROCEDURES F. Estimates - If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. VII. SERVICES COVERED Report sales of services numbered 1-21 and 26-28 on Schedule A, and report purchases of services numbered 1-24, 27, and 28 on Schedule B. Report purchases of financial services (service number 25) on Schedule C. 1. Advertising services - Preparation of advertising and placement of such advertising in media, including charges for media space and time. An advertising agency selling such services should report gross billings to unaffiliated foreigners. Sales by media companies (e.g. broadcasters, publishers, etc.) that are arranged through U.S. advertising agencies are presumed to be reflected in billings of the advertising agencies; thus, in order to avoid duplication, they should not be reported by the media suppliers. U.S. advertising agencies should report only direct transactions with unaffiliated foreign clients. Exclude transactions that are with the U.S. affiliates of foreign clients, rather than directly with foreign clients; such transactions are considered domestic (U.S.-to-U.S.) and are, therefore, outside the scope of this survey. Exclude charges for services other than advertising, such as public relations services or market research not directly associated with an advertising campaign. Such services should be reported under service number 6. U.S. media companies should report only direct sales of advertising services to unaffiliated foreign persons; they should not report advertising arranged by U.S. advertising agencies, including U.S. affiliates of foreign advertising agencies. Under purchases of advertising services, U.S. Reporters that are advertising agencies should report only funds paid to foreign advertising agencies and media companies on behalf of its clients. U.S. Reporters other than advertising agencies should report only purchases made directly from foreign advertising agencies and media companies. Do not report purchases made through a U.S. advertising agency. Also, do not report purchases made through the U.S. office of a foreign advertising agency if your payment is made to the U.S. office. Include the value of reciprocal exchanges; i.e., transactions involving barter. On Schedule A, value your sales to the foreign participant in the reciprocal exchange at market rates, not at the actual cost of performing the services. On Schedule B, value your purchases from the foreign participant at the same amount as the sales reported on Schedule A. 2. Computer and data processing services - Data entry, processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services; integrated hardware/software systems; and other computer services (e.g., timesharing, maintenance, and repair). Excludes general use computer software royalties and license fees; for 1997 and the following years these transactions are to be reported on the Form BE-93, Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons. 3. Data base and other information services - Business and economic data base services, including business news, stock quotation, and financial information services; medical, legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those purchased from a news syndicate; and other information services, including reservation systems and credit reporting and authorization systems. For airline reservation systems, includes booking fees from foreign carriers for the use of your reservation system, whether accessed directly or by a U.S. or foreign travel agent. 4. Telecommunications services - Includes services of the following types (to be reported in a single column, rather than as five separate types of services): Message telephone services, telex, telegram, and other services - On Schedule A, report receipts from foreign persons 'communications companies and postal, telephone, and telegraph agencies) for your share of revenues for transmitting messages originating abroad to U.S. destinations. On Schedule B, report payouts to foreign persons (communications companies and PTT's) for their share of revenues for transmitting messages originating in the United States to foreign destinations. For messages originating in foreign countries and routed through the United States (for example, from Caribbean countries via the United States to Western Europe), report receipts from the foreign person originating the message and payouts to the country of destination. Also report receipts for transmitting messages between foreign points when not offered in connection with enhanced services, and other regulated services of the type reportable to the FCC on Report 4361. Private leased channel services - On Schedule A, report receipts from foreign persons for circuits and channels terminating in the United States and for circuits and channels between foreign points. On Schedule B, report payouts to foreign persons (communications companies and PTT's) for leased channels and circuits terminating in foreign countries. Value-added (enhanced) services - Telecommunications services that add value or function above and beyond the telecommunications transport services that deliver the value-added services to end users. They can include (a) electronic mail, voice mail, code and protocol processing, and management and operation of data networks; (b) facsimile services and video-conferencing; and (c) other value-added (enhanced) services. (Facsimile services and videoconferencing should be considered as value-added only if the company provides the facilities and equipment; a company that provides solely the telecommunications transmission for these services should report receipts and payouts on Schedules A and B). Support services - Services related to the maintenance and repair of telecommunications equipment; ground station services (where the ground station is not an "affiliate"); capacity leasing for transiting; and launching of communications satellites. Reciprocal exchanges - Include the value of reciprocal exchanges; i.e., transactions involving barter. On Schedule A, value your sales to the foreign participant in the reciprocal exchange at market rates, not at the actual cost of performing the services. On Schedule B, value your purchases from the foreign participant at the same amounts as the sales reported on Schedule A. 5. Research, development, and testing services - Commercial and noncommercial research, product development services, and testing services. Includes fees for the conduct of experiments or performance of research and development activities aboard spacecraft. Excludes medical and dental laboratory services. 6. Management, consulting, and public relations services - Management services, except management of health care facilities; consulting services, except consulting engineering services related to actual or proposed construction or mining services projects (report purchases under service number 24, and report sales on BEA Form BE-47 - see V. of these General Instructions) and computer consulting (report under service number 2); and public relations services, except those that are an integral part of an advertising campaign (report under service number 1). Excludes management and operation of a business where operating staff as well as management is provided. (Generally, such operations would be deemed to constitute a U.S. affiliate to be reported on BEA's direct investment surveys rather than on this survey.) 7. Accounting, auditing, and bookkeeping services - Excludes data processing and tabulation services (report under service number 2). 8. Legal services - Legal advice or other legal services. Insurance companies should include fees paid as compensation for claims adjustment services. 9. Educational and training services - Educational or training services provided on a contract or fee basis. Excludes tuition and fees charged to individual U.S. or foreign students by educational institutions. Also excludes training done by a manufacturer in connection with the sale of a good (reportable under service number 11). 10. Industrial engineering services - Engineering services related to the design of movable products, including product design services. Excludes engineering and architectural services that relate to immovable products, such as those that relate to actual or proposed construction or mining services projects (report purchases under service number 24, and report sales on BEA Form BE-47 - see V. of these General Instructions). Excludes computer systems engineering (reportable under service number 2). Includes, however, services performed with the assistance of computers, such as computer-assisted design work. IV FORM BE-22 Instructions (9-16-97) GENERAL INSTRUCTIONS - Continued 11. Industrial-type maintenance, installation, alteration, and training services - Maintenance services primarily to machinery and equipment. May also include small maintenance work on buildings, structures, dams, highways, etc., but only to the extent that the work is not reported under service number 24. Would include such services as the periodic overhaul of turbines, the extinguishment of natural gas well fires, and refinery maintenance. Excludes computer maintenance (report under service number 2). Installation and training services include only installation, startup, and training services provided by a manufacturer in connection with the sale of a good. Do not include such services where the cost is included in the price of the goods and not separately billed, or is declared as a part of the price of the goods on the import or export declaration filed with the U.S. Customs Service; however, services provided at a price over and above that entered on the declaration should be included. These services would be reported elsewhere if not received in connection with the purchase of goods. For example, installation of machinery and equipment is normally considered a construction activity, and training personnel in the use of new machinery would ordinarily be reported as an educational or training service. 12. Performing arts, sports, and other live performances, presentations, and events - Fees received (net of allowances for foreign expenses) or paid (net of allowances for U.S. expenses) for performing arts, sports, etc. To be reported by (a) U.S. management companies, booking agents, promoters, and presenters who received funds from or paid funds to foreign persons, for performances and events, and (b) U.S. performers who received funds directly from a foreign person rather than through a U.S. management company or similar entity. (As used here, "performers" means entertainers, sports teams, orchestras, dance companies, lecturers, and similar persons or performing groups.) 13. Sale or purchase of rights to natural resources, and lease bonus payments - Receipts from the sale of, or payments for the acquisition of, rights to natural resources located in the United States and abroad, and lease bonus payments. Excludes sales or purchases of rights to surface land. 14. Use or lease of rights to natural resources, excluding lease bonus payments - Receipts or payments for the use of rights to natural resources located in the United States and abroad, including oil or mining production royalties. Excludes lease bonus payments (reportable under service number 13) and sales or purchases of rights to surface land. Note for services numbered 15-21: Where a set of related expenditures was made in several countries, but your recordkeeping does not permit a precise allocation of expenses among individual countries, estimates are acceptable. If no basis for such estimates exists, then it is permissible to record the expenditures against the country in which the activities were centered or headquartered. For example, a news correspondent may conduct news-gathering activities in several countries. Although it would be preferable to report news-gathering expenses in each of the several countries, all of the expenses may, if necessary, be recorded against the country where the foreign news bureau is headquartered, or where the correspondent had the largest outlays. 15. Disbursements to fund news-gathering costs of broadcasters - U.S. broadcasters' outlays to fund operations of their foreign news bureaus and for support of correspondents in foreign countries, and foreign broadcasters' outlays to fund operations of their U.S. news bureaus and for support of correspondents in the United States. (See note above.) 16. Disbursements to fund news-gathering costs of print media - Outlays by U.S. newspapers, news syndicates, and news magazines for the operation of their foreign news bureaus, and outlays by foreign newspapers, news syndicates, and news magazines for the operation of their U.S. news bureaus. (See note above service number 15.) 17. Disbursements to fund production costs of motion pictures - Foreign production costs of U.S. motion picture companies, and U.S. production costs of foreign motion picture companies. (See note above service number 15.) 18. Disbursements to fund production costs of broadcast program material other than news - Foreign production costs of U.S. companies engaged in the production of broadcast material other than news, and U.S. production costs of foreign companies engaged in the production of broadcast material other than news. (See note above service number 15.) 19. Disbursements to maintain government tourism and business promotion offices - Funding to maintain State tourism and business promotion offices located abroad, and funding to maintain foreign government sponsored tourism and business promotion offices located in the United States. (See note above service number 15.) 20. Disbursements for sales promotion and representation - Funding to maintain sales promotion and representative offices, and commissions or "finder's fees" to unaffiliated (independent) sales agents. Sales promotion offices typically have few assets other than office furniture; to the extent that their employees are compensated by commissions, the commissions arise only from sales or business that the employees generate for their U.S. or foreign parents; they do not produce revenue, other than funds from their parents to cover their expenses; and they are engaged only in sales promotion, representational, public-relations-type activities, or the gathering of market information, on behalf of their parents. If an office produces revenues for its own account from goods or services it provides to unaffiliated persons, then it is considered a U.S. or foreign affiliate and is subject to the reporting requirements for BEA's direct investment surveys. (See note above service number 15.) 21. Disbursements to participate in foreign trade shows (outlays only) - Foreign expenses incurred by U.S. persons participating in foreign trade shows. (See note above service number 15.) Note for services numbered 22 and 23: When you report either service number 22 or 23, also report the other service. If there are transactions in one of these services but not in the other, label a column in Schedule B with the number for the other service and enter "NA" in line 1 or 32. 22. Primary insurance premiums (purchases only) - Premiums (net of cancellations) paid to unaffiliated foreign insurance carriers. A U.S. Reporter should not report direct transactions with a foreign insurance company that is its foreign affiliate; such transactions are to be reported on direct investment survey BE-577. A U.S. Reporter should, however, report direct transactions with a foreign insurance company that is an affiliate of another U.S. company, as the U.S. Reporter and the foreign insurance company are unaffiliated. (See note above.) 23. Losses recovered on primary insurance (purchases only) - Losses recovered on insurance purchased from unaffiliated foreign insurance carriers. (See note above service number 22.) 24. Construction, engineering, architectural, and mining services (purchases only) - Includes purchases of the following types of services: services of general contractors in the fields of building and heavy construction; construction work by special trade contractors, such as the erection of structural steel for bridges and buildings and on-site electrical work; architectural, engineering, and land-surveying services; and mining services, including oil and gas field services. Includes only those engineering services purchased in conjunction with construction and mining services projects; industrial engineering services, such as product design services, should be reported under service number 10. Includes services purchased in connection with proposed projects (e.g.; feasibility studies) as well as projects that are actually being carried out. Note that the U.S. Reporter's sales of construction, engineering, architectural, and mining services are not reportable on this survey, but on separate BEA Form BE-47. 25. Financial services (purchases only) - Purchases from foreigners of financial services by U.S. firms, or domestic subsidiaries of U.S. firms, that are not financial services intermediaries or providers. Such purchases should be reported on Schedule C. See Schedule C for a more detailed description of the types of transactions that are covered. : ORM BE-22 Instructions (9-16-97) GENERAL INSTRUCTIONS - Continued VII. SERVICES COVERED - Continued 26. Merchanting services - (Report sales/receipts on Schedule A; purchases payments are not reportable): For this service, only the value of merchanting services for all foreign countries combined (i.e., the global total for all foreign merchanting services) must be reported; data by individual foreign country may be reported voluntarily. The value of merchanting services is equal to the difference between your cost for, and the resale price of, goods (such as crude oil, grain, and other commodities) that are both purchased and resold abroad; that is, the goods are neither imported to, nor exported from, the United States, and they do not undergo significant processing during the time between when they are purchased and resold. Without regard to whether you initially purchased the goods from an affiliated or unaffiliated foreign person, report data only for those transactions where you resold goods to an unaffiliated foreign person (i.e., a person who is neither your foreign affiliate nor a member of your foreign parent group). The data that are voluntarily reported by individual foreign country should be reported according to the individual foreign countries to which the goods were resold (and not the foreign countries from which the goods were purchased). 27. Operational leasing services - Rentals for computer and data processing equipment; transportation equipment (such as ships, aircraft, railway cars, containers, rigs, automobile fleets, etc.) without crew or operators (if crew or operators are also provided, the fee is considered to be for transportation services, which are not reportable on the BE-22 but may be reportable on other BEA forms - see V. of these General Instructions); and all other machinery and equipment. This category excludes rentals under leases that have been capitalized (capital leases), and rentals of any items other than machinery and equipment. (For example, it excludes rentals of office buildings and other real estate, film rentals, and employee leasing.) 28. Other private services - Report transactions in the following types of services: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services; i.e., this category excludes transactions in services not on this list. When reporting data under this service number, also identify on Schedule A or Schedule B, as appropriate, the specific type of service from the list above accounting for the largest share of the reported total. FORM EE-22 Instructions (9-16-97) VI OMB No. 0608-0060: Approval Expires xx/xx/xx form BE-22 - Supplement A |9-1«.97> U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS SUPPLEMENT A - OPTIONAL CHECKLIST OF SERVICES TRANSACTIONS BETWEEN COMPANY UNIT AND UNAFFILIATED FOREIGN PERSONS ANNUAL SURVEY OF SELECTED SERVICES TRANSACTIONS WITH UNAFFILIATED FOREIGN PERSONS This checklist is provided with the BE-22 survey for the internal use and convenience of Reporters only and is not to be returned to BEA. The purpose of this checklist is to facilitate the determination of whether or not the "parts" or units of a given U.S. company had any of the various services transactions covered by the survey, either sales (receipts) or purchases (payments}, with unaffiliated foreign persons during the respondent's fiscal year. (The term "persons" includes business enterprises, governments, individuals, and other organizations and entities.) Far companies with diverse operations, this checklist should be directed to persons in the various parts of the company who are knowledgeable about the parts' sales ana purchasing activities and who can say, in their judgement, with a reasonable degree of certainty without conducting a records search, whether or not a part engaged in covered transactions. Because companies organize their operations and accounting systems in different ways, these parts of a company might variously be referred to as profit centers, business units, divisions, subsidiaries, plant sites, establishments, operating centers, etc., or some combination thereof. All parts of the domestic company must be covered, although all need not be given the checklist, since some might already be known by headquarters to have, or not have, reportable transactions. Definitions of the various types of services are on the reverse side of this checklist, Note that in several oases - advertising (service number 1); telecommunications (service number 4); performing arts, etc. (service number 12); miscellaneous disbursements (services numbered 15-21); and rights to natural resources (services numbered 13 and 14) - measures otherthan, or in addition to, sales of services and purchases of services should be used in completing the checklist. The guidelines listed below apply to this checklist. 1. Both sales and purchases of services should relate to the company's fiscal year. 2. Transactions by the U.S. operations ONLY are covered. Transactions by or with foreign branches or subsidiaries (foreign affiliates) of the U«S< company are NOT covered, NOR are transactions by or with a foreign parent company. 3. In reporting purchases, include items meeting the above criteria, without regard to whether they were charged as an expense on the income statement, capitalized, or charged to inventories. 4. "Foreign" means that which is situated outside the United States and its territories and possessions. Therefore, transactions with companies located in the United States that have foreign parents are NOT includable; and transactions with foreign affiliates of other U.S. companies ARE includable. 5. Foreign persons are considered to be "unaffiliated" if (a) the U.S. company's ownership percentage (direct and indirect) in the foreign person is less than 10 percent or (b) the foreign person's ownership percentage (direct and indirect} in the U.S. company is less than 10 percent. (Questions as to whether a particular foreign company is affiliated or unaffiliated should be referred to the person named in the box below.) 6. Includable transactions are determined by the above criteria, without regard to WHERE the services were performed* For example, services performed abroad by a respondent are covered if the respondent's U.S. operations performed the services instead of a foreign affiliate. Similarly, purchases of services from unaffiliated foreign persons are includable without regard to WHERE such services were performed. Person in company headquarters to contact concerning questions about this survey. Name TELEPHONE Area code Number Extension I OPTIONAL SALES AND PURCHASES CHECKLIST For each service listed, for both sales and purchases, mark (X) "Yes" or "No° as to whether, in your judgement, your part of the company had any transactions with unaffiliated foreign persons during the fiscal year. If the answer is "Yes," enter the estimated amount of the transactions in column (c) (SALES) or column (f? (PURCHASES). Type of service SALES Had any transactions? Yes (a) No (b) Estimated amount Report in dollars [£l PURCHASES Had any transactions? Yes JdL No (e) Estimated amount Report in dollars W Advertising services Computer and data processing services 3. Data base and other information services 4. Telecommunications services 5. Research, development, and testing services 6. Management, consulting, and public relations services 7. Accounting, auditing, and bookkeeping services 8. Legal services 9. Educational and training services 10. 11. Industrial engineering services Industrial-type maintenance, installation, alteration, and training services Performing arts, sports, and other live performances, presentations and events t. Sale or purchase of rights to natural resources, and tease bonus payments Use or tease of rights to natural resources, excluding lease bonus payments Disbursements to fund news-gathering costs of broadcasters Disbursements to fund news-gathering costs of print media 17. 18. 19. 20. Disbursements to fund production costs of motion pictures Disbursements to fund production costs of broadcast program material other than news Disbursements to maintain government tourism and business promotion offices Disbursements to maintain sates promotion and representation 21. Disbursements to participate in foreign trade shows 22. Premiums paid on primary insurance Not reportable Not reportable 23. 24. Losses recovered on primary insurance Not reportable Construction, engineering, architectural, and mining services Not reportable 25. Financial services Not reportable 26. Merchantirtg services Not reportable 27. Operational leasing services 28. Other pnvate Person completing this form for part or unit of company, complete box on reverse side. DEFINITIONS OF TYPES OF SERVICES 1 . Advertising services - Preparation of advertising and placement of such advertising in media, including charges for media space and time. An advertising agency selling services should use gross billings to unaffiliated foreigners in completing the checklist. 2. Computer and data processing services - Data entry, processing (both batch and remote), and tabulation; computer systems analysis, design, and engineering; custom software and programming services; integrated hardware software systems; and other computer services (e.g., timesharing, maintenance, and repair). Excludes general use computer software royalties and license fees; for 1997 and the following years these transactions are to be reported on the Form BE-93, Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons. 3. Data base and other information services - Business and economic data base services, including business news, stock quotation, and financial information services; medical, legal, technical, demographic, bibliographic, and similar data base services; general news services, such as those provided by a news syndicate; and other information services, including reservation systems and credit reporting and authorization systems. 4. Telecommunications services a. Message telephone services (communications carriers only) - Receipts from foreign persons (communications companies and postal, telephone, and telegraph agencies (PTT's)) for own share of revenues for transmitting messages originating abroad to U.S. destinations, and payouts to foreign persons (communications companies and PTT's) for their share of revenues for transmitting messages originating in the United States to foreign destinations. b. Private leased channel services - Receipts from foreign persons for circuits and channels terminating in the United States and for circuits and channels between foreign points, and payouts to foreign persons for leased channels and circuits terminating in foreign countries. c. Telex, telegram, and other jointly provided (basic) services - Includes telex and telegram services, packet switched services when not offered in connection with enhanced services, and other regulated services of the type reportable to the FCC on Report 4361. d. Value-added (enhanced) services - Telecommunications services that add value or function above and beyond the telecommunications transport services that deliver the value-added services to end users. They can include (i> electronic mail, voice mail, code and protocol processing, and management of data networks; (ii) facsimile services and videoconferencing; and (iii) other value-added (enhanced) services. e. Support services - Services related to the maintenance and repair of telecommunications equipment; ground station services; capacity leasing for transiting; ana launching of communications satellites. 5. Research, development, and testing services- Commercial and noncommercial research, product development services, and testing services. Includes fees for the conduct of experiments or performance of research and development activities aboard spacecraft. Excludes medical and dental laboratory services. 6. Management, consulting, and public relations services - Management services, except management of health care facilities; consulting services, except consulting engineering services related to actual or proposed construction or mining services projects (see 24) and computer consulting (see 2); and public relations services, except those that are an integral part of an advertising campaign (see 1). 7. Accounting, auditing, and bookkeeping services - Excludes data processing and tabulating services (see 2). 8. Legal services - Legal advice or other legal services, including insurance claims adjustment services. 