The Bureau of Economic Analysis (BEA) plays an essential role in the United States economy by providing up-to-date statistical data on various key economic indicators. Among their recent endeavors is the BE-12 Benchmark Survey, which aims to gather information on Foreign Direct Investment (FDI) in the United States. In this blog post, we will take a deep dive into the BE-12 survey, its significance and implications, and how it contributes to shaping the economy of the United States.
1. Overview of the BE-12 Survey
BE-12 Survey is a mandatory survey conducted by the Bureau of Economic Analysis every five years to collect data on foreign direct investment in the United States. The survey collects comprehensive information on foreign-owned businesses operating in America, including their size, activity, and financial flow.
The data obtained from this survey provides policymakers, investors, researchers, and business owners with valuable insights into how foreign investment flows into the United States economy and how it affects the domestic market.
2. Significance of the BE-12 Survey
The BE-12 Survey is an essential tool for analyzing trends in foreign direct investment in the United States and for understanding the impact of these investments on the US economy. Foreign investment contributes to the creation of jobs and technologies in the United States. For instance, many foreign companies invest in the United States to take advantage of the country’s skilled workforce, advanced technology, and exceptional infrastructure, among other factors.
By providing an accurate and comprehensive view of foreign capital inflow into the US, BE-12 survey helps policymakers develop policies that cater to the needs of foreign investors while exploiting the opportunities that foreign investments bring to the economy. Also, it helps attract more foreign investment to the United States, thereby creating more job opportunities and promoting economic growth.
3. Who needs to File a BE-12 Survey?
All private U.S. businesses that are owned 10% or more by a non-U.S. entity need to file a BE-12 survey. Publicly-traded U.S. companies that have at least one foreign owner who directly holds 25%, or more, of the voting securities and other investors who hold at least 10% need to file. According to the Bureau of Economic Analysis, the survey is mandatory and must be filed on time with no exceptions.
4. What Information is Required in the BE-12 Survey?
The BE-12 Survey collects comprehensive information about foreign-owned businesses operating in the United States. The survey covers various areas of business activities, including sales, revenues, and expenses, as well as the company’s employment figures. It also covers areas such as the company’s location, type of industry, and ownership structure.
Additionally, BE-12 surveys also collect information on how foreign-owned companies finance their operations in the United States, including how they receive funding from their parent companies abroad.
5. How to File a BE-12 Survey
The BE-12 Survey must be filed online using the BEA’s eFile system. The system is user-friendly and provides detailed instructions to help businesses file the survey accurately. The BE-12 survey is generally open for filing online during the period of May 1 of the year following the benchmark survey year to May 31 of the following year.
6. Penalties for not Filing the BE-12 Survey
Failure to file the BE-12 survey or filing it inaccurately can result in penalties. The penalties can be significant, ranging from $2,500 for individuals who failed to file to $25,000 for businesses that willfully refused to file the survey.
7. Benefits of Filing the BE-12 Survey
By filing the BE-12 survey on time and accurately, businesses can contribute to shaping policies that cater to their unique needs. The survey data plays a crucial role in developing policies that promote foreign investment and influence decisions on trade and tariffs.
Moreover, it can help businesses understand how their company is doing compared to similar foreign-affected companies, allowing for accurate benchmarking and decision-making.
8. BE-12 Survey and the United States Economy
The BE-12 Survey remains a vital tool for policymakers in understanding the United States’ position in the global economy and how foreign investments affect the country. The survey information can be used to develop strategic policies that promote foreign investment, ensuring that the U.S. continues to be a desirable location for foreign businesses.
A thriving economy is critical to the welfare of the United States and its citizens. Understanding the importance of using surveys like the BE-12 Benchmark Survey to collect data on foreign investment is essential to maintaining economic growth and prosperity.
Conclusion
The BE-12 Benchmark Survey remains a critical tool for policymakers and investors in understanding foreign direct investment in the United States. By gathering accurate information on foreign-owned businesses operating in the United States, policymakers can create policies that promote the growth of foreign investment in the country.
Businesses that file the survey on time and accurately can help shape these policies and position themselves strategically within the U.S. economy.
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