Schedule of Fees for Consular Services-Administrative Processing of Request for Certificate of Loss of Nationality (CLN) Fee, 67687-67690 [2023-21559]
Download as PDF
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive:
■
Airbus SAS: Docket No. FAA–2023–1895;
Project Identifier MCAI–2023–00652–T.
(a) Comments Due Date
The FAA must receive comments on this
airworthiness directive (AD) by November
16, 2023.
(b) Affected ADs
This AD affects AD 2019–21–01,
Amendment 39–19767 (84 FR 56935, October
24, 2019) (AD 2019–21–01).
(c) Applicability
This AD applies to all Airbus SAS
airplanes identified in paragraphs (c)(1)
through (4) of this AD, certificated in any
category.
(1) Model A300 B4–601, B4–603, B4–620,
and B4–622 airplanes.
(2) Model A300 B4–605R and B4–622R
airplanes.
(3) Model A300 F4–605R and F4–622R
airplanes.
(4) Model A300 C4–605R Variant F
airplanes.
(d) Subject
Air Transport Association (ATA) of
America Code 05, Time Limits/Maintenance
Checks.
(e) Unsafe Condition
This AD was prompted by a determination
that new or more restrictive airworthiness
limitations are necessary. The FAA is issuing
this AD to address fatigue cracking, damage,
or corrosion in principal structural elements,
which could result in reduced structural
integrity of the airplane.
(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
lotter on DSK11XQN23PROD with PROPOSALS1
(g) Requirements
Except as specified in paragraph (h) of this
AD: Comply with all required actions and
compliance times specified in, and in
accordance with, European Union Aviation
Safety Agency (EASA) AD 2023–0091, dated
May 5, 2023 (EASA AD 2023–0091).
(h) Exceptions to EASA AD 2023–0091
(1) This AD does not adopt the
requirements specified in paragraphs (1) and
(2) of EASA AD 2023–0091.
(2) Paragraph (3) of EASA AD 2023–0091
specifies revising ‘‘the approved AMP’’
within 12 months after its effective date, but
this AD requires revising the existing
maintenance or inspection program, as
applicable, within 90 days after the effective
date of this AD.
VerDate Sep<11>2014
17:02 Sep 29, 2023
Jkt 262001
67687
(j) Terminating Action for AD 2019–21–01
(2) You must use this service information
as applicable to do the actions required by
this AD, unless this AD specifies otherwise.
(i) European Union Aviation Safety Agency
(EASA) AD 2023–0091, dated May 5, 2023.
(ii) [Reserved]
(3) For EASA AD 2023–0091, contact
EASA, Konrad-Adenauer-Ufer 3, 50668
Cologne, Germany; telephone +49 221 8999
000; email ADs@easa.europa.eu; website
easa.europa.eu. You may find this EASA AD
on the EASA website at ad.easa.europa.eu.
(4) You may view this service information
at the FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South 216th
St., Des Moines, WA. For information on the
availability of this material at the FAA, call
206–231–3195.
(5) You may view this service information
that is incorporated by reference at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA,
email fr.inspection@nara.gov, or go to:
www.archives.gov/federal-register/cfr/ibrlocations.html.
Accomplishing the actions required by this
AD terminates the corresponding
requirements of AD 2019–21–01 for the tasks
identified in the service information
referenced in EASA AD 2023–0091 only.
Issued on September 26, 2023.
Victor Wicklund,
Deputy Director, Compliance & Airworthiness
Division, Aircraft Certification Service.
(3) The initial compliance time for doing
the tasks specified in paragraph (3) of EASA
2023–0091 is at the applicable ‘‘associated
thresholds’’ as incorporated by the
requirements of paragraph (3) of EASA AD
2023–0091, or within 90 days after the
effective date of this AD, whichever occurs
later.
(4) This AD does not adopt the provisions
specified in paragraph (4) of EASA AD 2023–
0091.
(5) This AD does not adopt the ‘‘Remarks’’
section of EASA AD 2023–0091.
(i) Provisions for Alternative Actions and
Intervals
After the existing maintenance or
inspection program has been revised as
required by paragraph (g) of this AD, no
alternative actions (e.g., inspections) or
intervals are allowed unless they are
approved as specified in the provisions of the
‘‘Ref. Publications’’ section of EASA AD
2023–0091.
[FR Doc. 2023–21634 Filed 9–29–23; 8:45 am]
(k) Additional AD Provisions
The following provisions also apply to this
AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, International
Validation Branch, FAA, has the authority to
approve AMOCs for this AD, if requested
using the procedures found in 14 CFR 39.19.