9. Educational and training services - Educational or training services provided or acquired on a contract or fee basis. Excludes tuition and fees charged to individual students, as well as training done by a manufacturer in connection with the sale of a good (see 11). 10. Industrial engineering services - Engineering services related to the design of movable products, including product design services. Excludes services that relate to immovable products, such as those that relate to actual or proposed construction or mining services projects (see 24). 1 1 . Industrial-type maintenance, installation, alteration, and training services- Maintenance services primarily to machinery and equipment. May also include small maintenance work on buildings, structures, dams, highways, etc , but only to the extent that the work is not reportable under service number 24. Would include such services as the periodic overhaul of turbines, the extinguishment of natural gas well fires, and refinery maintenance. Excludes computer maintenance (report under service number 2). Installation and training services include only installation, startup, and training services provided by a manufacturer in connection with the sale of a good. Do not include such services where the cost is included in the price of the goods and not separately billed, or is declared as a part of the price of the goods on the import or export declaration filed with the U.S. Customs Service; however, services Crovided at a price over and above that entered on the declaration should e included. These services would be reported elsewhere if not received in connection with the purchase of goods. For example, installation of machinery and equipment is normally considered a construction activity, and training personnel in the use of new machinery would ordinarily be reported as an educational or training service. 12. Performing arts, sports, and other live performances, presentations, and events - Fees received (net of allowances for foreign expenses) or paid (net of allowances for U.S. expenses) for performing arts, sports, etc. To be reported by (a) U.S. management companies, booking agents, promoters, and presenters who received funds from or paid funds to foreign persons, for performances and events, and (b) U.S. performers who received funds directly from a foreign person rather than through a U.S. management company or similar entity. (As used here, "performers" means entertainers, sports teams, orchestras, dance companies, lecturers, and similar persons or performing groups.) 13. Sale or purchase of rights to natural resources, and lease bonus payments - Receipts from the sale of, or payments for the acquisition of rights to natural resources located in the United States and abroad, and lease bonus payments. Excludes sales of purchases of rights to surface land. 14. Use or lease of rights to natural resources, excluding lease bonus payments - Receipts or payments for the use of rights to natural resources located in the United States and abroad, including oil or mining production royalties. Excludes lease bonus payments (reportable under 13) and sales or purchases of rights to surface land. 15-21. Miscellaneous disbursements - Disbursements or outlays to fund news-gathering costs of broadcasters and the print media; production costs of motion picture companies and companies engagedin the production of broadcast program material other than news; and costs of maintaining tourism, business promotion, and representative offices, and for participating in foreign trade shows. 22. Primary insurance premiums (purchases only) - Applies only to insurance purchased from foreign insurance carriers. Equals premiums paid minus cancellations. Excludes reinsurance transactions. 23. Losses recovered on primary insurance (purchases only) - Applies only to claims recovered on purchases of primary insurance. 24. Construction, engineering, architectural, and mining services - Covers only purchases of the following types of services: Services of general contractors in the fields of building and heavy construction; construction work by special trade contractors, such as the erection of structural steel for bridges and buildings and on-site electrical work; architectural, engineering, and land-surveying services; and mining services, including oil and gas field services. Includes only those engineering services purchased in conjunction with construction and mining services projects; industrial engineering services, such as product design services, are included in 10. Includes services purchased in connection with proposed projects (e.g., feasibility studies) as well as projects that are actually being carried out. 25. Financial services - Payments to foreigners of credit-related fees; fees on securities transactions; and fees for other financial services by U.S. firms, or domestic subsidiaries of U.S. firms, that are not financial services intermediaries or providers. For transactions in "other" financial services, specify here or on an attachment the type of service that accounts for the largest share of the data reported. 26. Merchanting services - Sales of merchanting services are equal to the difference between your cost and the resale price of goods (such as crude oil, grain, and other commodities) that are both purchased and resold abroad; that is, the goods are neither imported to, nor exported from, the United States, and they do not undergo significant processing during the time between when they are purchased and resold. Without regard to whether the goods were initially purchased from an affiliated or unaffiliated foreign person, includes only transactions where the goods were resold to an unaffiliated foreign person. 27. Operational leasing services - Includes rentals for computer and data processing equipment; transportation equipment (such as ships, aircraft, railway cars, containers, rigs, automobile fleets, etc.) without crew or operators; and all other machinery and equipment. Excludes rentals under leases that have been capitalized (capital leases), rentals of transportation equipment with crew, and rentals of any items other than machinery and equipment. (For example, excludes rentals of office buildings and other real estate, film rentals, and employee leasing.) 28. Other private services - Includes transactions in only the following types of services: Language translation services, security services, collection services, actuarial services, salvage services, satellite photography services, and oil spill and toxic waste cleanup services; i.e., this category excludes transactions in services not on this list. . . . >C OO -„„„w For llm injnveiiieiiw of Ilia vnnswt tri Ilia vumpany htaiULfunflttFii who is preparing Hit} Luinnjnunteu ucu icfjuit, please complete the following. Pan or unit of company this Supplement A is for: Name of person in the part or unit of the company to contact concerning this Supplement A TELEPHONE Area code Number Extension Page 2 FORM BE-22 (9-16-97) Specialized Surveys of Services i The Bureau of Economic Analysis (BEA) conducts five specialized surveys of services, each of which covers a particular service or a group of related services: The An- nual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffili- ated Foreign Persons; the Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies With Foreign Persons; the Benchmark and Annual Surveys of Financial Services Transactions Be- tween U.S. Services Providers and Unaffiliated Foreign Persons; and the Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons. Survey of construction and related services The Annual Survey of Construction, Engineering, Archi- tectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons (BE-47) covers the sales of these services. 1 The services may be performed in the United States or abroad. 2 The survey collects the fol- lowing information for each project: A description of the project; the gross value of the new contracts received; the gross operating revenues or sales; U.S. merchandise exports included in the gross operating revenues; and re- lated foreign expenses or disbursements. The data for the gross operating revenues, U.S. merchandise exports, and foreign expenses and disbursements are used to derive the estimates of receipts that are used in the balance of payments accounts. 3 The transactions in these services may be financed by private U.S. sources or foreign sources, by U.S. Gov- ernment grants or loans, by foreign governments, or by international organizations. All U.S. persons who have new contracts with a gross value of $1 million or more to provide the covered serv- 1 . The purchases of these services are covered by the surveys of selected services. 2. An example of a service performed in the United States is a construction project for an international organization or foreign embassy in the United States. For balance-of-payments purposes, these organizations and embassies are "foreigners," even if they are permanently in the United States. 3. To avoid duplication and overstatement in the balance of payments ac- counts, receipts for these services are recorded on a net basis as gross operating revenues less the sum of the associated U.S. merchandise exports and foreign expenses. ices or who have received gross operating revenues of $1 million or more for the covered services during the fiscal year are required to report. Subcontractors who provide services for another U.S. firm that is acting as a prime contractor are usually not required to report; instead, the prime contractor reports the entire project. The transac- tions are reported by type of service cross-classified by country. The 1996 survey was sent to 459 U.S. persons. 4 When the preliminary 1996 estimates were prepared, 285 had submitted usable reports, 1 54 had claimed exemption, 22 were determined to no longer exist, and the remainder were delinquent or submitted unusable reports. In BEA's first revision of the estimates, reported trans- actions usually account for at least 90 percent of receipts, and the estimate for missing reports is the remainder. Services covered Construction services include services for constructing buildings; for heavy construction projects, such as high- ways, bridges and tunnels, docks and piers, pipelines, and communication and power lines; for specialized con- struction, such as erecting the structural steel for bridges and buildings and on-site plumbing, painting, electrical work, masonry, and carpentry. Engineering services consist of the engineering serv- ices that relate to construction or mining projects. For engineering services that relate to the design of movable products and computer systems engineering, see Indus- trial engineering and Computer and data processing services in the surveys of selected services. Architectural services include design services, mainly for businesses. Landscape architecture and graphic design services are excluded. Oil and gas field services include drilling wells for oil and gas fields, erecting and dismantling oil and gas field drilling rigs and offshore drilling platforms, other oil and gas field services, and geophysical, geological, and other exploration services. 4. The surveys are sent to U.S. persons who have previously filed a re- port and to U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The mailing list is derived from information from Government sources, industry associations, business directories, and various periodicals. 61 62 U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Survey of reinsurance and other insurance transactions The Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies With Foreign Persons (BE-48) covers reinsurance and primary insur- ance transactions by U.S. insurance companies with both affiliated and unaffiliated foreign persons. For primary insurance, the survey covers only U.S. sales. 5 All U.S. persons whose total transactions in a covered service are SI million or more during the fiscal year are required to report. The transactions must be reported by type and must be cross-classified by country. Transactions between a U.S. insurance company and a foreign person may also be arranged by, billed through, or otherwise facilitated by a broker, an agent, or an inter- mediary. In order to avoid duplication, such transactions are reported by the insurance company that assumes the risk or that recovers or pays the loss. Brokers, agents, and intermediaries generally do not report. The 1996 survey was sent to 590 U.S. insurance com- panies. 6 When the preliminary 1996 estimates were prepared, 401 had submitted usable reports, 156 had claimed exemption, 19 were determined to no longer exist, and the remainder were delinquent or submitted unusable reports. In the first revision of the estimates, reported trans- actions usually account for about 98 percent of both premiums and losses. The estimate for missing reports is the remainder. Transactions covered This survey covers the following transactions: Pre- miums earned on reinsurance assumed from insurance companies resident abroad; losses incurred on reinsur- ance assumed from insurance companies resident abroad; premiums incurred on reinsurance ceded to insurance companies resident abroad; losses recovered on rein- surance ceded to insurance companies resident abroad; premiums earned on primary insurance sold to foreign persons; and losses incurred on primary insurance sold to foreign persons. Surveys of financial services The Benchmark Survey (BE-80) and the Annual Sur- vey (BE-82) of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated For- eign Persons cover U.S. financial services providers' sales (receipts) of financial services to, and purchases (pay- ments) of financial services from, unaffiliated foreign persons. 7 The annual survey covers all of the services included in the benchmark survey. Data on the different categories of financial services transactions covered by these surveys are used to prepare BEA's estimates of to- tal financial services, but estimates are not published for each category. 8 The first benchmark survey covered transactions in these services for 1994. The next benchmark survey will cover 1999 transactions. The annual surveys have been conducted for nonbenchmark years since 1995. All U.S. financial services providers whose total sales or purchases in all the financial services combined exceed $1 million during the benchmark fiscal year are required to report data by type of service in the benchmark survey. All U.S. financial services providers whose total sales or purchases in all the financial services combined exceed $5 million are required to report data by type of service in the annual survey. Providers who meet these criteria must supply data on the amount of their total sales or total purchases of each type of financial service in which their transactions exceeded the threshold amount. The data must also be disaggregated by country. Providers whose total transactions in each type of fi- nancial service are at or below the threshold are requested to voluntarily provide an estimate, not disaggregated by country, for each type of service. If they choose not to provide estimates by type of service, they must provide estimates of their total sales and total purchases for all covered services combined. The 1994 benchmark survey was sent to 7,233 U.S. persons. 9 When the first revision of the 1994 estimates 5. Purchases of primary insurance are covered in the surveys of selected services, for unaffiliated transactions, and in the surveys of direct investment, for affiliated transactions. 6. The surveys are sent to U.S. persons who have previously filed a re- port and to U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The mailing list is derived from information from Government sources, industry associations, business directories, and various periodicals. 7. Purchases of financial services by U.S. persons who are not financial services providers are covered in the surveys of selected services, for transac- tions with unaffiliated foreigners, and in the surveys of direct investment, for transactions with affiliated foreigners. 8. In addition to the survey-based data, BEA's estimates of financial serv- ices include implicit fees paid and received on trading in outstanding bonds. Because these fees are not identifiable, they are not reported on survey ques- tionnaires. Instead, bond fees are estimated using a bid-ask spread that is based on capital transactions data from the U.S. Department of the Treasury and information from market participants. 9. The surveys are sent to U.S. persons who have previously filed a re- port and to U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The mailing list is derived from information from Government sources, industry associations, business directories, and various periodicals. A GUIDE TO THE SURVEYS 63 was prepared, 514 had submitted usable reports, 6,378 had claimed exemption, 728 were determined to no longer exist, and the remainder were delinquent or submitted unusable reports. The 1994 data were used to revise the estimates for 1992 and 1993. The 1996 annual survey was sent to 3,881 U.S. persons. When the preliminary 1996 estimates were prepared, 388 had submitted usable reports, 2,069 had claimed exemp- tion, 1 1 1 were determined to no longer exist, and the remainder were delinquent or submitted unusable reports. A large number of U.S. persons that received report forms proved to be exempt because these mailings repre- sent BEA's initial attempts to identify the universe of U.S. persons with transactions in the covered services; as the universe becomes more fully identified, it will become possible to reduce the number of persons to whom the surveys are sent. Because 1 994 was the first year for which a survey of financial services was conducted, there were no previ- ously reported transactions on which to base an estimate for missing reports. The 1994 estimates of the different categories of financial services covered by the surveys are based upon reported transactions only. In future bench- mark surveys, an estimate for missing reports will be used. Services covered Brokerage services except foreign-exchange broker- age services consist of the execution of orders to purchase or to sell securities, options, futures, and other financial instruments excluding foreign currencies. See Under- writing services for transactions of a person who acts as a dealer and who risks losses. Private placement services consist of arranging the sale of securities for another party through means other than on an exchange. These services exclude buying and selling securities for the account of the person doing the placement. Underwriting services consist of buying and reselling all, or a substantial portion, of a new issue of securities. If an intermediary who does not own the securities executes the sale, the service is included in Brokerage services. Financial management services consist of the man- agement of financial portfolios through commodity pools, mutual funds, hedge funds, and trusts when the person who provides the service has the authority to direct the use or the investment of the assets. See Financial advisory and custody services for services where this authority is not present. Credit-related services (except credit card services) consist of the following services: Renegotiating debt terms; establishing, originating, maintaining, or arrang- ing standby letters of credit and commercial or similar letters of credit, letters of indemnity, lines of credit, par- ticipation in acceptances, mortgages, and credit facilities; factoring services; issuing financial guarantees and loan commitments (to make or purchase loans); and arranging or entering into financial lease contracts. Credit card services consist of the following serv- ices: Processing and servicing credit card transactions; reimbursements for telecommunications from or to for- eign acquirers and issuers; protection from losses from a default in the processing network; credit authorization; listing lost or stolen credit card numbers in warning bul- letins or on electronic files; resignation assessments or membership fees; and multicurrency conversions. Financial advisory and custody services consist of the following services: Advisory services on mergers and acquisitions when the provider is not at risk of incurring a loss; investment newsletters or investment advice; advi- sory services on commodities trading and proxy voting; custody services (including payments and settlements services, such as mortgage servicing); and other advi- sory and custody services. The provider of these services has little or no discretion to act independently from the instructions provided by the investor or another principal. Securities-lending services consist of the following services: Lending or borrowing securities; arranging loan terms and conditions; monitoring the value of collateral; providing guarantees against default; and providing other securities-lending services. Foreign-exchange brokerage services consist of the execution of orders to exchange foreign currencies except by a person who is acting as a dealer or other principal and who is at risk of incurring losses. Excludes multicurrency conversion by credit card companies, which is included in Credit card services. Other financial services consist of the following serv- ices: Account maintenance and service; asset pricing; securities rating; electronic funds transfer; mutual fund- related services, such as liquidating shares (exit fees), selling shares to investors (load charges), and market- ing and advertising ("12b-l" fees); security redemptions or transfers; network services for automated teller ma- chines; security clearing and settling; and miscellaneous brokerage services, such as arranging joint ventures. 10 10. Real estate services, business services, and commodity or merchandise brokerage services are excluded, because they are not considered financial services. 64 U.S. INTERNATIONAL TRANSACTIONS IN PRIVATE SERVICES Survey of royalties, license fees, and other transactions for intangible rights The Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons (BE-93) covers U.S. payments to, and receipts from, unaffiliated foreign persons for the sale or the use of intangible assets and proprietary rights. The survey covers the transactions of all U.S. persons who have entered into agreements with unaffiliated foreign persons to buy, sell, or use intangible assets or proprietary rights. All U.S. persons who have either total covered receipts or total covered payments of $500,000 during the fiscal year are required to report. The 1996 survey was sent to 1,275 U.S. persons." When the preliminary 1996 estimates were prepared, 532 had submitted usable reports, 432 had claimed exemption, 35 were determined to no longer exist, and the remain- der were delinquent or submitted unusable reports. In the first revision of the estimates, reported transactions usually account for at least 95 percent of both receipts and payments. The estimate for missing reports is the remainder. Transactions covered Industrial processes and products covers the license fees, royalties, and other fees that are paid and received for the right to use patented industrial processes and prod- ucts, trade secrets, and other proprietary rights and other intangible assets that are used in the production of goods. These transactions include "maintenance" fees paid to foreign governments for the continuation of patent rights. Books, records, and audio tapes covers the royalties and other fees that are received or paid for the rights to perform, broadcast, reproduce, sell, or otherwise use 1 1. The surveys are sent to U.S. persons who have previously filed a re- port and to U.S. persons who have not previously filed but who are believed likely to have transactions in the covered services. The mailing list is derived from information from Government sources, industry associations, business directories, and various periodicals. copyrighted material or other intellectual property, such as books, records, and audio tapes. Trademarks covers the receipts and payments for the rights to sell products under a particular trademark, brand name, or signature. See also Business-format franchising fees. Performances and events prerecorded on motion picture film and TV tape covers the royalties, rentals, li- cense fees, and other receipts and payments for the rights to display, reproduce, or distribute material recorded on motion picture film or television tape by theaters and by network and cable television broadcasters and for the nontheatrical uses of these tapes and films. 12 Broadcast and recording of live performances and events covers receipts and payments for the rights to record and to broadcast artistic performances, sports events, and other performances and events. General-use computer software covers receipts and payments for the rights to distribute general-use software and the rights to reproduce or use general-use computer software that was electronically transmitted or made from a master copy. This category includes negotiated licens- ing fees for reproducing copies of general-use software for local area network computer systems, and it excludes the value of prepackaged general-use software that was physically shipped to or from the United States and included in merchandise trade statistics. Business-format franchising covers the fees that are received and paid for the right to an ongoing business relationship that includes an entire business format. In addition to the right to market a product or service or to use a trademark, the business format may include a marketing strategy and plan, operating manuals and standards, quality control procedures, and continuing communications. Other intangibles covers receipts and payments for any intangible rights that are not included in the other categories. This category includes the rights of commu- nications carriers to secure capacity by indefeasible right of users. 12. In the international transactions accounts, these transactions are included in "other private services" rather than in "royalties and license fees." APPENDIX The Annual Survey of Construction, Engineering, Architectural, and Mining Services Provided by U.S. Firms to Unaffiliated Foreign Persons (BE^7) The Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies With Foreign Persons (BE^8) The Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons (BE-80) The Annual Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons (BE— 82) The Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons (BE— 93) 65 BE-47 Instructions REV 8/96 U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS INSTRUCTIONS Public reporting burden for this BE-47 report is estimated to average 5 hours per response. This burden includes time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0015, Washington, DC 20503. Purpose - Reports on this form are required in order to obtain reliable and up-to-date information on U.S. sales to unaffiliated foreign persons of construction, engineering, architectural, and mining services. The information will be used to formulate U.S. policy, and to analyze the impact of that policy and the policies of foreign countries, on international trade in such services. The data will also be used in compiling the U.S. balance of payments accounts. Authority - The filing of reports for this survey is authorized by Section 3103 of the International Investment and Trade in Services Survey Act, Pub. Law No. 472, 94th Congress, 90 Stat. 2059, 22 U.S.C. 3101 through 3108, as amended by Pub. Law 98-573 and P.L. 101-533 (hereinafter "the Act"). The survey has been approved by the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). Regulations for this survey may be found in 15 CFR, Part 801. Penalties - Filing of reports on this form is mandatory. Whoever fails to report may be subject to a civil penalty of not less than $2,500, and not more than S25,000, 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 violation, upon conviction, may be punished by a like fine, imprisonment, or both (See 22 U.S.C. 3105.). Notwithstanding the above, a U.S. person is not subject to any penalty for failure to report if a valid Office of Management and Budget control number is not displayed on the form; such a number (0608-0015) is displayed on this form. Confidentiality - The Act provides that your report to this Bureau is CONFIDENTIAL. It also provides that your report may be used only for analytical or statistical purposes and CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. I. WHO IS TO REPORT AND GENERAL COVERAGE A.1. Form BE-47 must be filed by each U.S. person (other than U.S. Government agencies) providing the following types of services on a contract, fee, or similar basis to unaffiliated foreign persons: the services of general contractors in the fields of building construction and heavy construction; construction work by special trade contractors, such as the erection of structural steel for bridges and buildings and on-site electrical work; services of a professional nature in the fields of engineering, architecture, and land surveying; and mining services in the development and operation of mineral properties, including oil and gas field services. 