ate of a U.S. person nor a foreign parent (including foreign affiliates of the foreign parent) of a U.S. person.

(k) Carrier. Carrier shall mean the owner of a vessel or the operator of a chartered or subchartered vessel, who enters into and carries out any form of transportation contract with the shippers of merchandise.

(1) Lease. Lease shall mean a contract by which one person gives another person the use and possession of tangible property (other than real estate) for a specified time in return for agreed-upon payments.

(1) Financial Lease shall mean a long-term lease under which a sale of the property is recognized at the inception of the lease (these may be shown as lease contracts or accounts receivable on the lessor's books). Total lease payments made pursuant to the lease agreement consist of payments of principal (return of capital), which relate to the value of the leased tangible property, and interest.

(2) Operational Lease shall mean a lease with a term which is less than the useful life of the property. Total lease payments pursuant to the lease agreement may be viewed as consisting of depreciation (return of capital) of the leased tangible property and net rent.

NOTE: In determining whether a lease is financial or operational, reporters should use the same criteria applied in recording the lease on their books.

(m) Net Book Value. Net Book Value shall mean, under an operational lease, the original cost less the accumulated depreciation of the leased tangible property, or, under a financial lease, the amount of principal payments remaining due at any given time for the leased tangible property under the lease contract.

§ 805.3 Number of copies.

A single original copy of each form shall be filed with the Bureau of Economic Analysis.

§ 805.4 Estimates.

Every question on a form which a reporter is required to file must be answered. If the information is not available as specified on the form, a reason

able estimate should be entered and labeled as such. If there is no basis for such an estimate, state, "unknown" with an appropriate explanation.

§ 805.5 Filing date.

Forms shall be filed on or before August 31, 1976, or no later than 60 days after publication of final regulations in the FEDERAL REGISTER, whichever date is later. If additional time is required for completion, extensions may be arranged through written application to the Balance of Payments Division BE-58(L), Bureau of Economic Analysis, U.S. Department of Commerce, Washington, D.C. 20230.

§ 805.6 Special filing procedures.

When data specified on a report form are not available to the reporter, or when consolidation beyond that specifically provided for above would reduce reporting burden without loss of significant information, the reporter may apply in writing to the Balance of Payments Division BE-58(L), Bureau of Economic Analysis, Department of Commerce, Washington, D.C. 20230, for consideration of the specific problem.

§ 805.7 Where to send reports.

All reports shall be sent to the Balance of Payments Division BE-58(L), Bureau of Economic Analysis, U.S. Department of Commerce, Washington, D.C. 20230.

§ 805.8 Confidentiality.

(a) All reports will be held in strict confidence pursuant to the provisions of the Bretton Woods Agreements Act (22 U.S.C. 286f).

(b) The public's attention is invited to 22 U.S.C. 286f(c) which provides for a fine and/or imprisonment for the unlawful disclosure by an officer or employee of the Government of any information obtained under the Bretton Woods Agreements Act.

§ 805.9 Penalty for refusal to file.

The public's attention is invited to 22 U.S.C. 286f(b) which provides subpoena power to the Government to compel the production of data and enforcement of that power through con

to do so with a minimum of burden on respondents and with no unnecessary duplication of effort.

§ 806.2 Recordingkeeping requirements.

In accordance with section 5(b)(1) of the Act (22 U.S.C. 3104) persons subject to the jurisdiction of the United States shall maintain any information (including journals or other books of original entry, minute books, stock transfer records, lists of shareholders, or financial statements) which is essential for carrying out the surveys and studies provided for by the Act.

§ 806.3 Reporting requirements.

(a) In accordance with section 5 (b)(2) of the Act (22 U.S.C. 3104) persons subject to the jurisdiction of the United States shall furnish, under oath, any report containing information which is determined to be necessary to carry out the surveys and studies provided for by the Act.

(b) Such reports may be required from among others, U.S. persons which have direct investment abroad, U.S. persons in which foreign persons have direct investment, U.S. intermediaries, and U.S. persons which assist or intervene in the purchase or sale of direct investment interests, such as real estate brokers and brokerage houses acting as managers of tender offers.

§ 806.4 Response required.