In accordance with 14 CFR 39.19, send your
request to your principal inspector or
responsible Flight Standards Office, as
appropriate. If sending information directly
to the International Validation Branch, send
it to the attention of the person identified in
paragraph (l) of this AD. Information may be
emailed to: 9-AVS-AIR-730-AMOC@faa.gov.
Before using any approved AMOC, notify
your appropriate principal inspector, or
lacking a principal inspector, the manager of
the local flight standards district office/
certificate holding district office.
(2) Contacting the Manufacturer: For any
requirement in this AD to obtain instructions
from a manufacturer, the instructions must
be accomplished using a method approved
by the Manager, International Validation
Branch, FAA; or EASA; or Airbus SAS’s
EASA Design Organization Approval (DOA).
If approved by the DOA, the approval must
include the DOA-authorized signature.
(l) Additional Information
For more information about this AD,
contact Dan Rodina, Aviation Safety
Engineer, FAA, 1600 Stewart Avenue, Suite
410, Westbury, NY 11590; telephone 206–
231–3225; email dan.rodina@faa.gov.
(m) Material Incorporated by Reference
(1) The Director of the Federal Register
approved the incorporation by reference
(IBR) of the service information listed in this
paragraph under 5 U.S.C. 552(a) and 1 CFR
part 51.
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
BILLING CODE 4910–13–P
DEPARTMENT OF STATE
22 CFR Part 22
[Public Notice: 11995]
RIN 1400–AF61
Schedule of Fees for Consular
Services—Administrative Processing
of Request for Certificate of Loss of
Nationality (CLN) Fee
Department of State.
Proposed rule.
AGENCY:
ACTION:
The Department of State
(‘‘Department’’) is proposing to amend
the Schedule of Fees for Consular
Services (‘‘Schedule’’) to reduce the
current fee for Administrative
Processing of a Request for a Certificate
of Loss of Nationality of the United
States (CLN) from $2,350 to $450.
DATES: The Department of State will
accept comments until November 1,
2023.
ADDRESSES: Interested parties may
submit comments to the Department by
any of the following methods:
* Visit the Regulations.gov website at:
https://www.regulations.gov and search
for the Regulatory Information Number
(RIN) 1400–AF61 or docket number
DOS–2023–0026.
* Email: fees@state.gov. You must
include the RIN (1400–AF61) in the
subject line of your message.
SUMMARY:
E:\FR\FM\02OCP1.SGM
02OCP1
67688
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules
All comments should include the
commenter’s name, the organization the
commenter represents (if applicable),
and the commenter’s address. If the
Department is unable to read your
comment for any reason, and cannot
contact you for clarification, the
Department may not be able to consider
your comment. After the conclusion of
the comment period, the Department
will publish a final rule that will
address relevant comments as
expeditiously as possible.
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:
lotter on DSK11XQN23PROD with PROPOSALS1
Background
The proposed rule makes changes to
the Department of State’s Schedule of
Fees for Consular Services by reducing
the fee for Item #8, Administrative
Processing of Request for Certificate of
Loss of Nationality of the United States
(CLN), from $2,350 to $450. The fee for
administrative processing of a CLN
(referred to as the ‘‘fee for CLN services’’
throughout this rulemaking) applies to
U.S. nationals (i.e., U.S. citizens and
non-citizen nationals) who request a
CLN under 8 U.S.C. 1481(a)(5) (taking
the oath of renunciation before a U.S.
diplomatic or consular officer abroad) as
well as those who request a CLN under
8 U.S.C. 1481(a)(1) to 1481(a)(4) or other
applicable law administered by the
Department of State. The fee for CLN
services is remitted entirely to the
Department of Treasury; revenue
collected from the fee for CLN services
is not factored into the Bureau of
Consular Affairs’ (CA) budget.
What is the authority for this action?
The Department of State derives the
authority to set fees based on the cost of
the consular services it provides, and to
charge those fees from the general user
charges statute, 31 U.S.C. 9701. See, e.g.,
31 U.S.C. 9701(b)(2)(A) (‘‘The head of
each agency . . . may prescribe
regulations establishing the charge for a
service or thing of value provided by the
agency . . . based on . . . the costs to
the government.’’). The President also
has the power to set the amount of fees
to be charged for consular services
provided at U.S. embassies and
consulates abroad pursuant to 22 U.S.C.
