Schedule of Fees for Consular Services-Nonimmigrant and Special Visa Fees, 18243-18248 [2023-06290]

Download as PDF Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations Simpson Field and within 1.8 miles each side of Spartanburg VORTAC 192° radial, extending from the 4.3-mile radius to the VORTAC, excluding the portion within the Greenville-Spartanburg International Airport, SC, Class C airspace area. This Class E airspace area is effective during the specific dates and times established in advance by a Notice to Air Missions. The effective date and time will thereafter be continuously published in the Chart Supplement. DEPARTMENT OF STATE Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More Above the Surface of the Earth. ACTION: * * * ASO SC E5 * * Greenville, SC [Amended] Spartanburg, SC Spartanburg Downtown Memorial Airport/ Simpson Field, SC (Lat. 34°54′59″ N, long. 81°57′21″ W) Spartanburg VORTAC (Lat. 35°02′01″ N, long. 81°55′37″ W) That airspace extending upward from 700 feet above the surface within a 7-mile radius of Spartanburg Downtown Memorial Airport/ Simpson Field and within 3.1 miles each side of Spartanburg VORTAC 012° radial, extending from the 7-mile radius to 7 miles north of the VORTAC and within 2 miles each side of Spartanburg localizer southwest course, extending from the 7-mile radius to 15.1 miles south of the VORTAC. Issued in College Park, Georgia, on March 22, 2023 Andreese C. Davis, Manager, Airspace & Procedures Team South, Eastern Service Center, Air Traffic Organization. [FR Doc. 2023–06326 Filed 3–27–23; 8:45 am] lotter on DSK11XQN23PROD with RULES1 BILLING CODE 4910–13–P VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 [Public Notice: 11954] RIN 1400–AF33 Schedule of Fees for Consular Services—Nonimmigrant and Special Visa Fees Department of State. Final rule. AGENCY: This rule adopts as final adjustments to the Schedule of Fees for Consular Services (Schedule of Fees) for several nonimmigrant visa (NIV) application processing fees and the Border Crossing Card (BCC) for Mexican citizens age 15 and over. These adjustments are based on the findings of the most recently approved update to the Cost of Service Model (CoSM) and incorporate revised projections for nonimmigrant visa demand. This rule also addresses public comments received by the Department on the originally proposed fee recommendations found in the notice of proposed rulemaking (NPRM). DATES: This final rule is effective on May 30, 2023. FOR FURTHER INFORMATION CONTACT: Johanna Cruz, Management Analyst, Office of the Comptroller, Bureau of Consular Affairs, Department of State; phone: 202–485–8915; email: fees@ state.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Greenville Downtown Airport, SC (Lat. 34°50′53″ N, long. 82°21′00″ W) Greenville-Spartanburg International Airport (Lat. 34°53′44″ N, long. 82°13′08″ W) Donaldson Field Airport (Lat. 34°45′30″ N, long. 82°22′35″ W) DYANA NDB (Lat. 34°41′28″ N, long. 82°26′37″ W) That airspace extending upward from 700 feet above the surface within a 9.3-mile radius of Greenville Downtown Airport, and within a 10-mile radius of GreenvilleSpartanburg International Airport, and within a 6.7-mile radius of Donaldson Field Airport and within 4 miles northwest and 8 miles southeast of the 224° bearing from the DYANA NDB extending from the 6.7-mile radius to 16 miles southwest of Donaldson Field Airport. ASO SC E5 22 CFR Part 22 Background This rule makes changes to the Schedule of Fees, found at 22 CFR 22.1. The Department generally sets and collects fees for consular services based on the concept of full cost recovery to the U.S. Government. The Department’s CoSM uses an Activity-Based Costing (ABC) methodology to calculate annually the direct and indirect costs to the U.S. Government associated with each consular good and service the Department provides. The CoSM provides a comprehensive and detailed look at all consular services as well as all services that the Department performs for other agencies in connection with its consular operations. Fees are based on these cost estimates and the Department aims to update the Schedule of Fees biennially unless a significant change in costs warrants an immediate recommendation to amend the Schedule. The most recently approved update to the CoSM indicated that fee increases were needed to fully recover the costs of providing several categories of NIV PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 18243 services. As a result, the Department published an NPRM in the Federal Register on December 29, 2021 (86 FR 74018), for a 60-day public comment period that ended on February 28, 2022. The NPRM proposed the following increases: • The application processing fee for non-petition-based nonimmigrant visas (except E category), from $160 to $245; • The application processing fee for H, L, O, P, Q, and R category nonimmigrant visas, from $190 to $310; • The application processing fee for E category nonimmigrant visas, from $205 to $485; • The processing fee for BCCs for Mexican citizens age 15 and over from $160 to $245: and • The fee for waiver of the two-year residency requirement for exchange visitors, from $120 to $510. As discussed in more depth in the NPRM, the unit costs that inform the recommended fees for each NIV service were calculated by taking the total cost of each service and dividing by the 10year average number of receipts (i.e., demand) for that service. The fee increases that will be implemented as a result of this final rule are smaller than those proposed in the NPRM due to revised projections for fiscal year (FY) 2022–2024 demand. The CoSM uses historical workloads as well as projected future workloads to calculate demand for each service. Projecting future demand is extremely difficult because travel for both U.S. citizens and foreign nationals can change quickly and dramatically, as demonstrated by the COVID–19 pandemic. Therefore, the current model update applied a 10-year average for workload volumes for NIVs, using historic workload actuals from FYs 2015–2019 and projected workload volumes for FYs 2020–2024. Using a 10year average helped minimize the impact of demand volatility on unit cost calculations. Recognizing that actual demand will always vary, this practical approach helped to stabilize fees at an amount sufficient to recover costs with only a modest increase to the consumer. See 86 FR 74018, 74020–21. The fee increases proposed in the NPRM were based on a 10-year average of 7.7 million NIVs of all classes per year. After the NPRM was issued, however, it became apparent that demand for NIVs was rebounding significantly faster than previously anticipated and that actual demand would exceed the projected volume in the NPRM. The Department therefore decided to recalculate demand before moving forward with the final rule to ensure that it did not implement fees in E:\FR\FM\28MRR1.SGM 28MRR1 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations excess of its actual costs. In its revised analysis, the Department included historic actual workload amounts for FY2015–2021 (rather than FY2015–2019 as in the original recommendations) and revised projected workload amounts for FY2022–2024. As with the original calculations, the Department divided the total actual and projected demand by 10, which resulted in a revised 10year average of 9.5 million NIVs of all classes per year. Because actual costs and level of effort for most categories of NIVs have been relatively stable over this period, the significant increase in average demand generates a corresponding decrease in the unit costs of providing these services. As a result, the Department will implement smaller fee increases than originally proposed for all categories of NIVs. The Department is also postponing the fee increase for the exchange visitor waiver of two-year residency requirement (‘‘J-Waiver’’) fee. Unlike machine-readable visa (MRV) fees, which must be set at the cost of providing nonimmigrant visa application processing and border crossing card processing services, see 8 U.S.C. 1713(b); 8 U.S.C. 1351 (note), the Department has discretion to take factors other than cost into account when setting the J-Waiver fee. See 31 U.S.C. 9701 (permitting the Government to consider ‘‘other relevant facts’’ in addition to costs when setting fees); Office of Management and Budget (OMB) Circular A–25, Section 6(c)(2)(b) (recognizing exceptions to the general policy of full cost recovery when conditions exist that justify an exception); see also 22 U.S.C. 1475e (authorizing the Department to retain fees related to Exchange Visitor Program services ‘‘to such extent as may be provided in advance in appropriations acts’’ and expend such fees for ‘‘authorized purposes’’ without specifying the amount at which the fees much be set). Although the costs of providing the J-Waiver service have increased as indicated in the NPRM, the Department has assessed that currently