Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates, 5087-5090 [E8-1343]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Rules and Regulations]
[Pages 5087-5090]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1343]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

22 CFR Part 22

 [Public Notice: 6082]
RIN 1400-AC41


Schedule of Fees for Consular Services, Department of State and 
Overseas Embassies and Consulates

AGENCY: Department of State.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of State is revising the Schedule of Fees for 
Consular Services to reflect an increase in the surcharge related to 
consular services in support of enhanced border security and a 
reduction in the execution fee for the passport book. The Secretary of 
State is authorized to collect the border security surcharge by the 
Consolidated Appropriations Act, 2005 (Pub. L. 108-447). In 2007, 
Congress authorized the Secretary of State to administratively amend 
the surcharge amount in the Department of State Authorities Act of 2006 
(Pub. L. 109-472). The Secretary is also authorized to set and collect 
a fee for executing passport applications by 22 U.S.C. 214.

DATES: Effective date: This interim final rule is effective February 1, 
2008.
    Comment date: The Department of State will accept written comments 
from interested persons up to March 31, 2008. Comments received before 
the end of the comment period will be addressed in a final rule.

ADDRESSES: Interested parties may submit comments by any of the 
following methods. All comments must include the Regulatory 
Identification Number (RIN) that appears in the heading of this 
document.
     E-mail: PassportRules@state.gov. You must include the 
Regulatory Identification Number (RIN) in the subject line of your 
message.
     Mail: (paper, disk, or CD-ROM submissions): An original 
and three copies of comments should be sent to: Christine L. Grauer, 
Office of Passport Services, Legal Affairs Division, Planning and 
Advisory Services, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington, 
DC 20037.
     Fax: 202-663-2499. You must include the Regulatory 
Identification Number (RIN) in the subject line of your message.
    Persons with access to the internet may also view this notice and 
provide comments by going to the regulations.gov Web site at: https://
www.regulations.gov/index.cfm.

FOR FURTHER INFORMATION CONTACT: For passport issuance policy: Susan 
Bozinko, Division Chief, Office of Passport Services, Legal Affairs 
Division, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington, DC 20037. 
Telephone (202) 663-2491. E-mail: PassportRules@state.gov. For consular 
fee setting policy: Tracy Henderson, Director of the Budget, Bureau of 
Consular Affairs, U.S. Department of State, Suite H1004, 2401 E St., 
NW., Washington, DC 20520, telephone (202) 663-2525 or by e-mail: 
fees@state.gov.

SUPPLEMENTARY INFORMATION:

Amendment to the Schedule of Fees for Consular Services

    As discussed below, this change in the schedule of fees will 
reflect the proposed passport book surcharge increase, as well as a 
reduction in the execution fee for the passport book.

Amendment to Passport Book Fees

Border Security Surcharge

    Due to increased security concerns following the events of 
September 11th, the Department of State has focused upon improved 
security, particularly in relation to our nation's borders. In 2004, 
Congress authorized the Secretary of State to collect a surcharge 
related to consular services in support of enhanced border security. 
(Pub. L. 108-447, Div. B, Title IV, 118 Stat. 2896 (2004), 8 U.S.C. 
1714). The law set the initial border security surcharge at $12.00 
because that was the estimated cost of providing consular services in 
support of enhanced border security at that time.
    In 2007, Congress provided the Secretary of State with the 
authority to administratively amend the border security surcharge. 
Department of State Authorities Act of 2006, Public Law 109-472, 
section 6, 120 Stat. 3554 (2007) (codified at 8 U.S.C. 1714 note). 
Congress included four requirements for such amendments:

    (1) The amounts of the surcharges shall be reasonably related to 
the costs of providing services in connection with the activity or 
item for which the surcharges are charged.
    (2) The aggregate amount of surcharges collected may not exceed 
the aggregate amount obligated and expended for the costs related to 
consular services in support of enhanced border security incurred in 
connection with the activity or item for which the surcharges are 
charged.
    (3) A surcharge may not be collected except to the extent the 
surcharge will be obligated and expended to pay the costs related to 
consular services in support of enhanced border security incurred in 
connection with the activity or item for which the surcharge is 
charged.
    (4) A surcharge shall be available for obligation and 
expenditure only to pay the costs related to consular services in 
support of enhanced border security incurred in providing services 
in connection with the activity or item for which the surcharge is 
charged.