4219, and has delegated this authority to
the Secretary of State, E.O. 10718 (June
27, 1957). In the absence of a specific
statutory fee retention authority, fees
collected for consular services must be
VerDate Sep<11>2014
17:02 Sep 29, 2023
Jkt 262001
deposited into the general fund of the
Treasury pursuant to 31 U.S.C. 3302(b).
Activity-Based Costing
OMB Circular A–25 states that it is
the objective of the United States
Government to ‘‘(a) ensure that each
service, sale, or use of Government
goods or resources provided by an
agency to specific recipients be selfsustaining; [and] (b) promote efficient
allocation of the Nation’s resources by
establishing charges for special benefits
provided to the recipient that are at least
as great as costs to the Government of
providing the special benefits . . .’’
OMB Circular A–25, 5(a)–(b); see also
31 U.S.C. 9701(b)(2)(A) (agency ‘‘may
prescribe regulations establishing the
charge for a service or thing of value
provided by the agency . . . based on
. . . the costs to the Government . . .’’).
To set fees that are ‘‘self-sustaining,’’ the
Department must determine the full cost
of providing each consular service.
Following guidance provided in
‘‘Managerial Cost Accounting Concepts
and Standards for the Federal
Government,’’ OMB’s Statement #4 of
Federal Accounting Standards (SFFAS
#4), available at https://www.fasab.gov/
pdffiles/sffas-4.pdf, the Department
chose to develop and use an activitybased costing (ABC) model to determine
the full cost of all the services listed in
its Schedule of Fees, including those
whose fee the Department proposes to
change. The Department refers to the
specific ABC model that underpins the
proposed fees as the ‘‘Cost of Service
Model’’ or ‘‘CoSM.’’
The Government Accountability
Office (GAO) defines ABC as a ‘‘set of
accounting methods used to identify
and describe costs and required
resources for activities within
processes.’’ Organizations can use the
same staff and resources (computer
equipment, production facilities, etc.) to
produce multiple products or services;
therefore, ABC models seek to identify
and assign costs to processes and
activities and then to individual
products and services through the
identification of key cost drivers
referred to as ‘‘resource drivers’’ and
‘‘activity drivers.’’ The goal is to
proportionally and accurately distribute
costs. ABC models require financial and
accounting analysis and modeling skills
combined with a detailed understanding
of an organization’s business processes.
SFFAS Statement #4 provides a detailed
discussion of the use of cost accounting
by the U.S. Government.
The ABC approach focuses on the
activities required to produce a
particular service or product and uses
resource drivers to assign costs through
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
activities and activity drivers to assign
costs from activities to services. In the
context of the work of the Department’s
Bureau of Consular Affairs (CA),
resource drivers assign costs (resources
including materials, supplies, and labor
utilized in the production or delivery of
services and products) to activities
using business rules that reflect the
operational reality of CA and the data
available from consular systems,
surveys, and internal records. Most
resource drivers are based on time spent
on each activity. Activity drivers assign
the cost of consular activities to the
services CA provides. Most activity
drivers are based on volumes.
Why is the Department adjusting this
fee?
Processing a U.S. citizen’s request for
a CLN based on the performance of a
potentially expatriating act provided by
statute has always been extremely costly
for the Department, requiring consular
officers and employees overseas, as well
as Bureau of Consular Affairs employees
domestically, to spend substantial time
accepting, processing, and adjudicating
these requests. See 75 FR 6324; 79 FR
51250–51. This service is necessarily
time consuming because of
constitutional and other safeguards
imposed by U.S. law to ensure the
would-be renunciant is a U.S. national
who fully understands the serious
consequences of renunciation and that
the renunciation is both voluntary and
intentional. 80 FR 51466.
A fee for processing a request for a
CLN under INA 349(a)(5) (taking the
oath of renunciation before a U.S.
diplomatic or consular officer abroad)
was first implemented in 2010. The fee
was set at $450, which at that time
represented less than 25% of the cost to
the U.S. Government. 75 FR 36529. The
Department set the fee below cost ‘‘in
order to lessen the impact on those who
need this service and not discourage the
utilization of the service.’’ 75 FR 36529.
That decision was consistent with the
approach taken with respect to certain
other fees the Department has discretion
to set below cost, including those
provided to U.S. citizens in connection
with applications for a Consular Report
of Birth Abroad, emergency services,
documentary services, and death and
estate services. The Department’s
estimate of the level at which U.S.
citizens will not be deterred from taking
advantage of the service was based on
its extensive consultations with
experienced consular officers and senior
Department managers. 75 FR 36527.
