lations, to assure that the public and private organizations, institutions and individuals, such as participating institutions or contractors, which play a part in developing the Grantee's plans and in the Grantee's programs, will also comply with the Department's Title VI Regulations and these Assurances with respect to said plans and programs. To that end, the Grantee agrees that it will obtain as part of its contractual or other arrangements with such parties, or will arrange with others with whom it has direct dealings to obtain in turn from such parties, written Assurances of Compliance with the Department's Title VI Regulations in the same form and substance as these Assurances, which shall be applicable in connection with their contracts, agreements, operations, receipt of benefits and other participation under or relating to State Technical Services plans and programs receiving Federal financial assistance.

4. That it will obtain and provide the information required by or pursuant to said Title VI Regulations to ascertain and obtain compliance with said Regulations and these Assurances.

5. That it will secure the compliance, and assist and cooperate actively with the Department of Commerce in obtaining and enforcing the compliance, of said contracting and other participating parties with the nondiscrimination required by the Department's Title VI Regulations and their respective agreements and arrangements, and in the event the Grantee becomes involved in litigation with a noncomplying party, it may request the Department of Commerce to enter into such litigation to protect the interests of the United States in the enforcement of these obligations.

6. That when the Grantee or other participant under the plans or programs is an institution referred to in § 8.5(b) (9) of the Department's Title VI Regulations, the provisions of that section shall be applicable.

7. That any failure to comply with these assurances of nondiscrimination shall constitute a breach of the grant or agreement pursuant to which they were furnished; that in such case of breach further disbursements or payments under the grant or agreement may be refused or suspended or repayments required or any other enforcement or remedial actions or remedies provided in the regulations under the Act or the Department's Title VI Regulations or otherwise by law may be taken; and that the enforcement of one or more rights shall not be prejudicial to the Government's right to obtain judicial relief and/or take any other action available under the Act, regulations, grant, agreements, or otherwise by law.

8. That these assurances shall be in effect for the period provided in § 8.5(b) (10) of the Department's Title VI Regulations.

9. That these assurances of the Grantee, and any supplementary assurances given by related subgrantees, contractors and other participants in the plans and programs under the Act, shall be binding not only upon them but also upon their officers, directors, employees and agents, assignees, transferees, lessees, and successors in interest.

The Grantee acknowledges that it has received and read the provisions of the Department's Title VI Regulations. Dated

(Grantee)

By Title

(Grantee's mailing address)

Title

I hereby certify that the person whose signature appears above is authorized to sign these assurances on behalf of

Part

803

(a) (1) A report is required from or on behalf of every foreign individual or organization incorporated, licensed or otherwise granted permission in countries other than the United States to operate vessels or aircraft if engaged in carrying goods or passengers to or from the United States. Agents or operating agents must respond where acting for foreign operators, unless the operator has his own office in the United States to which the agent is accountable or unless the operator elects to report directly from his home office.

(2) The Department of Commerce may in lieu of individual reports required

under this part, accept consolidated reports from foreign governments covering the operations of their national shipping concerns when, in its discretion, such consolidated reports would provide the information required by this part. Where such reports are accepted, the individual reports from operators or their agents will not be required.

(b) The foreign operator, for purposes of this part, means the owner, managing or operating owner, chartered owner, or subchartered owner who enters into and carries out any form of transportation contract with the shippers of merchandise or with passengers.

(c) If foreign-owned vessels or aircraft are chartered to other foreign operators, the owner should report his expenses in the United States, if any, and the operator should report the freight or charter revenue earned from the shippers of merchandise and his expenses in the United States.

(d) If foreign-owned vessels or aircraft are chartered to a United States operator, the owner should report his expenses in the United States, if any.

(e) Reports submitted by agents should include all disbursements accounted for directly by them to the foreign company at its foreign office; if subagents report through a principal agent in the same or another location, the principal agent should file a consolidated report on behalf of the foreign company.

§ 802.3

Information to be furnished.

The information required for balanceof-payments purposes consists of the earnings of foreign operators from the carriage of imports into the United States and their total expenses incurred in the United States on both passenger and freight operations, including overhead. Voluntary replies to questions 5, 6, 7 and 8 on Form BE-29 (vessel operators) regarding earnings on exports and movements in accounts due to or payable from home offices of foreign branches in the United States are requested but are not required by law.

§ 803.1

Who must report.

(a) United States business investments abroad (1) Basic requirement. A report is required from every corporation, partnership, individual, or any other person or closely related group of persons subject to the jurisdiction of the United States and ordinarily residing within the United States having:

(i) Ownership of 25 percent or more of the voting stock of foreign corporations, either directly or together with domestic or foreign affiliates (Forms BE-577 and BE-577S). See § 803.2(a) (1) for further detail.