The proposed $8.00 increase in the surcharge falls within the above 
parameters set by Congress.

    The $8.00 increase is reasonably related to the costs of providing 
consular services in support of enhanced border security because it 
represents the cost of providing passport books with upgraded security 
features resulting from the State Department's enhanced border security 
programs implemented since 2005. New passport book security measures, 
including the introduction of an electronic passport and the use of 
traceable priority mail delivery to applicants to prevent passport loss 
or theft, have increased the

[[Page 5088]]

security-related passport costs and $12.00 is no longer sufficient to 
cover such costs.
    First, due to these new security measures, the passport book and 
mailing now costs the Department $19.40. Each passport book costs 
$14.80, nearly triple the previous cost, and priority mail costs $4.60 
as opposed to the original 60-cent standard first-class mail rate, for 
a total cost of $19.40. In order to avoid a loss, the Department is 
rounding up the security surcharge to $20. Thus, the Department is 
raising the security surcharge by a total of $8.00 at the present time.
    Even taking this rounding into account, the total amount of the 
surcharge collected will not exceed the aggregate amount obligated and 
expended for costs related to consular services in support of enhanced 
border security incurred in connection with passport services, nor will 
it exceed the total amount obligated and expended for passport books 
and mailing. When the Department initially began collecting the 
security surcharge in March 2005, the amounts collected were more than 
sufficient to fund costs. Nevertheless, each fiscal year, the 
Department expended the majority of its passport book security 
surcharge collections, leaving only a minimal amount to carry over into 
the new fiscal year for operating expenses on October 1.\1\ Because of 
the substantial increase in costs caused by the introduction of the 
electronic passport book and the use of priority mailing, these costs 
now significantly exceed the amounts collected through the security 
surcharge. Thus, the amounts now collected through the security 
surcharge do not fully cover the costs for passport books and secure 
mail and other consular fees are used to fund the full cost of the 
passport book and priority mailing. This demonstrates the necessity of 
raising the passport book security surcharge at this time.
---------------------------------------------------------------------------

    \1\ Since these funds are designated as no-year funds which do 
not expire at the end of a fiscal year, they may be used in the 
following year, but only to the extent that they are expended to 
cover enhanced border security costs.
---------------------------------------------------------------------------

    Third, the surcharge is only collected to the extent that it is 
obligated and expended to pay the costs associated with enhanced border 
security. These funds are maintained in a separate account--``Passport 
Security Surcharge''--and are used only for consular functions 
supporting enhanced border security.
    Fourth, all of the surcharge funds are obligated and expended only 
to pay costs related to consular services in support of enhanced border 
security. As stated above, the Department has established a separate 
account for monies collected through the border security surcharge and 
ensures, and will continue to ensure, that such monies are expended 
only to pay the related border security enhancement costs. The 
financial plan for the Border Security Program exclusively uses the 
revenue received through the passport book security surcharge to pay 
for the production and mailing costs of the new electronic passport 
books. The passport book security surcharge is not used to support any 
other activities.
    It is important that the Department of State increase the security 
surcharge by $8.00 to $20.00. The Department of State considers the 
enactment of this rule a matter of the utmost importance to ensure the 
availability of funds necessary to support consular services related to 
enhanced border security throughout our nation.