E:\FR\FM\02OCP1.SGM
02OCP1
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules
lotter on DSK11XQN23PROD with PROPOSALS1
Subsequently, the number of requests
for a CLN increased dramatically.
During the period the $450 fee was in
place, the demand for CLNs jumped
from 956 in 2010 to 3,436 in 2014, an
approximately 360-fold increase. The
dramatic increase in demand meant that
far more consular officer time and
resources were consumed providing
CLN services. As a result, the
Department made the decision to set the
fee at cost. In 2014, the Department
issued an interim final rule raising the
fee from $450 to $2,350, as determined
by the results of the 2010–2014 Cost of
Service Model (CoSM), which
incorporated improvements that better
captured the actual costs to the U.S.
Government of providing consular
services overseas. 79 FR 51251. The rule
was finalized in 2015. 80 FR 51465.
At the time the fee was increased, the
Department received approximately two
dozen comments suggesting that the
new fee was too costly and that it
therefore acted as a deterrent to
renunciation. See 80 FR 51465. The
Department took those concerns into
account in setting the fee, but ultimately
determined that the significant
additional burden on consular
operations justified setting the fee at
cost, in accordance with general feesetting principles in 31 U.S.C. 9701 and
OMB Circular A–25. Id.
In the years since the fee was
increased, members of the public have
continued to raise concerns about the
cost of the fee and the impact of the fee
on their ability to renounce their
citizenship. While there is no legal
requirement for individuals to declare
their motivation for renouncing U.S.
citizenship, anecdotal evidence suggests
that difficulties due at least in part to
stricter financial reporting requirements
imposed by the Foreign Account Tax
Compliance Act (FATCA), Public Law
111–147, on foreign financial
institutions with whom U.S. nationals
have an account or accounts may well
be a factor.
After significant deliberation, taking
into account both the affected public’s
concerns regarding the cost of the fee
and the not insignificant anecdotal
evidence regarding the difficulties many
U.S. nationals residing abroad are
encountering at least in part because of
FATCA, the Department has made a
VerDate Sep<11>2014
17:02 Sep 29, 2023
Jkt 262001
policy decision to help alleviate at least
the cost burden for those individuals
who decide for whatever reason to
request CLN services by returning to the
below-cost fee of $450. Although the
prior fee of $450 represents a fraction of
the cost of providing CLN services, this
change will better align the fee for CLN
services with other fees for services
provided to U.S. citizens abroad,
including, for example, applications for
a Consular Report of Birth Abroad,
which all are set significantly below
cost, even as the costs of providing these
services have fluctuated over time.
The Department reviews its Cost of
Service Model annually, to calculate the
cost of providing all services, including
CLN services, applying its standard ABC
methodology. If, in the future, the
results of the CoSM indicate that the
Department ought to reevaluate its
approach to the fee for CLN services
and/or other services provided to U.S.
citizens that are set below cost, the
Department will engage its experienced
consular officers and senior Department
managers to help determine the
appropriate level at which to set the fee,
balancing the need for the U.S.
Government to recoup its costs with the
need to charge a fee for these services
that does not deter individuals from
seeking them.
This proposed fee change applies to
all services included under
‘‘Administrative Processing of Request
for Certificate of Loss of Nationality’’ on
the Department’s Schedule of Fees for
Consular Services. 22 CFR 22.1 Item 8.
That item lists services to U.S. nationals
(i.e., U.S. citizens and non-citizen
nationals) who request a CLN under 8
U.S.C. 1481(a)(5) as well as services to
U.S. nationals who request a CLN under
8 U.S.C. 1481(a)(1)–(4) or other
applicable law. The fee for processing a
request for a CLN under 8 U.S.C.
1481(a)(1)–(4) was also set at $2,350 in
2018 as a matter of ‘‘fee parity’’ after the
2010–2014 CoSM indicated that
documenting a U.S. national’s
relinquishment of nationality is
extremely costly regardless of the
subsection under which the request for
a CLN is made. 80 FR 53707. Although
the fee for processing a request for a
CLN under 8 U.S.C. 1481(a)(1)–(4) was
never set at $450, the same
considerations apply and warrant a
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
67689
consistent approach in setting the fee
below cost.
Regulatory Findings
Administrative Procedure Act
The Department is publishing this
rulemaking as a proposed rule, with a
30-day provision for public comments.
