[Federal Register Volume 59, Number 187 (Wednesday, September 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23954]


[Federal Register: September 28, 1994]


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DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Part 286

[INS No. 1392-93]
RIN 1115-AA-30


Immigration User Fee; Remittance Requirements

AGENCY: Immigration and Naturalization Service, Justice.

ACTION: Final rule.

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SUMMARY: This rule publishes changes to requirements related to the 
Immigration User Fee Account (IUFA). The rule amends existing 
regulations to comply with the 1991 and 1994 Department of Justice 
Appropriations Acts. In addition, this rule changes where remittances 
shall be sent; requires additional information in the remittance and 
statement procedures for fees; clarifies how remittances shall be paid; 
and makes a nomenclature change. Two minor technical corrections are 
also being made to correct errors in the text of the regulations.

EFFECTIVE DATE: October 28, 1994.

FOR FURTHER INFORMATION CONTACT:
Michael Natchuras, Budget Analyst, Fee Analysis and Operations Branch, 
Office of Finance, Office of Budget, Immigration and Naturalization 
Service (INS), 425 I Street NW., Room 6307, Washington, DC 0536-0002, 
telephone (0) (202) 616-2754.

SUPPLEMENTARY INFORMATION:

I. Introduction

    The INS published a proposed rule on February 15, 1994, at 59 FR 
7227, making changes to requirements related to the Immigration User 
Fee Account. The proposed rule was published with a 60-day comment 
period. The public had the opportunity to comment on the proposed rule 
through April 18, 1994.
    Changes in current regulations are needed to make the regulations 
consistent with current law, and establish requirements for fee 
collection data and remittance information. In addition, the final rule 
implements a nomenclature change throughout 8 CFR 86 to remove the word 
``Comptroller'' and to put in its place the words ``Associate 
Commissioner, Finance,'' and makes two other technical corrections.
    Comments were received from seven commenters, including three 
industry associations. All the comments were carefully considered 
before preparing this final rule. Following is a discussion of the 
comments.

II. Summary of Comments

A. Monthly Summary Statement Requirement

    Five commenters expressed dissatisfaction with this reporting 
requirement. One commenter expressed agreement in principal with the 
proposed submission of monthly information related to the Immigration 
User Fees collected.
    The commenters who expressed dissatisfaction with the reporting 
requirement indicated that the monthly requirement would add an 
additional and costly reporting burden which would duplicate a 
quarterly remittance statement, and would require carrier-ticketing 
information which is considered to be ``commercially confidential.'' 
One commenter indicated that there would be timing difficulty in 
reporting information as required in the proposed rule, given the dates 
airlines receive domestic and international sales reports. Along these 
same lines, another commenter suggested that carriers be given at least 
1 month to submit a report. Further, two commenters noted that the 
universal scope of the requirement should be limited if the reporting 
requirement is published as a final rule. One of these suggested that 
the requirement apply to high-volume carriers; the other suggested that 
it be applicable to carriers who consistently fail to remit fees. 
Another of the comments suggested that, should the monthly reporting 
requirement be implemented, it should include a ``sunset'' provision to 
discontinue the requirement after 2 years subject to evaluation of the 
benefits in relation to the costs.
    The commenter that supported the requirement believed that the 
monthly submission of a summary report for each month's collections 
would assist the INS in developing more accurate budgets and in 
allocating funds for staff and equipment as traffic patterns change.
    The INS continues to believe that, in order to improve its 
financial management of the IUFA, it must have some indication of fee 
remittances in advance of their receipt. Therefore, a report of net 
monthly collections will be required. As a result of the type and 
timing of remittance data available, there has been difficulty in 
making resource estimates. Remittances to INS represent passengers who 
purchased tickets during the remittance period, which is not 
necessarily the same period in which the passenger will travel. The INS 
data are limited to the number of persons inspected and actual 
remittances. Since the remittances are made on a quarterly basis, there 
is not timely information with which to make accurate collection 
projections. For example, even though the fiscal year starts on October 
1, the first remittances for the fiscal year are not due until January 
31 of each year. Historically, the bulk of these collections are 
received in February and accounting records report them in March. 
Hence, it is mid-March before any picture of actual collections comes 
into focus. The mid-point of the year is very late in the fiscal year 
to be making program and budget changes.
    Concerning the comment which suggested that the monthly reporting 
requirement and the statement which accompanies remittances are 
duplicative, INS believes that there is a misunderstanding concerning 
the purpose of each document. The monthly report is to serve as a 
predictor of the amount of funds to be received, while the remittance 
statement provides detailed information pertaining to a specific actual 
remittance. Each document has a separate, unique, and identifiable 
purpose.
    However, in response to the public's comments, INS is making the 
following changes. The INS will not require a reporting of the number 
of ticket sales, given issues related to commercial confidentiality. In 
addition, in order to ease the reporting burden, a report of 
remittances will be required only for carriers or ticket-selling agents 
whose fee collections exceed $50,000 a month. Further, in response to 
the issue of duplication of reporting requirements, INS is making an 
additional change. Since the quarterly remittance statement includes 
information for the last month in a given quarter, a separate monthly 
report will not be required for those months. This means that monthly 
reporting will be required for the months of October, November, 
January, February, April, May, July, and September. In order to allow 
more reporting time, the report will be due to INS on the last business 
day of the following month.
    Finally, with regard to the suggestion to ``sunset'' the monthly 
reporting requirement, INS seriously considered this comment. However, 
INS believes this to be an ongoing requirement which is needed to 
adequately manage the account. Should the information become available 
from other sources, or should some other matters arise, INS will 
reevaluate the requirement and modify the regulations as appropriate.