Execution Fee

    The Department is also reducing the execution fee for the passport 
book from $30.00 to $25.00, as proposed in its Notice of Proposed 
Rulemaking (NPRM) published on October 17, 2006 at 71 FR 60928. As the 
Department explained in the NPRM, the $25.00 execution fee for passport 
applications is based on an internal review of the Department's cost of 
service, along with information from the United States Postal Service. 
The $25.00 execution fee has already been implemented for the passport 
card through the Passport Card Rule published on December 31, 2007. 
This rule completes the transition to the $25.00 execution fee for 
passport card and passport book applications by applying the lower fee 
for the passport book.
    The passport book security surcharge and reduction of the execution 
fee will take effect at the same time the new passport card fees become 
effective so that the Department can administratively implement all 
passport fee changes at the same time.
    The new fees for the passport book are as follows:

------------------------------------------------------------------------
                                           Current fees      New fees
------------------------------------------------------------------------
Passport Book Services:
    (a) Application fee for applicants               $55             $55
     age 16 or over (including renewals)
     [Adult Passport Book]..............
    (b) Application fee for applicants                40              40
     under age 16 [Minor Passport Book].
    (c) Passport Book execution fee                   30              25
     (required for first time applicants
     and others who must apply in
     person)............................
    (d) Passport Book Security Surcharge              12              20
     (enhanced border security fee).....
                                         -------------------------------
        Total First Time--Adult.........              97             100
                                         -------------------------------
        Total ``Renewal''--Adult........              67              75
                                         -------------------------------
        Total Child.....................              82              85
------------------------------------------------------------------------

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as an interim final rule, 
with a 60-day provision for post-promulgation comments and with an 
effective date less than 30 days from the date of publication, based on 
the ``good cause'' exceptions set forth at 5 U.S.C. 553(b)(3)(B) and 
553(d)(3). Delaying implementation of this rule would be contrary to 
the public interest because the rule is necessary in order to continue 
to fund consular services in support of enhanced border security. This 
rule constitutes an integral component of several changes to the 
Department's regulations taking place between January 1 and February 1, 
2008 as part of the Department's plans to increase border security in 
several key areas. Failure to increase the border security surcharge on 
February 1 would jeopardize the Department's ability to fund consular 
services in support of enhanced border security, and would undermine 
the integrated implementation of other security-related initiatives 
designed to go into effect during the same time period. Moreover,

[[Page 5089]]

delaying implementation of the $25.00 execution fee for the passport 
book until after February 1 would create a disparity between the fee 
charged for the same service for the passport book and the passport 
card.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    The Department of State, in accordance with the Regulatory 
Flexibility Act (Pub. L. 96-354, 5 U.S.C. 601-612) and Executive Order 
13272, section 3(b), has evaluated the effects of this proposed action 
on small entities. The Department has determined and hereby certifies 
that this rule would not have a significant impact on a substantial 
number of small entities.

The Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UFMA), 
Public Law 104-4; 109 Stat. 48; 2 U.S.C. 1532, generally requires 
agencies to prepare a statement before proposing any rule that may 
result in an annual expenditure of $100 million or more by State, 
local, or tribal governments, or by the private sector. This rule does 
not result in any expenditure by State, local or tribal governments, 
nor will it significantly or uniquely affect small governments. The 
effects on the private sector are discussed below in connection with 
the economic analysis required under Executive Order 12866.

The Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is a major rule as defined by 5 U.S.C. 804 for purposes 
of congressional review of agency rulemaking under the Small Business 
Regulatory Enforcement Fairness Act of 1996, Public Law 104-121. A copy 
of the rule, along with a concise general statement relating to the 
rule and its effective date, are being provided to each House of 
Congress and the Comptroller General as required by 5 U.S.C. 801. 
Pursuant to 5 U.S.C. 808, this interim final rule will take effect on 
February 1, 2008.

