
Article 1 
This Regulation establishes a common framework for the systematic production of Community statistics on the structure and activity of foreign affiliates.
Article 2 
For the purpose of this Regulation, the following definitions apply:

((a)) ‘foreign affiliate’ shall mean an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control, or an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control;
((b)) ‘control’ shall mean the ability to determine the general policy of an enterprise by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares;
((c)) ‘foreign control’ shall mean that the controlling institutional unit is resident in a different country from the one where the institutional unit over which it has control is resident;
((d)) ‘branches’ shall mean local units not constituting separate legal entities, which are dependent on foreign-controlled enterprises. They are treated as quasi-corporate enterprises within the meaning of point 3(f) of the Explanatory notes to Section III (B) of the Annex to Regulation (EEC) No 696/93;
((e)) ‘statistics on foreign affiliates’ shall mean statistics describing the overall activity of foreign affiliates;
((f)) ‘inward statistics on foreign affiliates’ shall mean statistics describing the activity of foreign affiliates resident in the compiling country;
((g)) ‘outward statistics on foreign affiliates’ shall mean statistics describing the activity of foreign affiliates abroad controlled by an institutional unit resident in the compiling country;
((h)) ‘ultimate controlling institutional unit of a foreign affiliate’ shall mean the institutional unit, proceeding up a foreign affiliate's chain of control, which is not controlled by another institutional unit;
((i)) ‘enterprise’, ‘local unit’ and ‘institutional unit’ shall each have the same meaning as in Regulation (EEC) No 696/93.
Article 3 
Member States shall submit to the Commission (Eurostat) data on foreign affiliates in respect of the characteristics, the economic activities and the geographical breakdown as referred to in Annexes I, II and III.
Article 4 

1. Member States shall, while complying with conditions as to quality referred to in Article 6, collect the information required under this Regulation using all the sources they consider relevant and appropriate.
2. Natural and legal persons required to supply information shall, when responding, comply with the time limits and definitions set by the national institutions responsible for the collection of data within the Member States in accordance with this Regulation.
3. Where the required data cannot be collected at a reasonable cost, best estimates, including zero values, may be transmitted.
Article 5 

1. The Commission shall draw up a programme for pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97 on a voluntary basis on additional variables and breakdowns for inward and outward statistics on foreign affiliates.
2. The pilot studies shall be carried out in order to assess the relevance and feasibility of collecting data, taking into account the benefits of the availability of the data in relation to the cost of the statistical system and the burden on enterprises.
3. The Commission programme for pilot studies shall be consistent with Annexes I and II.
4. On the basis of the conclusions of the pilot studies, the Commission shall adopt the necessary implementation measures for inward and outward statistics on foreign affiliates in accordance with the regulatory procedure with scrutiny referred to in Article 10(3).
5. The pilot studies shall be completed by 19 July 2010.
Article 6 

1. Member States shall take all measures necessary to ensure the quality of the data transmitted according to common quality standards.
2. Member States shall supply the Commission (Eurostat) with a report on the quality of the data transmitted (quality reports).
3. The common quality standards as well as the content and periodicity of the quality reports shall be specified by the Commission in accordance with the regulatory procedure with scrutiny referred to in Article 10(3).
4. The Commission shall assess the quality of the data transmitted.
Article 7 
The Commission shall, in close cooperation with the Member States, publish a recommendations manual which contains the relevant definitions and supplementary guidance concerning the Community statistics produced pursuant to this Regulation.
Article 8 

1. Member States shall compile the data according to the implementation timetable as specified in Annexes I and II.
2. During a transitional period that shall not exceed four years from the first reference year as referred to in Annexes I and II, derogations from the provisions of this Regulation may be granted for a limited period by the Commission to Member States, in accordance with the regulatory procedure referred to in Article 10(2), when their national systems require major adaptations.
Article 9 