available retained revenue from this fee is sufficient to permit the Department to sustain the J-Waiver service in the near term without raising the fee at this time. Below are the adjustments to the fee recommendations in the NPRM that the Department will implement in this final rule: • The application processing fee for non-petition based NIVs (except E category), will be raised from $160 to $185. This represents a 15.6 percent increase over the current fee, but is $60 or 24.5 percent below the original proposal of $245. • The application processing fee for H, L, O, P, Q, and R category NIVs, will be raised from $190 to $205. This represents a 7.9 percent increase over the current fee, but is $105 or 33.9 percent below the original proposal of $310. • The processing fee for the BCCs for Mexican citizens age 15 and over will be raised from $160 to $185. This represents a 15.6 percent increase over the current fee, but is $60 or 24.5 percent below the original proposal of $245. • The fee for E category NIVs will be raised from $205 to $315. This represents a 53.7 percent increase over the current fee, but is $170 or 35 percent below the original proposal of $485. • The fee for the exchange visitor waiver of two-year residency requirement will be maintained at $120, instead of the proposed $510. As discussed above, the Department applied the same methodology to calculate the revised fees and the relevant authorities found in the NPRM apply to these revised fee recommendations. This rule also addresses public comments received by the Department on the originally proposed fee recommendations found in the NPRM. VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 Analysis of Comments In the 60-day period following publication of the NPRM, the Department received a total of 328 comments, 94 of which were duplicates. The comments are categorized into the following general topics. Education The Department received many comments related to the proposed increase from $160 to $245 for nonpetition based nonimmigrant visas (except E category), which include all types of student visas. Sixty-one commenters expressed concerns about the impact of the fee increases on international education, including the following sub-topics: 10 comments on how the COVID–19 pandemic affects international students and institutions of higher education in the United States; 11 comments on how the English as a Second Language (ESL) community E:\FR\FM\28MRR1.SGM 28MRR1 ER28MR23.000</GPH> lotter on DSK11XQN23PROD with RULES1 18244 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations might be affected; 6 comments on the Biden Administration’s policies for attracting international students; and 15 comments on the possibility that an increase of this kind might drive international students to seek educational opportunities in other countries. As discussed above, this final rule implements only a $25 increase for non-petition-based NIV fees, from $160 to $185. The Department believes this modification largely addresses the issues raised by the commenters, which appeared to be driven by financial impact on visa applicants. Gradual Increase The Department received 19 comments from commenters who accepted the proposed fee increases but requested that the Department delay the increases to sometime in the future or make them more gradual. The Department’s decision to increase the non-petition-based NIV (except E category) fee by only $25 rather than $85 and to increase the NIV fee for H, L, O, P, Q, and R category visas by only $15 rather than $120 for the reasons discussed above addresses the concerns raised by these commenters. lotter on DSK11XQN23PROD with RULES1 Temporary Work Visas (Agricultural (H–2As) and Non-Agricultural (H–2Bs)) The Department received 80 comments regarding the H–2 visa programs. These comments were in response to the Department’s original proposal that would have increased the fee from $190 to $310, and generally asserted that agricultural businesses cannot absorb a 63 percent increase to H–2 visa fees. The comments also asserted that with rising prices across the board (e.g., increases in the Adverse Effect Wage Rate (AEWR)), the fee increase would put them out of business. As discussed in the NPRM, the impact of the proposed fee increases on the overall cost of bringing over an H–2 worker would have been minimal. If implemented, the proposed fee would have raised the total cost by just over one percent, from $10,367 ($10,177 + $190) to $10,487 ($10,177 + $310). See 86 FR 74023. This final rule implements only a $15 increase in petition-based NIV fees, from $190 to $205. Assuming the costs of bringing over an H–2 worker have not increased since the NPRM was issued, the total cost is now increasing by only .15 percent (from $10,367 to $10,382). This is significantly less than originally proposed, which should largely address the concerns of the commenters. VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 Adverse Effect Wage Rate (AEWR) One commenter requested that if the fees are increased, then the ‘‘AEWR should be removed, frozen, or replaced with a charge that isn’t constantly increased.’’ The AEWR, which is determined by the U.S. Department of Labor’s Office of Foreign Labor Certification Administrator for the purpose of preventing the employment of H–2A workers from adversely affecting the wages of U.S. workers similarly employed, see 8 U.S.C. 1188(a)(1)(B), is ‘‘[t]he annual weighted average hourly wage for field and livestock workers (combined) in the States or regions as published annually by the U.S. Department of Agriculture (USDA) based on its quarterly wage survey.’’ 20 CFR 655.103(c). An employer whose Application for Temporary Employment Certification in the H–2A program has been certified by the Department of Labor must offer, advertise in its recruitment, and pay a wage that is at least the highest of the AEWR, a prevailing wage rate, an agreed-upon collective bargaining wage, the Federal minimum wage, or the State minimum wage. 20 CFR 655.120(a). The Department recognizes that an AEWR or other minimum wage under the H–2A program may impose a financial burden on agricultural employers; however, it is a requirement imposed by the Immigration and Naturalization Act, as implemented by the Department of Labor’s H–2A regulations, which is outside the scope of this rulemaking. Tourism The Department received one comment that specifically discussed the impact the proposed fee increases could have on tourism demand. The NPRM examined the costs associated with tourist visits to the United States and the potential impact of the original proposed fee increase on demand for tourism. Our analysis showed that even with the originally proposed $85 increase, from $160 to $245, the impact on tourism likely would have been minimal. Due to the revised demand projections, the Department is now implementing only a $25 increase to the fee for non-petition based NIVs (except E category). Assuming the average costs of travel to the United States ($4,834) have not increased since the publication of the NPRM, then the adjustment to the fee will increase the total cost of a trip from $4,994 ($4,834 + $160) (current rate) to $5,019 ($4,834 + $185), which is less than one-half of one percent. Thus, the impact on tourism almost certainly will be negligible. PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 18245 The commenter also mentioned that by increasing the tourist visa fee, the Department risks increased reciprocity fees imposed by other countries, which will negatively impact Americans who wish to travel internationally. The Department acknowledges this risk but must set MRV fees to recover the costs of providing these services. See 8 U.S.C. 1713(b). Evidence of Reason for Increase The Department received six comments requesting additional evidence to help commenters understand the reasons for the increases. As detailed in the NPRM, while costs for non-petition-based nonimmigrant visas (except E category) and the petition-based nonimmigrant visa services have increased modestly but steadily since the last adjustment to these fees in 2012, demand for these visa categories has fluctuated more dramatically from year to year. See 86 FR 74021. Because MRV fees must be set at the cost of providing these services, 8 U.S.C. 1713(b), the unprecedented, significant decrease in demand due to the COVID–19 pandemic had a substantial impact on the fee increases proposed in the NPRM. Subsequently, the Department observed a considerable, unexpected recovery in NIV demand and made the decision to reanalyze the proposed fees in light of this rebound. The Department cannot be certain why NIV demand has recovered more quickly than expected. The recovery in demand may be attributable to a variety of factors, including the increase in global vaccination rates, relaxation of travel restrictions and reopening of international borders, and gradual resumption