Executive Order 12866: Regulatory Review

    This rule is considered by the Department of State to be an 
economically significant regulatory action under Executive Order 12866, 
section 3(f), Regulatory Planning and Review. The surcharge increase is 
based on the Department's costs and projected volumes that were 
available at the time this rule was drafted, and the rule has been 
reviewed by the Office of Management and Budget.
    The implementation of this rule will result in a net increase of 
$3.00 per application in the cost of a passport book when execution of 
the passport book application is required. For those renewal 
applications that do not require execution it will result in an $8 
increase. Although the economic impact of the rule on any given 
individual will be relatively minor, it will provide the Department 
with an additional $232 million in FY 2008 in annual fee revenue, based 
on a projected annual volume of 29 million applications for passport 
books, over the fee revenue that would be collected through the current 
security surcharge. This increase in revenue will be used to fund 
consular services in support of enhanced border security, as required 
by 8 U.S.C. 1714 note. The increased revenue will be used for the 
purchase of blank passport books and priority mailing for completed 
passport books. If the Department does not adjust the security 
surcharge to recover the cost of the books and priority mailing, its 
ability to fund these and other consular services in support of 
enhanced border security will be compromised, and the Department will 
be forced to continue to divert funds from other consular fees in order 
to meet the shortfall. This diversion, in turn, will undermine the 
Department's ability to deliver the high-quality consular services the 
public has come to rely on from it.
    The Department is concerned with the impact on individual 
applicants of any rise in the overall cost of the passport book, and 
carefully analyzed whether it would be possible to keep the security 
surcharge below the Department's actual cost for passport book 
purchasing and mailing. It determined, however, that a fee amount that 
did not meet these costs was not possible given the amount of funding 
required for the Department's consular services in support of enhanced 
border security. Although this rule will cause a modest increase in the 
total cost of a passport book for the individual applicant, the 
increased cost of the passport book over its 10-year lifetime will be 
minimal. An increase of $3.00 or, for renewals, $8.00, in the cost of a 
passport book with a validity period of 10 years corresponds to an 
increased cost of either thirty cents or eighty cents per year for the 
life of the passport book. The Department does not anticipate that this 
de minimis increase in the lifetime cost of a passport book will impose 
an undue burden on individual passport book applicants, or that it will 
have an impact on application volumes or any other public behavior. 
Public demand for the passport book has been rising over the past 
several years and is expected to continue to rise as individuals 
increasingly come to regard the passport book as a valuable identity 
document.
    This rule will also provide distinct benefits that cannot be 
quantified monetarily. As OMB Circular A-4 states, ``It will not always 
be possible to express in monetary units all of the important benefits 
and costs'' of a rule. A vital, non-quantifiable benefit of this 
interim final rule is that it will enable the Department to advance its 
goal of enhancing border security while simultaneously investing in 
infrastructure and other developments needed to meet projected levels 
of passport book demand in FY 2008 and beyond. By supplying the funds 
to purchase passport books and priority mailing, the security surcharge 
will significantly enhance the nation's border security.
    The passport book costs three times the previous passport book for 
a reason. It is one the world's most secure travel documents. It 
contains an embedded chip with coding that will prevent digital data 
from being altered or removed, as well as a unique ID number for the 
chip. In addition, the electronic passport book uses a form of Public 
Key Infrastructure (PKI) that will permit digital signatures, thus 
protecting the data from tampering. These features make it much more 
difficult for individuals to engage in the fraudulent use of an 
electronic passport book. Likewise, the use of priority mail makes it 
possible for both the Department and the legitimate recipient to track 
the electronic passport book through the mailing process, making it 
easier to prevent and detect any loss or theft of the book.
    At the same time, because it will fully fund the cost of blank 
passport books and priority mailing, the increased surcharge will 
permit the Department to maximize the efficiency of its operations. As 
OMB Circular A-4 explains, ``[a] regulation may be appropriate when you 
have a clearly identified measure that can make government operate more 
efficiently.'' By ensuring that the base cost of each passport book and 
priority mailing is funded through the surcharge, the rule allows the 
Department to more effectively plan for what is projected to be a 
record level of passport book demand, and to determine in advance how 
to best allocate the Department's other available resources so as to 
provide efficient and high-quality consular services to the American 
public. Specifically, the rule will permit the Department to use other 
funds to