(ii) Ownership of at least 10 percent, but less than 25 percent, of the voting stock of foreign corporations, or the equivalent interest in an unincorporated foreign enterprise, held either directly or together with domestic affiliates (Form BE-577A). See § 803.2(a) (1) for further detail.

(iii) Unincorporated foreign branches, or other direct foreign operations conducted by a United States incorporated interprise or other business organization in its own name in a foreign country. This includes mining claims, oil concessions, exploration and development activities or other property held by United States persons directly or jointly with others (Form BE-578). See § 803.2(a) (1) for further detail.

(2) Estates and trusts. Direct foreign investments held by a domestic estate or trust, i.e., an estate or trust created under the laws of the United States or any subdivision thereof, shall be reported by the fiduciary and not by a beneficiary. Such property must be reported whether or not any beneficiary is subject to the laws of the United States or any subdivision thereof.

(3) Persons beneficially interested in property. If direct foreign investments beneficially owned by a person subject to the jurisdiction of the United States were held by or in the name of another, only the person having the beneficial interest shall report, except as specifically provided above regarding domestic estates and trusts.

(4) More than one person owning an interest in the same foreign organization. Each owner is required to report if the aggregate ownership of the affiliated persons in the foreign organization totals 25 percent or more of the voting securities. However, combined reports may be filed to cover the transactions of more than

one owner. Where combined reports are filed, all owners other than the re-. porter(s) filing the full report remain liable for the report.

(5) Insurance companies. Reports for foreign branches or subsidiaries are required on Form BE-5781.

(6) Motion picture companies. United States producers or distributors of motion pictures operating in foreign countries through subsidiaries, affiliates or branches, may file quarterly reports on Form BE-35 in lieu of Forms BE-577 and BE-578; however, Forms BE-577S and BE-577A must be filed annually, if applicable.

(b) Foreign business investment in the United States-(1) Basic requirement. A report is required to be filed with respect to every business enterprise subject to the jurisdiction of the United States in which foreign persons, either as individuals or as affiliates hold a controlling interest, or which is controlled in the manner indicated in subparagraph (2) of this paragraph directly or indirectly by a foreign person or persons. Such business enterprises shall include, but not be limited to, corporations, partnerships, investments in real property, leaseholds, estates, trusts, and sole proprietorships or other forms of outright individual ownership.

(2) Foreign beneficial interest. If the foreign controlling interest in a United States business enterprise, including commercial real property, is held, exercised or administered by a United States estate, trust (including irrevocable trusts), nominee, agent, representative, custodian, or other intermediary of the foreign beneficial owners, such intermediary shall be responsible for reporting for the business enterprise the required information on Form BE-605, BE-606, BE-606B or BE-6061, or shall instruct the United States business enterprise in question to submit the required information. This does not relieve the United States business enterprise of responsibility for reporting if such business enterprise has knowledge of the direct or indirect foreign controlling interest, but only one report should be filed for each such enterprise. For the purposes of this report, accounts or transactions of a United States business enterprise with a United States estate, trust, nominee or other intermediary of foreign beneficial owners shall be considered as accounts or transactions with such beneficial owners.

(3) Insurance companies. Reports for U.S. branches or subsidiaries of foreign insurance companies are required on Form BE-6061.

(4) Consolidated reports. If a reporter held a controlling interest in other United States enterprises engaged in the same type of business and is required to report, the information requested in the reporting forms may be consolidated for such reporter and enterprises, provided all accounts are fully consolidated. A list of the enterprises included in the consolidations must be provided.

(c) International receipts and payments of royalties, license fees, rentals, etc. United States individuals and firms who have entered into agreements with residents or governments of foreign countries to sell or buy outright or provide or be provided with the use of intangible assets or rights such as patents, techniques, processes, formulae, designs, trademarks, copyrights, franchises, manufacturing rights, and other similar intangible property or rights shall report on Form BE-93.

NOTE: Film royalties, oil royalties, and other natural resources (mining) royalties are not reportable on this form. Companies leasing or renting machinery, equipment, etc., should also respond on this form.

§ 803.2

Forms to be used and frequency of reports.

(a) Each reporter is required to submit reports on the following forms, as applicable. (1) United States direct investments abroad:

Form BE-577. One Form BE-577 is to be filed quarterly for each foreign corporation directly owned by the reporter and/or its domestic and foreign affiliates to the extent of at least 25 percent of total outstanding voting stock. Where more than one domestic affiliate has transactions with, or interests in, the same foreign corporation, consolidated reports should be filed; consolidated reports may also be filed where several foreign subsidiaries operate in the same country and industry. Reports are also required for direct transactions with foreign enterprises in which 25 percent or more of the voting stock is held through primary foreign enterprises.