of the Department’s visa operations at overseas posts. When the initial projected demand for 2021–2024 was calculated, it was uncertain whether effective COVID–19 vaccines would be globally available and what impact vaccination would have on demand for NIVs. The relatively quick proliferation of COVID–19 vaccines worldwide and the corresponding reductions in the risk of serious illness and death due to COVID–19 may have increased individuals’ willingness to travel and the easing of restrictions made it increasingly possible to do so. Regardless, because the CoSM assumed a negative outlook for a longer period, the original demand projections ultimately were too low. The revised fee recommendation for E category NIVs reflects a decrease of $170 from the original proposal, from $205 to $315 rather than $485. As with the other categories of NIVs, the originally E:\FR\FM\28MRR1.SGM 28MRR1 18246 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations proposed fee increase for E NIVs accounted for very low demand for this service during the COVID–19 pandemic. As discussed in the NPRM, however, the proposed increase also reflected an increased level of effort on the part of the adjudicator. The most recent CoSM demonstrated that consular staff spend significantly more time providing this service than was captured previously. See 86 FR 74018, 74022. The fee that will be implemented includes NIV adjudication efforts that were not previously captured in the current fee (as discussed in the NRPM), and accounts for the improved outlook for E visa demand. lotter on DSK11XQN23PROD with RULES1 Activity-Based Costing Methodology and Calculations The Department received two comments related to its Activity-Based Costing (ABC) methodology and calculations. One commenter pointed out the ‘‘vast majority of the cost of processing visa applications is directly proportional to the number of applications’’ and that CA should consider fixed costs of services to be minimal in unit cost calculations. The cost of processing visa applications is not directly proportional to the number of applications. A significant portion of costs are fixed, including costs for rent and utilities as well as bureau, directorate, and post management. As discussed above, these costs have increased steadily due primarily to inflation since the last adjustments to these fees. Although the considerable fluctuations in demand due to the COVID–19 pandemic had a greater impact on the proposed fee increases, the rise in actual costs had an impact on the fees as well. One commenter mentioned that the Department’s ABC model should consider visa validity when calculating the fees for services. The Department does not set NIV application processing fees based on the number of years a visa is valid, because the costs associated with visa processing do not vary significantly whether the length of validity is one year or ten years, or whether a visa is for a single entry or multiple entries. Same Level of Service (Backlog) The Department received four comments stating that the commenter would gladly pay an increased fee for faster service (i.e., decreased wait times), but did not support fee increases to obtain the same level of service currently provided. The Department understands the concerns regarding visa processing times. The COVID–19 pandemic resulted in profound VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 reductions in the Department’s visa processing capacity, and many embassies and consulates were able to provide only limited visa services. As worldwide restrictions due to the COVID–19 pandemic ease, the Department is focused on reducing wait times for all consular services at our embassies and consulates overseas while also protecting the health and safety of our staff and applicants when they come to embassy or consular premises. Although local conditions and restrictions at individual consular posts may continue to fluctuate, embassies and consulates have broad discretion to determine how to prioritize visa appointments among the ranges of visa classes as safely as possible, subject to local conditions and restrictions. The Department sets MRV fees at the cost of providing the service, see 8 U.S.C. 1713(b), and these fees are used to cover the costs of the service, including the materials, office space, equipment, etc. needed to process and produce NIVs. Conclusion Domestic Renewals (Visa Reissuance in the U.S. for Certain Visa Holders) The Department received 75 comments suggesting and requesting that the Department resume domestic visa renewals for individuals who were previously approved to receive certain visa classes (e.g., H–1B, H–4, Green Cards) and previously provided biometrics. These commenters assert that such renewals would eliminate the requirement for these individuals to travel to their home country to renew their visas, where they may need to remain for uncertain periods of time before they can obtain interview appointments at the embassy or consulate. The State Department provided domestic renewals until the 2002 Enhanced Border Security and Visa Entry Reform Act required that U.S. visas issued after October 26, 2004, include biometric identifiers. This, in turn, required visa holders to renew their visas outside the United States, because domestic fingerprint collection was not feasible at the time. The possibility of relying on previously collected fingerprints would overcome one obstacle to resuming domestic renewal. As part of the Department’s ongoing commitment to exploring options to make visa processing more efficient and accessible for all applicants, the Department is assessing numerous logistical challenges that need to be addressed in implementing such an initiative. The Department continues to explore options to make visa processing more efficient and accessible for all applicants. The Department published this rulemaking as a proposed rule and provided 60 days for public comment. This final rule will be effective 60 days after publication, in accordance with 5 U.S.C. 801(a)(3). PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 The Department will adjust application processing fees for NIVs and adult BCC fees in light of the Cost of Service Model’s findings that the U.S. Government is not fully recovering the costs of processing applications for several categories of NIVs and the adult BCC. The Department is postponing the fee increase for the J-Waiver fee, which will remain at $120. In accordance with its statutory authorities and consistent with OMB guidance, the Department sets user fees at a level sufficient to recover the cost of providing services that provide special benefits to an identifiable recipient beyond those that accrue to the general public. See 31 U.S.C. 9701; OMB Circular A–25, sec. 6(a)(1), (a)(2)(a); see also 8 U.S.C. 1713(b). For this reason, the Department will adjust the Schedule of Fees. Regulatory Findings Administrative Procedure Act Regulatory Flexibility Act The Department has reviewed this rule and, by approving it, certifies that it will not have a significant economic impact on a substantial number of small entities as defined in 5 U.S.C. 601(6). This rule adjusts the application processing fees for H, L, O, P, Q and R category visas, which will account for approximately eleven percent of the total nonimmigrant visa workload expected in FY2023. Although the issuance of some of these visas is contingent upon approval by DHS of a petition filed by a United States company with DHS, and these companies pay a fee to DHS to cover the processing of the petition, the visa itself is sought and paid for by an individual foreign national overseas who seeks to come to the United States or, in some cases, an employer applying on their behalf. The amount of the petition fees that are paid by small entities to DHS is not impacted by the amount of the visa fees paid by individuals to the Department of State. While small entities may cover or reimburse employees for application processing fees, the exact number of such entities that do so is unknown. Whether or not small entities choose to reimburse the applicant for their employment-based NIV fees, the $15 increase is not likely to have a significant economic impact. E:\FR\FM\28MRR1.SGM 28MRR1 18247 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations Unfunded Mandates Act of 1995 This rule will not result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1501–1504. Congressional Review Act This rule is a major rule as defined by 5 U.S.C. 804(2). Proposed fee Item No. sets NIV application fees commensurate with the costs of providing these services in accordance with 8 U.S.C. 1713(b) and OMB Circular A–25. The increase in costs therefore justify these adjustments through the rulemaking process. Executive Orders 12866 and 13563 The Department has reviewed this rule to ensure its consistency with the regulatory philosophy and principles set forth in E.O. 