The Department believes that a 30-day
comment period provides the public
sufficient opportunity to meaningfully
review the proposed rule and generate
informed comments on its text. The
proposed rule involves only one fee,
and is not lengthy, technical, and/or
complex. Moreover, the Department is
engaging in this rulemaking in response
to public concerns that already have
been raised. A 30-day comment period
will enable the Department to complete
rulemaking expeditiously, which will
facilitate implementation of a change
that will benefit applicants seeking CLN
services.
Regulatory Flexibility Act
The Department has reviewed this
proposed 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).
Unfunded Mandates Act of 1995
This rulemaking 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.
Executive Orders 12866, 13563, and
14094
The Department has reviewed this
proposed rule to ensure its consistency
with the regulatory philosophy and
principles set forth in Executive Order
12866, as amended by Executive Order
14094, and Executive Order 13563, and
affirms that this regulation is consistent
with the guidance therein. The Office of
Management and Budget has designated
this rulemaking as significant under
E.O. 12866.
Details of the changes to the Schedule
of Fee are as follows:
E:\FR\FM\02OCP1.SGM
02OCP1
67690
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules
TABLE 1—CHANGES TO THE SCHEDULE OF FEES
Proposed
fee
Item No.
Current
fee
Change in
fee
Percentage
decrease
Projected
annual
number of
applications 1
Change in
state
retained
fees
Estimated
change in
annual fees
collected 2
Change in
remittance to
Treasury
SCHEDULE OF FEES FOR CONSULAR SERVICES
*
*
*
*
*
*
*
PASSPORT AND CITIZENSHIP SERVICES
8. Administrative Processing of Request for Certificate of Loss of
Nationality ...................................
1 Based
2 Using
$450
$2,350
($1,900)
(80)
4,661
($8,855,900)
$0
($8,855,900)
on estimated FY 2022 workload calculated with FY2021 actual demand.
FY 2021 workload to generate collections. This will be a reduction in total annual remittance to Treasury.
Executive Orders 12372 and 13132
This rulemaking 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 Executive
Order 13132, it is determined that this
proposed rule does not have sufficient
federalism implications to require
consultations or warrant the preparation
of a federalism summary impact
statement. The regulations
implementing Executive Order 12372
regarding intergovernmental
consultation on Federal programs and
activities do not apply to this regulation.
implications, will not impose
substantial direct compliance costs on
Indian Tribal Governments, and will not
preempt tribal law. Accordingly, the
requirements of Executive Order 13175
do not apply to this rulemaking.
Paperwork Reduction Act
This rulemaking does not impose any
new reporting or recordkeeping
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
proposed to be amended as follows:
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 Item 8 to read as follows:
■
§ 22.1
Schedule of Fees.
The following table sets forth the fees
for the following categories listed on the
U.S. Department of State’s Schedule of
Fees for Consular Services:
Executive Order 13175
The Department has determined that
this rulemaking will not have tribal
SCHEDULE OF FEES FOR CONSULAR SERVICES
Item No.
Fee
Passport and Citizenship Services
*
*
*
*
*
*
*
8. Administrative Processing of Request for Certificate of Loss of Nationality ...........................................................................................
$450
*
*
*
Hugo Rodriguez,
Acting Assistant Secretary for Consular
Affairs, Department of State.
[FR Doc. 2023–21559 Filed 9–29–23; 8:45 am]
lotter on DSK11XQN23PROD with PROPOSALS1
BILLING CODE 4710–06–P
*
*
ACTION:
Internal Revenue Service
SUMMARY:
26 CFR Parts 40 and 47
RIN 1545–BQ93
Excise Tax on Designated Drugs;
Procedural Requirements
Internal Revenue Service (IRS),
Treasury.
AGENCY:
17:02 Sep 29, 2023
Jkt 262001
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
*
Notice of proposed rulemaking.
DEPARTMENT OF THE TREASURY
[REG–115559–23]
VerDate Sep<11>2014
*
This document contains
proposed regulations that would
provide guidance on how taxpayers will
report liability for the excise tax
imposed on manufacturers, producers,
or importers of certain designated drugs.
The proposed regulations affect
manufacturers, producers, and
importers of designated drugs that sell
such drugs during certain statutory
periods. The proposed regulations also
E:\FR\FM\02OCP1.SGM
02OCP1
Agencies
[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Proposed Rules]
[Pages 67687-67690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21559]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF STATE
22 CFR Part 22
[Public Notice: 11995]
RIN 1400-AF61
Schedule of Fees for Consular Services--Administrative Processing
of Request for Certificate of Loss of Nationality (CLN) Fee
AGENCY: Department of State.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of State (``Department'') is proposing to amend
the Schedule of Fees for Consular Services (``Schedule'') to reduce the
current fee for Administrative Processing of a Request for a
Certificate of Loss of Nationality of the United States (CLN) from
$2,350 to $450.