2. In terms of the BEA service codes, which are to be used to categorize the data in this report, and the Standard Industrial Classification (SIC) system, this group of services includes: Service Code No. Title 1987 SIC- equivalent code 150 Building construction - General contractors and operative builders 15 Construction other than building construction - General contractors 16 Construction - Special trade contractors 17 108 Metal mining services 103 124 Coal mining services 124 138 Oil and gas field services 138 148 Nonmetallic minerals services, except fuels 148 8711 Engineering services Part of 8711 8712 Architectural services 8712 8713 Surveying services 8713 !. Exemption - Any U.S. person otherwise required to report is exempted from reporting if, for all countries and all projects combined, the gross value of new contracts received and gross operating revenues (columns (4) and (5) are both less than $1,000,000. If either the gross value of new contracts received or gross operating revenues is $1,000,000 or more, then a report is required. :. A project is considered foreign if it is located abroad, is undertaken for an international organization, whether located in the United States or abroad, or is undertaken for a foreign embassy or consulate in the United States. (See special treatment of projects for international organizations under What to Report, below.) i. In the case of work carried out on foreign projects through foreign project (job site) offices and "temporary" foreign branches, the activities of such entities should be considered part of the U.S. business enterprise filing this report and the data reported on this form should cover the consolidated activities. Where work on foreign projects is carried out through permanently established branches or subsidiaries operating abroad (i.e., through foreign affiliates), the reporting company, as parent, should report its intercompany transactions with these affiliates on a separate Form BE-577. The parent must also file a separate Form BE-1 1 to report financial and operating data for these affiliates. The BE-577 and BE-1 1 are mandatory reports; copies may be requested from this Bureau at (202) 606-5566. Data for, or on transactions with, foreign affiliates should not be included on this Form BE-47. Although the definitions of direct investment and foreign affiliate should be sufficient to determine whether a given activity is or is not a foreign affiliate, in a number of cases the determination may be difficult. Several factors to be considered are given below. If you still cannot determine if the activity or operation is an affiliate, call (202) 606-5588 for additional guidance. Also, if you think that an activity or operation currently reported as an affiliate is incorrect, please call and a determination of future reporting status will be made. If a U.S. person's foreign activity or operation is incorporated abroad, it is a foreign affiliate. If a U.S. person's foreign activity or operation is NOT incorporated abroad, its status is based on the weight of the evidence when the factors listed below are considered. An unincorporated foreign activity or operation generally WOULD be considered a foreign affiliate if it: (i) pays foreign income taxes; (ii) has a substantial physical presence abroad (e.g., plant and equipment or employees); (Mi) maintains separate financial records that would permit the preparation of financial statements, including an income statement and balance sheet (not just a record of disbursements and receipts); (iv) takes title to the goods it sells and receives revenues therefrom; or (v) receives funds for its own account from customers for services it performs. An unincorporated foreign activity or operation generally WOULD NOT be considered a foreign affiliate if it: (i) conducts business abroad only for the U.S. person's account and not for its own account (e.g., sales promotion or public relations type of activities); (ii) has no separate financial statements; (iii) receives funds to cover its expenses only from the U.S. person; (iv) pays no foreign income taxes; and (v) has limited physical assets, or employees, permanently located abroad. Do not complete this form if the sole relationship you have with a foreign project is services performed in connection with the manufacture of equipment and machinery for export abroad, where the specific cost of these services is part of the price of the goods declared on the Shippers Export Declaration filed with the U.S. Customs Service. However, a contract to provide technical services at a price over and above that entered on the export declaration should be included on this form. Joint ventures - Use a separate line to report each joint venture contract and identify as such by marking one of columns (8)-(10). To avoid duplication or omission, each participant should, if possible, report data in columns (4) through (7) only for its own share in a joint venture operation, and should mark column (8). If this is not possible, each co-participant not reporting the data should identify the project by foreign country and description (columns (1) and (3)), mark column (10), and then give, on a separate sheet, referenced to the country and project, the name of the co-participant who is filing the consolidated joint venture report. The co-participant filing the consolidated report should give the consolidated data in columns (4) through (7), and should mark column (9). Page 1 II. WHAT TO REPORT A. Report information on services carried out or performed for unaffiliated foreign persons, whether the service you provide is carried out or performed in the United States or abroad. B. Report retainer-fee type contracts of a continuing nature where no definite contract termination is stipulated, if the contract is with an unaffiliated foreign person. C. Report information on all projects for unaffiliated foreign persons, whether financed by private U.S. or foreign sources, U.S. Government grants or loans (e.g., from the Agency for International Development or Export-Import Bank), foreign governments, or by international organizations. D. Report information on foreign projects that are for U.S. Government nonmilitary agencies, or that are part of an aid or technical cooperation program of the U.S. Government with foreign persons. An example of the former is construction of a U.S. embassy building in a foreign country; an example of the latter is services provided in the United States or abroad to the Agency for International Development in connection with foreign projects that it is financing. E. Report projects for international organizations. According to balance of payments conventions, all international organizations are considered unaffiliated foreign persons and, therefore, all projects for them are considered foreign, even if the organization is domiciled, or the project is located, in the United States. Therefore, a project in the United States undertaken for an international organization should be reported as a foreign project. For example, the construction of an office building in Washington, DC for the International Monetary Fund should be reported as a foreign project undertaken for an unaffiliated foreign person and "international organization - United States" should be entered in column (1). F. Report projects undertaken in the United States for a foreign embassy or consulate in the United States. G. Report contracts entered into with a U.S. person if the project is located, or is to be located, in a foreign country. This is intended to include contracts entered into with a U.S. parent company in connection with . that company's plants and installations abroad. III. WHAT NOT TO REPORT A. Do not report services provided to the U.S. Department of Defense or any of its agencies, such as the Corps of Engineers. For example, do not report receipts for services on projects managed or supervised by the Corps of Engineers and on projects arranged through the Foreign Military Sales program of the Department of Defense. B. Do not report services performed abroad for your own account, rather than under contract to others, e.g., oil companies performing petroleum and gas exploration services for their own account should not report those activities on this form. C. Do not report amounts received from unaffiliated foreign persons pursuant to licensing-fee and royalty arrangements for the use of patents, industrial processes, etc. Report these on Form BE-93. D. Do not report receipts for services provided to U.S. offices or facilities of foreign airliners and vessel operators. These are reported by those persons in other BEA surveys. E. Do not report industrial engineering services that are associated with the design of movable products; such services should be reported on Form BE-20 or BE-22. Report on this form only those engineering services that are associated with a foreign construction or mining services project. F. Do not report a subcontract entered into directly with another U.S. contracting or engineering firm which is acting as prime contractor on a foreign project and filing a separate return on this form. (In this case, the payments received by you from the U.S. prime contractor would duplicate the payments received and reported by the prime contractor as reimbursement for his U.S. subcontract costs.) IV. DEFINITIONS A. U.S. Reporter is the U.S. person filing a report in this survey. If the U.S. person is an incorporated business enterprise, the U.S. Reporter is the fully consolidated U.S. domestic enterprise consisting of the U.S. corporation which is not owned to the extent of more than 50 percent of its voting stock by another U.S. corporation, and all other U.S. corporations (including a Foreign Sales Corporation located in the United States) whose voting securities are more than 50-percent owned by the U.S. Corporation above it. B. United States, when used in a geographic sense, means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and all the territories and possessions of the United States. C. 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. D. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. E. Business enterprise means any organization, association, branch or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph D above.) F. Direct Investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting stock of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise. G. Parent means a person of one country who, directly or indirectly, owns or controls 10 per centum or more of the voting stock of an incorporated business enterprise or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise. 2. Foreign parent means the foreign person, or the first person outside the United States in a foreign chain of ownership, which has direct investment in a U.S. business enterprise, including a branch. H. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. I. 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 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. J. Affiliated foreign person means, with respect to a given U.S. person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. K. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph J above. L. Fiscal year is the financial reporting year that has an ending date in a given calendar year. For example, fiscal year 19X1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in a given calendar year, its fiscal year is deemed to be the same as the calendar year. M. Country means, for purposes of this survey, the country of location of the project carried out or performed for foreign persons. BE-47 Instructions (REV. 8/96) Page 2 V. REPORTING PROCEDURES A. Reporting period - Form BE-47 is an annual report; one report is to be filed for each fiscal year of the U.S. Reporter. The Reporter's fiscal year is its financial reporting year that has an ending date in a given calendar year. iSee Definitions, IV. L.) B. Due date - Reports are due March 31 of the year after the U.S. Reporter's fiscal year covered by the report. C. Extension - Requests for an extension of the reporting deadline will not normally be granted. However, in a hardship case, a written request for an extension will be considered provided it is received at least 15 days before the due date of the report and enumerates substantive reasons necessitating the extension. BEA will provide a written response to such a request. D. For assistance or additional copies of the forms - Phone (202) 606-5588 between 8:00 a.m. and 4:00 p.m. eastern time. E. Response required - If you received this form directly from BEA, a response is required, by either reporting data or completing the Exemption Claim, and by completing the "Person to Consult" and "Certification" sections of the form and returning the form to BEA. F. Rounding - Currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). For example, if the amount is $1,334,515.00, report it as $1,335. G. Estimates - If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. H. Original and file - A single original copy of the form must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. In addition, each U.S. Reporter must retain a copy of its report for three years to facilitate resolution of problems. VI. SPECIFIC ITEM OR COLUMN INSTRUCTIONS Item 2 - State the major activity and product or service in which your firm is involved. For example, "Construction - General contractor." Item 3 - Enter ending date for your fiscal year. Item 4, Industry classification of the U.S. Reporter - Enter the 3-digit ISI code, from the Guide to Industry and Foreign Trade Classifications for International Surveys which best covers the activity of your company. For an incorporated entity, this should be the industry code for the fully consolidated U.S. domestic enterprise (see Definitions, IV.A.), and not just the part or subsidiary supplying the service. Column (1), Country - Enter the country of location of foreign projects. If a project is being performed in the United States, enter the location of the purchaser of services (i.e., either an individual foreign country, or "international organization - United States" - see II.E. of these instructions). Use a separate line for each contract (project) or for each group of related contracts in each country. Column (2), Service code - Enter the service code from I.A.2., on page 1 of the instructions, which most accurately describes the service you are providing on this project. Column (3), Description of project- Enter a brief written description of the project for which you are providing a service. Examples are: Construction of dam (or refinery, office building, etc.), enlargement of port facilities, and repair of chemical plant. Column (4), Gross value of new contracts received - Enter the gross amount expected to be received over the life of each contract awarded to the U.S. Reporter during the year covered by the report. Include both the amount, if any, that is entered in gross operating revenues (column (5)) for the reporting period covered by this report (i.e., amounts accrued in the year the contract was awarded) and funds that will enter gross operating revenues in future periods, as the contract is fulfilled. Column (5), Gross operating revenues - Report revenues (sales) as recorded on your books for the value of services provided and/or construction completed during the reporting period. Column (6), Merchandise exports - Report the value of merchandise exports from the United States during the reporting period that were made in connection with the project. Exports should include the value of equipment, supplies, materials, etc., and should equal the amounts reported on the Shippers Export Declarations filed with the U.S. Bureau of Customs plus the cost of transporting the goods to foreign destinations. Column (7), Foreign expenses or disbursements- Include salaries and wages transmitted or disbursed abroad; expenses or outlays for services (including purchases from foreign subcontractors), material, and equipment purchased abroad; and other foreign expenses (e.g., local taxes and fees for permits). (Do not include purchases of material and equipment for import into the United States.) Columns (8) through (10) - See I.F. on page 1 of the instructions. In particular, note that if column (10) is marked, you must give on a separate sheet of paper the name of the co-participant who is filing the joint venture report. BE-47 Instructions (REV. 8/96) Page 3 0MB No. 0608-0016 App roval Expires 09/30/98 mBM RF-4.R U.S. DEPARTMENT OF COMMERCE (REV 8/96) BUREAU OF ECONOMIC ANALYSIS MANDATORY - CONFIDENTIAL ANNUAL SURVEY OF REINSURANCE AND OTHER INSURANCE TRANSACTIONS BY U.S. INSURANCE COMPANIES WITH FOREIGN PERSONS BEA USE ONLY Control number 1. Name and address of reporting insurance company or group MAIL REPORTS TO A U.S. Department of Commerce k Bureau of Economic Analysis ' BE-50 (SSB) Washington, DC 20230 OR DELIVER REPORTS T ° i U.S. Department of Commerce 1 Bureau of Economic Analysis } BE-50 (SSB), Room M100 ' 1441 L Street, NW Washington, DC 20005 Assistance - Telephone (202) 606-5588 Due date - A completed report on Form during office hours - 8:00 a.m. to 4:00 p.m. BE-48 shall be due March 31 of the year eastern time. after the U.S. Reporter's fiscal year covered by the report. 2. Annual report for fiscal 1001 year ending Month Day Year 1 I l I I 1 1 4. Prirr tofi ary employer laenuricarion ixiumoer ieunj useo Dy tne u.a. neponer e U.S. income tax or payroll taxes 3. Principal insurance/organization a. Principal line of insurance b. Type of organization 1003 — 1002 '1 □ □ □ Life insurance Property and casualty insurance Other - Specify -g 2 1 2 2 2 3 Lj Insurance company Lj Insurance broker LJ Insurance group - Attach list of member companies. 5. Separate forms BE-48 are to be filed r — to report transactions with (1) your 1004 1 foreign affiliates, (2) your foreign 1005 i 2 parentis) and other members of the ' affiliated foreign group (AFG), and (31 unaffiliated foreign persons. This 1006 1 1 3 form BE-48 covers transactions with - ' I I Foreign affiliates LJ Foreign parentis) and other members of the AFG LJ Unaffiliated foreign persons Mark IX) one Country REPORT IN THOUSANDS OF U.S. DOLLARS. ON AN ACCRUAL BASIS BEA USE ONLY V H Reinsurance assumed ■■■■■^B from insurance companies resident abroad : : n Reinsurance ceded to wmammim j nsurance companies resident abroad ffl Primary insurance sold ■»■■■■■■ to foreign persons Premiums earned (3) Losses (4) Premiums incurred (5) Losses (6) Premiums earned (7) Losses (8) [2 (1) (2) 1. All countries, total 01 ? 3 ■1 5 6 7 8 2. Australia 02 ' 601 2 3 4 5 6 7 8 3. Belgium 03 ' 302 2 3 4 5 6 7 8 4. Bermuda 04 1 252 2 3 4 b 6 7 8 5. Brazil 05 ' 202 2 3 4 5 6 ? 8 6. Canada 06 1 100 2 3 4 5 6 7 8 7. China, P.R. of 07 ' 650 2 3 4 5 6 7 8 8. Denmark 08 1 305 2 3 4 5 6 7 8 9. Finland 09 ' 306 2 3 4 5 6 7 8 10. France 10 1 307 2 3 4 5 6 7 8 1 1. Germany 11 ' 308 2 3 4 5 6 7 8 12. Ireland 12 1 313 2 1 4 5 6 7 8 13. Israel i s 1 504 2 1 4 5 6 7 8 14. Italy 14 1 314 2 < 4 5 6 7 8 15. Japan 15 1 614 2 3 4 5 6 7 8 16. Mexico 16 1 213 2 3 4 5 6 7 8 17. Netherlands 17 1 319 2 3 4 5 6 7 8 18. Norway 18 1 320 2 1 4 5 6 7 8 19. South Korea 19 1 626 2 ) 4 5 6 7 8 20. Spain 20 1 323 2 3 4 5 6 7 8 21. Sweden 21 1 324 2 3 4 5 6 7 8 22. Switzerland 22 1 325 ? 3 4 5 6 7 8 23. United Kingdom 23 1 327 2 3 4 b 6 7 8 Other countries with which transactions were $50,000 or more - Specify country lUse supplemental copied sheets as necessary.) 24. 24 2 3 4 5 6 7 8 25. 25 2 3 4 5 6 7 8 26. 2 3 4 b 6 7 8 27. 27 2 3 4 5 6 <• 8 28. 28 2 3 4 5 6 7 8 29. 29 2 3 4 5 6 7 8 30. 30 2 3 4 5 6 7 8 31. 31 2 3 4 5 6 7 8 32. Countries with which transactions were less than $50,000 each, total 32 709 2 3 4 5 6 I 8 BEA USE ONLY ► 33 1 2 3 4 5 6 7 8 EXEMPTION CLAIM - The U.S. Reporter is not reporting data on this form because it - Mark (X) appropriate box. 1 [J Had no reportable transactions for the fiscal year. 3D Was not in existence any time during the reporting period. 2LJ Had transactions of less than $1,000,000 for each of the six items listed in Instruction I.A.2. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS REPORT - Enter name and address CERTIFICATION - The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with V.G of the Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Authorized official's signature TELEPHONE NUMBER Area code dumber Extension Print or type name and title Date BE 4S Instructions Public reporting burden for this BE-48 report is estimated to average 4 hours per response. This burden includes time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate to Director, Bureau of Economic Analysis (BE-11. U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 060S-0016, Washington, DC 20503. Purpose - Reports on this form are required in order to obtain reliable and up-to-date information on transactions between U.S. insurance companies and foreign persons. The information will be used to formulate U.S. policy, and to analyze the impact of that policy and the policies of foreign countries, on such international transactions. The data will also be used in compiling the U.S. balance of payments accounts. Authority - The filing of reports for this survey is authorized by Section 3103 of the International Investment and Trade in Services Survey Act, P.L 94-472. 90 Stat. 2059, 22 U.S.C. 3101 to 3108, as amended by P.L. 98-573 and P.L. 101-533 (hereinafter "the Act"). Regulations for the survey may be found in 15CFR Part 801. Penalties - Whoever fails to report may be subject to a civil penalty of not less than S2.500, 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 participated in such violations, upon conviction, may be punished by a like fine, imprisonment, or both. (See 22 U.S.C. 3105.) Notwithstanding the above, a U.S. person is not subject to any penalty for failure to report if a valid Office of Management and Budget control number is not displayed on the form; such a number (0608-0016) is displayed on this form. Confidentiality - The Act provides that your report to this Bureau is CONFIDENTIAL. It also provides that your report may be used only for analytical or statistical purposes and CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. I. WHO IS TO REPORT AND GENERAL COVERAGE A. Who Must Report 1. Reports on Form BE-48 are required from U.S. persons who have engaged in reinsurance transactions with foreign persons, or who have earned premiums from, or incurred losses to, foreign persons in the capacity of primary insurers. 2. Exemption - A U.S. person otherwise required to report is exempted from reporting if, with respect to transactions with foreign persons, each of the following six items was between positive S1, 000,000 and negative S1.000.000 in the reporting period, on an accrual basis: (1) premiums earned, and (2) losses, on reinsurance assumed; (3) premiums incurred, and (4) losses, on reinsurance ceded; and (5) premiums earned, and (6) losses, on primary insurance sold. If any of these items is outside the range of positive or negative S1.000.000 in the reporting period, a report must be filed. B. Transactions involving a broker - At times, insurance transactions between a U.S. person and a foreign person may be arranged by, billed through, or otherwise faciliated by, a broker, agent, or intermediary. In order to avoid duplication, the data should be reported by the insurance company assuming the risk or recovering or paying the loss. Brokers, agents, and intermediaries are generally not to report. II. WHAT TO REPORT A. Report transactions with affiliated foreign persons, as well as with unaffiliated foreign persons (see Definitions, IV.J. and K). File separate forms BE-48 to report transactions with (1) your foreign affiliates, (2) your foreign parentis) and other members of the affiliated foreign group, and (3) unaffiliated foreign persons B. Report transactions with alien insurance groups, whether or not funds remitted to and from these organizations are cleared through their American Trust Funds. C. Note that the criterion for reporting is whether the transaction is between a U.S. person and a foreign person. It is immaterial whether the assets insured are located in the United States or abroad. D. Report transactions with U.S. affiliates of foreign firms for the account of their foreign parent firm. (Report them on the form covering your transactions with unaffiliated foreign persons.) E. Report transactions with foreigners made by your foreign affiliate for your account. (Report them on the form covering your transactions with unaffiliated foreign persons.) III. WHAT NOT TO REPORT A. Do not report transactions with U.S. affiliates of foreign firms for their own account. Transactions with these U.S. affiliates are considered domestic-to-domestic for purposes of this survey. B. Do not report transactions with foreigners made by your foreign affiliates for their own account C. Do not report premiums to, or losses from, foreign insurance companies on primary, or direct, insurance. Premiums on such insurance purchased from foreign insurance companies are to be reported on Form BE-20, Form BE-22, Form BE-577, or Form BE-605. IV. DEFINITIONS A. Insurance company, for purposes of this survey, includes insurance carriers of all types, and groups of such companies. B. United States, when used in a geographic sense, means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and all the territories and possessions of the United States. C. 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. D. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS INSTRUCTIONS E. Business enterprise means any organization, association, branch or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph D above.) F. Direct investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting stock of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise. G. Parent means a person of one country who. directly or indirectly, owns or controls 10 per centum of more of the voting stock of an incorporated business enterprise or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise. 2. Foreign parent means the foreign person, or the first person outside the United States in a foreign chain of ownership, which has direct investment in a U.S. business enterprise, including a branch. H. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, which owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. I. 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 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. J. Affiliated foreign person means, with respect to a given U.S. person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. K. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph J above. L. Fiscal year is the financial reporting year that has an ending date in a given calendar year. For example, fiscal year 19X1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in a given calendar year, its fiscal year is deemed to be the same as the calendar year. M. Country means the country of location of the foreign person with whom a transaction has occurred. V. REPORTING PROCEDURES A. Reporting period - Form BE-48 is an annual report, to be filed covering each fiscal year of the U.S. Reporter. A given fiscal year for a U.S. Reporter is the Reporter's financial reporting year that has an ending date in the same calendar year. (See Definitions, IV. L.) B. Due date - Reports are due March 31 of the year after the U.S. Reporter's fiscal year covered by the report. C. Extension - Requests for an extension of the reporting deadline will not normally be granted. However, in a hardship case, a written request for an extension will be considered provided it is received at least 15 days before the due date and enumerates substantive reasons necessitating the extension. BEA will provide a written response to such a request. D. For assistance or additional copies of the forms - Phone (202) 606-5588 between 8:00 a.m. and 4:00 p.m. eastern time. E. Response required - If you received this form directly from BEA, a response is required, by either reporting data or completing the Exemption Claim, and by completing the "Person to Consult" and "Certification" sections of the form and returning the form to BEA. F. Rounding - Currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). For example, if the amount is $1,334,515.00, report is as $1,335. G. Estimates - If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. H. Original and file copies - A single original copy of the form must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. In addition, each U.S. Reporter must retain a copy of its report for three years to facilitate resolution of problems. VI. SPECIFIC ITEM INSTRUCTIONS For property and casualty insurance companies - Calculate columns (3), (5), and (7) as follows: Premiums written (columns (3) and (7)) or ceded (column (5)) during the reporting year, plus unearned premiums at the beginning of the current year, minus unearned premiums at the end of the current year. Report premiums recorded net of cancellations, commissions, and profit commissions. Calculate columns (4), (6), and (8) as follows: Losses paid (columns (4) and (8)) or recovered (column (6)) during the current year, plus case reserves at the end of the current year, plus losses incurred but not reported at the end of the current year, minus case reserves at the beginning of the current year, minus losses incurred but not reported at the beginning of the current year. Losses paid or recovered should not include loss adjustment expenses. Loss adjustment expenses should be reported as sales or purchases of legal services on Form BE-20 or BE-22. For life insurance companies: Premiums received (columns (3) and (7)) and paid (column (5)) reflect premiums accrued on reinsurance assumed from or ceded to insurance companies resident abroad, or premiums accrued on primary insurance sold to foreign persons, respectively. These amounts, therefore, are adjusted for changes in due, deferred, and advance premiums. Report amounts net of cancellations and commissions. Losses paid (columns (4) and (8)) and recovered (column (6)) reflect policy claims on reinsurance assumed or ceded, or primary insurance sold, adjusted for changes in claims due, unpaid, and in course of settlement. OMB No. 0608 0062: Approval Expires 09/30/97 form BE-80(A) (Report for Consolidated < 1 °' 94 > U.S. Enterprise) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS MANDATORY — CONFIDENTIAL BENCHMARK SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S. FINANCIAL SERVICES PROVIDERS AND UNAFFILIATED FOREIGN PERSONS Public reporting burden for this collection of information (consisting of Form BE-80(A) and, as appropriate, one or more Forms BE-80(B)) is estimated to vary from 4 to 150 hours per response, with an average of 7.5 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0062, Washington, DC 20503. BEA USE ONLY Control number °1» U.S. Department of Commerce Bureau of Economic Analysis BE-50ISSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Shipping & Receiving, Room M-100 1441 L Street, NW Washington, DC 20005 NAME, ADDRESS, AND DETERMINATION OF REPORTING STATUS 1. Name and address of the consolidated U.S. enterprise — Enter or correct as necessary. Form BE-80(A) covers all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries combined. If you are not the top U.S. parent corporation in the consolidated enterprise, you may need to contact your top parent corporation to ensure that the information provided is for all reportable units of the enterprise combined. A. Due date — A completed Form BE-80, consisting of Form BE-80(A) and, as appropriate, one or more Forms BE-80(B), is due on May 31, 1995. B. What to file — All persons who receive copies of this survey must complete Part I of Form BE-80(A). All persons subject to the mandatory reporting requirement must also complete Part II of Form BE-80(A), and Parts I and II and the mandatory section(s) of the appropriate schedule(s) of Form BE-80(B). Persons who are exempt from the mandatory reporting requirement but who elect to report data voluntarily are asked to also complete Part II of Form BE-80(A), and Parts I and II and the voluntary section(s) of the appropriate schedule(s) of Form BE-80(B). Recipients of this form that are exempt from mandatory reporting and do not wish to report data voluntarily must complete Part I of Form BE-80(A) and the Exemption Claim. In order to facilitate survey processing, respondents should assemble together and file in a single packet Form BE-80(A) and all Forms BE-80(B) for their enterprise. C. Assistance — For assistance or additional copies of the forms, telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. D. Number of copies — A single original copy of the survey (including Form BE-80(A) and, as appropriate, one or more Forms BE-80(B)) must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. Companies that elect to file separate reports for their separately organized financial services subsidiaries or parts must file a separate original copy of Form BE-80(B) for each separate subsidiary or part. In addition, each U.S. Reporter must retain a copy of each report to facilitate resolution of problems. E. Where to send the report — Reports filed by mail through the U.S. Postal Service should be sent to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Washington, DC 20230. Reports filed by direct private delivery should be directed to U.S. Department of Commerce, Bureau of Economic Analysis BE-50 (SSB), Shipping and Receiving Section, Room M-100, 1441 L Street, NW, Washington, DC 20005. F. Estimates — If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS FORM BE-80(A) REPORT — Enter name and telephone number. CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VII. F of the Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Name Authorized official's signature TELEPHONE NUMBER Area code Number Extension Print or type name and title Date NAME, ADDRESS, AND DETERMINATION OF REPORTING STATUS — Continued 2. Determination of reporting status A U.S. person that is a financial services provider (or whose consolidated enterprise includes a subsidiary or part that is a financial services provider) may be required to report. If transactions (either sales or purchases) with unaffiliated foreign persons in all types of covered financial services combined (see V. of the Instructions) by all financial services providers within a consolidated U.S. enterprise exceed $1 million during the U.S. person's fiscal year 1994, a BE-80 report (consisting of a Form BE-80(A) and one or more Forms BE-80(B)) must be filed. The $1 million threshold applies separately to sales and purchases, and the mandatory reporting requirement may apply only to sales, only to purchases, or to both sales and purchases. In determining reporting status, the estimates of sales and purchases may be judgmental, that is, not based on a search of accounting records but instead on the recollection of knowledgeable persons within the company who are in a position to know whether the company engaged in any significant transactions in financial services during the year and, if so, the approximate total value of such transactions. If transactions (either sales or purchases) with unaffiliated foreign persons in all types of financial services combined by all financial services providers within an enterprise are $1 million or less during the fiscal year, the U.S. person may voluntarily report the estimated totals for each type of service, not distributed by individual foreign country, on line 20 of Schedule A and/or B of Form BE-80(B), as appropriate. (However, if information on the foreign countries involved in the transactions is readily available, the totals and a disaggregation by country may instead be reported in the mandatory section.) Because the $1 million threshold applies separately to sales and purchases, this voluntary reporting option may apply only to sales, only to purchases, or to both sales and purchases. For purposes of this survey, a separate Form BE-80(B) may be filed for each separately organized financial services subsidiary or part of a consolidated U.S. enterprise, or a single Form BE-80(B) may be filed, representing the sum of covered transactions by all financial services subsidiaries or parts of the enterprise combined. In either case, the determination of reporting status below should be based on the fully consolidated U.S. enterprise, including the top parent and all of its subsidiaries and parts. Mark (X) one: 10001 u > I] The consolidated U.S. enterprise (including the top parent and all of its subsidiaries and parts, whether reporting together or separately) is required to report data in the mandatory section of at least one Form BE-8CHB). D The consolidated U.S. enterprise (including the top parent and all of its financial subsidiaries and parts, whether reporting together or separately) is not required to report data in the mandatory sections of Form BE-80(B) but elects to report data voluntarily. Q The consolidated U.S. enterprise is not reporting data in either the mandatory or voluntary section of Form BE-80(B). — Complete the Exemption Claim on page 3; SKIP item 3 of this Part. Proceed to item 3 of this Part. 3. Employer Identification Number (EIN) of the consolidated U.S. enterprise. 10003 Primary EIN — 1 — Additional EIN (if available) — 1 — 20001 BEA USE ONLY NO Page 2 Page 2 FORM BE-80IA) (10/94) LIST OF ALL FINANCIAL SERVICES PROVIDERS REPORTING SEPARATELY Complete Part II only if you checked box 1 or 2 in Part I, item 2. List below the name(s) of the financial services providers within the consolidated U.S. enterprise that are reporting separately on Form BE-80(B). If you are filing only a single Form BE-80(B) covering all financial services providers of the consolidated U.S. enterprise combined, only one entry should appear below. Continue listing onto as many additional copied pages as necessary. BEA USE ONLY Name(s) of U.S. Reporters filing separate Form(s) BE-80(B) 10010 10011 10. EXEMPTION CLAIM Complete this Exemption Claim only if you marked (X) box 3 in Part I, item 2, of this form. Neither the consolidated U.S. enterprise nor any of its subsidiaries or parts is reporting any data on any Form BE-80(B) because the consolidated enterprise: Mark (X) appropriate box. 10014 D Was not in existence at any time during the reporting period. D Had no subsidiaries or parts that were financial services providers. D Had no transactions, either sales or purchases, of the types of financial services covered, with unaffiliated foreign persons. Q Had transactions, either sales or purchases, of the types covered, but is not subject to the mandatory reporting requirement, because neither its sales nor its purchases of financial services exceeded $1 million (See I.A.I, of the Instructions — Exemption is based upon sales or purchases of financial services by all subsidiaries or parts of the consolidated U.S. enterprise that are financial services providers combined). The U.S. enterprise does not wish to report the data voluntarily. The total amount of the transactions with unaffiliated foreign persons by this consolidated U.S. enterprise, for all financial services combined, was approximately — Report in thousands of U.S. dollars Sales Purchases 1 $ 2 $ D Other — Specify •? NOTE ► If you marked (X) a box in this Exemption Claim, your enterprise should not complete any Forms BE-80(B). FORM BE-80IA) (10/94) Page 3 I BEAU OMB No. 0608-0062: Approval Expires 09/30/97 form BE-80(B) (Report for Financial Services do/Mi Provider) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS MANDATORY — CONFIDENTIAL BENCHMARK SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S. FINANCIAL SERVICES PROVIDERS AND UNAFFILIATED FOREIGN PERSONS BEA USE ONLY Control number B IDENTIFICATION OF FINANCIAL SERVICES PROVIDER Name and address of U.S. Reporter — Enter the name and address of the U.S. person filing this report. If this report is for a separately organized financial services subsidiary or part of a consolidated enterprise, give the name and address of the subsidiary or part that is reporting on this Form BE- 80(B). If an address label is affixed, make corrections as appropriate. U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Shipping & Receiving, Room M-100 1441 L Street, NW Washington, DC 20005 Name and control number (if known) of the consolidated U.S. enterprise of which the U.S. Reporter identified above is a subsidiary or part — If the U.S. Reporter named above is a separately organized financial services subsidiary or part of a consolidated U.S. enterprise, give the control number (if known) and name of the consolidated U.S. enterprise of which it is a part; otherwise, do not complete this item. The control number of the U.S. enterprise is located on the address label that may be affixed to Form BE-80(A), Part I, item 1. Control number of consolidated U.S. enterprise 10001 Name Due date — A completed Form BE-80, consisting of Form BE-80(A) and, as appropriate, one or more Forms BE-80(B), is due on May 31, 1995. Assistance — For assistance or additional copies of the forms, telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. IMPORTANT NOTE — Before completing this Form BE-80(B), a consolidated U.S. enterprise (including the top parent and all of its subsidiaries and parts combined) must complete Form BE-80(A) to determine its reporting status. If the enterprise is subject to the mandatory reporting requirement, or if it is exempt from the mandatory reporting requirement but chooses to report data voluntarily, either a separate Form BE-80(B) may be filed for each separately organized financial services subsidiary or part of the consolidated U.S. enterprise, or a single BE-80(B) may be filed, representing the sum of covered transactions by all financial services subsidiaries or parts of the enterprise combined. The number of Forms BE-80(B) filed must agree with the number of U.S. Reporters listed in Part II of Form BE-80(A). PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS FORM BE-80(B) REPORT — Enter name and address. CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VII. F of the Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Authorized official's signature TELEPHONE NUMBER Area code Number Extension Print or type name and title Date E£: J/30/97 Til IDENTIFICATION OF FINANCIAL SERVICES PROVIDER — Continued A. What to file — All persons who receive copies of this survey must complete Part I of Form BE-80(A). All persons subject to the mandatory reporting requirement must also complete Part II of Form BE-80(A), and Parts I and II and the mandatory section(s) of the appropriate schedule(s) of Form BE-80JB). Persons who are exempt from the mandatory reporting requirement but who elect to report data voluntarily are asked to also complete Part II of Form BE-80(A), and Parts I and II and the voluntary section(s) of the appropriate schedule(s) of Form BE-80(B). Recipients of the survey that are exempt from mandatory reporting and do not wish to report data voluntarily must complete Part I and the Exemption Claim on Form BE-80(A). In order to facilitate survey processing, respondents should assemble together and file in a single packet Form BE-80(A) and all Forms BE-80(B) for their enterprise. B. Number of copies — A single original copy of the survey (including Form BE-80(A) and, as appropriate, one or more Forms BE-80(B)) must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. Companies that elect to file separate reports for their separately organized financial services subsidiaries or parts must file a separate original copy of Form BE-80(B) for each separate subsidiary or part. In addition, each U.S. Reporter must retain a copy of each report to facilitate resolution of problems. C. Where to send the report — Reports filed by mail through the U.S. Postal Service should be sent to U.S. Department of Commerce, Bureau of Economic Analysis BE-5CKSSB), Washington, DC 20230. Reports filed by direct private delivery should be directed to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Shipping and Receiving Section, Room M-100, 1441 L Street, NW, Washington DC 20005. D. Estimates — If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. E. Currency amounts — All currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). EXAMPLE — If the amount is $1,000,000, report as $1,000. Amounts less than $500.00 round to "0" and should, therefore, not be reported. 1 . Report for fiscal year ending 20001 Month Day Year i 9 4 Fiscal year 1994 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 1994. 2. Industry classification — Enter the 3-digit code from the Guide to Industry and Foreign Trade Classifications for International Surveys in which the U.S. Reporter's sales or gross operating revenues are largest. • Where the consolidated U.S. enterprise is filing a single Form BE-80(B) — Give the industry classification of the consolidated U.S. enterprise. • Where the consolidated U.S. enterprise is filing more than one Form BE-80(B) — Give the industry classification of the subsidiary or part being reported on this Form BE-80(B). 20002 report ins, is irecise 3. Did the U.S. Reporter purchase at least $10 million of long-term securities (stocks and bonds) DIRECTLY from, or sell at least $10 million of long-term securities DIRECTLY to, affiliated or unaffiliated foreign persons, whether for its own account or for the account of its customers, during fiscal year 1994? 20003 [^Yes LI No 4. Primary Employer Identification Number used by the U.S. Reporter named in Part I, item 1 of this Form BE-80(B). 20004 1 - 20005 BEA USE ONLY 1 ORM BE-80IB) (10/94) Page 2 Continued SCHEDULE A — Receipts of Fees and Commissions From Unaffiliated Foreign Persons for Financial Services The mandatory section of Schedule A is required to be completed for each type of financial service listed below if total sales to unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries exceed $1,000,000. The voluntary section is requested to be completed if total sales to unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries are $1,000,000 or less. Enter the number associated with the type of financial service, instead of the complete title of the service, in the column heading of Schedule A. See V. of the Instructions for complete descriptions of the types of financial services covered. Enter the names of countries not on the preprinted list, as appropriate, in the left hand margin of Schedule A. Transactions with international organizations are considered to be with unaffiliated foreign persons; these may be shown opposite an abbreviated designation, "Int'l Org." Use additional copied sheets to list additional countries, as necessary. Service number Service 1 Brokerage, except foreign exchange brokerage services 2 Private placement services 3 Underwriting services 4 Financial management services 5 Credit-related services, except credit card services 6 Credit card services 7 Financial advisory and custody services 8 Securities lending services 9 Foreign exchange brokerage services 10 Other financial services • If you use this service number — Enter on the schedule the total amount of fees you received for all other financial services combined. See V. of the Instructions for examples of types of financial services to report under this service number. • If you reported data in the mandatory section of Schedule A under this service number — Enter a brief description of the primary type(s) ofservice(s) sold, -g FORM BE-80IB) (10/94) Page 3 Continued SCHEDULE A — Receipts of Fees and Commissions From Unaffiliated Foreign Persons for Financial Services A1 RECEIPTS FROM BEA USE ONLY (1) (2) REPORT IN THOUSANDS OF U.S. DOLLARS (3) (4) (5) (6) (7) MANDATORY Complete if total receipts mooo of fees and commissions by the consolidated U.S. enterprise exceed $1000,000. Also complete question 21, as appropriate. 1. All countries, total ooi 2. Belgium 002 302 3. Canada 003 100 4. France 004 307 5. Germany 005 308 6. Hong Kong 611 7. Italy 007 314 8. Japan 008 614 9. Netherlands 009 319 10. Singapore 010 625 11. United Kingdom 011 327 Other — Specify (Use additional copied sheets as necessary.) 12. 13. 14. 15. 16. 17. 18. 19. 012 013 014 015 016 017 018 019 VOLUNTARY Complete if total receipts of fees and commissions by the consolidated U.S. enterprise are $1,000,000 or less. 20. All countries, total 020 NOTE — If total receipts for all financial services combined exceed $1 million - You must complete the MANDATORY section above, and line 20 must be left blank. 709 MANDATORY If you are subject to the survey's mandatory reporting requirement and you entered data under service number 1 — Complete item 21. If you are subject to the survey's mandatory reporting requirement and you entered data under service number 10 — Describe the primary type(s) of service(s) in the space provided on page 3 of this form. 6M. If you reported data in the mandatory section of Schedule A under service number 1, brokerage, except foreign exchange brokerage services — Indicate the approximate amount of the total for all countries combined that was for transactions in each of the following groups of financial products. (These estimates may be based upon the judgment of knowledgeable persons, without conducting a detailed records search.) a. Long-term securities (stocks and bonds, including collateralized mortgage obligations, with no original maturity or with original maturity of more than 1 year) 021 Report in thousands of U.S. dollars (1) b. Long-term and short-term derivative products (i.e., options, futures, swaps, forwards, and warrants) 022 c. Other (such as commercial paper and bankers acceptances) 023 FORM BE-80(B) (10/94) Page 4 Continued SCHEDULE B — Payments of Fees and Commissions to Unaffiliated Foreign Persons for Financial Services The mandatory section of Schedule B is required to be completed for each type of financial service listed below if total purchases from unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries exceed $1,000,000. The voluntary section is requested to be completed if total purchases from unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries are $1,000,000 or less. Enter the number associated with the type of financial service, instead of the complete title of the service, in the column heading of Schedule B. See V. of the Instructions for complete descriptions of the types of financial services covered. Enter the names of countries not on the preprinted list, as appropriate, in the left hand margin of Schedule B. Transactions with international organizations are considered to be with unaffiliated foreign persons; these may be shown opposite an abbreviated designation, "Int'l Org." Use additional copied sheets to list additional countries, as necessary. Service number Service 1 Brokerage, except foreign exchange brokerage services 2 Private placement services 3 Underwriting services 4 Financial management services 5 Credit-related services, except credit card services 6 Credit card services 7 Financial advisory and custody services 8 Securities lending services 9 Foreign exchange brokerage services 10 Other financial services • If you use this service number — Enter on the schedule the total amount of fees you paid for all other financial services combined. See V. of the Instructions for examples of types of financial services to report under this service number. • If you reported data in the mandatory section of Schedule B under this service number — Enter a brief description of the primary type(s) of service(s) purchased, -g FORM BE-80IB) (10/94) Page 5 - Continued SCHEDULE B Pavments of Fees and Commissions to Unaffiliated Foreian B1 Persons for Financial Services PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS (3) (4) (5) (6) (7) (1) (2) MANDATORY Complete if total payments biooo of fees and commissions by the consolidated U.S. enterprise exceed $1,000,000. Also complete question 21, as appropriate. I 1. All countries, total 001 i 2 3 4 5 I 6 7 i 2 3 4 5 6 7 2. Belgium 002 1 302 2 3 4 5 6 7 3. Canada 003 1 100 2 3 4 5 6 7 4. France 004 1 307 2 3 4 5 6 7 5. Germany 005 1 308 2 3 4 5 6 7 6. Hong Kong 006 1 611 2 3 4 5 6 7 7. Italy 007 1 314 2 3 4 5 6 7 8. Japan oos 1 614 2 3 4 5 6 7 9. Netherlands 009 1 319 2 3 4 5 6 7 10. Singapore 010 1 625 2 3 4 5 6 7 11. United Kingdom on 1 327 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary.) 12. 012 1 2 3 6 4 5 7 f. 13. 013 1 2 3 4 5 6 7 14. 014 1 2 3 4 5 6 7 15. 015 1 2 3 4 5 6 7 16. 016 1 2 3 4 5 6 7 17. 017 i 2 3 4 5 6 7 18. 018 1 2 3 4 5 6 7 > 19. 019 1 2 3 4 5 6 7 VOLUNTARY Complete if total payments of fees and commissions by the 1 consolidated U.S. enterprise 1 are $1,000,000 or less. j 20. All countries, total 020 | NOl i 709 rE- 2 1 - If total payments for all financial services combined exceed $1 million - You must complete the MANDATORY section above, and line 20 must be left blank. 3 4 5 6 7 MANDATORY • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 1 — Complete item 21. • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 10 — Describe the primary type(s) of service(s) in the space provided on page 5 of this form. I 21 . If you reported data in the mandatory section of Schedule B under service number 1, brokerage, except foreign exchange brokerage services — Indicate the approximate amount of the total for all countries combined that was for transactions in each of the following groups of financial products. (These estimates may be based upon the judgment of knowledgeable persons, without conducting a detailed records search.) a. Long-term securities (stocks and bonds, including collateralized mortgage obligations, with no original maturity or with original maturity of more than 1 year) 021 Report in thousands of U.S. dollars (1) 1 b. Long-term and short-term derivative products (i.e., options, futures, swaps, forwards, and warrants) 022 i c. Other (such as commercial paper and bankers acceptances) 023 1 FORM BE-80IB) (10/94) P age 6 BE-SOil* OMB No. 0608-0062: Approval Expires 09/30/97 U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS BENCHMARK SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S. FINANCIAL SERVICES PROVIDERS AND UNAFFILIATED FOREIGN PERSONS Introduction The Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons-1994 is being conducted by the U.S. Department of Commerce to obtain data on the amount and types of international financial services in which U.S. financial services providers are engaged. This is the first comprehensive survey of these services conducted by the U.S. Government. The data from the survey are needed to measure the amount of U.S. trade in financial services, to analyze the effects of such trade on the U.S. economy, to formulate U.S. trade policy, and to support trade negotiations on financial services. They will be included in the U.S. balance of payments and national income and product accounts, and will provide benchmarks for deriving current universe estimates of financial services transactions in future years. The survey is conducted under authority of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4908(b)) and the International Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108). Reporting is mandatory under Section 5 of the latter Act. By law, the information reported may be used only for analytical and statistical purposes and will be held confidential. A firm that is a financial services provider, or that had subsidiaries or parts that are financial services providers, may be required to report data on financial services transactions it engaged in directly with unaffiliated foreign persons. Reporting is mandatory if total sales or purchases of covered services exceeded $1 million during the firm's 1994 fiscal year. See the Instructions for additional clarification. In addition to the mandatory part, the survey contains a voluntary part. If you determine that you have transactions reportable in the voluntary part of the survey, I urge you to report them. For some financial services, small transactions by many transactors are an important part of the total. Some data requested in the survey may not be maintained in your customary accounting records. In accordance with the Instructions, estimates may be provided where precise data cannot be obtained. If a person receiving the report forms and instructions is not required to report, Form BE-80(A) must nevertheless be completed and returned to the Bureau of Economic Analysis to claim exemption. Your cooperation is greatly appreciated. Sincerely, C&ut/^Sfo*** CAROLS. CARSON Director Bureau of Economic Analysis CONTENTS I. WHO MUST REPORT AND GENERAL COVERAGE A. Who must report 1. Mandatory and voluntary reporting a. Mandatory reporting b. Voluntary reporting 2. Consolidation B. General coverage 1. The BE-80 measure of sales (receipts) or purchases (payments) 2. BE-80 definition of financial services provider 3. Clarification of general coverage, including special situations II. DEFINITIONS III. GENERAL INSTRUCTIONS A. How to differentiate between U.S. and foreign persons B. Who must report a transaction when an intermediary is involved C. Distinguishing transactions with affiliated foreign persons from transactions with unaffiliated foreign persons IV. RELATED FORMS V. SERVICES COVERED A. Brokerage, except foreign exchange brokerage services B. Private placement services C. Underwriting services D. Financial management services E. Credit-related services, except credit card services F. Credit card services G. Financial advisory and custody services H. Securities lending services I. Foreign exchange brokerage services J. Other financial services VI. TYPES OF FINANCIAL SERVICES EXCLUDED FROM COVERAGE A. Stock quotation and financial information services B. Insurance premiums and losses, and commissions on insurance C. Annuity purchases and payments D. Pension fund contributions and benefits E. Interest and dividend receipts and payments F. Premiums and other proceeds from writing (selling) options, forwards, futures, and swaps G. Earnings of principals from buying and selling (including dealing, trading, holding, or arbitrage) of financial instruments, except foreign currency exchange transactions . . H. Foreign currency exchange transactions VII. REPORTING PROCEDURES A. Due date B. Extension C. Assistance D. Number of copies E. Where to send the report F. Estimates PAGE 5 6 6 7 8 8 8 8 8 8 9 9 10 10 10 10 10 HH 11 11 11 11 11 11 11 11 1 1 BE-80(I) (10/94) Page 3 INSTRUCTIONS Purpose — Reports on this form are required in order to obtain reliable and up-to-date information on financial services transactions between U.S. financial services providers and unaffiliated foreign persons. The information is needed to support trade negotiations and monitor trade agreements, formulate U.S. international economic policy, and analyze the impact of that policy and the policies of foreign countries on international trade in financial services. The data will also be used in compiling the U.S. balance of payments accounts and national income and product accounts. Authority — The filing of reports for this survey is authorized by Section 5 of the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended), and by Section 5408 of the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418, 15 U.S.C. 4908(b)). Regulations for the survey may be found in 15 CFR Part 801. The survey has been approved by the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501, etseq). Penalties — Whoever fails to report may 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. (See Section 6, 22 U.S.C. 3105.) Confidentiality — The International Investment and Trade in Services Survey Act provides that your report to this Bureau is CONFIDENTIAL. It may be used only for analytical or statistical purposes, and CANNOT be used for purposes of taxation, investigation, or regulation. That act also provides that copies retained in your files are immune from legal process. I. WHO MUST REPORT AND GENERAL COVERAGE A. Who must report 1 . Mandatory and voluntary reporting a. Mandatory reporting — A BE-80 report is required from each U.S. person who (i) is a financial services provider or intermediary (See I.B.2. of these Instructions), or whose consolidated U.S. enterprise includes a separately organized subsidiary or part that is a financial services provider or intermediary, and (ii) had transactions (either sales or purchases) directly with unaffiliated foreign persons in all financial services combined (See V. of these Instructions) in excess of $1,000,000 during its fiscal year 1994. The $1,000,000 threshold should be applied to financial services transactions with unaffiliated foreign persons by all parts of the consolidated U.S. enterprise combined that are financial services providers or intermediaries, regardless of whether the subsidiaries or parts of the organization file separate Forms BE-80(B). Because the $1,000,000 threshold applies separately to sales and purchases, this mandatory reporting requirement may apply only to sales, only to purchases, or to both sales and purchases. The determination of whether a U.S. financial services provider or intermediary is subject to this mandatory reporting requirement may be judgmental, that is, based on the judgment of knowledgeable persons in a company who can identify reportable transactions on a recall basis, with a reasonable degree of certainty, without conducting a detailed manual records search. Reporters who must file pursuant to this mandatory reporting requirement must complete Parts I and II of Form BE-80(A), and Parts I and II and the mandatory parts of the applicable schedule(s) of Form BE-80(B). The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 1 of the schedule. In addition, these amounts must be distributed below line 1 to the foreign country(ies) involved in the transaction(s). b. Voluntary reporting — If, during fiscal year 1994, covered sales or purchases (see V. of these Instructions) by a firm that is a financial services provider or intermediary, or by a firm's subsidiaries or parts combined that are financial services providers or intermediaries, are $1,000,000 or less, the U.S. person is requested to provide an estimate of the total for each type of service. Provision of this information is voluntary. The estimates may be judgmental, that is, based on recall, without conducting a detailed manual records search. Because the $1,000,000 threshold applies separately to sales and purchases, this voluntary reporting option may apply only to sales, only to purchases, or to both sales and purchases. Reporters who elect to file pursuant to the voluntary reporting option should complete Parts I and II of Form BE-80(A), and Parts I and II and the voluntary parts of the applicable schedule(s) of Form BE-80(B). The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 20 of the schedule. Disaggregation by country is not required if transactions with unaffiliated foreign persons in all types of financial services combined total $1,000,000 or less. However, if information on the foreign countries involved in the transactions is readily available, the totals and a disaggregation by country may instead be reported in the mandatory section. 