Form BE-578. One Form BE-578 is to be filed quarterly for each foreign branch and other direct foreign operations of American reporters, including mining claims, oil concessions held directly or jointly with others and other property such as real estate but excluding branches of banks or insurance

companies which are reportable on Forms BE-578B and BE 5781 respectively. Separate reports should be filed for each foreign branch. Where a reporter, or several afiliated American corporations, has (or have) branches operating in the same country, or a Joint interest in one or more branches, consolidated reports may be filed.

Form BE-35. United States motion picture producers or distributors may elect to file one Form BE-85 quarterly for each foreign subsidiary, affilate or branch, in lieu of Forms BE-577 or 578, as applicable. The instructions as to ownership and consolidations listed for Forms BE-577 and 578 also apply to filling on Form BE-35.

Form BE-578B. One Form BE-578B is to be filled quarterly for each foreign branch of a United States banking institution. Separate reports should be filed for each foreign branch; consolidated reports may however be filled where a United States bank has several branches operating in the same country.

Form BE-5781. One Form BE-5781 is to be filed annually for each foreign branch or subsidiary of a United States insurance firm. Separate reports should be filed for each foreign branch; consolidated reports may however be filled where a United States insurance company has several branches operating in the same country.

Form BE-577A. One Form BE-577A is to be filed annually covering the foreign organizations in which the reporter and its domestic affiliates own in excess of 10 percent, but less than 25 percent, of voting stock, or equivalent ownership in unincorporated foreign enterprises.

Form BE-577S. Reports covering transactions between primary and secondary foreign corporations (see § 803.6 (a) for definitions) are to be filed on an annual basis. Separate reports should be filed for each secondary foreign corporation owned through a primary foreign corporation and its foreign affiliates for which the United States equity amounts to 25 percent or more of its voting securities. However, a reportable interest is deemed to exist only if the United States parent owns 50 percent or more of the voting stock of the primary foreign corporation and it in turn owns at least 50 percent of the voting stock of the secondary foreign organization. Transactions of domestic affiliated companies directly with such secondary foreign corporations should be treated as primary relationships, and are reportable on Form BE-577 on a quarterly basis. Combined reports may be filed where several secondary foreign corporations operating in the same country are owned by the same primary foreign corporation. (See also § 803.6(a) (2)).

(2) Foreign direct investments in the United States.

Form BE-605. One Form BE-605 is to be filed quarterly for each United States corporation 25 percent or more of whose voting stock is owned directly or indirectly by a

foreign person(s) or organization(s) and its United States or foreign affiliates.

Form BE-606. One Form BE-606 is to be filled quarterly for each United States branch of a foreign business organization, or for leaseholds, real property or other United States unincorporated business property owned directly by a foreign person or organization but excluding branch operations in the United States of foreign banks or insurance companies.

Form BE-606B. One Form BE-606B is to be filed quarterly for each United States branch of a foreign banking institution. Where a foreign bank has more than one United States branch, consolidated reports may be filled.

Form BE-6061. One Form BE-6061 is to be filed annually for each United States branch of a foreign insurance firm, or for United States insurance companies 25 percent or more of whose voting stock is held by foreign owners.

(3) International payments of royalties, fees, etc.

Form BE-93. One Form BE-93 is to be filed annually by each United States person or firm receiving from foreigners, or paying to foreigners, royalties, licensing fees, rentals, etc., arising from the use, purchase or sale of intangible assets or rights.

(b) Frequency of reports. Reports on Forms BE-577S, BE-577A, BE-5781, BE-6061 and BE-93 must be filed annually beginning with a report covering the calendar or fiscal year 1961; reports on Forms BE-577, BE-578, BE-35, BE 578B, BE-605, BE-606 and BE-606B must be filed quarterly beginning with a report for the first calendar or fiscal quarter of 1962.

§ 803.3

Reporting by banks and insurance companies.

(a) United States banks, including agencies of foreign banks, reporting on Forms BE-577, 577A, 577S, 578B, 605 or 606B. In order to avoid duplication of claims or liabilities reported on Treasury Foreign Exchange Forms B-1 and B-2, intercompany or branch accounts reported on the Commerce forms listed above should exclude accounts with or investments in foreign branches or subsidiaries or accounts with a foreign parent organization and its affiliates, to the extent they are included in the Treasury foreign exchange forms. However, data covering earnings, income, fees or other charges remitted or credited, or permanent investments not includible in the Treasury forms, should be reflected in the Commerce forms.