DATES: The Department of State will accept comments until November 1,
2023.
ADDRESSES: Interested parties may submit comments to the Department by
any of the following methods:
* Visit the Regulations.gov website at: https://www.regulations.gov
and search for the Regulatory Information Number (RIN) 1400-AF61 or
docket number DOS-2023-0026.
* Email: [email protected]. You must include the RIN (1400-AF61) in
the subject line of your message.
[[Page 67688]]
All comments should include the commenter's name, the organization
the commenter represents (if applicable), and the commenter's address.
If the Department is unable to read your comment for any reason, and
cannot contact you for clarification, the Department may not be able to
consider your comment. After the conclusion of the comment period, the
Department will publish a final rule that will address relevant
comments as expeditiously as possible.
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
The proposed rule makes changes to the Department of State's
Schedule of Fees for Consular Services by reducing the fee for Item #8,
Administrative Processing of Request for Certificate of Loss of
Nationality of the United States (CLN), from $2,350 to $450. The fee
for administrative processing of a CLN (referred to as the ``fee for
CLN services'' throughout this rulemaking) applies to U.S. nationals
(i.e., U.S. citizens and non-citizen nationals) who request a CLN under
8 U.S.C. 1481(a)(5) (taking the oath of renunciation before a U.S.
diplomatic or consular officer abroad) as well as those who request a
CLN under 8 U.S.C. 1481(a)(1) to 1481(a)(4) or other applicable law
administered by the Department of State. The fee for CLN services is
remitted entirely to the Department of Treasury; revenue collected from
the fee for CLN services is not factored into the Bureau of Consular
Affairs' (CA) budget.
What is the authority for this action?
The Department of State derives the authority to set fees based on
the cost of the consular services it provides, and to charge those fees
from the general user charges statute, 31 U.S.C. 9701. See, e.g., 31
U.S.C. 9701(b)(2)(A) (``The head of each agency . . . may prescribe
regulations establishing the charge for a service or thing of value
provided by the agency . . . based on . . . the costs to the
government.''). The President also has the power to set the amount of
fees to be charged for consular services provided at U.S. embassies and
consulates abroad pursuant to 22 U.S.C. 4219, and has delegated this
authority to the Secretary of State, E.O. 10718 (June 27, 1957). In the
absence of a specific statutory fee retention authority, fees collected
for consular services must be deposited into the general fund of the
Treasury pursuant to 31 U.S.C. 3302(b).
Activity-Based Costing
OMB Circular A-25 states that it is the objective of the United
States Government to ``(a) ensure that each service, sale, or use of
Government goods or resources provided by an agency to specific
recipients be self-sustaining; [and] (b) promote efficient allocation
of the Nation's resources by establishing charges for special benefits
provided to the recipient that are at least as great as costs to the
Government of providing the special benefits . . .'' OMB Circular A-25,
5(a)-(b); see also 31 U.S.C. 9701(b)(2)(A) (agency ``may prescribe
regulations establishing the charge for a service or thing of value
provided by the agency . . . based on . . . the costs to the Government
. . .''). To set fees that are ``self-sustaining,'' the Department must
determine the full cost of providing each consular service. Following
guidance provided in ``Managerial Cost Accounting Concepts and
Standards for the Federal Government,'' OMB's Statement #4 of Federal
Accounting Standards (SFFAS #4), available at https://www.fasab.gov/pdffiles/sffas-4.pdf, the Department chose to develop and use an
activity-based costing (ABC) model to determine the full cost of all
the services listed in its Schedule of Fees, including those whose fee
the Department proposes to change. The Department refers to the
specific ABC model that underpins the proposed fees as the ``Cost of
Service Model'' or ``CoSM.''
The Government Accountability Office (GAO) defines ABC as a ``set
of accounting methods used to identify and describe costs and required
resources for activities within processes.'' Organizations can use the
same staff and resources (computer equipment, production facilities,
etc.) to produce multiple products or services; therefore, ABC models
seek to identify and assign costs to processes and activities and then
to individual products and services through the identification of key
cost drivers referred to as ``resource drivers'' and ``activity
drivers.'' The goal is to proportionally and accurately distribute
costs. ABC models require financial and accounting analysis and
modeling skills combined with a detailed understanding of an
organization's business processes. SFFAS Statement #4 provides a
detailed discussion of the use of cost accounting by the U.S.