1. The following measures for implementing this Regulation shall be adopted in accordance with the regulatory procedure referred to in Article 10(2):
(a) setting out the appropriate format and procedure for the transmission of results by Member States;and
(b) granting derogations to Member States when their national systems require major adaptations, including granting derogations from any new requirements following pilot studies, pursuant to Article 8(2).
2. The following measures designed to amend non-essential elements of this Regulation, including by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 10(3):
(a) adapting definitions in Annexes I and II, adapting the level of detail in Annex III, and making any consequential changes in Annexes I and II;
(b) implementing the results of the pilot studies, pursuant to Article 5(4);and
(c) defining proper common quality standards and the contents and periodicity of the quality reports, pursuant to Article 6(3).
3. Particular consideration shall be given to the principle that the benefits of such measures must outweigh their costs, and to the principle that any additional financial burden on MemberStates or enterprises should remain within a reasonable limit.
Article 10 

1. The Commission shall be assisted by the Statistical Programme Committee (the Committee).
2. Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.The period referred to in Article 5(6) of Decision 1999/468/EC shall be three months.
3. Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
4. The European Central Bank and the national central banks may attend the meetings of the Committee as observers.
Article 11 
In implementing this Regulation, the Commission shall request the opinion of the Committee on Monetary, Financial and Balance of Payments Statistics on all matters falling within that committee's competence, notably about all measures for adjustment to economic and technical developments concerning the collection and statistical processing of data, the processing and transmission of results.
Article 12 
The Commission shall, by 19 July 2012, submit a report to the European Parliament and the Council on the implementation of this Regulation. In particular, that report shall:

((a)) assess the quality of the statistics produced;
((b)) assess the benefits accruing to the Community, the Member States, the providers and users of statistical information of the statistics produced in relation to the costs;
((c)) assess the progress of the pilot studies and their implementation;
and
((d)) identify areas for potential improvement and amendments considered necessary in light of the results obtained and the costs involved.
Article 13 
This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Strasbourg, 20 June 2007.
For the European Parliament
The President
H.-G. PÖTTERING
For the Council
The President
G. GLOSER
ANNEX I
SECTION 1
The statistical units are the enterprises and all branches, which are under foreign control according to the definitions contained in Article 2.

SECTION 2
The following characteristics as defined in the Annex to Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning the definitions of characteristics for structural business statistics will be compiled:


Code Title
11 11 0 Number of enterprises
12 11 0 Turnover
12 12 0 Production value
12 15 0 Value added at factor cost
13 11 0 Total purchases of goods and services
13 12 0 Purchases of goods and services purchased for resale in the same condition as received
13 31 0 Personnel costs
15 11 0 Gross investment in tangible goods
16 11 0 Number of persons employed
22 11 0 Total intra-mural R & D expenditure
22 12 0 Total number of R & D personnel


If the number of persons employed is not available, the number of employees (code 16 13 0) will be compiled instead.

Variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) are only required to be compiled for activities in NACE sections C, D, E and F.

For NACE section J only the number of enterprises, turnover and the number of persons employed (or the number of employees instead) will be compiled.

SECTION 3
Data will be provided according to the concept of ‘ultimate controlling institutional unit’ with the geographical breakdown level 2-IN combined with the activity breakdown level 3 as specified in Annex III and the geographical breakdown level 3 combined with Business Economy.

SECTION 4

1.. The first reference year for which annual statistics will be compiled is the calendar year of the entry into force of this Regulation.
2.. Member States will provide data for every calendar year thereafter.
3.. The first reference year for which variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) will be compiled is 2007.

SECTION 5
The results will be transmitted within 20 months after the end of the reference year.