Reports, as specified below, are required from all persons coming within the reporting requirements, whether or not they are contacted by BEA. In addition, any person BEA contacts, either by sending them report forms or buy written inquiry concerning the person's being subject to the reporting requirements of a survey conducted pursuant to this Part must respond in writing. The reponse must be made by filing the properly completed report form, or by submitting in writing, or within 30 days of being contacted, a valid exemption claim (including the situation where the statistical data requested on the form are not applicable) or by certifying in writing to the fact that the person has no direct investments within the purview of the Act or the regulations contained

his requirement is necessary e compliance with reporting ents and efficient administrae Act.

onfidentiality.

ation collected pursuant to confidential (see section 5(c) t, 22 U.S.C. 3104).

ess to this information shall ble only to officials and em(including consultants and rs and their employees) of designated by the President m functions under the Act. bject to § 806.5(d), the Presiy authorize the exchange of ion between agencies or offignated to perform functions e Act.

hing in this Part shall be con- require any Federal Agency se information otherwise prolaw.

is information shall be used r analytical or statistical purfor a proceeding under § 806.6. official or employee (includultants and contractors and ployees) shall publish or make

to any other person any inn collected under the Act in manner that the person to he information relates can be lly identified.

orts and copies of reports prersuant to the Act are confind their submission or discloll not be compelled by any without the prior written perof the person filing the report è customer of such person the information supplied is ble as being derived from the of such customer.

Penalties.

hoever fails to furnish any in›n required by the Act or reby § 806.3 or to comply with er rule, regulation, order or inn promulgated under the Act subject to a civil penalty not ng $10,000 in a proceeding in an appropriate United court and to injunctive relief iding such person to comply, (see section 6(a) and (b) of the U.S.C. 3105).

(b) Whoever willfully fails to submit any information required by the Act or required by § 806.3 or willfully violates any other rule, regulation, order or instruction promulgated under the Act, upon conviction, shall be fined not more than $10,000 and, if an individual, may be imprisioned 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 section 6(c) of the Act, 22 U.S.C. 3105).

(c) Any person who willfully violates § 806.5 relating to confidenciality, shall, upon conviction, be fined not more than $10,000, in addition to any other penalty imposed by law (see section 5(d) of the Act, 22 U.S.C. 3104).

§ 806.7 General definitions.

(a) "United States," when used in a geographic sense, means the several States, the District of Columbia, the Commonwelth of Puerto Rico, the Canal Zone, and all territories and possessions of the United States;

(b) "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;

(c) "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);

(d) "United States person" means any person resident in the United States or subject to the jurisdiction of the United States;

(e) "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

0-80--40

1) Filing date. Reports shall be don or before April 30, 1975, or no r than 60 days after publication of l rules and regulations in the FEDL REGISTER, whichever date is later. O Extensions. Requests for an exsion will NOT normally be granted; wever, in hardship cases written rests for an extension will be considd provided they are received 15 s prior to the due date and enuate substantive reasons necessitatthe extension.

O Assistance. If there are any quess concerning the report, telephone 2) 523-0547.

) Number of copies. A single origicopy shall be filed with the Bureau Economic Analysis. In addition, n reporter should retain a copy of report for his files.

• Where to send reports. All reports ll be sent to the Bureau of Ecoic Analysis, Attention: Internaal Investment Division, BE-50 I), U.S. Department of Commerce, shington, D.C. 20230.

n) Treasury Department's Foreign tfolio Investment Study. The DeEment of the Treasury is concurcly conducting a survey of foreign folio investment in the United es for the year 1974. All U.S. busi; enterprises owned to the extent ess than 10 percent by a foreign son and not required to report in survey of foreign direct investit, should contact the Department he Treasury concerning reporting irements for the portfolio survey.

ubpart C-Description of Forms Prescribed Under This Part

.22 Copies.

pies of the forms described in this art may be obtained from the au of Economic Analysis, AttenInternational Investment DiviBE-50 (LM), U.S. Department of merce, Washington, D.C. 20230.

23 Form BE-12.

Form BE-12, each U.S. business prise which was controlled directindirectly by a foreign person at ime during the year ending Deer 31, 1974, is required to report

information on investment and transactions between the U.S. business enterprise and its parent(s); information on direct financial transactions between the U.S. business enterprise and all foreign affiliates of all foreign parents which did not have a direct line of ownership in the U.S. business enterprise any time during the year ending December 31, 1974; various financial schedules covering the year ending December 31, 1974; information on merchandise trade of the U.S. business enterprise with foreigners; information, by state, on employment, revenues, operating assets, and land owned; and other informatior concerning the operations of the U.S. business enterprise and its relationship with the foreign person(s) having the controlling interest in the U.S. business enterprise.