12866 and E.O. 13563. OMB has determined that this rule is economically significant under Executive Order 12866. b. Summary of Changes From the Current Rule a. Need for the Regulatory Action This final rule is necessary in light of the CoSM’s findings that costs associated with NIV application processing have increased since the last update to these fees. The Department Current fee Change in fee The following table summarizes the impact of this final rule: Projected annual number of applications 1 Percentage increase Estimated change in annual fees collected 2 Change in state retained fees Change in remittance to treasury SCHEDULE OF FEES FOR CONSULAR SERVICES * * * * * * * * * * NONIMMIGRANT VISA SERVICES * 21. Nonimmigrant Visa Application and Border Crossing Card Processing Fees (per person). (a) Non-petition-based nonimmigrant visa (except E category) ....................................... (b) H, L, O, P, Q, and R category nonimmigrant visa ................... (c ) E category nonimmigrant visa .......................................... (e) Border Crossing Card—age 15 and over (10 year validity) * * * $185 $160 $25 16 8,574,624 $214,365,600 $214,365,600 $0 205 190 15 8 1,141,549 17,123,235 17,123,235 0 315 205 110 54 69,326 7,625,860 7,625,860 0 185 160 25 16 1,400,236 35,005,900 35,005,900 0 IMMIGRANT AND SPECIAL VISA SERVICES * 35. Special Visa Services (b) Waiver of two-year residency requirement .............................. Total ..................................... * * * * * * 120 120 0 0 N/A N/A N/A 0 .................... .................... .................... ........................ ........................ $274,120,595 $274,120,595 0 1 Application lotter on DSK11XQN23PROD with RULES1 volume based on FY 2023 projected workload. FY 2023 is the year likely year of implementation. 2 Change in fee collection is based on FY2023 projected workload × change to fee. As explained above, the results of the most recent CoSM indicate that the costs of providing nonimmigrant visa services have increased and therefore the current fees are not set at a level sufficient to permit the Department to fully recover the costs of providing these services. The Department relies exclusively on retained revenue from consular fee collections to fund ongoing consular operations. The NIV fees proposed by the Department are set to recover costs necessary to support NIV operations, in accordance with 8 U.S.C. 1713(b) and OMB Circular A–25. If any of these fees are set below costs, the Department’s Bureau of Consular Affairs would be operating at a deficit. Such a situation could impact the Department’s ability to provide consular services to VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 those who seek to travel to the United States for tourism, education, or workrelated reasons, by limiting access to resources needed to adjudicate and produce visas. That consequence, in turn, could have a negative effect on those aspects of the U.S. economy that depends on these visitors and workers. c. Time Horizon of the Analysis The Department’s CoSM is updated annually, and the Department aims to update the Schedule of Fees biennially unless a significant change in costs warrants an immediate recommendation to amend the Schedule. If the results of the CoSM indicate a change in the cost (increase/decrease) of providing a service, then adjustments to the relevant fees will be made to ensure full cost PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 recovery. Any future changes to the fees, however, will not impact NIV holders during the period of their visa’s validity (generally 5–10 years). d. Regulatory Alternatives Due to the requirements of 8 U.S.C. 1713(b), there are no alternatives to raising MRV fees. However, as discussed in the preamble, the Department is finalizing lower increases than those proposed in the NPRM due to the rebound in demand for NIVs. As in the NPRM, the Department utilized 10-year average for demand to account for pandemic-related volatility and the fact that demand for NIVs is still in the process of recovering. The fees included in this rule are set at the cost of providing the relevant nonimmigrant E:\FR\FM\28MRR1.SGM 28MRR1 18248 Federal Register / Vol. 88, No. 59 / Tuesday, March 28, 2023 / Rules and Regulations visa services and are used to cover the costs of those services, including the materials, offices, equipment, etc. needed to process and produce NIVs. Therefore, the Department has no alternative to this rulemaking; if the Department does not recover costs for these NIV services, the Department will be operating at a deficit and its consular operations could be impeded. e. Costs & Benefits of the Rule The NPRM includes a section titled, ‘‘Economic Impact’’ that demonstrated that the proposed fee increases resulted in minimal increases in the totality of overall costs to both travelers and those seeking work visas. The economic impact of these fee increases is also discussed in the sections of this final rule responding to public comments. For the reasons discussed, the Department does not believe that the increased NIV application processing costs will deter non-U.S. citizens from applying for visas, because these fee increases do not significantly impact the costs of an applicant’s travel to the United States. Although economic impact on individual applicants is minimal, these fee increases will generate revenue that will be used to cover the costs of providing consular services. This revenue will help guarantee the continued functioning of the Department’s consular operations, which will provide a direct benefit to U.S. citizens. The fees set through this rulemaking will not change unless and until the results of a future CoSM indicate that they need to be adjusted. As noted above, the Department does not anticipate any change in demand for visas services because of this rulemaking. The cost of an NIV remains minor in comparison with other costs associated with travel, education, or hiring a worker from abroad, as detailed in the NPRM. requirements of E.O. 13175 do not apply to this rulemaking. Executive Order 12372 and 13132 Accordingly, for the reasons stated in the preamble, 22 CFR part 22 is amended as follows: This regulation will 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. Therefore, in accordance with section 6 of E.O. 13132, it is determined that this rule does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. The regulations implementing E.O. 12372 regarding intergovernmental consultation on Federal programs and activities do not apply to this regulation. Executive Order 13175 Paperwork Reduction Act This rule does not impose any new reporting or record-keeping requirements subject to the Paperwork Reduction Act. List of Subjects in 22 CFR Part 22 Consular services, Fees. PART 22—SCHEDULE OF FEES FOR CONSULAR SERVICES— DEPARTMENT OF STATE AND FOREIGN SERVICE 1. The authority citation for part 22 continues to read as follows: ■ Authority: 8 U.S.C. 1101 note, 1153 note, 1157 note, 1183a note, 1184(c)(12), 1201(c), 1351, 1351 note, 1713, 1714, 1714 note; 10 U.S.C. 2602(c); 22 U.S.C. 214, 214 note, 1475e, 2504(h), 2651a, 4206, 4215, 4219, 6551; 31 U.S.C. 9701; 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. 2. In § 22.1, amend the table by revising entries 21(a), (b), (c), and (e) under the heading ‘‘Nonimmigrant Visa Services’’ to read as follows: ■ The Department has determined that this rulemaking will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law. Accordingly, the § 22.1 * Schedule of fees. * * * * SCHEDULE OF FEES FOR CONSULAR SERVICES Item No. * * * Fee * * * * Nonimmigrant Visa Services * * * * * * 21. Nonimmigrant Visa Application and Border Crossing Card Processing Fees (per person) (a) Non-petition-based nonimmigrant visa (except E category) ............................................................................................... (b) H, L, O, P, Q and R category nonimmigrant visa .............................................................................................................. (c) E category nonimmigrant visa ............................................................................................................................................ * * * * * * * (e) Border crossing card—age 15 and over (10 year .............................................................................................................. validity) ...................................................................................................................................................................................... * lotter on DSK11XQN23PROD with RULES1 * * * * * * Rena Bitter, Assistant Secretary, Bureau of Consular Affairs, Department of State. [FR Doc. 2023–06290 Filed 3–27–23; 8:45 am] BILLING CODE 4710–06–P VerDate Sep<11>2014 16:02 Mar 27, 2023 Jkt 259001 PO 00000 Frm 00024 Fmt 4700 Sfmt 9990 E:\FR\FM\28MRR1.SGM 28MRR1 $185 205 315 185 *