SECTION 6

1.. Member States will provide the Commission with a report relating to the definition, structure and availability of the statistical data to be compiled for the purposes of this common module.
2.. For the level of detail covered by this Annex, the Commission will institute pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97 pursuant to Article 5 of this Regulation.
3.. The pilot studies will be carried out in order to assess the feasibility of obtaining data, taking into account the benefits of the availability of such data in relation to the cost of collection and the burden on business.
4.. Pilot studies will be conducted for the following characteristics:

Code Title
 Exports of goods and services
 Imports of goods and services
 Intra-group exports of goods and services
 Intra-group imports of goods and services
Exports, imports, intra-group exports and intra-group imports will be broken down into goods and services.
5.. Pilot studies will also be conducted to study the feasibility of compiling data for activities in NACE sections M, N and O and of compiling the variables total intra-mural R & D expenditure (code 22 11 0) and total number of R & D personnel (code 22 12 0) for activities in NACE sections G, H, I, K, M, N and O. Pilot studies will also be conducted to assess the relevance, feasibility and costs of breaking down the data as specified in section 2 into size classes measured in terms of number of persons employed.

ANNEX II
SECTION 1
The statistical units are the enterprises and all branches abroad that are controlled by an institutional unit resident in the compiling country, according to the definitions contained in Article 2.

SECTION 2
The following characteristics, as defined in the Annex to Regulation (EC) No 2700/98, will be compiled:


Code Title
12 11 0 Turnover
16 11 0 Number of persons employed
11 11 0 Number of enterprises

If the number of persons employed is not available, the number of employees (code 16 13 0) will be compiled instead.

SECTION 3
Data will be provided with the detail by country of location and by activity of the foreign affiliate specified in Annex III. The detail by country of location and activity will be combined as follows:


— Level 1 of the geographical breakdown combined with Level 2 of the activity breakdown.
— Level 2-OUT of the geographical breakdown combined with level 1 of the activity breakdown.
— Level 3 of the geographical breakdown combined with data on total activity only.

SECTION 4

1.. The first reference year for which annual statistics will be compiled is the calendar year of the entry in force of this Regulation.
2.. Member States will provide data for every calendar year thereafter.

SECTION 5
The results will be transmitted within 20 months from the end of the reference year.

SECTION 6

1.. Member States will provide the Commission with a report relating to the definition, structure and availability of the statistical data to be compiled for the purposes of this common module.
2.. For the level of detail covered by this Annex, the Commission will institute pilot studies to be carried out by national authorities within the meaning of Article 2 of Regulation (EC) No 322/97, pursuant to Article 5 of this Regulation.
3.. The pilot studies will be carried out in order to assess the relevance and feasibility of obtaining data, taking into account the benefits of the availability of such data in relation to the cost of collection and the burden on business.
4.. Pilot studies will be conducted for the following characteristics:

Code Title
13 31 0 Personnel costs
 Exports of goods and services
 Imports of goods and services
 Intra-group exports of goods and services
 Intra-group imports of goods and services
12 15 0 Value added at factor cost
15 11 0 Gross investment in tangible goods

ANNEX III
Geographical breakdown levels Level 1  Level 2-OUT(Level 1 + 24 countries)
V2 Extra-EU 27 V2 Extra-EU 27
  IS Iceland
  LI Liechtenstein
  NO Norway
CH Switzerland CH Switzerland
  HR Croatia
RU Russian Federation RU Russian Federation
  TR Turkey
  EG Egypt
  MA Morocco
  NG Nigeria
  ZA South Africa
CA Canada CA Canada
US United States of America US United States
  MX Mexico
  AR Argentina
BR Brazil BR Brazil
  CL Chile
  UY Uruguay
  VE Venezuela
  IL Israel
CN China CN China
HK Hong Kong HK Hong Kong
IN India IN India
  ID Indonesia
JP Japan JP Japan
  KR South Korea
  MY Malaysia
  PH Philippines
  SG Singapore
  TW Taiwan
  TH Thailand
  AU Australia
  NZ New Zealand
Z8 Extra-EU 27 not allocated Z8 Extra-EU 27 not allocated
C4 Offshore Financial Centres C4 Offshore Financial Centres
Z7 Equally-shared control of UCIs of more than 1 Member State Z7 Equally-shared control of UCIs of more than one Member State