B. Record Retention Period

    Three commenters addressed the proposed 5-year record-retention 
period. Each commenter indicated the extended retention period was 
burdensome and costly, and that it exceeded the requirements of other 
Federal agencies. In view of the comments received, the current 2-year 
retention period will remain in effect.
    One commenter noted that the proposed rule did not specify the type 
of records and documents which must be kept. In response to this 
comment, INS provides the following guidance. Each collector and 
remitter should maintain records necessary for the carrier to 
demonstrate to the INS the accuracy of fees collected and remitted, and 
to otherwise determine compliance with applicable statutes and 
regulations. Modern technology available to achieve this result may be 
utilized.

C. Fourth Quarter Remittance of Fees

    Two commenters addressed the remittance deadline for fourth quarter 
immigration user fees. One commenter objected to the September 20 due 
date for the remittance of fourth quarter fees. A second suggested that 
the final rule clarify that the fourth quarter remittance should 
include collections from the months of July and August for that year.
    The rule establishes the fourth quarter remittance due dates in 
order to make the regulation consistent with a statutory change. The 
1991 Department of Justice Appropriations Act (Public Law 101-515, 
November 5, 1990), as amended by section 309(a)(2)(b) of Miscellaneous 
and Technical Immigration and Naturalization Amendments of 1991 (Pub. 
L. 102-232, December 12, 1991), changed the remittance schedule for the 
fourth quarter.

D. Change in the Immigration User Fee

    One commenter urged that the Immigration User Fee not be raised 
from $5.00 to $6.00 per passenger.
    The change in the User Fee is mandated by statute. The 1994 
Department of Justice Appropriations Act (Pub. L. 103-121, October 27, 
1993) increased the fee to $6.00 per passenger. The regulation is being 
changed to be consistent with the law.

Regulatory Flexibility Act

    The Commissioner of the Immigration and Naturalization Service, in 
accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has 
reviewed this regulation, and by approving it, certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities because of the following factors. Most of the regulation 
updates the CFR to conform with current law. The reporting requirement 
is constructed so that only major entities are required to report. 
Further, the information required under this rule should be readily 
available from business records which must be maintained as a routine 
business practice.

Executive Order 12866

    This rule is not considered by the Department of Justice, 
Immigration and Naturalization Service, to be a ``significant 
regulatory action'' under Executive Order 12866, Sec. 3(f), Regulatory 
Planning and Review, and the Office of Management and Budget has waived 
its review process under section 6(a)(3)(A).

Executive Order 12612

    The regulations adopted herein will not have substantial direct 
effects on the States, the relationship between the National Government 
and the States, or the distribution of power and responsibilities among 
the various levels of government. Therefore, in accordance with 
Executive Order 12612, it is determined that this rule does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment.

Paperwork Reduction Act

    The information collection requirements contained in this rule have 
been cleared by the Office of Management and Budget under the 
provisions of the Paperwork Reduction Act. The OMB Clearance number is 
1115-0142.