Agencies

[Federal Register Volume 88, Number 59 (Tuesday, March 28, 2023)]
[Rules and Regulations]
[Pages 18243-18248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06290]


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DEPARTMENT OF STATE

22 CFR Part 22

[Public Notice: 11954]
RIN 1400-AF33


Schedule of Fees for Consular Services--Nonimmigrant and Special 
Visa Fees

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: This rule adopts as final adjustments to the Schedule of Fees 
for Consular Services (Schedule of Fees) for several nonimmigrant visa 
(NIV) application processing fees and the Border Crossing Card (BCC) 
for Mexican citizens age 15 and over. These adjustments are based on 
the findings of the most recently approved update to the Cost of 
Service Model (CoSM) and incorporate revised projections for 
nonimmigrant visa demand. This rule also addresses public comments 
received by the Department on the originally proposed fee 
recommendations found in the notice of proposed rulemaking (NPRM).

DATES: This final rule is effective on May 30, 2023.

FOR FURTHER INFORMATION CONTACT: Johanna Cruz, Management Analyst, 
Office of the Comptroller, Bureau of Consular Affairs, Department of 
State; phone: 202-485-8915; email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    This rule makes changes to the Schedule of Fees, found at 22 CFR 
22.1. The Department generally sets and collects fees for consular 
services based on the concept of full cost recovery to the U.S. 
Government. The Department's CoSM uses an Activity-Based Costing (ABC) 
methodology to calculate annually the direct and indirect costs to the 
U.S. Government associated with each consular good and service the 
Department provides. The CoSM provides a comprehensive and detailed 
look at all consular services as well as all services that the 
Department performs for other agencies in connection with its consular 
operations. Fees are based on these cost estimates and the Department 
aims to update the Schedule of Fees biennially unless a significant 
change in costs warrants an immediate recommendation to amend the 
Schedule.
    The most recently approved update to the CoSM indicated that fee 
increases were needed to fully recover the costs of providing several 
categories of NIV services. As a result, the Department published an 
NPRM in the Federal Register on December 29, 2021 (86 FR 74018), for a 
60-day public comment period that ended on February 28, 2022. The NPRM 
proposed the following increases:
     The application processing fee for non-petition-based 
nonimmigrant visas (except E category), from $160 to $245;
     The application processing fee for H, L, O, P, Q, and R 
category nonimmigrant visas, from $190 to $310;
     The application processing fee for E category nonimmigrant 
visas, from $205 to $485;
     The processing fee for BCCs for Mexican citizens age 15 
and over from $160 to $245: and
     The fee for waiver of the two-year residency requirement 
for exchange visitors, from $120 to $510.
    As discussed in more depth in the NPRM, the unit costs that inform 
the recommended fees for each NIV service were calculated by taking the 
total cost of each service and dividing by the 10-year average number 
of receipts (i.e., demand) for that service.
    The fee increases that will be implemented as a result of this 
final rule are smaller than those proposed in the NPRM due to revised 
projections for fiscal year (FY) 2022-2024 demand. The CoSM uses 
historical workloads as well as projected future workloads to calculate 
demand for each service. Projecting future demand is extremely 
difficult because travel for both U.S. citizens and foreign nationals 
can change quickly and dramatically, as demonstrated by the COVID-19 
pandemic. Therefore, the current model update applied a 10-year average 
for workload volumes for NIVs, using historic workload actuals from FYs 
2015-2019 and projected workload volumes for FYs 2020-2024. Using a 10-
year average helped minimize the impact of demand volatility on unit 
cost calculations. Recognizing that actual demand will always vary, 
this practical approach helped to stabilize fees at an amount 
sufficient to recover costs with only a modest increase to the 
consumer. See 86 FR 74018, 74020-21.
    The fee increases proposed in the NPRM were based on a 10-year 
average of 7.7 million NIVs of all classes per year. After the NPRM was 
issued, however, it became apparent that demand for NIVs was rebounding 
significantly faster than previously anticipated and that actual demand 
would exceed the projected volume in the NPRM. The Department therefore 
decided to recalculate demand before moving forward with the final rule 
to ensure that it did not implement fees in

[[Page 18244]]

excess of its actual costs. In its revised analysis, the Department 
included historic actual workload amounts for FY2015-2021 (rather than 
FY2015-2019 as in the original recommendations) and revised projected 
workload amounts for FY2022-2024. As with the original calculations, 
the Department divided the total actual and projected demand by 10, 
which resulted in a revised 10-year average of 9.5 million NIVs of all 
classes per year.
[GRAPHIC] [TIFF OMITTED] TR28MR23.000

    Because actual costs and level of effort for most categories of 
NIVs have been relatively stable over this period, the significant 
increase in average demand generates a corresponding decrease in the 
unit costs of providing these services. As a result, the Department 
will implement smaller fee increases than originally proposed for all 
categories of NIVs.
    The Department is also postponing the fee increase for the exchange 
visitor waiver of two-year residency requirement (``J-Waiver'') fee. 
Unlike machine-readable visa (MRV) fees, which must be set at the cost 
of providing nonimmigrant visa application processing and border 
crossing card processing services, see 8 U.S.C. 1713(b); 8 U.S.C. 1351 
(note), the Department has discretion to take factors other than cost 
into account when setting the J-Waiver fee. See 31 U.S.C. 9701 
(permitting the Government to consider ``other relevant facts'' in 
addition to costs when setting fees); Office of Management and Budget 
(OMB) Circular A-25, Section 6(c)(2)(b) (recognizing exceptions to the 
general policy of full cost recovery when conditions exist that justify 
an exception); see also 22 U.S.C. 1475e (authorizing the Department to 
retain fees related to Exchange Visitor Program services ``to such 
extent as may be provided in advance in appropriations acts'' and 
expend such fees for ``authorized purposes'' without specifying the 
amount at which the fees much be set). Although the costs of providing 
the J-Waiver service have increased as indicated in the NPRM, the 
Department has assessed that currently available retained revenue from 
this fee is sufficient to permit the Department to sustain the J-Waiver 
service in the near term without raising the fee at this time.
    Below are the adjustments to the fee recommendations in the NPRM 
that the Department will implement in this final rule:
     The application processing fee for non-petition based NIVs 
(except E category), will be raised from $160 to $185. This represents 
a 15.6 percent increase over the current fee, but is $60 or 24.5 
percent below the original proposal of $245.
     The application processing fee for H, L, O, P, Q, and R 
category NIVs, will be raised from $190 to $205. This represents a 7.9 
percent increase over the current fee, but is $105 or 33.9 percent 
below the original proposal of $310.
     The processing fee for the BCCs for Mexican citizens age 
15 and over will be raised from $160 to $185. This represents a 15.6 
percent increase over the current fee, but is $60 or 24.5 percent below 
the original proposal of $245.
     The fee for E category NIVs will be raised from $205 to 
$315. This represents a 53.7 percent increase over the current fee, but 
is $170 or 35 percent below the original proposal of $485.
     The fee for the exchange visitor waiver of two-year 
residency requirement will be maintained at $120, instead of the 
proposed $510.
    As discussed above, the Department applied the same methodology to 
calculate the revised fees and the relevant authorities found in the 
NPRM apply to these revised fee recommendations. This rule also 
addresses public comments received by the Department on the originally 
proposed fee recommendations found in the NPRM.