A1 World total (all entities including compiling country)
Z9 Rest of the World (excluding compiling country)
A2 Controlled by the compiling country
V1 EU-27 (Intra-EU-27) excluding compiling country
BE Belgium
BG Bulgaria
CZ Czech Republic
DK Denmark
DE Germany
EE Estonia
IE Ireland
GR Greece
ES Spain
FR France
IT Italy
CY Cyprus
LV Latvia
LT Lithuania
LU Luxembourg
HU Hungary
MT Malta
NL Netherlands
AT Austria
PL Poland
PT Portugal
RO Romania
SI Slovenia
SK Slovakia
FI Finland
SE Sweden
UK United Kingdom
Z7 Equally-shared control of UCIs of more than one Member State
V2 Extra-EU 27
AU Australia
CA Canada
CH Switzerland
CN China
HK Hong Kong
IL Israel
IS Iceland
JP Japan
LI Liechtenstein
NO Norway
NZ New Zealand
RU Russian Federation
TR Turkey
US United States
C4 Offshore financial centres
Z8 Extra-EU27 not allocated

AD Andorra EE Estonia KZ Kazakhstan QA Qatar
AE United Arab Emirates EG Egypt LA Lao People's Democratic Republic RO Romania
AF Afghanistan ER Eritrea LB Lebanon RS Serbia
AG Antigua and Barbuda ES Spain LC Saint Lucia RU Russian Federation
AI Anguilla ET Ethiopia LI Liechtenstein RW Rwanda
AL Albania FI Finland LK Sri Lanka SA Saudi Arabia
AM Armenia FJ Fiji LR Liberia SB Solomon Islands
AN Netherlands Antilles FK Falkland Islands (Malvinas) LS Lesotho SC Seychelles
AO Angola FM Micronesia, Federated States of LT Lithuania SD Sudan
AQ Antarctica FO Faroe Islands LU Luxembourg SE Sweden
AR Argentina FR France LV Latvia SG Singapore
AS American Samoa GA Gabon LY Libyan Arab Jamahiriya SH St Helena
AT Austria GD Grenada MA Morocco SI Slovenia
AU Australia GE Georgia MD Moldova, Republic of SK Slovakia
AW Aruba GG Guernsey ME Montenegro SL Sierra Leone
AZ Azerbaijan GH Ghana MG Madagascar SM San Marino
BA Bosnia and Herzegovina GI Gibraltar MH Marshall Islands SN Senegal
BB Barbados GL Greenland MK the Former Yugoslav Republic of Macedonia SO Somalia
BD Bangladesh GM Gambia ML Mali SR Suriname
BE Belgium GN Guinea MM Myanmar ST Sao Tome and Principe
BF Burkina Faso GQ Equatorial Guinea MN Mongolia SV El Salvador
BG Bulgaria GR Greece MO Macau SY Syrian Arab Republic
BH Bahrain GS South Georgia and the South Sandwich Islands MP Northern Mariana Islands SZ Swaziland
BI Burundi GT Guatemala MR Mauritania TC Turks and Caicos Islands
BJ Benin GU Guam MS Montserrat TD Chad
BM Bermuda GW Guinea-Bissau MT Malta TF French Southern Territories
BN Brunei Darussalam GY Guyana MU Mauritius TG Togo
BO Bolivia HK Hong Kong MV Maldives TH Thailand
BR Brazil HM Heard Island and McDonald Islands MW Malawi TJ Tajikistan
BS Bahamas HN Honduras MX Mexico TK Tokelau
BT Bhutan HR Croatia MY Malaysia TM Turkmenistan
BV Bouvet Island HT Haiti MZ Mozambique TN Tunisia
BW Botswana HU Hungary NA Namibia TO Tonga
BY Belarus ID Indonesia NC New Caledonia TP East Timor
BZ Belize IE Ireland NE Niger TR Turkey
CA Canada IL Israel NF Norfolk Island TT Trinidad and Tobago
CC Cocos (Keeling) Islands IM Isle of Man NG Nigeria TV Tuvalu
CD Congo, the Democratic Republic of the IN India NI Nicaragua TW Taiwan, Province of China
CF Central African Republic IO British Indian Ocean Territory NL Netherlands TZ Tanzania, United Republic of
CG Congo IQ Iraq NO Norway UA Ukraine
CH Switzerland IR Iran, Islamic Republic of NP Nepal UG Uganda
CI Côte d'Ivoire IS Iceland NR Nauru UK United Kingdom
CK Cook Islands IT Italy NU Niue UM United States Minor Outlying Islands
CL Chile JE Jersey NZ New Zealand US United States
CM Cameroon JM Jamaica OM Oman UY Uruguay
CN China JO Jordan PA Panama UZ Uzbekistan
CO Colombia JP Japan PE Peru VA Holy See (Vatican City State)
CR Costa Rica KE Kenya PF French Polynesia VC St Vincent and the Grenadines
CU Cuba KG Kyrgyzstan PG Papua New Guinea VE Venezuela
CV Cape Verde KH Cambodia (Kampuchea) PH Philippines VG Virgin Islands, British
CX Christmas Island KI Kiribati PK Pakistan VI Virgin Islands, US
CY Cyprus KM Comoros PL Poland VN Viet Nam
CZ Czech Republic KN St Kitts and Nevis PN Pitcairn VU Vanuatu
DE Germany KP Korea, Democratic People's Republic of (North Korea) PS Palestinian Territory, Occupied WF Wallis and Futuna
DJ Djibouti KR Korea, Republic of (South Korea) PT Portugal WS Samoa
DK Denmark KW Kuwait PW Palau YE Yemen
DM Dominica KY Cayman Islands PY Paraguay  
DO Dominican Republic     ZA South Africa
DZ Algeria     ZM Zambia
EC Ecuador Z8 Extra EU-27 not allocated   ZW Zimbabwe
A2 Controlled by the compiling country Z7 Equally-shared control of UCIs of more than one Member State    