2. Consolidation — A consolidated U.S. enterprise has the option of filing a single, original copy of Form BE-80(B) covering combined (total) financial services transactions (purchases and sales) of all its subsidiaries and parts that are financial services providers or intermediaries, or of filing separate reports for its separately organized financial services subsidiaries and parts. In either case, Form BE-80(A) must also be completed for the consolidated U.S. enterprise. The $1,000,000 exemption level for mandatory reporting is based upon total financial services purchased from, or sold to, unaffiliated foreign persons by all parts of the consolidated U.S. enterprise that are financial services providers or intermediaries combined, regardless of the number of subsidiaries or parts of the enterprise filing separate Forms BE-80(B). B. General Coverage 1. The BE-80 measure of sales (receipts) or purchases (payments) For most types of financial services covered by this survey, sales and purchases are the measures used to determine whether the threshold for mandatory reporting of the service is exceeded. However, for some services, an item other than sales or purchases may be appropriate. For example, payments of underwriting fees (reportable on Schedule B) must be calculated by an issuer of securities by first estimating gross proceeds to the foreign lead underwriter from the sale to the public of the securities (based upon the number of units of securities sold times the per unit public offer price), and then subtracting the net proceeds received by the issuer from the foreign lead underwriter. The resulting difference is the amount that the issuer should report on Schedule B. BE-8CKI) (10/94) Page 5 I. WHO MUST REPORT AND GENERAL COVERAGE — Continued B. General Coverage — Continued 1. The BE-80 measure of sales (receipts) or purchases (payments) — Continued A transaction should be reported in the period when it occurs or is charged (that is, in the period when the provider of the service recognizes or performs the service), whether expensed by the purchaser of the service in that accounting period, amortized over several accounting periods, or included in expenses in a subsequent accounting period. For example, payments of credit-related fees (and payments of securities brokerage commissions) should be reported in the period when credit-related (securities brokerage) services are charged, whether or not the charge for the service is included in the purchaser's expenses for that particular accounting period. See V. of these Instructions for an explanation of what measures should be applied in determining whether you are subject to the BE-80 survey's mandatory reporting requirements for a given type of service. 2. BE-80 definition of financial services provider The definition of financial services providers used for this survey is analogous in coverage to the finance and insurance part of Division H of the 1987 Standard Industrial Classification Manual (SIC major groups 60 through 64, and major group 67). More specifically, companies and/or subsidiaries and other separable parts of companies in the following industries are defined as financial services providers: Depository institutions (including commercial banks and thrifts); nondepository credit institutions; security and commodity futures brokers, dealers, exchanges, traders, underwriters, and services providers (including investment bankers and providers of securities custody services); credit card companies; insurance carriers, agents, brokers and services providers; investment advisors and managers; mutual funds; pension funds; trusts; holding companies; investors; oil royalty traders; etc. Holding companies that own only nonfinancial subsidiaries may elect to omit reporting their purchases of financial services from unaffiliated foreign persons on Form BE-80 if they instead report these purchases on Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons. Alternatively, these holding companies may elect to report both purchases and sales of financial services on Form BE-80; in this case, they should not report their purchases of financial services from unaffiliated foreign persons on Form BE-22. In either case, sales of financial services to unaffiliated foreign persons must be reported on Form BE-80 if they exceed $1 million. 3. Clarification of general coverage, including special situations a. Purchases or sales are to be reported in the period when they occur or are charged. As discussed in I.B.1., this may not be the period in which the transaction is included in the purchaser's income or expense. For example, payments of fees for credit-related services should be reported when the services are rendered, not over the potentially longer period during which the payments may be amortized by the borrower. b. Covered transactions are includable regardless of whether the service was performed in the United States or abroad. c. When a sale or purchase consists of services that are commingled or bundled (i.e., the different types of services are not separately billed), you should unbundle the transaction whenever possible. When the transaction cannot be unbundled, it should be classified based upon whichever service accounts for the largest share of its value. Note, however, if the services are billed together because they are integral parts of the same transaction (for example, if the fee for financial management services includes payment for custody and other services that are regarded as integral parts of financial management services), then do not unbundle the transaction. d. Only financial services purchased or sold by U.S. financial services providers or intermediaries directly from unaffiliated foreign persons are covered by this survey. Transactions in nonfinancial services with foreign persons, transactions by nonfinancial subsidiaries or other nonfinancial parts of companies, and transactions with affiliated foreign persons are covered by other BEA surveys. See IV. of these Instructions. e. As discussed in I.B.2., a holding company that owns only manufacturing or other nonfinancial subsidiaries may elect to report its purchases of financial services from unaffiliated foreign persons either on Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons, or on this survey. However, in either case, these holding companies must report their sales of financial services to unaffiliated foreign persons on this survey if such sales exceed $1 million. II. DEFINITIONS A. Services mean economic activities whose outputs are other than tangible goods. This term includes, but is not limited to, banking, other financial services, insurance, transportation, communications and data processing, retail and wholesale trade, advertising, accounting, construction, design, engineering, management consulting, real estate, professional services, entertainment, education, and health care. B. Financial services include trading, issuing, dealing, underwriting, lending, custody, etc. of financial instruments; financial advisory or management services; credit card services; credit-related services (including establishing, maintaining, or arranging credits, letters of credit, lines of credit, mortgages, etc.); financial rating services; electronic funds transfer services; insurance services; etc. These services typically are performed by firms classified in the finance and insurance part of Division H of the 1987 Standard Industrial Classification Manual (see I.B.2.). Some types of financial services are not covered on this survey. See V. of the Instructions for a list of financial services that are covered, and see VI. of the Instructions for a list of financial services that are not covered on this survey. C. U.S. Reporter means a U.S. person filing a report in this survey. On Form BE-80(A), the U.S. Reporter is the consolidated U.S. enterprise; on Form BE-80(B), the U.S. Reporter may be either the consolidated U.S. enterprise or a financial services subsidiary or part of a consolidated U.S. enterprise reporting separately. D. Consolidated U.S. enterprise means (i) a U.S. financial services provider, (ii) any U.S. corporation, proceeding up the financial services provider's ownership chain, that owns more than 50 percent of the voting securities of the corporation below it, and (iii) any U.S. corporation, proceeding down the ownership chain(s) of each of these corporations, whose voting securities are more than 50-percent-owned by the U.S. corporation above it. E. 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. Page 6 BE-80(I) (10/94) F. 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. G. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. H. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph I. below. I. Affiliated foreign person means, with respect to a given U.S. person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. J. Affiliate means a business enterprise located in one country that is directly or indirectly owned or controlled by a person of another country to the extent of 10 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. K. Business enterprise means any organization, association, branch, or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph G. above.) L. Direct investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting stock of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. M. Parent means a person of one country who, directly or indirectly, owns or controls 10 per centum or more of the voting securities of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise, including a branch. 2. Foreign parent means the first person outside the United States that has direct investment in a U.S. business enterprise, including a branch. N. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. O. Fiscal year is the U.S. Reporter's financial reporting year that has an ending date in a given calendar year. For example, fiscal year 19X1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in a given calendar year, its fiscal year is deemed to be the same as the calendar year. P. Country means, for purposes of this survey, the country of location of the foreign person with whom a transaction has occurred. III. GENERAL INSTRUCTIONS A. How to differentiate between U.S. and foreign persons In II. G. 2. of these Instructions, a "foreign person" is defined as any person resident outside the United States or subject to the jurisdiction of a country other than the United States. Under this definition, persons who reside or expect to reside for 1 year or more in a foreign country are considered to be foreign persons. International organizations are considered to be foreign persons whether they are based in the United States (such as the International Bank for Reconstruction and Development, Inter-American Development Bank, United Nations, World Health Organization, and the Organization of American States) or abroad. If you are uncertain whether a financial services transaction is with an unaffiliated foreign person, the following procedure should be followed. First, identify the country a transaction is with using billing or mailing address information. The assumption is that a transaction should be shown against a given foreign country (or with an international organization) if the billing or mailing address is of that foreign country (or of an international organization). If the billing or mailing address is in the United States, the transaction ordinarily would be assumed to be a transaction with a U.S. person and, therefore, not reportable on this survey. Although billing or mailing addresses may provide a satisfactory basis for differentiating between U.S. and foreign persons in most cases, in some cases they may not, such as where foreign customers have provided billing addresses of U.S. agents or other locations of convenience in the United States, or U.S. customers have provided foreign billing addresses. Thus, for transactions of significant size (i.e., those that will affect the overall level of transactions reported in this survey for a given type of service), a second step may be necessary. For each type of service, you must determine whether or not you need to take the following additional step in order to assure accuracy of data reported in this survey. The second step is to examine other available information on the residency of your largest customers and contractors. For example, to review the residency of your customers, you might refer to IRS Form W-8, Certificate of Foreign Status (filed by foreign persons), IRS Form W-9, Request for Taxpayer Identification Number and Certification (filed by U.S. persons), and/or any other available information on the residency of persons with whom you have sold or purchased financial services. For some types of services, such as underwriting services, it may be necessary to rely on additional information to correctly determine the residency of your customers in order to assure accuracy; for other types of services, it will probably be sufficient to use billing address information alone. BE-80M, (10/94) Page 7 III. GENERAL INSTRUCTIONS — Continued B. Who must report a transaction when an intermediary is involved Financial services transactions between a U.S. person and a foreign person are frequently arranged by, billed through, or otherwise facilitated by, a financial services provider or intermediary. The intermediary may be U.S. or foreign, and may be affiliated or unaffiliated with the U.S., or the foreign, person. The U.S. financial services provider or intermediary who directly deals with an unaffiliated foreign person, not the U.S. customer of the intermediary, is responsible for reporting the transaction on this survey. C. Distinguishing transactions with affiliated foreign persons from transactions with unaffiliated foreign persons For purposes of reporting in this survey, it is necessary to distinguish between transactions between affiliated U.S. and foreign persons, and transactions between unaffiliated U.S. and foreign persons. Only transactions with unaffiliated foreign persons are to be reported in this survey; services transactions with affiliated foreign persons are reportable in other BEA surveys (see IV. of these Instructions). An unaffiliated foreign person is a foreign person that is neither the foreign affiliate nor the foreign parent (or other member of the affiliated foreign group) of the consolidated U.S. enterprise filing Form BE-80(A) of this survey. (See II. I., J., M. and N. in the Instructions.) Transactions with unaffiliated foreign persons by or through a foreign activity of a U.S. person that is not a foreign affiliate of the U.S. person are deemed to be direct transactions of the U.S. person, and any financial services sold to, or purchased from, unaffiliated foreign persons through such an activity are reportable in this survey. If a U.S. person's foreign activity or operation is incorporated abroad, it is a foreign affiliate. If a U.S. person's foreign activity or operation is NOT incorporated abroad, its status is based on the weight of the evidence when the factors listed below are considered. An unincorporated foreign activity or operation generally WOULD NOT be considered a foreign affiliate if it: (i) conducts business abroad only for the U.S. person's account and not for its own account; (ii) has no separate financial statements (including an income statement and balance sheet); (iii) receives funds to cover its expenses only from the U.S. person; (iv) pays no foreign income taxes; and (v) has limited physical assets, or employees, permanently located abroad. Criteria for determining which U.S. activities do or do not constitute a U.S. affiliate of a foreign person are parallel to those listed above. IV. RELATED FORMS Persons receiving this form should be aware of other forms on services that are required to be filed on a mandatory basis with BEA (see 15 CFR, Part 801, Section 9(b).). BEA conducts surveys of other types of services transactions with unaffiliated foreign persons (such as Form BE-48, Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies With Foreign Persons; Form BE-93, Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons; and Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons). All inquiries about these surveys should be directed to BEA's International Investment Division (IID) at (202) 606-5588. In addition, BEA collects information on services transactions with affiliated foreign persons in its direct investment surveys. Inquiries concerning BEA's survey of services transactions between U.S. parent companies and their Page 8 foreign affiliates (Form BE-577) should be directed to IID at (202) 606-5599, and inquiries concerning services transactions between U.S. affiliates and their foreign parent companies (Forms BE-605 and BE-605 Bank) should be directed to IID at (202) 606-5577. Under the Treasury International Capital reporting system, the Department of the Treasury conducts mandatory surveys on the international financial position of the United States and on movements of portfolio investment capital between the United States and foreign countries that may give rise to financial services transactions. Inquiries about these surveys should be directed to the Federal Reserve Bank of New York (as contractor for the Treasury Department) at (212) 720-8243. V. SERVICES COVERED Receipts (Schedule A of Form BE-80(B)) and payments (Schedule B) of fees and commissions for the following types of financial services are covered by this survey: A. Brokerage, except foreign exchange brokerage services (service number 1) — Schedule A covers your receipts of commissions directly from unaffiliated foreign customers for executing orders to purchase or sell securities, options, futures, and other financial instruments, except foreign currency. It excludes income, such as option premiums, where you were a dealer or other principal who was at risk of incurring a loss on the financial instrument rather than acting solely as a broker. Schedule B covers your payments of commissions directly to unaffiliated foreign brokers for executing your, or your customers', orders. Brokerage fees arising from foreign currency exchange transactions should not be reported here, but should instead be reported under service number 9, foreign exchange brokerage services. Origination fees in connection with derivative financial instruments that trade over the counter ordinarily should not be reported here. These should be reported here only if they are separately identified in transaction documentation issued by the dealer in the instruments to its customers, and are considered to be commissions rather than undifferentiated components of overall trading or marketmaking gains. Brokerage commissions for arranging joint ventures are covered under service number 10, "other" financial services. Fees for commodity or merchandise brokerage services (as opposed to fees for purchasing or selling commodity futures) are not covered because they are not considered to be financial services. B. Private placement services (service number 2) — Covers fees you received from an unaffiliated foreign issuer of securities for privately placing its securities, or fees that you paid to an unaffiliated foreign person who privately placed your securities, including fees on dealer-placed commercial paper. Do not report earnings from buying and selling (i.e., trading) commercial paper or other securities for your own account, because they are not considered to be financial services. C. Underwriting services (service number 3) — Covers earnings from buying and reselling an entire or substantial portion of newly issued securities. If you purchased securities from an unaffiliated foreign person (issuer or lead underwriter) and resold them to others at a lower price, report your loss as negative receipts on Schedule A . (This is the only financial service category where negative amounts may be reported.) Where you are lead underwriter, report receipts of underwriting fees and payments of selling concessions and other expenses separately. Underwriting fees, before deduction of selling concessions paid to other members of the syndicate, should be reported on Schedule A according to the country of the person (issuer) from whom you purchased the securities. Selling concessions and reimbursements for expenses paid by you to unaffiliated foreign members of the syndicate should be reported on Schedule B based upon the country(ies) of the foreign syndicate members receiving the selling concessions and reimbursements. BE-80U) (10/94) Where you are a syndicate member other than the lead underwriter, report on Schedule A selling concessions received by you based upon the country of the lead underwriter. Where you are the issuer of securities, payments of underwriting fees reported on Schedule B should be calculated as follows: First, calculate gross proceeds to the underwriter from the sale to the public of your securities. This estimate should equal the number of units of securities sold to the foreign lead underwriter times the per unit public offer price. (If the public offer price is not available from your internal accounting records, consult the prospectus or other public offer document.) Second, from this amount, subtract the net proceeds you received when you sold your securities to the foreign lead underwriter. The resulting difference is the amount to report on Schedule B as payments of underwriting fees, classified according to the country of the foreign lead underwriter. Fees or commissions received by, or paid to, intermediaries that arrange the sale of securities (including mutual fund shares) they do not themselves own should be reported as brokerage services (under service number 1) rather than as underwriting services. D. Financial management services (service number 4) — Covers services in which the provider of the service has the authority to direct the use or investment of funds or other assets. Report fee income from (to) unaffiliated foreign persons for managing or administering financial portfolios, such as cash, securities, futures, and other financial instruments or assets, if you (they) have this authority. (If a U.S. or foreign person has input into the decision-making process but does not have this authority, report the fees under service number 7, financial advisory and custody services.) Report these fees whether or not the assets are in the custody of the manager or in the custody of another U.S. or foreign person whom the manager directs. Include fees from actively managed accounts (where research and market timing skills are also provided) and fees from passively managed, or indexed, accounts, such as where the portfolio is composed of certain securities so that its performance will track that of an index. U.S. persons (including trustees and fiduciaries with management authority) should report their fees from managing foreign commodity pools, mutual funds, hedge funds, trusts (including trusts containing mortgages), etc. (which are considered foreign persons) on Schedule A. Fees from managing U.S. mutual funds, hedge funds, trusts (including trusts containing mortgages), etc. (which are considered U.S. persons) should not be reported unless the management fee is charged directly to a foreign investor, owner, beneficiary, maker, etc., of the U.S. mutual fund, hedge fund, or trust rather than charged to the U.S. mutual fund, etc. itself. U.S. -based custodians and subcustodians who manage the custody or safekeeping of securities directly on behalf of unaffiliated foreign persons (including unaffiliated foreign-based custodians or subcustodians) should report their receipts from, and U.S. -based private label custodians should report their payments to, unaffiliated foreign persons (including foreign custodians and subcustodians) under service number 7, financial advisory and custody services. Foreign participation in U.S. futures markets frequently occurs indirectly, by foreign persons investing directly in a foreign commodity pool that, in turn, invests directly in the U.S. futures market. Foreign commodity pools may be organized by U.S. commodity pool operators (CPO's), such as U.S. brokerage institutions. U.S. CPO's must report on Schedule A their fees from managing foreign commodity pools, including additional management fees received based upon positive returns. However, exclude gains and losses to principal amounts you have invested in the pool; in this case, your earnings are considered to be capital gains, which are not covered on Schedules A and B. (Similar guidelines pertain to the earnings of U.S. persons who manage foreign hedge funds; i.e., report management fees including additional fees based on positive returns, but do not report gains or losses to principal amounts invested in the funds.) Do not report receipts (payments) of your foreign affiliates from (to) foreign persons. For example, where your foreign affiliate manages foreign assets, the management fee paid by foreign clients to your foreign affiliate should not be reported on this form, because the fee was not received by the U.S. Reporter from an unaffiliated foreign person. (See II. and III. of the Instructions for a discussion of foreign activities of a U.S. person that constitute a foreign affiliate.) Similarly, fees paid by you to, or received by you from, a U.S. affiliate of a foreign person should not be reported. Do not report funding for foreign sales promotion and representative offices in this survey. Such funding should be reported instead on Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons. E. Credit-related services, except credit card services (service number 5) — Includes fees received from or paid to unaffiliated foreign persons for credit-related or lending-related services, such as fees for renegotiating debt terms and fees for establishing/originating, maintaining, or arranging standby letters of