 |
|
|
|
|
|
|
|
|
 |
 |
 |
 |
 |
 |
 |
 |
|
|
|
||||||||||||||||||
|
ATP Eligibility Criteria for
U.S. Subsidiaries of Foreign-owned Companies
6. Questions and Answers on Foreign Eligibility and ParticipationThis section presents common questions about foreign eligibility and participation, and provides answers in order to clarify ATP's policies on the eligibility of foreign-owned companies. Q. Are green card holders who own a company incorporated in the United States eligible to receive an ATP award? Do they have to go through a foreign eligibility finding process? A. No, green card holders (resident aliens) are ineligible to receive an award from ATP and consequently do not go through a foreign eligibility finding process. If a proposal by a green card holder is submitted for consideration, it will undergo the normal selection process. If the proposal is selected as a semifinalist, the applicant will be asked if ownership has transferred from the green card holder to a U.S. citizen(s). ATP funding cannot be received unless the ownership issue has been resolved. Awards will not be deferred in order for this issue to be resolved. According to Sec. 295.3(c) of the ATP Rule, companies owned by legal residents (green card holders) may apply to the Program, but before an award can be given, the owner(s) must either become a U.S. citizen or ownership must be transferred to a U.S. citizen(s). Q. What are the eligibility requirements for foreign-owned companies seeking to participate as subcontractors in an ATP project? Is a foreign eligibility finding required? A. No, a foreign eligibility finding is not required in this case, but the submitting organization will be required to justify the use of any foreign-owned or foreign-located subcontractors or subsidiaries and explain how their participation will benefit the U.S. economy and why U.S. sources were judged to be unavailable and inadequate to meet project goals. Information addressing the "R&D Work Performed Outside the United States by the Recipient or Subcontractor Questionnaire" which can be found in the Exhibits section of the ATP Proposal Preparation Kit (February 2004) should be submitted in the Gate 1 proposal, if applicable. Because the mission of the program is to create economic growth in the United States, ATP award recipients are expected to use U.S. subcontractors to carry out project tasks in the United States. Substantial use of foreign subcontractors is discouraged. It is important for proposers to identify for all participants and subcontractors which facility and where (in or outside the United States) the research will be carried out. For information regarding the use of foreign subcontractors and R&D activities at non-U.S. sites, see "R&D Activities at Non-U.S. Sites" on page 28 of the ATP Proposal Preparation Kit (February 2004).Q. How do I determine who my ultimate parent company is? A. If your parent company is owned by another company, then the chain of ownership has not reached the ultimate owner. If you are majority-owned by an investment firm, for instance, and other firms own the investment firm, then the ownership chain is followed upward until there are no remaining layers of ownership. Your ultimate parent company and its country of incorporation will be used to apply the country-specific eligibility requirements during the foreign eligibility finding process. Q. What if my company has more than one foreign parent? A. To carry out the foreign eligibility finding, we look to the parent company with majority ownership or control, and conduct a foreign eligibility finding for that parent company. Q. What if I am jointly foreign-owned and U.S.-owned? A. We look at who is the majority owner of your company, and if it is the foreign-owned company, we will carry out a foreign eligibility finding for that parent company. If it is the case that ownership is equally shared, we will conduct a foreign eligibility finding for your foreign parent company. Q. I am interested in applying to ATP, but I am a foreign-owned company without a U.S. subsidiary. Can I still apply and receive an award? A. No. According to the ATP Statute, only U.S.-owned companies and foreign-owned companies that are incorporated or organized in the United States with a parent company incorporated in another country are eligible to receive financial assistance from ATP. Foreign-owned companies located outside the United States are ineligible for an award. Q. I am a foreign-owned company with a U.S. subsidiary interested in applying to ATP, but I am not sure if I will pass the foreign eligibility finding. Could you tell me in advance if my parent country would pass the country-specific eligibility requirements before I apply? A. No. ATP cannot give an opinion on whether the parent country of a foreign-owned company would pass the country-specific eligibility requirements prior to the time of application. A country's national policies may have been determined to meet the eligibility requirements in the past, but national policies change and that country's policies may not meet the foreign eligibility criteria at the time of a new finding-or, vice versa. Q. I am curious about when the process begins for a foreign eligibility finding. I was just notified by ATP that I am a semifinalist, but I have a foreign parent. Will ATP tell me at the oral review if I have passed the foreign eligibility finding? A. No. A determination of foreign eligibility will not be made until after the oral review. You will be asked to submit answers to the "Foreign-Owned Company Questionnaire" (see the Exhibits section of the ATP Proposal Preparation Kit, February 2004) in your Gate 2 proposal. During your oral review, the selection board may ask you questions to clarify how well you meet the ATP criteria, including questions related to the foreign eligibility finding-questions such as where you intend to carry out the research. Information submitted in your proposal, your response to the "Foreign-Owned Company Questionnaire," and information gathered during the oral review are used in the foreign eligibility finding process. Only foreign-owned participants of projects that reach the finalist stage will undergo the foreign eligibility finding. Q. What information do you use to carry out a foreign eligibility finding? A. ATP relies on information collected by federal agencies (e.g., the U.S. Department of Commerce, the U.S. Trade Representative, the U.S. Patent and Trademark Office, and the U.S. Department of State), and received from foreign embassies, U.S. embassies abroad, foreign programs, and other sources help us make an eligibility determination. Q. I am a U.S.-owned company currently participating in an ATP project. We are in the process of being acquired by a foreign-owned company. We would like to continue our participation in the project. What do you do in a case like ours? A. First, you must notify your NIST Grants Officer within 30 days of any change in ownership (e.g., a shift in majority control or ownership from individuals who are citizens of the United States) as stipulated in the terms and conditions of your cooperative agreement with NIST. When a change in ownership from majority U.S.-owned to foreign-owned is official, a foreign eligibility finding will be initiated to determine whether your company's continued participation in the project is in the economic interest of the United States, taking into account the change in ownership, and whether your new foreign parent's country of incorporation meets the country-specific eligibility requirements mandated by Congress. You will be asked to address similar questions to the ones in the "Foreign-Owned Company Questionnaire," (see the Exhibits section in the ATP Proposal Preparation Kit, February 2004). The finding will be carried out as expeditiously as possible. During the time that the finding is being carried out the project can continue with your participation. If the foreign eligibility finding is determined to be positive on all four foreign eligibility requirements, you are officially allowed to continue your participation in the project. If the finding is negative, you will have to withdraw from the project. Q. Once a foreign-owned company is determined eligible to participate in ATP, is a determination of continued eligibility carried out every year? A. Every year, ATP reviews the progress of all awarded projects against the project selection criteria and against the project's original goals, and determines whether continued assistance is appropriate. Even though ATP does not carry out a foreign eligibility finding each year for currently participating foreign-owned companies, whether the company's participation continues to be in the economic interest of the United States is considered under the normal annual project review, while the other three country-specific eligibility requirements related to the national policies of the parent country are not. Return to Table of Contents or go to Chapter 7. Date created: January
1998 |
 |
ATP website comments: webmaster-atp@nist.gov / Technical ATP inquiries: InfoCoord.ATP@nist.gov. NIST is an agency of the U.S. Commerce Department |
 |