2019 BE-10 Supporting Statement Part B_6-10-2019

Supporting Statement

BE-10 Benchmark Survey of U.S. Direct Investment Abroad

OMB Control Number 0608-0049

B. Collections of Information Employing Statistical Methods

1. Describe (including a numerical estimate) the potential respondent universe and any sampling or other respondent selection method to be used. Data on the number of entities (e.g., establishments, State and local governmental units, households, or persons) in the universe and the corresponding sample are to be provided in tabular form. The tabulation must also include expected response rates for the collection as a whole. If the collection has been conducted before, provide the actual response rate achieved.

This survey is a benchmark survey, or census. The potential respondent universe for the 2019 Benchmark Survey of U.S. Direct Investment Abroad, BE-10, consists of all U.S. persons (in the broad legal sense, including companies) that own 10 percent or more of the voting securities of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise. Estimates of the number of reports expected to be filed below are based on the previous benchmark survey covering 2014 and the latest Annual Surveys of U.S. Direct Investment Abroad, BE-11. The expected response rates are based on the previous benchmark survey covering 2014. These are presented in terms of assets, representing the proportion of total assets for each of the populations that are accounted for by reporting entities.

2019 BE-10 Universe and Expected Response Rate

Form Type	Number of reports
BE-10A (U.S. Reporters)	18,000
Foreign Affiliates:	51,600
BE-10B	19,100
BE-10C	14,500
BE-10D	18,000
Expected response rate in terms of assets:
U.S. Reporters	95%
Foreign Affiliates	90%

2. Describe the procedures for the collection, including: the statistical methodology for stratification and sample selection; the estimation procedure; the degree of accuracy needed for the purpose described in the justification; any unusual problems requiring specialized sampling procedures; and any use of periodic (less frequent than annual) data collection cycles to reduce burden.

In this information collection, more detailed data are collected for larger U.S. parents and foreign affiliates than for smaller ones. BEA estimates data for the smaller U.S. parents and foreign affiliates using statistical methods so that the level of detail BEA records is the same regardless of firm size. In general, the estimation will be accomplished by prorating data reported on all forms, such as total assets, among subcomponents that are not reported by smaller filers, using the distribution observed in the next higher size class of U.S. reporters or foreign affiliates. Estimates for missing reports or reports that do not pass data quality requirements will be derived by extrapolating forward their reported data from earlier years based on the year-to-year movement in the data reported by other companies. For additional information on BEA’s estimation methods please see the “Methodology of the 2014 Benchmark Survey of U.S. Direct Investment Abroad.”

3. Describe the methods used to maximize response rates and to deal with nonresponse. The accuracy and reliability of the information collected must be shown to be adequate for the intended uses. For collections based on sampling, a special justification must be provided if they will not yield "reliable" data that can be generalized to the universe studied.

Several steps will be taken to maximize response rates. First, BEA will provide respondents with advance notice of the survey by mailing them an announcement of the upcoming survey as soon as possible after the survey has been approved by OMB. The announcement will ask respondents to verify their mailing address and status as a reporter. It will also alert them to the availability of electronic filing. Later, in March, all companies will receive notification by mail of their obligation to file the BE-10 survey and a list of foreign affiliates for which data are required. BEA encourages respondents to file electronically but will also post PDF forms online that can be downloaded and filed by mail or fax. Any person specifically contacted by BEA must respond by filing either a completed survey or a Claim for Not Filing. BEA has dedicated staff available to answer respondent questions via email or phone. Nonrespondents will be sent follow-up notices and contacted by survey staff to solicit a response; in the event of continued nonresponse, they will be referred to the Office of the General Counsel for further action, including possible referral to the Justice Department.

The response rates described in B.1., together with the estimation procedures described in B.2., will provide information of sufficient accuracy and reliability for the intended purpose.

4. Describe any tests of procedures or methods to be undertaken. Tests are encouraged as effective means to refine collections, but if ten or more test respondents are involved OMB must give prior approval.

No tests were conducted (aside from giving respondents the opportunity to comment on proposed changes, as described in A.8.).

5. Provide the name and telephone number of individuals consulted on the statistical aspects of the design, and the name of the agency unit, contractor(s), grantee(s), or other person(s) who will actually collect and/or analyze the information for the agency.

The survey is designed and conducted within BEA by the Multinational Operations Branch (MOB) of the Direct Investment Division (DID). For further information, contact Ricardo Limes, Chief, MOB, via email at ricardo.limes@bea.gov.