List of Subjects in 8 CFR Part 286

    Air carriers, Immigration, Maritime carriers, Reporting and 
recordkeeping requirements.

    Accordingly, part 286 of chapter I of title 8 of the Code of 
Federal Regulations is amended as follows:

PART 286--IMMIGRATION USER FEES

    1. The authority citation for part 286 continues to read as 
follows:

    Authority: 8 U.S.C. 1103, 1356; 8 CFR part 2.

    2. Section 286.2 is revised to read as follows:


Sec. 286.2   Fee for arrival of passengers aboard commercial aircraft 
or commercial vessels.

    (a) Under the provisions of section 286(b) of the Act, a $6.00 fee 
per individual is charged and collected by the Commissioner for the 
immigration inspection of each passenger aboard a commercial aircraft 
or commercial vessel, arriving at a Port-of-Entry in the United States, 
or for the preinspection of a passenger in a place outside the United 
States prior to such arrival, except as provided in Sec. 286.3.
    (b) Each commercial aircraft and vessel carrier or ticket-selling 
agent whose monthly collections in any month exceed $50,000 shall 
submit a summary statement showing the amount of user fees collected 
that month. The summary statement is due on the last business day of 
the following month. This information shall be forwarded to the 
Immigration and Naturalization Service, Chief, Fee Analysis and 
Operations Branch, 425 I Street, NW., Room 6307, Washington, DC 20536. 
For the months of December, March, June, and August, the quarterly 
remittance and statement required by Sec. 286.5 will serve as the 
monthly report for those months. Therefore, a monthly report is 
required for all other months in which monthly collections exceed 
$50,000.

    3. In Sec. 286.3 paragraph (a) is revised to read as follows:


Sec. 286.3   Exceptions.

* * * * *
    (a) Persons, other than aircraft passengers, whose travel 
originated in Canada, Mexico, the adjacent islands, and territories or 
possessions of the United States;
* * * * *
    4. In Sec. 286.5 paragraphs (b), (c) and (d) are revised to read as 
follows:


Sec. 286.5   Remittance and statement procedures.

* * * * *
    (b)(1) Fee remittances shall be sent to the Immigration and 
Naturalization Service, at a designated Treasury depository, for 
receipt no later than 31 days after the close of the calendar quarter 
in which the fees are collected, except the fourth quarter payment for 
fees collected shall be made on the date that is 10 days before the end 
of the U.S. Government's fiscal year, and the first quarter payment 
shall include any collections made in the preceding quarter that were 
not remitted with the previous payment. The fourth quarter payment 
shall include collections for the months of July and August. The fiscal 
year referenced is the U.S. Government's fiscal year which begins on 
October 1 and ends on September 30.
    (2) Late payments will be subject to interest, penalty, and 
handling charges as provided in the Debt Collection Act of 1982 (31 
U.S.C. 3717). Refunds by a remitter of fees collected in conjunction 
with unused tickets or documents for transportation shall be netted 
against the next subsequent remittance.
    (c) Along with the remittance, as set forth in paragraph (b) of 
this section, each remitter making such remittance shall attach a 
statement which sets forth the following:
    (1) Name and address;
    (2) Taxpayer identification number;
    (3) Calendar quarter covered by the payment;
    (4) Interest and penalty charges; and
    (5) Total amount collected and remitted.
    (d) Remittances shall be made in U.S. dollars by check or money 
order through a U.S. bank, to Associate Commissioner, Finance, INS.
* * * * *


Secs. 286.1(e), 286.4(c), 286.5(e), and 286.6   [Amended]

    5. Secs. 286.1(e), 286.4(c), 286.5(e), and 286.6, are amended by 
removing the word ``Comptroller'' and adding in its place ``Associate 
Commissioner, Finance'' wherever it appears.


Sec. 286.5(e)   [Amended]

    6. In Sec. 286.5(e), the first sentence, is amended by removing the 
word ``Auditing'' in the title ``Statement on Auditing Standards for 
Attestation Engagement.''


Sec. 286.5(g)   [Amended]

    7. In Sec. 286.5(g), the first sentence, is amended by removing the 
citation ``Sec. 28.4'' and adding ``Sec. 287.4.''

    Dated: September 22, 1994.
Doris Meissner,
Commissioner, Immigration and Naturalization Service.
[FR Doc. 94-23954 Filed 9-27-94; 8:45 am]
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