Analysis of Comments

    In the 60-day period following publication of the NPRM, the 
Department received a total of 328 comments, 94 of which were 
duplicates. The comments are categorized into the following general 
topics.

Education

    The Department received many comments related to the proposed 
increase from $160 to $245 for non-petition based nonimmigrant visas 
(except E category), which include all types of student visas. Sixty-
one commenters expressed concerns about the impact of the fee increases 
on international education, including the following sub-topics: 10 
comments on how the COVID-19 pandemic affects international students 
and institutions of higher education in the United States; 11 comments 
on how the English as a Second Language (ESL) community

[[Page 18245]]

might be affected; 6 comments on the Biden Administration's policies 
for attracting international students; and 15 comments on the 
possibility that an increase of this kind might drive international 
students to seek educational opportunities in other countries. As 
discussed above, this final rule implements only a $25 increase for 
non-petition-based NIV fees, from $160 to $185. The Department believes 
this modification largely addresses the issues raised by the 
commenters, which appeared to be driven by financial impact on visa 
applicants.

Gradual Increase

    The Department received 19 comments from commenters who accepted 
the proposed fee increases but requested that the Department delay the 
increases to sometime in the future or make them more gradual. The 
Department's decision to increase the non-petition-based NIV (except E 
category) fee by only $25 rather than $85 and to increase the NIV fee 
for H, L, O, P, Q, and R category visas by only $15 rather than $120 
for the reasons discussed above addresses the concerns raised by these 
commenters.

Temporary Work Visas (Agricultural (H-2As) and Non-Agricultural (H-
2Bs))

    The Department received 80 comments regarding the H-2 visa 
programs. These comments were in response to the Department's original 
proposal that would have increased the fee from $190 to $310, and 
generally asserted that agricultural businesses cannot absorb a 63 
percent increase to H-2 visa fees. The comments also asserted that with 
rising prices across the board (e.g., increases in the Adverse Effect 
Wage Rate (AEWR)), the fee increase would put them out of business. As 
discussed in the NPRM, the impact of the proposed fee increases on the 
overall cost of bringing over an H-2 worker would have been minimal. If 
implemented, the proposed fee would have raised the total cost by just 
over one percent, from $10,367 ($10,177 + $190) to $10,487 ($10,177 + 
$310). See 86 FR 74023. This final rule implements only a $15 increase 
in petition-based NIV fees, from $190 to $205. Assuming the costs of 
bringing over an H-2 worker have not increased since the NPRM was 
issued, the total cost is now increasing by only .15 percent (from 
$10,367 to $10,382). This is significantly less than originally 
proposed, which should largely address the concerns of the commenters.

Adverse Effect Wage Rate (AEWR)

    One commenter requested that if the fees are increased, then the 
``AEWR should be removed, frozen, or replaced with a charge that isn't 
constantly increased.'' The AEWR, which is determined by the U.S. 
Department of Labor's Office of Foreign Labor Certification 
Administrator for the purpose of preventing the employment of H-2A 
workers from adversely affecting the wages of U.S. workers similarly 
employed, see 8 U.S.C. 1188(a)(1)(B), is ``[t]he annual weighted 
average hourly wage for field and livestock workers (combined) in the 
States or regions as published annually by the U.S. Department of 
Agriculture (USDA) based on its quarterly wage survey.'' 20 CFR 
655.103(c). An employer whose Application for Temporary Employment 
Certification in the H-2A program has been certified by the Department 
of Labor must offer, advertise in its recruitment, and pay a wage that 
is at least the highest of the AEWR, a prevailing wage rate, an agreed-
upon collective bargaining wage, the Federal minimum wage, or the State 
minimum wage. 20 CFR 655.120(a). The Department recognizes that an AEWR 
or other minimum wage under the H-2A program may impose a financial 
burden on agricultural employers; however, it is a requirement imposed 
by the Immigration and Naturalization Act, as implemented by the 
Department of Labor's H-2A regulations, which is outside the scope of 
this rulemaking.

Tourism

    The Department received one comment that specifically discussed the 
impact the proposed fee increases could have on tourism demand. The 
NPRM examined the costs associated with tourist visits to the United 
States and the potential impact of the original proposed fee increase 
on demand for tourism. Our analysis showed that even with the 
originally proposed $85 increase, from $160 to $245, the impact on 
tourism likely would have been minimal.
    Due to the revised demand projections, the Department is now 
implementing only a $25 increase to the fee for non-petition based NIVs 
(except E category). Assuming the average costs of travel to the United 
States ($4,834) have not increased since the publication of the NPRM, 
then the adjustment to the fee will increase the total cost of a trip 
from $4,994 ($4,834 + $160) (current rate) to $5,019 ($4,834 + $185), 
which is less than one-half of one percent. Thus, the impact on tourism 
almost certainly will be negligible.
    The commenter also mentioned that by increasing the tourist visa 
fee, the Department risks increased reciprocity fees imposed by other 
countries, which will negatively impact Americans who wish to travel 
internationally. The Department acknowledges this risk but must set MRV 
fees to recover the costs of providing these services. See 8 U.S.C. 
1713(b).

Evidence of Reason for Increase

    The Department received six comments requesting additional evidence 
to help commenters understand the reasons for the increases. As 
detailed in the NPRM, while costs for non-petition-based nonimmigrant 
visas (except E category) and the petition-based nonimmigrant visa 
services have increased modestly but steadily since the last adjustment 
to these fees in 2012, demand for these visa categories has fluctuated 
more dramatically from year to year. See 86 FR 74021. Because MRV fees 
must be set at the cost of providing these services, 8 U.S.C. 1713(b), 
the unprecedented, significant decrease in demand due to the COVID-19 
pandemic had a substantial impact on the fee increases proposed in the 
NPRM. Subsequently, the Department observed a considerable, unexpected 
recovery in NIV demand and made the decision to reanalyze the proposed 
fees in light of this rebound.
    The Department cannot be certain why NIV demand has recovered more 
quickly than expected. The recovery in demand may be attributable to a 
variety of factors, including the increase in global vaccination rates, 
relaxation of travel restrictions and reopening of international 
borders, and gradual resumption of the Department's visa operations at 
overseas posts. When the initial projected demand for 2021-2024 was 
calculated, it was uncertain whether effective COVID-19 vaccines would 
be globally available and what impact vaccination would have on demand 
for NIVs. The relatively quick proliferation of COVID-19 vaccines 
worldwide and the corresponding reductions in the risk of serious 
illness and death due to COVID-19 may have increased individuals' 
willingness to travel and the easing of restrictions made it 
increasingly possible to do so. Regardless, because the CoSM assumed a 
negative outlook for a longer period, the original demand projections 
ultimately were too low.
    The revised fee recommendation for E category NIVs reflects a 
decrease of $170 from the original proposal, from $205 to $315 rather 
than $485. As with the other categories of NIVs, the originally

[[Page 18246]]

proposed fee increase for E NIVs accounted for very low demand for this 
service during the COVID-19 pandemic. As discussed in the NPRM, 
however, the proposed increase also reflected an increased level of 
effort on the part of the adjudicator. The most recent CoSM 
demonstrated that consular staff spend significantly more time 
providing this service than was captured previously. See 86 FR 74018, 
74022. The fee that will be implemented includes NIV adjudication 
efforts that were not previously captured in the current fee (as 
discussed in the NRPM), and accounts for the improved outlook for E 
visa demand.