credit, commercial and similar letters of credit, letters of indemnity, lines of credit, participations in acceptances, mortgages, credit facilities, etc. Include fees for factoring services, issuing financial guarantees and loan commitments (to make or purchase loans), arranging or entering into financial lease contracts, etc. Include both fees paid directly and fees that are withheld or deducted from the proceeds. Include fees for credit-related services received by, or paid to, note issuance facilities (NIF's), but do not report underwriting fees on notes issued by NIF's; these should instead be reported under service number 3, underwriting services. Also, do not report interest received or paid, including discounts and premiums on notes purchased or sold. If you are a member of a loan syndicate, or of loan participations other than syndicates, report fees received and paid for organizing and managing the operation. Do not report the sale of assets (i.e., of parts or shares in the syndicated loan), because these are not financial services. Where you have collected a fee from an unaffiliated foreign person on a loan syndication and passed through a portion of the fee to foreign syndicate members, report the total fee you received on Schedule A and report the portion of the fee you passed through on Schedule B. Borrowers under loan syndicates or loan participations other than syndicates should report payments of fees according to the country of the lead manager of the syndicate. Report payments of credit-related fees in the accounting period in which the fee is assessed by the provider of credit-related services, whether included in expenses for that particular accounting period or amortized over several accounting periods. If compensating balances are reflected in the cost of credit-related services, the amount that should be reported is the (net) amount received or paid for credit-related services after credit for the value of the compensating balances. That is, the value of the compensating balance to the bank, in the form of foregone interest expense, should not be reported, but, if the bank returns some portion of its savings to its customers in the form of a credit against other financial services provided, the amount to report for the other financial services provided should be the reduced charge after consideration of this credit. BE-8CKI) 00/94) Page 9 ions ment s, but ng, or lase :racts, for suance Dfl ed do not vices, if the nder sfor several ng lance to should in of its nst lortfor rei :duced V. SERVICES COVERED — Continued Credit card services (service number 6) — All cross-border receipts and payments for credit card services should be reported, whether explicit or in the form of a discount from face or par value. U.S. credit card companies (such as Visa and MasterCard) must report specified transactions in which they themselves engage with unaffiliated foreign persons, as well as specified transactions of their independent issuers or acquirers with foreign persons. Thus, in order to avoid duplication, their independent credit card issuers and acquirers are exempt from reporting data on these credit card services. The major types of credit card services sold to or purchased from unaffiliated foreign persons by U.S. credit card companies are listed below. Total receipts and payments must be separately reported. Total receipts (or total payments) of credit card services are the sum of receipts (or payments) from all of these credit card services combined. • Transaction and service fees received from or paid to foreign acquirers and issuers • Interchange received from foreign acquirers or paid to foreign issuers • Discount (including interchange and overhead assessments, reimbursements for telecommunication services, etc.) received from or paid to foreign acquirers and issuers • Payments to foreign issuers, acquirers, or merchants under guarantees to protect them from losses from a default in the processing network • Fees you received from foreign issuers for credit authorization services • Fees you received from foreign issuers for listing lost or stolen credit card numbers in warning bulletins or on electronic files • Resignation assessments or membership fees received from foreign issuers and acquirers • Multi-currency conversion fees received from foreign issuers or paid to foreign acquirers, processing centers, or issuers Do not report receipts or payments for credit card enhancements, such as travel insurance, extended warranties, and discounts on tour packages or other purchases. G. Financial advisory and custody services (service number 7) — Covers financial advisory services on mergers and acquisitions (but excludes services where you were at risk of incurring a loss, such as underwriting services (service number 3)), investment newsletters or investment advice, commodity trading advisory services, proxy voting advisory services, custody services (including payments and settlements services such as mortgage servicing services), and other advisory and custody services provided by U.S. or foreign persons who have no discretion, or who have very limited discretion, to act independently from instructions provided by the investor or another principal. Custodians and subcustodians are persons who manage the custody or safekeeping of securities or other financial instruments. (A subcustodian performs these services as a contractor to a custodian.) U.S. -based custodians and subcustodians who manage the custody or safekeeping of securities directly on behalf of unaffiliated foreign persons (including unaffiliated foreign-based custodians or subcustodians) should report their receipts on Schedule A; U.S.- based private label custodians and other U.S. persons should report their payments of fees to foreign global custodians on Schedule B. Page 10 U.S. issuers of American Depositary Receipts (ADR's) and American Depositary Shares (ADS's) should report on Schedule B their payments to unaffiliated foreign correspondent institutions for holding the securities backing the ADR's and ADS's. U.S. issuers of ADS's should also report, on Schedule A, any receipts of sponsorship fees from unaffiliated foreign persons. Do not include fees received from or paid to a U.S. subsidiary (or U.S. affiliate) of a foreign person, because, under balance of payments conventions, these are considered U.S., not foreign, persons. Where you do have complete (or substantially complete) discretion to act independently from instructions provided by investors or other principals, report your receipts under service number 4, financial management services. Similarly, where you are an investor or principal, and an unaffiliated foreign person has complete (or substantially complete) discretion to act independently on your behalf, report your payments under service number 4. H. Securities lending services (service number 8) — U.S. securities lenders and borrowers, and their agents, should report amounts received directly from, or paid directly to, unaffiliated foreign persons, for lending or borrowing securities. Include fees received by or paid to principals or agents for arranging loan terms and conditions, monitoring the value of collateral, providing guarantees against default, and providing other securities lending services. Include rebates received or paid on "borrow versus cash transactions." Exclude amounts received from, or paid to, unaffiliated foreign persons by a U.S. or foreign agent upon the default of a customer, because such payments are not considered to be for financial services. Exclude interest under repurchase or reverse repurchase agreements, because interest is not reportable (although, as mentioned, rebates are reportable) on this form. Foreign exchange brokerage services (service number 9) — Report explicit brokerage fees and commissions for foreign exchange brokerage services, but exclude earnings from acting as a dealer where the dealer was "at risk" of incurring losses. Thus, earnings from marking positions to market, and inherent earnings from dealer markups on buy and sell transactions (i.e., bid/ask price spreads), should not be reported. Credit card companies should report multi-currency conversion fees under service number 6, credit card services, rather than as foreign exchange brokerage services. J. Other financial services (service number 10) (Specify primary type(s) in comments section of Schedule A or B, as appropriate.) — Include the total amount of fees you received from or paid to unaffiliated foreign persons for all other financial services combined, such as those listed below. Indicate the type(s) of service(s) accounting for the largest share of the data being reported in the space provided at the bottom of the schedules. Examples of services that may be reported under this category include: Asset pricing services; securities rating services; electronic funds transfer services (include payments to SWIFT, in Belgium); mutual fund exit fees, load charges and 1 2b— I service fees; security redemption or transfer services; ATM network services; security clearing and settling services; and brokerage services not covered above, such as for arranging joint ventures. However, do not report real estate brokerage fees (real estate services), business brokerage fees (business services), and commodity or merchandise brokerage fees (wholesale or retail trade services), because these are not considered financial services. Note that some types of financial services are not covered on this form. See VI. of the Instructions for a list of types of financial services that should not be reported. BE-80(I) (10/94) VI. TYPES OF FINANCIAL SERVICES EXCLUDED FROM COVERAGE The following types of financial services are not covered by this survey: A. Stock quotation and financial information services — These are instead covered by Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons, under data base and other information services. B. Insurance premiums and losses, and commissions on insurance — These are not covered on Form BE-80, but are covered on other BEA forms. (See IV. of these Instructions for information on whom to call regarding these forms.) Charges at the individual policy level also are not covered by this form. C. Annuity purchases and payments — Annuity purchases and payments to annuitants are not covered by this form. Also, charges at the individual policy level, including insurance-company fees on variable annuities, are not covered by this form. D. Pension fund contributions and benefits — Pension fund contributions and pension benefits are not covered by this form. However, U.S. pension funds may engage in other financial services transactions that are reportable on this form, including payments of brokerage commissions and fees for investment management or financial advisory services to unaffiliated foreign persons. E. Interest and dividend receipts and payments — Under balance of payments conventions, interest and dividends are considered to be investment income rather than income from services, and are therefore not covered on this form. F. Premiums and other proceeds from writing (selling) options, forwards, futures, and swaps — Premiums from writing options, and fees and other proceeds from writing forwards, futures, and swaps are not covered by this form. (However, explicit brokerage commissions on transactions in these financial instruments are covered under service number 1, brokerage, except foreign exchange brokerage services.) G. Earnings of principals from buying and selling (including dealing, trading, holding, or arbitrage) of financial instruments, except foreign currency exchange transactions — Under balance of payments conventions, these types of earnings are considered to be "capital gains" (i.e., earnings that are not from current production) rather than payments for financial services, and are therefore not covered by this form. However, underwriting is considered to be a financial service, and is covered under service number 3. H. Foreign currency exchange transactions — Bid/ask price spreads and trading profits on currency exchange transactions are not covered. However, explicit commissions paid to currency exchange brokers are covered under service number 9, foreign exchange brokerage services. VII. REPORTING PROCEDURES A. Due date — A completed BE-80 for fiscal year 1994 transactions is due by May 31, 1995. B. Extension — BEA hopes that by providing until May 31 for respondents to file their report, requests for extensions of time to report will not be necessary. Delays in filing necessarily affect BEA's already tight processing schedule for the benchmark survey. Nevertheless, requests for extension will be considered in hardship cases. They must be in writing and received by BEA at least 15 days before the due date of the report (i.e., by May 16, 1995), and include substantive reasons for the extension. BEA will provide a written response to such requests. C. Assistance — For assistance or additional copies of the forms, telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. D. Number of copies — A single original copy of each required form (including Form BE-80(A) and, if appropriate, one or more Forms BE-80(B)) must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. Companies that elect to file separate reports for their separately organized financial services subsidiaries or parts must file a separate original copy of Form BE-80(B) for each separate subsidiary or part. In addition, each U.S. Reporter must retain a copy of each report to facilitate resolution of problems. In order to facilitate survey processing, BEA requests that respondents assemble together and file in a single packet Form BE-80(A) and all Forms BE-80(B) for their enterprise. E. Where to send the report — Reports filed by mail through the U.S. Postal Service should be sent to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Washington, DC 20230. Reports filed by direct private delivery should be directed to U.S. Department of Commerce, Bureau of Economic Analysis BE-50(SSB), Shipping and Receiving, Room M-100, 1441 L Street, N.W., Washington DC 20005. F. Estimates — If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. BE-30fI, (10/94) Page 11 OMB No. 0608-0063: Approval Expires 09/30/98 31 for ns of form BE-82(A) (Report for Consolidated (8/96) u.S. Enterprise) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS MANDATORY — CONFIDENTIAL ANNUAL SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S. FINANCIAL SERVICES PROVIDERS AND UNAFFILIATED FOREIGN PERSONS Public reporting burden for this collection of information (consisting of Form BE-82(A) and, as appropriate, one or more Forms BE-82(B)) is estimated to vary from 4 to 150 hours per response, with an average of 7.5 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate, including suggestions for reducing this burden, to Director, Bureau of Economic Analysis (BE-1), U.S. Department of Commerce, Washington, DC 20230; and to the Office of Management and Budget, Paperwork Reduction Project 0608-0063, Washington, DC 20503. BEA USE ONLY Control number O O or pan if each MAIL REPORTS TO DELIVER REPORTS TO U.S. Department of Commerce Bureau of Economic Analysis BE-50ISSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Shipping & Receiving, Room M-100 1441 L Street, NW Washington, DC 20005 NAME, ADDRESS, AND DETERMINATION OF REPORTING STATUS Name and address of the consolidated U.S. enterprise — Enter or correct as necessary. ilysis /direct entof Form BE-82(A) covers all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries combined. If you are not the top U.S. parent corporation in the consolidated enterprise, you may need to contact your top parent corporation to ensure that the information provided is for all reportable units of the enterprise combined. A. Due date — A completed BE-82, consisting of Form BE-82(A) and, as appropriate, one or more Forms BE-82(B), is due March 31 of the calendar year following the one in which the U.S. Reporter's fiscal year ends. B. What to file — All persons who receive copies of this survey must complete Part I of Form BE-82(A). All persons subject to the mandatory reporting requirement must also complete Part II of Form BE-82(A), and Parts I and II and the mandatory section(s) of the appropriate schedule(s) of Form BE-82(B). Persons who are exempt from the mandatory reporting requirement but who elect to report data voluntarily are asked to also complete Part II of Form BE-82(A), and Parts I and II and the voluntary section(s) of the appropriate schedule(s) of Form BE-82(B). Recipients of this form that are exempt from mandatory reporting and do not wish to report data voluntarily must complete Part I of Form BE-82(A) and the Exemption Claim. In order to facilitate survey processing, respondents should assemble together and file in a single packet Form BE-82(A) and all Forms BE-82(B) for their enterprise. C. Assistance — For assistance or additional copies of the forms, telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. D. Number of copies — A single original copy of the survey (including Form BE-82(A) and, as appropriate, one or more Forms BE-82(B)) must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. Companies that elect to file separate reports for their separately organized financial services subsidiaries or parts must file a separate original copy of Form BE-82(B) for each separate subsidiary or part. In addition, each U.S. Reporter must retain a copy of each report to facilitate resolution of problems. E. Estimates — If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS FORM BE-82(A) REPORT — Enter name and telephone number. CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VII. F of the Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Name Authorized official's signature TELEPHONE NUMBER Area code Number Extension Print or type name and title Date NAME, ADDRESS, AND DETERMINATION OF REPORTING STATUS — Continued 2. Determination of reporting status A U.S. person that is a financial services provider (or whose consolidated enterprise includes a subsidiary or part that is a financial services provider) may be required to report. If transactions (either sales or purchases) with unaffiliated foreign persons in all types of covered financial services combined (see V. of the Instructions) by all financial services providers within a consolidated U.S. enterprise exceed $5 million during the U.S. person's fiscal year, a BE-82 report (consisting of a Form BE-82(A) and one or more Forms BE-82(B)) must be filed. The $5 million threshold applies separately to sales and purchases, and the mandatory reporting requirement may apply only to sales, only to purchases, or to both sales and purchases. In determining reporting status, the estimates of sales and purchases may be judgmental, that is, not based on a search of accounting records but instead on the recollection of knowledgeable persons within the company who are in a position to know whether the company engaged in any significant transactions in financial services during the year and, if so, the approximate total value of such transactions. If transactions (either sales or purchases) with unaffiliated foreign persons in all types of financial services combined by all financial services providers within an enterprise are $5 million or less during the fiscal year, the U.S. person may voluntarily report the estimated totals for each type of service, not distributed by individual foreign country, on line 20 of Schedule A and/or B of Form BE-82(B), as appropriate. (However, if information on the foreign countries involved in the transactions is readily available, the totals and a disaggregation by country may instead be reported in the mandatory section.) Because the $5 million threshold applies separately to sales and purchases, this voluntary reporting option may apply only to sales, only to purchases, or to both sales and purchases. For purposes of this survey, a separate Form BE-82(B) may be filed for each separately organized financial services subsidiary or part of a consolidated U.S. enterprise, or a single Form BE-82(B) may be filed, representing the sum of covered transactions by all financial services subsidiaries or parts of the enterprise combined. In either case, the determination of reporting status below should be based on the fully consolidated U.S. enterprise, including the top parent and all of its subsidiaries and parts. Annual report for fiscal year ending Year Mark (X) one: H "N > Proceed to item 3 of this Part. Q The consolidated U.S. enterprise (including the top parent and all of its subsidiaries and parts, whether reporting together or separately) is required to report data in the mandatory section of at least one Form BE-82(B). U The consolidated U.S. enterprise (including the top parent and all of its financial subsidiaries and parts, whether reporting together or separately) is not required to report data in the mandatory sections of Form BE-82(B) but elects to report data voluntarily. D The consolidated U.S. enterprise is not reporting data in either the mandatory or voluntary section of Form BE-82(B). — Complete the Exemption Claim on page 3; SKIP item 3 of this Part. 3. Employer Identification Number (EIN) of the consolidated U.S. enterprise. 10002 10003 Primary EIN — • — Additional EIN (if available) — i — 20001 BEA USE ONLY c Page 2 FORM BE-821A) 18/96). LIST OF ALL FINANCIAL SERVICES PROVIDERS REPORTING SEPARATELY Complete Part II only if you checked box 1 or 2 in Part I, item 2. List below the name(s) of the financial services providers within the consolidated U.S. enterprise that are reporting separately on Form BE-82(B). If you are filing only a single Form BE-82(B) covering all financial services providers of the consolidated U.S. enterprise combined, only one entry should appear below. Continue listing onto as many additional copied pages as necessary. BEA USE ONLY Name(s) of U.S. Reporters filing separate Form(s) BE-82(B) 10004 10005 10006 10010 10. EXEMPTION CLAIM Complete this Exemption Claim only if you marked (X) box 3 in Part I, item 2, of this form. Neither the consolidated U.S. enterprise nor any of its subsidiaries or parts is reporting any data on any Form BE-82(B) because the consolidated enterprise: Mark (X) appropriate box. □ Was not in existence at any time during the reporting period. D Had no subsidiaries or parts that were financial services providers. D Had no transactions, either sales or purchases, of the types of financial services covered, with unaffiliated foreign persons. Q Had transactions, either sales or purchases, of the types covered, but is not subject to the mandatory reporting requirement, because neither its sales nor its purchases of financial services exceeded $5 million (See I.A.I, of the Instructions — Exemption is based upon sales or purchases of financial services by all subsidiaries or parts of the consolidated U.S. enterprise that are financial services providers combined). The U.S. enterprise does not wish to report the data voluntarily. The total amount of the transactions with unaffiliated foreign persons by this consolidated U.S. enterprise, for all financial services combined, was approximately — 10014 1 2 3 4 Report in thousands of U.S. dollars Sales Purchases i $ 2 $ Q Other — Specify ■? NOTE ► If you marked (X) a box in this Exemption Claim, your enterprise should not complete any Forms BE-82(B). FORM BE-82IA) (8/96) Page 3 I BEAU OMB No. 0608-0063: Approval Expires 09/30/98 form BE-82(B) (Report for Financial Services <8fl61 Provider) U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS MANDATORY — CONFIDENTIAL ANNUAL SURVEY OF FINANCIAL SERVICES TRANSACTIONS BETWEEN U.S. FINANCIAL SERVICES PROVIDERS AND UNAFFILIATED FOREIGN PERSONS BEA USE ONLY Control number B U.S. Department of Commerce Bureau of Economic Analysis BE-50(SSB) Washington, DC 20230 OR U.S. Department of Commerce Bureau of Economic Analysis BE-50ISSB) Shipping & Receiving, Room M-100 1441 L Street, NW Washington, DC 20005 IDENTIFICATION OF FINANCIAL SERVICES PROVIDER 1. Name and address of U.S. Reporter — Enter the name and address of the U.S. person filing this report. If this report is for a separately organized financial services subsidiary or part of a consolidated enterprise, give the name and address of the subsidiary or part that is reporting on this Form BE-82(B). If an address label is affixed, make corrections as appropriate. Name and control number (if known) of the consolidated U.S. enterprise of which the U.S. Reporter identified above is a subsidiary or part — If the U.S. Reporter named above is a separately organized financial services subsidiary or part of a consolidated U.S. enterprise, give the control number (if known) and name of the consolidated U.S. enterprise of which it is a part; otherwise, do not complete this item. The control number of the U.S. enterprise is located on the address label that may be affixed to Form BE-82(A), Part I, item 1. Control number of consolidated U.S. enterprise Name Due date — A completed BE-82, consisting of Form BE-82(A) and, as appropriate, one or more Forms BE-82(B), is due March 31 of the calendar year following the one in which the U.S. Reporter's fiscal year ends. Assistance — For assistance or additional copies of the forms, telephone (202) 606-5588 between 8:00 a.m. and 4:00 p.m., eastern time. IMPORTANT NOTE — Before completing this Form BE-82(B), a consolidated U.S. enterprise (including the top parent and all of its subsidiaries and parts combined) must complete Form BE-82(A) to determine its reporting status. If the enterprise is subject to the mandatory reporting requirement, or if it is exempt from the mandatory reporting requirement but chooses to report data voluntarily, either a separate Form BE-82(B) may be filed for each separately organized financial services subsidiary or part of the consolidated U.S. enterprise, or a single BE-82(B) may be filed, representing the sum of covered transactions by all financial services subsidiaries or parts of the enterprise combined. The number of Forms BE-82(B) filed must agree with the number of U.S. Reporters listed in Part II of Form BE-82(A). PERSON TO CONSULT CONCERNING QUESTIONS ABOUT THIS FORM BE-82(B) REPORT — Enter name and address. CERTIFICATION — The undersigned official certifies that this report has been prepared in accordance with the applicable instructions, is complete, and is substantially accurate except that, in accordance with VII. F of the Instructions, estimates have been provided where data are not available from customary accounting records or precise data could not be obtained without undue burden. Authorized official's signature TELEPHONE NUMBER Area code Number Extension Print or type name and title Date "WW IDENTIFICATION OF FINANCIAL SERVICES PROVIDER — Continued A. What to file — All persons who receive copies of this survey must complete Part I of Form BE-82(A). All persons subject to the mandatory reporting requirement must also complete Part II of Form BE-82(A), and Parts I and II and the mandatory section(s) of the appropriate schedule(s) of Form BE-82(B). Persons who are exempt from the mandatory reporting requirement but who elect to report data voluntarily are asked to also complete Part II of Form BE-82(A), and Parts I and II and the voluntary section(s) of the appropriate schedule(s) of Form BE-82(B). Recipients of the survey that are exempt from mandatory reporting and do not wish to report data voluntarily must complete Part I and the Exemption Claim on Form BE-82(A). In order to facilitate survey processing, respondents should assemble together and file in a single packet Form BE-82(A) and all Forms BE-82(B) for their enterprise. B. Number of copies — A single original copy of the survey (including Form BE-82(A) and, as appropriate, one or more Forms BE-82(B)) must be filed with BEA. Please use the copy with the address label if such a labeled copy has been provided. Companies that elect to file separate reports for their separately organized financial services subsidiaries or parts must file a separate original copy of Form BE-82(B) for each separate subsidiary or part. In addition, each U.S. Reporter must retain a copy of each report to facilitate resolution of problems. C. Estimates — If actual figures are not available, estimates should be supplied and labeled as such. When data items cannot be fully subdivided as required, totals and an estimated breakdown of the totals should be supplied. D. Currency amounts — All currency amounts should be reported in U.S. dollars rounded to thousands (omitting 000). EXAMPLE — If the amount is $1,000,000, report as $1,000. Amounts less than $500.00 round to "0" and should, therefore, not be reported. 1. Report for fiscal year ending Month Day Year 1 Fiscal year 19x1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. 2. Industry classification — Enter the 3-digit code from the Guide to Industry and Foreign Trade Classifications for International Surveys (or from the more condensed "Summary of Industry Classifications") in which the U.S. Reporter's sales or gross operating revenues are largest. • Where the consolidated U.S. enterprise is filing a single Form BE-82(B) classification of the consolidated U.S. enterprise. Give the industry Where the consolidated U.S. enterprise is filing more than one Form BE-82(B) — Give the industry classification of the subsidiary or part being reported on this Form BE-82(B). 