Subpart D-Penalties

§ 804.24 Civil and criminal penalties.

In accordance with section 8 of the Act, the penalties and enforcement procedures described in paragraphs (a), (b) and (c) of this section shall apply to violations of this part and any reporting requirement imposed hereunder, or any other rule, regulation, order or instruction promulgated by the Secretary under the authority of the Act.

(a) Civil penalty. Attention is directed to section 8(a) of the Act which provides:

Whoever fails to furnish any information required pursuant to the authority of this Act, whether required to be furnished in the form of a report or otherwise, or to comply with any rule, regulation, order, or instruction promulgated pursuant to the authority of this Act may be assessed a civil penalty not exceeding $10,000 in a proceeding brought under subsection (b) of this section.

(b) Civil proceeding; injunction. Attention is directed to section 8(b) of the Act which provides:

Whenever it appears to either the Secretary of the Treasury or the Secretary of Commerce that any person has failed to furnish any information required pursuant to the provisions of this Act, whether required to be furnished in the form of a report or otherwise, or has failed to comply with any rule, regulation, order, or instruction pro

d pursuant to the authority of this e Secretary may in his discretion 1 action, in the proper district court United States or the proper United ourt of any territory or other place to the jurisdiction of the United seeking a mandatory injunction comg such person to comply with such gulation, order, or instruction, and proper showing by the Secretary of vance to the purposes of the Act of le, regulation, order, or instruction, a ent or temporary injunction or reg order shall be granted without nd such person shall also be subject civil penalty provided in subsection his section if the judge finds that nalty is necessary to obtain compliith such injunction or restraining

Criminal penalties. Attention is d to section 8(c) of the Act provides:

ver willfully fails to submit any inon required pursuant to this Act, r required to be furnished in the f a report or otherwise, or willfully any rule, regulation, order, or in›n promulgated pursuant to the auof this Act shall, upon conviction, be ot more than $10,000 or, if a natural may be imprisoned for not more ne year or both; and any officer, dior agent of any corporation who gly participates in such violation e punished by a like fine, imprisonor both.

5 False statements generally.

ention is also directed to section of Title 18, United States Code, provides:

ever, in any matter within the jurisof any department or agency of the States knowingly and wilfully falsionceals, or covers up by any trick, e, or device a material fact, or makes alse, fictitious, or fraudulent stateor representations, or makes or uses Ise writing or document knowing the to contain any false, fictitious or lent statement or entry, shall be not more than $10,000 or imprisoned ore than 5 years, or both.

805-PRELIMINARY SURVEY OF ERNATIONAL LEASING TRANSTIONS IN 1975

Who must report. General definitions. Number of copies.

§ 805.1 Who must report.

(a) United States person who engaged in leasing transactions with its foreign affiliates. One Form 3E-580 (Leasing of Tangible Property to or from Foreign Affiliate in 1975) must be filed by a U.S. person for each foreign affiliate for which it filed a Form BE-577, BE-577A, BE-578, BE-578B, or BE-5781 in 1975, and with which affiliate it engaged in lease transactions. Foreign affiliates should be consolidated as reported on Form BE-577, BE-578, BE-578B, or BE-5781 for 1975.

(b) United States person who engaged in leasing transactions with its foreign parent or a foreign affiliate of its foreign parent. One Form BE-608 (Leasing of Tangible Property to or from Foreign Parent in 1975) must be filed by a U.S. person for each foreign parent or foreign affiliate of a foreign parent for which the U.S. person filed a Form BE-605, BE-606, BE-606B, or BE-6061 in 1975, and with which the U.S. person had leasing transactions. The same consolidation of U.S. business enterprises should be used on this form as used on the corresponding BE-605, BE-606, BE-606B, or BE-6061 for 1975.

(c) United States person, not a carrier, who leases or who manufactures and sells reusable cargo containers to foreigners. The above person must file a report on Form BE-810 (Leasing of Reusable Cargo Containers to or from Foreign Residents in 1975). A U.S. person otherwise required to report is exempt from filing a report on Form BE-810 if the sum of both lease receipts and payments for the reporting period is less than $50,000.

(d) United States person who engaged in leasing transactions with unaffiliated foreigners. The above must