Government.
The ABC approach focuses on the activities required to produce a
particular service or product and uses resource drivers to assign costs
through activities and activity drivers to assign costs from activities
to services. In the context of the work of the Department's Bureau of
Consular Affairs (CA), resource drivers assign costs (resources
including materials, supplies, and labor utilized in the production or
delivery of services and products) to activities using business rules
that reflect the operational reality of CA and the data available from
consular systems, surveys, and internal records. Most resource drivers
are based on time spent on each activity. Activity drivers assign the
cost of consular activities to the services CA provides. Most activity
drivers are based on volumes.
Why is the Department adjusting this fee?
Processing a U.S. citizen's request for a CLN based on the
performance of a potentially expatriating act provided by statute has
always been extremely costly for the Department, requiring consular
officers and employees overseas, as well as Bureau of Consular Affairs
employees domestically, to spend substantial time accepting,
processing, and adjudicating these requests. See 75 FR 6324; 79 FR
51250-51. This service is necessarily time consuming because of
constitutional and other safeguards imposed by U.S. law to ensure the
would-be renunciant is a U.S. national who fully understands the
serious consequences of renunciation and that the renunciation is both
voluntary and intentional. 80 FR 51466.
A fee for processing a request for a CLN under INA 349(a)(5)
(taking the oath of renunciation before a U.S. diplomatic or consular
officer abroad) was first implemented in 2010. The fee was set at $450,
which at that time represented less than 25% of the cost to the U.S.
Government. 75 FR 36529. The Department set the fee below cost ``in
order to lessen the impact on those who need this service and not
discourage the utilization of the service.'' 75 FR 36529. That decision
was consistent with the approach taken with respect to certain other
fees the Department has discretion to set below cost, including those
provided to U.S. citizens in connection with applications for a
Consular Report of Birth Abroad, emergency services, documentary
services, and death and estate services. The Department's estimate of
the level at which U.S. citizens will not be deterred from taking
advantage of the service was based on its extensive consultations with
experienced consular officers and senior Department managers. 75 FR
36527.
[[Page 67689]]
Subsequently, the number of requests for a CLN increased
dramatically. During the period the $450 fee was in place, the demand
for CLNs jumped from 956 in 2010 to 3,436 in 2014, an approximately
360-fold increase. The dramatic increase in demand meant that far more
consular officer time and resources were consumed providing CLN
services. As a result, the Department made the decision to set the fee
at cost. In 2014, the Department issued an interim final rule raising
the fee from $450 to $2,350, as determined by the results of the 2010-
2014 Cost of Service Model (CoSM), which incorporated improvements that
better captured the actual costs to the U.S. Government of providing
consular services overseas. 79 FR 51251. The rule was finalized in
2015. 80 FR 51465.
At the time the fee was increased, the Department received
approximately two dozen comments suggesting that the new fee was too
costly and that it therefore acted as a deterrent to renunciation. See
80 FR 51465. The Department took those concerns into account in setting
the fee, but ultimately determined that the significant additional
burden on consular operations justified setting the fee at cost, in
accordance with general fee-setting principles in 31 U.S.C. 9701 and
OMB Circular A-25. Id.
In the years since the fee was increased, members of the public
have continued to raise concerns about the cost of the fee and the
impact of the fee on their ability to renounce their citizenship. While
there is no legal requirement for individuals to declare their
motivation for renouncing U.S. citizenship, anecdotal evidence suggests
that difficulties due at least in part to stricter financial reporting
requirements imposed by the Foreign Account Tax Compliance Act (FATCA),
Public Law 111-147, on foreign financial institutions with whom U.S.
nationals have an account or accounts may well be a factor.
After significant deliberation, taking into account both the
affected public's concerns regarding the cost of the fee and the not
insignificant anecdotal evidence regarding the difficulties many U.S.
nationals residing abroad are encountering at least in part because of
FATCA, the Department has made a policy decision to help alleviate at
least the cost burden for those individuals who decide for whatever
reason to request CLN services by returning to the below-cost fee of
$450. Although the prior fee of $450 represents a fraction of the cost
of providing CLN services, this change will better align the fee for
CLN services with other fees for services provided to U.S. citizens
abroad, including, for example, applications for a Consular Report of
Birth Abroad, which all are set significantly below cost, even as the
costs of providing these services have fluctuated over time.