[[Page 5090]]

provide the infrastructure and staffing needed to meet the projected 
demand for passport books over the next fiscal year and beyond. This 
will enable both the Department and the public to avoid the inefficient 
use of resources that arises when infrastructure and staffing are 
insufficient to meet demand. This, along with enhanced border security 
through the use of the passport book and priority mailing, is a 
tangible and noticeable benefit. Thus, the benefits of this rule exceed 
its costs.

Executive Order 13132: Federalism

    This regulation would not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, and Executive Order No. 13132 is 
therefore not applicable.

Executive Order 12988: Civil Justice Reform

    The Department has reviewed this regulation in light of sections 
3(a) and 3(b)(2) of Executive Order No. 12988 to eliminate ambiguity, 
minimize litigation, establish clear legal standards, and to reduce 
burden.

National Environmental Policy Act

    The Department has analyzed this regulation for the purpose of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347) and has 
determined that it would not have any effect on the quality of the 
environment.

The Paperwork Reduction Act of 1995

    This proposed rule would not impose any new reporting or 
recordkeeping requirements subject to the Paperwork Reduction Act, 44 
U.S.C. Chapter 35.

List of Subjects in 22 CFR Part 22

    Passports and visas.


0
Accordingly, for the reasons set forth above, 22 CFR part 22 is amended 
as follows:

PART 22--SCHEDULE OF FEES FOR CONSULAR SERVICES--DEPARTMENT OF 
STATE AND FOREIGN SERVICE

0
1. The authority citation for part 22 is revised to read as follows:

    Authority: 8 U.S.C. 1153 note, 1351, 1351 note; 10 U.S.C. 
2602(c); 22 U.S.C. 214, 2504(a), 4201, 4206, 4215, 4219; 31 U.S.C. 
9701; Pub. L. 105-277, 112 Stat. 2681 et seq.; Pub. L. No. 108-447, 
118 Stat. 2809 et seq.; E.O. 10718, 22 FR 4632, 3 CFR, 1954-1958 
Comp., p. 382; E.O. 11295, 31 FR 10603, 3 CFR, 1966-1970 Comp., p. 
570, Pub. L. 109-167, January 10, 2006, 119 Stat. 3578; Pub. L. 109-
472, section 6, 120 Stat. 3554 (2007).


0
2. Section 22.1 is amended in the table by revising entries 1 and 2 
under the heading ``Passport and Citizenship Services'' to read as 
follows:


Sec.  22.1  Schedule of fees.

    The following table sets forth the U.S. Department of State's 
Schedule of Fees for Consular Services:

                  Schedule of Fees for Consular Services
------------------------------------------------------------------------
                     Item No.                               Fee
------------------------------------------------------------------------
                    Passport and Citizenship Services
------------------------------------------------------------------------
1. Passport Book Execution: Required for first-    $25.
 time applicants and others who must apply in
 person [01--Passport Book Execution].
2. Passport Book Application Services for:
    (a) Applicants age 16 or over (including       $55.
     renewals) [02--Adult Passport Book].
    (b) Applicants under age 16 [03--Minor         $40.
     Passport Book].
    (c) Passport Book amendments (extension of     No fee.
     validity, name change, etc.) 04--Amendment].
    (d) Passport Book security surcharge           $20.
     (enhanced border security fee) [05--Security
     Surcharge].
------------------------------------------------------------------------

* * * * *

    Dated: January 22, 2008.
Maura Harty,
Assistant Secretary of State for Consular Affairs, Department of State.
 [FR Doc. E8-1343 Filed 1-28-08; 8:45 am]
BILLING CODE 4710-06-P