Level 1 Level 2
  NACE Rev. 1.1
TOTAL ACTIVITY TOTAL ACTIVITY Sec C to O (excluding L)
MINING & QUARRYING MINING AND QUARRYING Sec C
Of which: 
Extraction of petroleum and gas Div 11
MANUFACTURING MANUFACTURING Sec D
Food products Subsection DA
Textiles and wearing apparel Subsection DB
Wood, publishing and printing Subsections DD & DE
TOTAL textiles + wood activities 
Refined petroleum prod. And other treatments Div 23
Manufacture of chemicals & chemical products Div 24
Rubber and plastic products Div 25
Petrol., chem., rubber, plastic prod. TOTAL petroleum, chemic., rubber, plastic products 
Metal products Subsection DJ
Mechanical products Div 29
TOTAL metal and mechanical products 
Office machinery and computers Div 30
Radio, TV, communication equipments Div 32
Office mach., comp., RTV, comm. eq. TOTAL machin., comput., RTV, comm. equip. 
Motor vehicles Div 34
Other transport equipment Div 35
Vehicles, other transport equip. TOTAL vehicles + other transport equipment 
Manufacturing n.i.e. 
ELECTRIC., GAS & WATER ELECTRICITY, GAS AND WATER Sec E
CONSTRUCTION CONSTRUCTION Sec F
TOTAL SERVICES TOTAL SERVICES 
TRADE AND REPAIRS TRADE AND REPAIRS Sec G
Sale, maintenance and repair of motor vehicles and motor cycles; retail sale of automotive fuel Div 50
Wholesale trade and commission trade, except of motor vehicles and motor cycles Div 51
Retail trade, except of motor vehicles and motor cycles; repair of personal and household goods Div 52
HOTELS & RESTAURANTS HOTELS AND RESTAURANTS Sec H
TRANSP., STORAGE AND COM. TRANSPORTS, STORAGE AND COMMUNICATION Sec I
Transport and storage Div 60, 61, 62, 63
Land transport; transport via pipelines Div 60
Water transport Div 61
Air transport Div 62
Supporting and auxiliary transport activities; activities of travel agencies Div 63
Post and telecommunications Div 64
Post and courier activities Group 64.1
Telecommunications Group 64.2
FINANCIAL INTERMED. FINANCIAL INTERMEDIATION Sec J
Financial intermediation, except insurance and pension funding Div 65
Insurance and pension funding, except compulsory social security Div 66
Activities auxiliary to financial intermediation Div 67
REAL ESTATE ACTIVITIES Sec K, Div 70
RENTING OF MACHINERY AND EQUIPMENT WITHOUT OPERATOR AND OF PERSONAL AND HOUSEHOLD GOODS Sec K, Div 71
COMPUT. & RELATED ACT. COMPUTER AND RELATED ACTIVITIES Sec K, Div 72
RESEARCH & DEVELOP. RESEARCH AND DEVELOPMENT Sec K, Div 73
OTHER BUSINESS ACT. OTHER BUSINESS ACTIVITIES Sec K, Div 74
Legal, account., market research, consultancy Group 74.1
Legal activities Class 74.11
Account., bookkeeping and audit.; tax consult. Class 74.12
Market research and public opinion polling Class 74.13
Business and management consultancy activities Class 74.14
Management activities of holding companies Class 74.15
Architectural, engineering and other tech. act. Group 74.2
Advertising Group 74.4
Business activities n.e.c. Group 74.3, 74.5, 74.6, 74.7, 74.8
EDUCATION Sec M
HEALTH AND SOCIAL WORK Sec N
SEWAGE AND REFUSE DISPOSAL Sec O, Div 90
ACTIVITIES OF MEMBERSHIP ORGANIS. N.E.C. Sec O, Div 91
REC., CULT., SPORTING ACTIV. RECREATIONAL, CULT., SPORTING ACTIVITIES Sec O, Div 92
Motion picture, radio, tel., other entertain. activ. Group 92.1, 92.2, 92.3
News agency activities Group 92.4
Library, archives, museums, other cultural act. Group 92.5
Sporting and other recreational activities Group 92.6, 92.7
OTHER SERVICE ACTIVITIES Sec O, Div 93
Not allocated 