The Department reviews its Cost of Service Model annually, to
calculate the cost of providing all services, including CLN services,
applying its standard ABC methodology. If, in the future, the results
of the CoSM indicate that the Department ought to reevaluate its
approach to the fee for CLN services and/or other services provided to
U.S. citizens that are set below cost, the Department will engage its
experienced consular officers and senior Department managers to help
determine the appropriate level at which to set the fee, balancing the
need for the U.S. Government to recoup its costs with the need to
charge a fee for these services that does not deter individuals from
seeking them.
This proposed fee change applies to all services included under
``Administrative Processing of Request for Certificate of Loss of
Nationality'' on the Department's Schedule of Fees for Consular
Services. 22 CFR 22.1 Item 8. That item lists services to U.S.
nationals (i.e., U.S. citizens and non-citizen nationals) who request a
CLN under 8 U.S.C. 1481(a)(5) as well as services to U.S. nationals who
request a CLN under 8 U.S.C. 1481(a)(1)-(4) or other applicable law.
The fee for processing a request for a CLN under 8 U.S.C. 1481(a)(1)-
(4) was also set at $2,350 in 2018 as a matter of ``fee parity'' after
the 2010-2014 CoSM indicated that documenting a U.S. national's
relinquishment of nationality is extremely costly regardless of the
subsection under which the request for a CLN is made. 80 FR 53707.
Although the fee for processing a request for a CLN under 8 U.S.C.
1481(a)(1)-(4) was never set at $450, the same considerations apply and
warrant a consistent approach in setting the fee below cost.
Regulatory Findings
Administrative Procedure Act
The Department is publishing this rulemaking as a proposed rule,
with a 30-day provision for public comments. The Department believes
that a 30-day comment period provides the public sufficient opportunity
to meaningfully review the proposed rule and generate informed comments
on its text. The proposed rule involves only one fee, and is not
lengthy, technical, and/or complex. Moreover, the Department is
engaging in this rulemaking in response to public concerns that already
have been raised. A 30-day comment period will enable the Department to
complete rulemaking expeditiously, which will facilitate implementation
of a change that will benefit applicants seeking CLN services.
Regulatory Flexibility Act
The Department has reviewed this proposed 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).
Unfunded Mandates Act of 1995
This rulemaking 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.
Executive Orders 12866, 13563, and 14094
The Department has reviewed this proposed rule to ensure its
consistency with the regulatory philosophy and principles set forth in
Executive Order 12866, as amended by Executive Order 14094, and
Executive Order 13563, and affirms that this regulation is consistent
with the guidance therein. The Office of Management and Budget has
designated this rulemaking as significant under E.O. 12866.
Details of the changes to the Schedule of Fee are as follows:
[[Page 67690]]
Table 1--Changes to the Schedule of Fees
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Projected
annual number Estimated Change in Change in
Item No. Proposed fee Current fee Change in Percentage of change in state retained remittance to
fee decrease applications annual fees fees Treasury
\1\ collected \2\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF FEES FOR CONSULAR SERVICES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PASSPORT AND CITIZENSHIP SERVICES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8. Administrative Processing of Request for Certificate of Loss $450 $2,350 ($1,900) (80) 4,661 ($8,855,900) $0 ($8,855,900)
of Nationality..................................................
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Based on estimated FY 2022 workload calculated with FY2021 actual demand.
\2\ Using FY 2021 workload to generate collections. This will be a reduction in total annual remittance to Treasury.
Executive Orders 12372 and 13132
This rulemaking 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 Executive Order 13132, it is determined that this proposed rule does
not have sufficient federalism implications to require consultations or
warrant the preparation of a federalism summary impact statement. The
regulations implementing Executive Order 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 Executive Order 13175 do not apply to
this rulemaking.
Paperwork Reduction Act
This rulemaking does not impose any new reporting or recordkeeping
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 proposed to be 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 Item 8 to read as
follows:
Sec. 22.1 Schedule of Fees.
The following table sets forth the fees for the following
categories listed on 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
------------------------------------------------------------------------
* * * * * * *
8. Administrative Processing of Request for Certificate of $450
Loss of Nationality........................................
* * * * * * *
------------------------------------------------------------------------
Hugo Rodriguez,
Acting Assistant Secretary for Consular Affairs, Department of State.
[FR Doc. 2023-21559 Filed 9-29-23; 8:45 am]
BILLING CODE 4710-06-P