Non-Americans who have recently acquired or established
businesses in the U.S. or intend to, should be aware of reporting
requirements that have recently been reintroduced. The United
States Bureau of Economic Analysis (BEA) has reinstated a program
(which was discontinued in 2009) requiring a report to be filed
when a foreign direct investor acquires or establishes a U.S.
business, or expands an existing U.S. business, subject to certain
qualifications. The BEA defines a foreign direct investment as the
direct or indirect ownership or control of 10% or more of the
voting interest in a U.S. business by a foreign investor. The BEA
issued six versions of the reporting form for different types of
transactions. The reports focus on information concerning the facts
of the transaction. For example, reporting must address the parties
involved, the transaction value, and details concerning the
business. Intentions concerning future activity do not need to be
This limited reporting regime does not require commitments to be
made by non-American investors and can be contrasted to the net
benefit test applied to foreign acquisitions of control of certain
Canadian businesses. In a separate bill introduced in September,
Rep. Rosa DeLauro, D-Conn. had proposed the adoption in the U.S. of
a similar net benefit test, to bolster the current CFIUS
regime's focus on national security issues. Although it is
widely believed that this specific bill will not be passed, its
introduction evidences the globally increased focus on review of
The reporting requirement has been reinstated retroactively to
January 1, 2014 - a reportable activity that took place from and
including January 1, 2014 to November 26, 2014 must be reported by
January 12, 2015. Going forward, all reports must be filed with the
BEA within 45 days of completion.
The content of this article does not constitute legal advice
and should not be relied on in that way. Specific advice should be
sought about your specific circumstances.
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While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
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