3. Primary Employer Identification Number used by the U.S. Reporter named in Part I, item 1 of this Form BE-82(B). Remarks 20005 BEA USE ONLY FORM BE-82IB) (8/96) Page 2 Continued SCHEDULE A — Receipts of Fees and Commissions From Unaffiliated Foreign Persons for Financial Services The mandatory section of Schedule A is required to be completed for each type of financial service listed below if total sales to unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries exceed $5,000,000. The voluntary section is requested to be completed if total sales to unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries are $5,000,000 or less. Enter the number associated with the type of financial service, instead of the complete title of the service, in the column heading of Schedule A. See V. of the Instructions for complete descriptions of the types of financial services covered. Enter the names of countries not on the preprinted list, as appropriate, in the left hand margin of Schedule A. Transactions with international organizations are considered to be with unaffiliated foreign persons; these may be shown opposite an abbreviated designation, "Int'l Org." Use additional copied sheets to list additional countries, as necessary. Service number Service Brokerage, except foreign exchange brokerage services Private placement services Underwriting services Financial management services Credit-related services, except credit card services Credit card services Financial advisory and custody services Securities lending services Foreign exchange brokerage services 10 Other financial services • If you use this service number — Enter on the schedule the total amount of fees you received for all other financial services combined. See V. of the Instructions for examples of types of financial services to report under this service number. • If you reported data in the mandatory section of Schedule A under this service number — Enter a brief description of the primary type(s) of service(s) sold, -g FORM EE-32'Bt (8/96) Page 3 ! Continued SCHEDULE A — Receiots of Fees and Commissions Prnm 1 Innff ilia-tort Pnroinrt A1 Persons for Financial Services RECEIPTS FROM BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Service number: Service number: Service number: Service number: Service number: (3) (4) (5) (6) (7) (1) (2) MANDATORY Complete if total receipts aiooo of fees and commissions by the consolidated U.S. enterprise exceed $5,000,000. Also complete question 21, as appropriate. 1. All countries, total 001 1 2 3 4 5 6 7 1 2 3 4 5 6 7 2. Belgium 002 1 302 2 3 4 5 6 7 3. Canada 003 1 100 2 3 4 5 6 / 4. France 004 1 307 2 3 4 5 6 7 5. Germany 005 1 308 2 3 4 5 6 7 6. Hong Kong 006 1 611 2 3 4 5 6 7 7. Italy 007 1 314 2 3 4 5 6 7 8. Japan oos 1 614 2 3 4 5 6 7 9. Netherlands 009 1 319 2 3 4 5 6 / 10. Singapore 010 1 625 2 3 4 5 6 7 11. United Kingdom on 1 327 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary.) 12. 012 1 2 3 4 5 6 7 13. 013 i 2 3 4 5 6 7 14. 014 1 2 3 4 5 6 7 15. 015 1 2 3 4 5 6 7 16. 016 1 2 3 4 5 6 7 17. 017 1 2 3 4 5 6 7 18. 018 1 2 3 4 5 6 7 19. 019 1 2 3 4 5 6 7 VOLUNTARY Complete if total receipts of fees and commissions by the consolidated U.S. enterprise are $5,000,000 or less. 20. All countries, total 020 NOT mus 1 709 E- t COI 2 - If total receipts nplete the MAN 3 for all financial s DATORY sectior 4 ervices combinec above, and line 5 1 exceed $5 milli 20 must be left I 6 3n - You ilank. i MANDATORY • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 1 — Complete item 21. • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 10 — Describe the primary type(s) of service(s) in the space provided on page 3 of this form. 21. If you reported data in the mandatory section of Schedule A under service number 1, brc except foreign exchange brokerage services — Indicate the approximate amount of the t countries combined that was for transactions in each of the following groups of financial (These estimates may be based upon the judgment of knowledgeable persons, without c detailed records search.) )kerage. products, onducting a Report in thousands of U.S. dollars (1) a. Long-term securities (stocks and bonds, including collateralized mortgage obligations no original maturity or with original maturity of more than 1 year) , with 021 i b. Long-term and short-term derivative products (i.e., options, futures, swaps, forwards, and warrants) 022 i c. Other (such as commercial paper and bankers acceptances) 023 i FORM BE-82IB) (8/96) Page 4 Continued SCHEDULE B — Payments of Fees and Commissions to Unaffiliated Foreign Persons for Financial Services The mandatory section of Schedule B is required to be completed for each type of financial service listed below if total purchases from unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries exceed $5,000,000. The voluntary section is requested to be completed if total purchases from unaffiliated foreign persons of all types of financial services combined by all subsidiaries and parts of the consolidated U.S. enterprise that are financial services providers or intermediaries are $5,000,000 or less. Enter the number associated with the type of financial service, instead of the complete title of the service, in the column heading of Schedule B. See V. of the Instructions for complete descriptions of the types of financial services covered. Enter the names of countries not on the preprinted list, as appropriate, in the left hand margin of Schedule B. Transactions with international organizations are considered to be with unaffiliated foreign persons; these may be shown opposite an abbreviated designation, "Int'l Org." Use additional copied sheets to list additional countries, as necessary. Service number Service 1 Brokerage, except foreign exchange brokerage services 2 Private placement services 3 Underwriting services 4 Financial management services 5 Credit-related services, except credit card services 6 Credit card services 7 Financial advisory and custody services 8 Securities lending services 9 Foreign exchange brokerage services 10 Other financial services • If you use this service number — Enter on the schedule the total amount of fees you paid for all other financial services combined. See V. of the Instructions for examples of types of financial services to report under this service number. • If you reported data in the mandatory section of Schedule B under this service number — Enter a brief description of the primary type(s) of service(s) purchased, -g FORM BE-32IB) (8/96) Page 5 1 fr : - 111 j Continued SCHEDULE B Pavments of Fees and Commissions to Unaffiliated Foreian B1 Persons for Financial Services PAYMENTS TO BEA USE ONLY REPORT IN THOUSANDS OF U.S. DOLLARS Service number: Service number: Service number: Service number: Service number: (3) (4) (5) (6) (7) (1) (2) MANDATORY Complete if total biooo payments of fees and commissions by the consolidated U.S. enterprise exceed $5,000,000. Also complete question 21, as appropriate. 1. All countries, total 001 1 2 3 4 5 6 7 1 2 3 4 5 6 7 2. Belgium 002 1 302 2 3 4 5 6 7 3. Canada 003 1 100 2 3 4 5 6 7 4. France 004 1 307 2 3 4 5 6 7 5. Germany 005 1 308 2 3 4 5 6 7 6. Hong Kong 006 1 611 2 3 4 5 6 / 7. Italy 007 1 314 2 3 4 5 6 7 8. Japan oos 1 614 2 3 4 5 6 7 9. Netherlands 009 1 319 2 3 4 5 6 7 10. Singapore 010 1 625 2 3 4 5 6 7 11. United Kingdom on 1 327 2 3 4 5 6 7 Other — Specify (Use additional copied sheets as necessary.) 12. 012 1 2 3 4 5 6 7 13. 013 1 2 3 4 5 6 7 14. 014 1 2 3 4 5 6 7 15. 015 1 2 3 4 5 6 7 16. 016 1 2 3 4 5 6 7 17. 017 1 2 3 4 5 6 7 18. 018 1 2 3 4 5 6 7 19. 019 1 2 3 4 5 6 7 VOLUNTARY Complete if total payments of fees and commissions by the consolidated U.S. enterprise are $5,000,000 or less. 20. All countries, total 020 NOTE — If total payments for all financial services combined exceed $5 million - You must complete the MANDATORY section above, and line 20 must be left blank. 1 709 2 3 4 5 6 7 MANDATORY • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 1 — Complete item 21. • If you are subject to the survey's mandatory reporting requirement and you entered data under service number 10 — Describe the primary type(s) of service(s) in the space provided on page 5 of this form. 21. If you reported data in the mandatory section of Schedule B under service number 1, brokerage, except foreign exchange brokerage services — Indicate the approximate amount of the total for all countries combined that was for transactions in each of the following groups of financial products. (These estimates may be based upon the judgment of knowledgeable persons, without conducting a detailed records search.) a. Long-term securities (stocks and bonds, including collateralized mortgage obligations, with no original maturity or with original maturity of more than 1 year) 021 Report in thousands of U.S. dollars (1) 1 b. Long-term and short-term derivative products (i.e., options, futures, swaps, forwards, and warrants) 022 1 c. Other (such as commercial paper and bankers acceptances) 023 1 FORM BE-82IB) (8/96) Page 6 U.S. DEPARTMENT OF COMMERCE BUREAU OF ECONOMIC ANALYSIS FORM BE-82 INSTRUCTION BOOKLET Annual Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons VI CONTENTS I. WHO MUST REPORT AND GENERAL COVERAGE A. Who must report 1. Mandatory and voluntary reporting a. Mandatory reporting b. Voluntary reporting 2. Consolidation B. General coverage 1. The BE-82 measure of sales (receipts) or purchases (payments) 2. BE-82 definition of financial services provider 3. Clarification of general coverage, including special situations II. DEFINITIONS III. GENERAL INSTRUCTIONS A. How to differentiate between U.S. and foreign persons B. Who must report a transaction when an intermediary is involved C. Distinguishing transactions with affiliated foreign persons from transactions with unaffiliated foreign persons IV. RELATED FORMS V. SERVICES COVERED A. Brokerage, except foreign exchange brokerage services B. Private placement services C. Underwriting services D. Financial management services E. Credit-related services, except credit card services F. Credit card services G. Financial advisory and custody services H. Securities lending services I. Foreign exchange brokerage services J. Other financial services VI. TYPES OF FINANCIAL SERVICES EXCLUDED FROM COVERAGE A. Stock quotation and financial information services B. Insurance premiums and losses, and commissions on insurance C. Annuity purchases and payments D. Pension fund contributions and benefits E. Interest and dividend receipts and payments F. Premiums and other proceeds from writing (selling) options, forwards, futures, and swaps G. Earnings of principals from buying and selling (including dealing, trading, holding, or arbitrage) of financial instruments, except foreign currency exchange transactions . . H. Foreign currency exchange transactions VII. REPORTING PROCEDURES A. Due date B. Extension C. Assistance D. Original and file copies E. Where to send the report F. Estimates PAGE 5 5 6 6 6 7 8 8 8 9 9 9 9 10 10 10 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 BE-82U) (8/96) Page 3 INSTRUCTIONS Purpose — Reports on this form are required in order to obtain reliable and up-to-date information on financial services transactions between U.S. financial services providers and unaffiliated foreign persons. The information is needed to support trade negotiations and monitor trade agreements, formulate U.S. international economic policy, and analyze the impact of that policy and the policies of foreign countries on international trade in financial services. The data will also be used in compiling the U.S. balance of payments accounts and national income and product accounts. Authority — The filing of reports for this survey is authorized by Section 3103 of the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108, as amended), and by Section 5408 of the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418, 15 U.S.C. 4908(c)). Regulations for the survey may be found in 15 CFR Part 801. The survey has been approved by the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501, et seq). Penalties — Whoever fails to report may 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. (See 22 U.S.C. 3105.) Notwithstanding the above, a U.S. person is not subject to any penalty for failure to report if a valid Office of Management and Budget control number is not displayed on the form; such a number (0608-0063) is displayed on this form. Confidentiality — The International Investment and Trade in Services Survey Act provides that your report to this Bureau is CONFIDENTIAL. It also provides that your report may be used only for analytical or statistical purposes, and CANNOT be used for purposes of taxation, investigation, or regulation. Copies retained in your files are immune from legal process. I. WHO MUST REPORT AND GENERAL COVERAGE A. Who must report 1. Mandatory and voluntary reporting a. Mandatory reporting — A BE-82 report is required from each U.S. person who (i) is a financial services provider or intermediary (see LB. 2. of these Instructions), or whose consolidated U.S. enterprise includes a separately organized subsidiary or part that is a financial services provider or intermediary, and (ii) had transactions (either sales or purchases) directly with unaffiliated foreign persons in all financial services combined (see V. of these Instructions) in excess of $5,000,000 during its fiscal year covered by the survey . The $5,000,000 threshold should be applied to financial services transactions with unaffiliated foreign persons by all parts of the consolidated U.S. enterprise combined that are financial services providers or intermediaries, regardless of whether the subsidiaries or parts of the organization file separate Forms BE-82(B). Because the $5,000,000 threshold applies separately to sales and purchases, this mandatory reporting requirement may apply only to sales, only to purchases, or to both sales and purchases. The determination of whether a U.S. financial services provider or intermediary is subject to this mandatory reporting requirement may be judgmental, that is, based on the judgment of knowledgeable persons in a company who can identify reportable transactions on a recall basis, with a reasonable degree of certainty, without conducting a detailed manual records search. Reporters who must file pursuant to this mandatory reporting requirement must complete Parts I and II of Form BE-82(A), and Parts I and II and the mandatory parts of the applicable schedule(s) of Form BE-82(B). The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 1 of the schedule. In addition, these amounts must be distributed below line 1 to the foreign country(ies) involved in the transaction(s). b. Voluntary reporting — If, during the fiscal year, covered sales or purchases (see V. of these Instructions) by a firm that is a financial services provider or intermediary, or by a firm's subsidiaries or parts combined that are financial services providers or intermediaries, are $5,000,000 or less, the U.S. person is requested to provide an estimate of the total for each type of service. Provision of this information is voluntary. The estimates may be judgmental, that is, based on recall, without conducting a detailed manual records search. Because the $5,000,000 threshold applies separately to sales and purchases, this voluntary reporting option may apply only to sales, only to purchases, or to both sales and purchases. Reporters who elect to file pursuant to the voluntary reporting option should complete Parts I and II of Form BE-82(A), and Parts I and II and the voluntary parts of the applicable schedule(s) of Form BE-82(B). The total amounts of transactions applicable to a particular schedule are to be entered in the appropriate column(s) on line 20 of the schedule. Disaggregation by country is not required if transactions with unaffiliated foreign persons in all types of financial services combined total $5,000,000 or less. However, if information on the foreign countries involved in the transactions is readily available, the totals and a disaggregation by country may instead be reported in the mandatory section. c. Exemption — A U.S. person receiving this report from BEA who does not meet the criteria for reporting in the mandatory section, and who elects not to report data in the voluntary section, of Form BE-82(B), must complete the Exemption Claim on page 3 of Form BE-82(A). Consolidation — A consolidated U.S. enterprise has the option of filing a single, original copy of Form BE-82(B) covering combined (total) financial services transactions (purchases and sales) of all its subsidiaries and parts that are financial services providers or intermediaries, or of filing separate reports for its separately organized financial services subsidiaries and parts. In either case, Form BE-82(A) must also be completed for the consolidated U.S. enterprise. The $5,000,000 exemption level for mandatory reporting is based upon total financial services purchased from, or sold to, unaffiliated foreign persons by all parts of the consolidated U.S. enterprise that are financial services providers or intermediaries combined, regardless of the number of subsidiaries or parts of the enterprise filing separate Forms BE-82(B). BE-82M) (8/96) Page 5 I. WHO MUST REPORT AND GENERAL COVERAGE — Continued B. General Coverage 1. The BE-82 measure of sales (receipts) or purchases (payments) For most types of financial services covered by this survey, sales and purchases are the measures used to determine whether the threshold for mandatory reporting ofthe service is exceeded. However, for some services, an item other than sales or purchases may be appropriate. For example, payments of underwriting fees (reportable on Schedule B) must be calculated by an issuer of securities by first estimating gross proceeds to the foreign lead underwriter from the sale to the public of the securities (based upon the number of units of securities sold times the per unit public offer price), and then subtracting the net proceeds received by the issuer from the foreign lead underwriter. The resulting difference is the amount that the issuer should report on Schedule B. A transaction should be reported in the period when it occurs or is charged (that is, in the period when the provider of the service recognizes or performs the service), whether expensed by the purchaser of the service in that accounting period, amortized over several accounting periods, or included in expenses in a subsequent accounting period. For example, payments of credit-related fees (and payments of securities brokerage commissions) should be reported in the period when credit-related (securities brokerage) services are charged, whether or not the charge for the service is included in the purchaser's expenses for that particular accounting period. See V. of these Instructions for an explanation of what measures should be applied in determining whether you are subject to the BE-82 survey's mandatory reporting requirements for a given type of service. 2. BE-82 definition of financial services provider The definition of financial services providers used for this survey is analogous in coverage to the finance and insurance part of Division H of the 1987 Standard Industrial Classification Manual (SIC major groups 60 through 64, and major group 67). More specifically, companies and/or subsidiaries and other separable parts of companies in the following industries are defined as financial services providers: Depository institutions (including commercial banks and thrifts); nondepository credit institutions; security and commodity futures brokers, dealers, exchanges, traders, underwriters, and services providers (including investment bankers and providers of securities custody services); credit card companies; insurance carriers, agents, brokers and services providers; investment advisors and managers; mutual funds; pension funds; trusts; holding companies; investors; oil royalty traders; etc. Holding companies that own only nonfinancial subsidiaries may elect to omit reporting their purchases of financial services from unaffiliated foreign persons on Form BE-82 if they instead report these purchases on Form BE-20, Benchmark Survey of Selected Services Transactions With Unaffiliated Foreign Persons, or Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons. Alternatively, these holding companies may elect to report both purchases and sales of financial services on Form BE-82; in this case, they should not report their purchases of financial services from unaffiliated foreign persons on Form BE-22. In either case, sales of financial services to unaffiliated foreign persons must be reported on Form BE-82 if they exceed $5 million. Clarification of general coverage, including special situations a. Purchases or sales are to be reported in the period when they occur or are charged. As discussed in I.B.1., this may not be the period in which the transaction is included in the purchaser's income or expense. For example, payments of fees for credit-related services should be reported when the services are rendered, not over the potentially longer period during which the payments may be amortized by the borrower. b. Covered transactions are includable regardless of whether the service was performed in the United States or abroad. c. When a sale or purchase consists of services that are commingled or bundled (i.e., the different types of services are not separately billed), you should unbundle the transaction whenever possible. When the transaction cannot be unbundled, it should be classified based upon whichever service accounts for the largest share of its value. Note, however, if the services are billed together because they are integral parts of the same transaction (for example, if the fee for financial management services includes payment for custody and other services that are regarded as integral parts of financial management services), then do not unbundle the transaction. d. Only financial services purchased or sold by U.S. financial services providers or intermediaries directly from unaffiliated foreign persons are covered by this survey. Transactions in nonfinancial services with foreign persons, transactions by nonfinancial subsidiaries or other nonfinancial parts of companies, and transactions with affiliated foreign persons are covered by other BEA surveys. See IV. of these Instructions. e. As discussed in I.B.2., a holding company that owns only manufacturing or other nonfinancial subsidiaries may elect to report its purchases of financial services from unaffiliated foreign persons on Form BE-20 or Form BE-22, rather than on this survey. However, in either case, these holding companies must report their sales of financial services to unaffiliated foreign persons on this survey if such sales exceed $5 million. II. DEFINITIONS A. Services mean economic activities whose outputs are other than tangible goods. This term includes, but is not limited to, banking, other financial services, insurance, transportation, communications and data processing, retail and wholesale trade, advertising, accounting, construction, design, engineering, management consulting, real estate, professional services, entertainment, education, and health care. B. Financial services include trading, issuing, dealing, underwriting, lending, custody, etc. of financial instruments; financial advisory or management services; credit card services; credit-related services (including establishing, maintaining, or arranging credits, letters of credit, lines of credit, mortgages, etc.); financial rating services; electronic funds transfer services; insurance services; etc. These services typically are performed by firms classified in the finance and insurance part of Division H of the 1987 Standard Industrial Classification Manual (see I.B.2.). Some types of financial services are not covered on this survey. See V. of the Instructions for a list of financial services that are covered, and see VI. of the Instructions for a list of financial services that are not covered on this survey. Page 6 BE-82< 1 1 (8/96) II. DEFINITIONS — Continued C. U.S. Reporter means a U.S. person filing a report in this survey. On Form BE-82(A), the U.S. Reporter is the consolidated U.S. enterprise; on Form BE-82(B), the U.S. Reporter may be either the consolidated U.S. enterprise or a financial services subsidiary or part of a consolidated U.S. enterprise reporting separately. D. Consolidated U.S. enterprise means (i) a U.S. financial services provider, (ii) any U.S. corporation, proceeding up the financial services provider's ownership chain, that owns more than 50 percent of the voting securities of the corporation below it, and (iii) any U.S. corporation, proceeding down the ownership chain(s) of each of these corporations, whose voting securities are more than 50-percent-owned by the U.S. corporation above it. E. 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. F. 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. G. Person 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). 1. United States person means any person resident in the United States or subject to the jurisdiction of the United States. 2. Foreign person means any person resident outside the United States or subject to the jurisdiction of a country other than the United States. H. Unaffiliated foreign person means, with respect to a given U.S. person, any foreign person that is not an affiliated foreign person as defined in paragraph I. below. I. Affiliated foreign person means, with respect to a given U.S. person, (i) a foreign affiliate of which the U.S. person is a U.S. parent, or (ii) the foreign parent or other member of the affiliated foreign group of which the U.S. person is a U.S. affiliate. J. Affiliate means a business enterprise located in one country that is directly or indirectly owned or controlled by a person of another country to the extent of 10 per centum or more of its voting stock for an incorporated business or an equivalent interest for an unincorporated business, including a branch. 1. Foreign affiliate means an affiliate located outside the United States in which a U.S. person has direct investment. 2. U.S. affiliate means an affiliate located in the United States in which a foreign person has direct investment. K. Business enterprise means any organization, association, branch, or venture which exists for profitmaking purposes or to otherwise secure economic advantage, and any ownership of any real estate. (A business enterprise is a "person" within the definition in paragraph G. above.) L. Direct investment means the ownership or control, directly or indirectly, by one person of 10 per centum or more of the voting stock of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. M. Parent means a person of one country who, directly or indirectly, owns or controls 10 per centum or more of the voting securities of an incorporated business enterprise, or an equivalent ownership interest in an unincorporated business enterprise, which is located outside that country. 1. U.S. parent means the U.S. person that has direct investment in a foreign business enterprise, including a branch. 