Level 3 (NACE Rev. 1.1)
Heading Requested level of detail
Business Economy Sections C to K
Mining and quarrying Section C
Manufacturing Section D
All subsections DA to DN
All divisions 15 to 37
Aggregates:
High-technology (HIT) 24.4, 30, 32, 33, 35.3
Medium-high-technology (MHT) 24 except 24.4, 29, 31, 34, 35.2, 35.4, 35.5
Medium-low-technology (MLT) 23, 25-28, 35.1
Low-Technology (LOT) 15-22, 36, 37
Electricity, gas and water supply Section E
All divisions (40 and 41)
Construction Section F (Division 45)
All Groups (45.1 to 45.5)
Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Section G
All divisions (50 to 52)
Groups 50.1 + 50.2 + 50.3, 50.4, 50.5, 51.1 to 51.9
Groups 52.1 to 52.7
Hotels and restaurants Section H (Division 55)
Groups 55.1 to 55.5
Transport, storage and communication Section I
All divisions
Groups 60.1, 60.2, 60.3, 63.1 + 63.2, 63.3, 63.4, 64.1, 64.2
Financial intermediation Section J
All divisions
Real estate, renting and business activities Section K
Division 70
Division 71, groups 71.1 + 71.2, 71.3 and 71.4
Division 72, groups 72.1 to 72.6
Division 73
Division 74, the aggregates 74.1 to 74.4 and 74.5 to 74.8