The Treasury Department is seeking input by April 8 on a proposal to establish fees for parties filing a voluntary notice of certain transactions for review by the Committee on Foreign Investment in the United States. In establishing fees for such notices, the proposed rule would implement section 1723 of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which amends section 721 of the Defense Production Act of 1950 to allow CFIUS to collect fees.
FIRRMA authorizes CFIUS to assess and collect a fee with respect to each covered transaction for which a written notice is submitted to CFIUS. The fee must be based on the value of the transaction, taking various factors into consideration, and may not exceed an amount equal to the lesser of one percent of the value of the transaction or $300,000, adjusted annually for inflation.
Treasury is now proposing to establish the following fees:
- transactions with a value of less than $500,000 – no fee
- transactions with a value of at least $500,000 but less than $5 million - $750
- transactions with a value of at least $5 million but less than $50 million - $7,500
- transactions with a value of at least $50 million but less than $250 million - $75,000
- transactions with a value of at least $250 million but less than $750 million - $150,000
- transactions with a value equal to or greater than $750 million - $300,000
For more information on CFIUS and the Treasury regulations, please contact export attorneys Kristine Pirnia or Josh Rodman.