2. Foreign parent means the first person outside the United States that has direct investment in a U.S. business enterprise, including a branch. N. Affiliated foreign group means (i) the foreign parent, (ii) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 per centum of the person below it up to and including that person which is not owned more than 50 per centum by another foreign person, and (iii) any foreign person, proceeding down the ownership chain(s) of each of these members, which is owned more than 50 per centum by the person above it. O. Fiscal year is the U.S. Reporter's financial reporting year that has an ending date in a given calendar year. For example, fiscal year 19X1 is the U.S. Reporter's financial reporting year that has an ending date in calendar year 19X1. For a person that does not have a financial reporting year, or does not have a financial reporting year ending in a given calendar year, its fiscal year is deemed to be the same as the calendar year. P. Country means, for purposes of this survey, the country of location of the foreign person with whom a transaction has occurred. III. GENERAL INSTRUCTIONS A. How to differentiate between U.S. and foreign persons In II. G. 2. of these Instructions, a "foreign person" is defined as any person resident outside the United States or subject to the jurisdiction of a country other than the United States. Under this definition, persons who reside or expect to reside for 1 year or more in a foreign country are considered to be foreign persons. International organizations are considered to be foreign persons whether they are based in the United States (such as the International Bank for Reconstruction and Development, Inter-American Development Bank, United Nations, World Health Organization, and the Organization of American States) or abroad. If you are uncertain whether a financial services transaction is with an unaffiliated foreign person, the following procedure should be followed. First, identify the country a transaction is with using billing or mailing address information. The assumption is that a transaction should be shown against a given foreign country (or with an international organization) if the billing or mailing address is of that foreign country (or of an international organization). If the billing or mailing address is in the United States, the transaction ordinarily would be assumed to be a transaction with a U.S. person and, therefore, not reportable on this survey. Although billing or mailing addresses may provide a satisfactory basis for differentiating between U.S. and foreign persons in most cases, in some cases they may not, such as where foreign customers have provided billing addresses of U.S. agents or other locations of convenience in the United States, or U.S. customers have provided foreign billing addresses. Thus, for transactions of significant size (i.e., those that will affect the overall level of transactions reported in this survey for a given type of service), a second step may be necessary. For each type of service, you must determine whether or not you need to take the following additional step in order to assure accuracy of data reported in this survey. BE-32rl, (8/96) Page 7 III. GENERAL INSTRUCTIONS — Continued The second step is to examine other available information on the residency of your largest customers and contractors. For example, to review the residency of your customers, you might refer to IRS Form W-8, Certificate of Foreign Status (filed by foreign persons), IRS Form W-9, Request for Taxpayer Identification Number and Certification (filed by U.S. persons), and/or any other available information on the residency of persons with whom you have sold or purchased financial services. For some types of services, such as underwriting services, it may be necessary to rely on additional information to correctly determine the residency of your customers in order to assure accuracy; for other types of services, it will probably be sufficient to use billing address information alone. B. Who must report a transaction when an intermediary is involved Financial services transactions between a U.S. person and a foreign person are frequently arranged by, billed through, or otherwise facilitated by, a financial services provider or intermediary. The intermediary may be U.S. or foreign, and may be affiliated or unaffiliated with the U.S., or the foreign, person. The U.S. financial services provider or intermediary who directly deals with an unaffiliated foreign person, not the U.S. customer of the intermediary, is typically responsible for reporting the transaction on this survey. The following guidelines should be used to determine who should report BE-82 data on payments of brokerage fees and commissions (service number 1) in cases where more than one U.S. financial services provider is involved in or knowledgeable about the transaction. Where a U.S. broker is involved in the transaction, the broker should report the data on payments of brokerage commissions. If a U.S. broker is not involved, a U.S. financial manager, such as a fund or investment manager, involved in the transaction should report the data. Where neither a U.S. broker nor a U.S. manager is involved in the transaction, a U.S. custodian should report; this would be the case, for example where the principal uses a foreign (rather than a U.S.) financial manager, but a U.S. custodian. (In this case, the custodian may wish to contact the principal to determine which of his financial managers are foreign persons.) If the custodian does not have or cannot obtain the information needed to report, then the U.S. principal, or his paying agent, should report the data; the U.S. principal must make the determination of whether he or his paying agent is responsible for reporting. Respondents may deviate from these guidelines by agreement among themselves, but they should confer with one another to assure that the data reported on payments of brokerage commissions are neither omitted from all BE-82 reports, resulting in under-counting of data, nor reported on more than one BE-82 report, resulting in duplication. C. Distinguishing transactions with affiliated foreign persons from transactions with unaffiliated foreign persons For purposes of reporting in this survey, it is necessary to distinguish between transactions between affiliated U.S. and foreign persons, and transactions between unaffiliated U.S. and foreign persons. Only transactions with unaffiliated foreign persons are to be reported in this survey; services transactions with affiliated foreign persons are reportable in other BEA surveys (see IV. of these Instructions). An unaffiliated foreign person is a foreign person that is neither the foreign affiliate nor the foreign parent (or other member of the affiliated foreign group) of the consolidated U.S. enterprise filing Form BE-82(A) of this survey. (See ILL, J., M. and N. in the Instructions.) Transactions with unaffiliated foreign persons by or through a foreign activity of a U.S. person that is not a foreign affiliate of the U.S. person are deemed to be direct transactions of the U.S. person, and any financial services sold to, or purchased from, unaffiliated foreign persons through such an activity are reportable in this survey. If a U.S. person's foreign activity or operation is incorporated abroad, it is a foreign affiliate. If a U.S. person's foreign activity or operation is NOT incorporated abroad, its status is based on the weight of the evidence when the factors listed below are considered. An unincorporated foreign activity or operation generally WOULD NOT be considered a foreign affiliate if it: (i) conducts business abroad only for the U.S. person's account and not for its own account; (ii) has no separate financial statements (including an income statement and balance sheet); (iii) receives funds to cover its expenses only from the U.S. person; (iv) pays no foreign income taxes; and (v) has limited physical assets, or employees, permanently located abroad. Criteria for determining which U.S. activities do or do not constitute a U.S. affiliate of a foreign person are parallel to those listed above. IV. RELATED FORMS Persons receiving this form should be aware of other forms on services that are required to be filed on a mandatory basis with BEA (see 15 CFR, Part 801, Section 9(b).). The BE-80, Benchmark Survey of Financial Services Transactions Between U.S. Financial Services Providers and Unaffiliated Foreign Persons, for which this BE-82 survey is the annual follow-on, was first conducted for 1994 and will be conducted every 5 years thereafter. It covers the same services as this survey but has a lower exemption level. BEA also conducts surveys of other types of services transactions with unaffiliated foreign persons (such as Form BE-48, Annual Survey of Reinsurance and Other Insurance Transactions by U.S. Insurance Companies With Foreign Persons; Form BE-93, Annual Survey of Royalties, License Fees, and Other Receipts and Payments for Intangible Rights Between U.S. and Unaffiliated Foreign Persons; Form BE-20, Benchmark Survey of Selected Services Transactions With Unaffiliated Foreign Persons; and Form BE-22, Annual Survey of Selected Services Transactions With Unaffiliated Foreign Persons). All inquiries about these surveys should be directed to BEA's International Investment Division (IID) at (202) 606-5588. In addition, BEA collects information on services transactions with affiliated foreign persons in its direct investment surveys. Inquiries concerning BEA's survey of services transactions between U.S. parent companies and their foreign affiliates (Form BE-577) should be directed to IID at (202) 606-5599, and inquiries concerning services transactions between U.S. affiliates and their foreign parent companies (Forms BE-605 and BE-605 Bank) should be directed to IID at (202) 606-5577. Under the Treasury International Capital reporting system, the Department of the Treasury conducts mandatory surveys on the international financial position of the United States and on movements of portfolio investment capital between the United States and foreign countries that may give rise to financial services transactions. Inquiries about these surveys should be directed to the Federal Reserve Bank of New York (as contractor for the Treasury Department) at (212) 720-8243. Page 8 BE-82U) (8/96) V. SERVICES COVERED Receipts (Schedule A of Form BE-82(B)) and payments (Schedule B) of fees and commissions for the following types of financial services are covered by this survey: A. Brokerage, except foreign exchange brokerage services (service number 1) — Schedule A covers your receipts of commissions (inclusive of taxes and stamp duties) directly from unaffiliated foreign customers for executing orders to purchase or sell securities, options, futures, and other financial instruments, except foreign currency. It excludes income, such as option premiums, where you were a dealer or other principal who was at risk of incurring a loss on the financial instrument rather than acting solely as a broker. Schedule B covers your payments of commissions (inclusive of taxes and stamp duties) directly to unaffiliated foreign brokers for executing your, or your customers', orders. Brokerage fees arising from foreign currency exchange transactions should not be reported here, but should instead be reported under service number 9, foreign exchange brokerage services. Origination fees in connection with derivative financial instruments that trade over the counter ordinarily should not be reported here. These should be reported here only if they are separately identified in transaction documentation issued by the dealer or intermediary in the instruments to its customers, and are considered to be commissions rather than undifferentiated components of overall trading or marketmaking gains. Brokerage commissions for arranging joint ventures are covered under service number 10, "other" financial services. Fees for commodity or merchandise brokerage services (as opposed to fees for purchasing or selling commodity futures) are not covered because they are not considered to be financial services. See III. B . of these Instructions for clarification of who is responsible for reporting data on payments of brokerage fees and commissions where more than one U.S. financial services provider is involved in or knowledgeable about the transaction. B. Private placement services (service number 2) — Covers fees you received from an unaffiliated foreign issuer of securities for privately placing its securities, or fees that you paid to an unaffiliated foreign person who privately placed your securities, including fees on dealer-placed commercial paper. Do not report earnings from buying and selling (i.e., trading) commercial paper or other securities for your own account, because they are not considered to be financial services. C. Underwriting services (service number 3) — Covers earnings from buying and reselling an entire or substantial portion of newly issued securities. If you purchased securities from an unaffiliated foreign person (issuer or lead underwriter) and resold them to others at a lower price, report your loss as negative receipts on Schedule A . (This is the only financial service category where negative amounts may be reported.) Where you are lead underwriter, report receipts of underwriting fees and payments of selling concessions and other expenses separately. Underwriting fees, before deduction of selling concessions paid to other members of the syndicate, should be reported on Schedule A according to the country of the person (issuer) from whom you purchased the securities. Selling concessions and reimbursements for expenses paid by you to unaffiliated foreign members of the syndicate should be reported on Schedule B based upon the country(ies) of the foreign syndicate members receiving the selling concessions and reimbursements. Where you are a syndicate member other than the lead underwriter, report on Schedule A selling concessions received by you based upon the country of the lead underwriter. '-.- ■-<■/ ■ ■■ Where you are the issuer of securities, payments of underwriting fees reported on Schedule B should be calculated as follows: First, calculate gross proceeds to the underwriter from the sale to the public of your securities. This estimate should equal the number of units of securities sold to the foreign lead underwriter times the per unit public offer price. (If the public offer price is not available from your internal accounting records, consult the prospectus or other public offer document.) Second, from this amount, subtract the net proceeds you received when you sold your securities to the foreign lead underwriter. The resulting difference is the amount to report on Schedule B as payments of underwriting fees, classified according to the country of the foreign lead underwriter. Fees or commissions received by, or paid to, intermediaries that arrange the sale of securities (including mutual fund shares) they do not themselves own should be reported as brokerage services (under service number 1) rather than as underwriting services. D. Financial management services (service number 4) — Covers services in which the provider of the service has the authority to direct the use or investment of funds or other assets. Report fee income from (to) unaffiliated foreign persons for managing or administering financial portfolios, such as cash, securities, futures, and other financial instruments or assets, if you (they) have this authority. (If a U.S. or foreign person has input into the decision-making process but does not have this authority, report the fees under service number 7, financial advisory and custody services.) Report these fees whether or not the assets are in the custody of the manager or in the custody of another U.S. or foreign person whom the manager directs. Include fees from actively managed accounts (where research and market timing skills are also provided) and fees from passively managed, or indexed, accounts, such as where the portfolio is composed of certain securities so that its performance will track that of an index. U.S. persons (including trustees and fiduciaries with management authority) should report their fees from managing foreign commodity pools, mutual funds, hedge funds, trusts (including trusts containing mortgages), etc. (which are considered foreign persons) on Schedule A. Fees from managing U.S. mutual funds, hedge funds, trusts (including trusts containing mortgages), etc. (which are considered U.S. persons) should not be reported unless the management fee is charged directly to a foreign investor, owner, beneficiary, maker, etc., of the U.S. mutual fund, hedge fund, or trust rather than charged to the U.S. mutual fund, etc. itself. U.S. -based custodians and subcustodians who manage the custody or safekeeping of securities directly on behalf of unaffiliated foreign persons (including unaffiliated foreign-based custodians or subcustodians) should report their receipts from, and U.S. -based private label custodians should report their payments to, unaffiliated foreign persons (including foreign custodians and subcustodians) under service number 7, financial advisory and custody services. Foreign participation in U.S. futures markets frequently occui indirectly, by foreign persons investing directly in a foreign commodity pool that, in turn, invests directly in the U.S. futures market. Foreign commodity pools may be organized by U.S. commodity pool operators (CPO's), such as U.S. brokerage institutions. U.S. CPO's must report on Schedule/ their fees from managing foreign commodity pools, includin> additional management fees received based upon positive returns. However, exclude gains and losses to principal amounts you have invested in the pool; in this case, your earnings are considered to be capital gains, which are not covered on Schedules A and B. (Similar guidelines pertain tc the earnings of U.S. persons who manage foreign hedge funds; i.e., report management fees including additional fee? based on positive returns, but do not report gains or losses principal amounts invested in the funds.) Page 9 V. SERVICES COVERED — Continued Do not report receipts (payments) of your foreign affiliates from (to) foreign persons. For example, where your foreign affiliate manages foreign assets, the management fee paid by foreign clients to your foreign affiliate should not be reported on this form, because the fee was not received by the U.S. Reporter from an unaffiliated foreign person. (See II. and III. of the Instructions for a discussion of foreign activities of a U.S. person that constitute a foreign affiliate.) Similarly, fees paid by you to, or received by you from, a U.S. affiliate of a foreign person should not be reported. Do not report funding for foreign sales promotion and representative offices in this survey. Such funding should be reported instead on Form BE-20 or BE-22. Credit-related services, except credit card services (service number 5) — Includes fees received from or paid to unaffiliated foreign persons for credit-related or lending-related services, such as fees for renegotiating debt terms and fees for establishing/originating, maintaining, accepting or arranging standby letters of credit, commercial and similar letters of credit, letters of indemnity, lines of credit, participations in acceptances, mortgages, credit facilities, etc. For example, include receipts and payments of reimbursement commissions for honoring import letters of credit (ILC's), and of discrepancy fees for financial services provided when goods imported under ILC's do not fully meet specifications. Include fees for factoring services, issuing financial guarantees and loan commitments (to make or purchase loans), arranging or entering into financial lease contracts, etc. Include both fees paid directly and fees that are withheld or deducted from the proceeds. Include fees for credit-related services received by, or paid to, note issuance facilities (NIF's), but do not report underwriting fees on notes issued by NIF's; these should instead be reported under service number 3, underwriting services. Also, do not report interest received or paid, including discounts and premiums on notes purchased or sold. If you are a member of a loan syndicate, or of loan participations other than syndicates, report fees received and paid for organizing, managing, or participating in the operation. Do not report the sale of assets (i.e., of parts or shares in the syndicated loan), because these are not financial services. Where you have collected a fee from an unaffiliated foreign person on a loan syndication and passed through a portion of the fee to foreign syndicate members, report the total fee you received on Schedule A and report the portion of the fee you passed through on Schedule B. Borrowers under loan syndicates or loan participations other than syndicates should report payments of fees according to the country of the lead manager of the syndicate. Report payments of credit-related fees in the accounting period in which the fee is assessed by the provider of credit-related services, whether included in expenses for that particular accounting period or amortized over several accounting periods. If compensating balances are reflected in the cost of credit-related services, the amount that should be reported is the (net) amount received or paid for credit-related services after credit for the value of the compensating balances. That is, the value of the compensating balance to tie bank, in the form of foregone interest expense, should not be reported, but, if the bank returns some portion of its savings to its customers in the form of a credit against other financial services provided, the amount to report for the other financial services provided should be the reduced charge after consideration of this credit. Credit card services (service number 6) — All cross-border receipts and payments for credit card services should be reported, whether paid separately or in the form of a discount from face or par value. U.S. credit card companies must report specified transactions in which they themselves engage with unaffiliated foreign persons, as well as specified transactions of their independent issuers or acquirers with foreign persons. Thus, in order to avoid duplication, their independent credit card issuers and acquirers are exempt from reporting data on these credit card services. The major types of credit card services sold to or purchased from unaffiliated foreign persons are listed below. Total receipts and payments through the system controlled or monitored by the credit card company must be separately reported by the credit card company. Total receipts (or total payments) of credit card services are the sum of receipts (or payments) from all of these credit card services combined. • Transaction and service fees received from or paid to foreign acquirers and issuers • Interchange received from foreign acquirers or paid to foreign issuers • Discount (including interchange and overhead assessments, reimbursements for telecommunication services, etc.) received from or paid to foreign acquirers and issuers • Payments to foreign issuers, acquirers, or merchants under guarantees to protect them from losses from a default in the processing network • Fees you received from foreign issuers for credit authorization services • Fees you received from foreign issuers for listing lost or stolen credit card numbers in warning bulletins or on electronic files • Resignation assessments or membership fees received from foreign issuers and acquirers • Multi-currency conversion fees received from foreign issuers or paid to foreign acquirers, processing centers, or issuers The issuers, acquirers, and processors themselves, rather than the credit card companies, are responsible for reporting transactions in credit card services that are conducted outside the system controlled or monitored by the credit card companies. Such transactions may include annual dues and other fees received by issuers from cardholders, payments to processors by independent issuers and acquirers, and any interchange reimbursements that do not go through the credit card system. Do not report receipts or payments for credit card enhancements, such as travel insurance, extended warranties, and discounts on tour packages or other purchases. Financial advisory and custody services (service number 7) — Covers financial advisory services on mergers and acquisitions (but excludes services where you were at risk of incurring a loss, such as underwriting services (service number 3)), investment newsletters or investment advice, commodity trading advisory services, proxy voting advisory services, custody services (including payments and settlements services such as mortgage servicing services), and other advisory and custody services provided by U.S. or foreign persons who have no discretion, or who have very limited discretion, to act independently from instructions provided by the investor or another principal. Custodians and subcustodians are persons who manage the custody or safekeeping of securities or other financial instruments. (A subcustodian performs these services as a contractor to a custodian.) U.S. -based custodians and subcustodians who manage the custody or safekeeping of securities directly on behalf of unaffiliated foreign persons (including unaffiliated foreign-based custodians or subcustodians) should report their receipts on Schedule A; U.S.- based private label custodians and other U.S. persons should report their payments of fees to foreign global custodians on Schedule B. Page 10 BE-82U) (8/96) VI. SERVICES COVERED — Continued U.S. issuers of American Depositary Receipts (ADR's) and American Depositary Shares (ADS's) should report on Schedule B their payments to unaffiliated foreign correspondent institutions for holding the securities backing the ADR's and ADS's. U.S. issuers of ADS's should also report, on Schedule A, any receipts of sponsorship fees from unaffiliated foreign persons. Do not include fees received from or paid to a U.S. subsidiary (or U.S. affiliate) of a foreign person, because, under balance of payments conventions, these are considered U.S., not foreign, persons. Where you do have complete (or substantially complete) discretion to act independently from instructions provided by investors or other principals, report your receipts under service number 4, financial management services. Similarly, where you are an investor or principal, and an unaffiliated foreign person has complete (or substantially complete) discretion to act independently on your behalf, report your payments under service number 4. Securities lending services (service number 8) — U.S. securities lenders and borrowers, and their agents, should report amounts received directly from, or paid directly to, unaffiliated foreign persons, for lending or borrowing securities. Include fees received by or paid to principals or agents for arranging loan terms and conditions, monitoring the value of collateral, providing guarantees against default, and providing other securities lending services. Include rebates received or paid on "borrow versus cash transactions." Exclude amounts received from, or paid to, unaffiliated foreign persons by a U.S. or foreign agent upon the default of a customer, because such payments are not considered to be for financial services. Exclude interest under repurchase or reverse repurchase agreements, because interest is not reportable (although, as mentioned, rebates are reportable) on this form. Foreign exchange brokerage services (service number 9) — Report explicit brokerage fees and commissions for foreign exchange brokerage services, but exclude earnings from acting as a dealer where the dealer was "at risk" of incurring losses. Thus, earnings from marking positions to market, and inherent earnings from dealer markups on buy and sell transactions (i.e., bid/ask price spreads), should not be reported. Credit card companies should report multi-currency conversion fees under service number 6, credit card services, rather than as foreign exchange brokerage services. Other financial services (service number 10) (Specify primary type(s) in comments section of Schedule A or B, as appropriate.) — Include the total amount of fees you received from or paid to unaffiliated foreign persons for all other financial services combined, such as those listed below. Indicate the type(s) of service(s) accounting for the largest share of the data being reported in the space provided at the bottom of the schedules. Examples of services that may be reported under this category include: Asset pricing services; security exchange listing fees; demand deposit fees; securities rating services; electronic funds transfer services (include payments to SWIFT, in Belgium); check processing fees; mutual fund exit fees, load charges and 1 2b— I service fees; security redemption or transfer services; ATM network services; securities or futures clearing and settling services; and brokerage services not covered above, such as for arranging joint ventures. However, do not report real estate brokerage fees (real estate services), business brokerage fees (business services), and commodity or merchandise brokerage fees (wholesale or retail trade services), because these are not considered financial services. Note that some types of financial services are not covered on this form. See VI. of the Instructions for a list of types of financial services that should not be reported. VI. TYPES OF FINANCIAL SERVICES EXCLUDED FROM COVERAGE The following types of financial services are not covered by this survey: A. Stock quotation and financial information services — These are instead covered by Form BE-20 or BE-22, under data base and other information services. B. Insurance premiums and losses, and commissions on insurance — These are not covered on Form BE-82, but are covered on other BEA forms. (See IV. of these Instructions for information on whom to call regarding these forms.) Charges at the individual policy level also are not covered by this form. C. Annuity purchases and payments to annuitants — Annuity purchases and payments to annuitants are not covered by this form. Also, charges at the individual policy level, including insurance-company fees on variable annuities, are not covered by this form. D. Pension fund contributions and benefits — Pension fund contributions and pension benefits are not covered by this form. However, U.S. pension funds may engage in other financial services transactions that are reportable on this form, including payments of brokerage commissions and fees for investment management or financial advisory services to unaffiliated foreign persons. E. Interest and dividend receipts and payments — Under balance of payments conventions, interest and dividends are considered to be investment income rather than income from services, and are therefore not covered on this form. F. Premiums and other proceeds from writing (selling) options, forwards, futures, and swaps — Premiums from writing options, and fees and other proceeds from writing forwards, futures, and swaps are not covered by this form. (However, explicit brokerage commissions on transactions in these financial instruments are covered under service number 1, brokerage, except foreign exchange brokerage services.) G. Earnings of principals from buying and selling (including dealing, trading, holding, or arbitrage) of financial instruments, except foreign currency exchange transactions — Under balance of payments conventions, these types of earnings are considered to be "capital gains" (i.e., earnings that are not from current production) rather than payments for financial services, and are therefore not covered by this form. However, underwriting is considered to be a financial service, and is covered under service number 3. H. Foreign currency exchange transactions — Bid/ask price spreads and trading profits on currency exchange transactions are not covered. However, explicit commissions paid to currency exchange brokers are covered under service number 9, foreign exchange brokerage services. BE-82