Activity-Based Costing Methodology and Calculations

    The Department received two comments related to its Activity-Based 
Costing (ABC) methodology and calculations. One commenter pointed out 
the ``vast majority of the cost of processing visa applications is 
directly proportional to the number of applications'' and that CA 
should consider fixed costs of services to be minimal in unit cost 
calculations. The cost of processing visa applications is not directly 
proportional to the number of applications. A significant portion of 
costs are fixed, including costs for rent and utilities as well as 
bureau, directorate, and post management. As discussed above, these 
costs have increased steadily due primarily to inflation since the last 
adjustments to these fees. Although the considerable fluctuations in 
demand due to the COVID-19 pandemic had a greater impact on the 
proposed fee increases, the rise in actual costs had an impact on the 
fees as well.
    One commenter mentioned that the Department's ABC model should 
consider visa validity when calculating the fees for services. The 
Department does not set NIV application processing fees based on the 
number of years a visa is valid, because the costs associated with visa 
processing do not vary significantly whether the length of validity is 
one year or ten years, or whether a visa is for a single entry or 
multiple entries.

Same Level of Service (Backlog)

    The Department received four comments stating that the commenter 
would gladly pay an increased fee for faster service (i.e., decreased 
wait times), but did not support fee increases to obtain the same level 
of service currently provided. The Department understands the concerns 
regarding visa processing times. The COVID-19 pandemic resulted in 
profound reductions in the Department's visa processing capacity, and 
many embassies and consulates were able to provide only limited visa 
services. As worldwide restrictions due to the COVID-19 pandemic ease, 
the Department is focused on reducing wait times for all consular 
services at our embassies and consulates overseas while also protecting 
the health and safety of our staff and applicants when they come to 
embassy or consular premises. Although local conditions and 
restrictions at individual consular posts may continue to fluctuate, 
embassies and consulates have broad discretion to determine how to 
prioritize visa appointments among the ranges of visa classes as safely 
as possible, subject to local conditions and restrictions. The 
Department sets MRV fees at the cost of providing the service, see 8 
U.S.C. 1713(b), and these fees are used to cover the costs of the 
service, including the materials, office space, equipment, etc. needed 
to process and produce NIVs.

Domestic Renewals (Visa Reissuance in the U.S. for Certain Visa 
Holders)

    The Department received 75 comments suggesting and requesting that 
the Department resume domestic visa renewals for individuals who were 
previously approved to receive certain visa classes (e.g., H-1B, H-4, 
Green Cards) and previously provided biometrics. These commenters 
assert that such renewals would eliminate the requirement for these 
individuals to travel to their home country to renew their visas, where 
they may need to remain for uncertain periods of time before they can 
obtain interview appointments at the embassy or consulate.
    The State Department provided domestic renewals until the 2002 
Enhanced Border Security and Visa Entry Reform Act required that U.S. 
visas issued after October 26, 2004, include biometric identifiers. 
This, in turn, required visa holders to renew their visas outside the 
United States, because domestic fingerprint collection was not feasible 
at the time. The possibility of relying on previously collected 
fingerprints would overcome one obstacle to resuming domestic renewal. 
As part of the Department's ongoing commitment to exploring options to 
make visa processing more efficient and accessible for all applicants, 
the Department is assessing numerous logistical challenges that need to 
be addressed in implementing such an initiative. The Department 
continues to explore options to make visa processing more efficient and 
accessible for all applicants.

Conclusion

    The Department will adjust application processing fees for NIVs and 
adult BCC fees in light of the Cost of Service Model's findings that 
the U.S. Government is not fully recovering the costs of processing 
applications for several categories of NIVs and the adult BCC. The 
Department is postponing the fee increase for the J-Waiver fee, which 
will remain at $120. In accordance with its statutory authorities and 
consistent with OMB guidance, the Department sets user fees at a level 
sufficient to recover the cost of providing services that provide 
special benefits to an identifiable recipient beyond those that accrue 
to the general public. See 31 U.S.C. 9701; OMB Circular A-25, sec. 
6(a)(1), (a)(2)(a); see also 8 U.S.C. 1713(b). For this reason, the 
Department will adjust the Schedule of Fees.

Regulatory Findings

Administrative Procedure Act

    The Department published this rulemaking as a proposed rule and 
provided 60 days for public comment. This final rule will be effective 
60 days after publication, in accordance with 5 U.S.C. 801(a)(3).

Regulatory Flexibility Act

    The Department has reviewed this rule and, by approving it, 
certifies that it will not have a significant economic impact on a 
substantial number of small entities as defined in 5 U.S.C. 601(6). 
This rule adjusts the application processing fees for H, L, O, P, Q and 
R category visas, which will account for approximately eleven percent 
of the total nonimmigrant visa workload expected in FY2023. Although 
the issuance of some of these visas is contingent upon approval by DHS 
of a petition filed by a United States company with DHS, and these 
companies pay a fee to DHS to cover the processing of the petition, the 
visa itself is sought and paid for by an individual foreign national 
overseas who seeks to come to the United States or, in some cases, an 
employer applying on their behalf. The amount of the petition fees that 
are paid by small entities to DHS is not impacted by the amount of the 
visa fees paid by individuals to the Department of State. While small 
entities may cover or reimburse employees for application processing 
fees, the exact number of such entities that do so is unknown. Whether 
or not small entities choose to reimburse the applicant for their 
employment-based NIV fees, the $15 increase is not likely to have a 
significant economic impact.

[[Page 18247]]

Unfunded Mandates Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year, and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995, 2 
U.S.C. 1501-1504.

Congressional Review Act

    This rule is a major rule as defined by 5 U.S.C. 804(2).

Executive Orders 12866 and 13563

    The Department has reviewed this rule to ensure its consistency 
with the regulatory philosophy and principles set forth in E.O. 12866 
and E.O. 13563. OMB has determined that this rule is economically 
significant under Executive Order 12866.
a. Need for the Regulatory Action
    This final rule is necessary in light of the CoSM's findings that 
costs associated with NIV application processing have increased since 
the last update to these fees. The Department sets NIV application fees 
commensurate with the costs of providing these services in accordance 
with 8 U.S.C. 1713(b) and OMB Circular A-25. The increase in costs 
therefore justify these adjustments through the rulemaking process.
b. Summary of Changes From the Current Rule
    The following table summarizes the impact of this final rule:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Projected
                                                                                              annual number     Estimated       Change in     Change in
              Item No.                  Proposed   Current fee   Change in     Percentage          of           change in    state retained   remittance
                                          fee                       fee         increase      applications     annual fees        fees       to treasury
                                                                                                   \1\        collected \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         SCHEDULE OF FEES FOR CONSULAR SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NONIMMIGRANT VISA SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
21. Nonimmigrant Visa Application
 and Border Crossing Card Processing
 Fees (per person)..................
    (a) Non-petition-based                   $185         $160          $25              16       8,574,624    $214,365,600    $214,365,600           $0
     nonimmigrant visa (except E
     category)......................
    (b) H, L, O, P, Q, and R                  205          190           15               8       1,141,549      17,123,235      17,123,235            0
     category nonimmigrant visa.....
    (c ) E category nonimmigrant              315          205          110              54          69,326       7,625,860       7,625,860            0
     visa...........................
    (e) Border Crossing Card--age 15          185          160           25              16       1,400,236      35,005,900      35,005,900            0
     and over (10 year validity)....
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           IMMIGRANT AND SPECIAL VISA SERVICES
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
35. Special Visa Services
    (b) Waiver of two-year residency          120          120            0               0             N/A             N/A             N/A            0
     requirement....................
                                     -------------------------------------------------------------------------------------------------------------------
        Total.......................  ...........  ...........  ...........  ..............  ..............    $274,120,595    $274,120,595            0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Application volume based on FY 2023 projected workload. FY 2023 is the year likely year of implementation.
\2\ Change in fee collection is based on FY2023 projected workload x change to fee.

    As explained above, the results of the most recent CoSM indicate 
that the costs of providing nonimmigrant visa services have increased 
and therefore the current fees are not set at a level sufficient to 
permit the Department to fully recover the costs of providing these 
services. The Department relies exclusively on retained revenue from 
consular fee collections to fund ongoing consular operations. The NIV 
fees proposed by the Department are set to recover costs necessary to 
support NIV operations, in accordance with 8 U.S.C. 1713(b) and OMB 
Circular A-25. If any of these fees are set below costs, the 
Department's Bureau of Consular Affairs would be operating at a 
deficit. Such a situation could impact the Department's ability to 
provide consular services to those who seek to travel to the United 
States for tourism, education, or work-related reasons, by limiting 
access to resources needed to adjudicate and produce visas. That 
consequence, in turn, could have a negative effect on those aspects of 
the U.S. economy that depends on these visitors and workers.
c. Time Horizon of the Analysis
    The Department's CoSM is updated annually, and the Department aims 
to update the Schedule of Fees biennially unless a significant change 
in costs warrants an immediate recommendation to amend the Schedule. If 
the results of the CoSM indicate a change in the cost (increase/
decrease) of providing a service, then adjustments to the relevant fees 
will be made to ensure full cost recovery. Any future changes to the 
fees, however, will not impact NIV holders during the period of their 
visa's validity (generally 5-10 years).
d. Regulatory Alternatives
    Due to the requirements of 8 U.S.C. 1713(b), there are no 
alternatives to raising MRV fees. However, as discussed in the 
preamble, the Department is finalizing lower increases than those 
proposed in the NPRM due to the rebound in demand for NIVs. As in the 
NPRM, the Department utilized 10-year average for demand to account for 
pandemic-related volatility and the fact that demand for NIVs is still 
in the process of recovering. The fees included in this rule are set at 
the cost of providing the relevant nonimmigrant

[[Page 18248]]

visa services and are used to cover the costs of those services, 
including the materials, offices, equipment, etc. needed to process and 
produce NIVs.
    Therefore, the Department has no alternative to this rulemaking; if 
the Department does not recover costs for these NIV services, the 
Department will be operating at a deficit and its consular operations 
could be impeded.
e. Costs & Benefits of the Rule
    The NPRM includes a section titled, ``Economic Impact'' that 
demonstrated that the proposed fee increases resulted in minimal 
increases in the totality of overall costs to both travelers and those 
seeking work visas. The economic impact of these fee increases is also 
discussed in the sections of this final rule responding to public 
comments. For the reasons discussed, the Department does not believe 
that the increased NIV application processing costs will deter non-U.S. 
citizens from applying for visas, because these fee increases do not 
significantly impact the costs of an applicant's travel to the United 
States.
    Although economic impact on individual applicants is minimal, these 
fee increases will generate revenue that will be used to cover the 
costs of providing consular services. This revenue will help guarantee 
the continued functioning of the Department's consular operations, 
which will provide a direct benefit to U.S. citizens. The fees set 
through this rulemaking will not change unless and until the results of 
a future CoSM indicate that they need to be adjusted. As noted above, 
the Department does not anticipate any change in demand for visas 
services because of this rulemaking. The cost of an NIV remains minor 
in comparison with other costs associated with travel, education, or 
hiring a worker from abroad, as detailed in the NPRM.

Executive Order 12372 and 13132

    This regulation will 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. Therefore, in accordance with section 6 
of E.O. 13132, it is determined that this rule does not have sufficient 
federalism implications to require consultations or warrant the 
preparation of a federalism summary impact statement. The regulations 
implementing E.O. 12372 regarding intergovernmental consultation on 
Federal programs and activities do not apply to this regulation.

Executive Order 13175

    The Department has determined that this rulemaking will not have 
tribal implications, will not impose substantial direct compliance 
costs on Indian tribal governments, and will not preempt tribal law. 
Accordingly, the requirements of E.O. 13175 do not apply to this 
rulemaking.

Paperwork Reduction Act

    This rule does not impose any new reporting or record-keeping 
requirements subject to the Paperwork Reduction Act.

List of Subjects in 22 CFR Part 22

    Consular services, Fees.

    Accordingly, for the reasons stated in the preamble, 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 continues to read as follows:

    Authority: 8 U.S.C. 1101 note, 1153 note, 1157 note, 1183a note, 
1184(c)(12), 1201(c), 1351, 1351 note, 1713, 1714, 1714 note; 10 
U.S.C. 2602(c); 22 U.S.C. 214, 214 note, 1475e, 2504(h), 2651a, 
4206, 4215, 4219, 6551; 31 U.S.C. 9701; 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.


0
2. In Sec.  22.1, amend the table by revising entries 21(a), (b), (c), 
and (e) under the heading ``Nonimmigrant Visa Services'' to read as 
follows:


Sec.  22.1  Schedule of fees.

* * * * *

                 Schedule of Fees for Consular Services
------------------------------------------------------------------------
                       Item No.                                Fee
------------------------------------------------------------------------
 
                              * * * * * * *
------------------------------------------------------------------------
                       Nonimmigrant Visa Services
------------------------------------------------------------------------
 
                              * * * * * * *
21. Nonimmigrant Visa Application and Border Crossing
 Card Processing Fees (per person)
    (a) Non-petition-based nonimmigrant visa (except E              $185
     category)........................................
    (b) H, L, O, P, Q and R category nonimmigrant visa               205
    (c) E category nonimmigrant visa..................               315
 
                              * * * * * * *
    (e) Border crossing card--age 15 and over (10 year               185
    validity).........................................
 
                              * * * * * * *
------------------------------------------------------------------------


Rena Bitter,
Assistant Secretary, Bureau of Consular Affairs, Department of State.
[FR Doc. 2023-06290 Filed 3-27-23; 8:45 am]
BILLING CODE 4710-06-P


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