[Federal Register Volume 67, Number 196 (Wednesday, October 9, 2002)]
[Rules and Regulations]
[Pages 62884-62886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25692]


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DEPARTMENT OF STATE

22 CFR Part 22

[Public Notice 4160]


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

AGENCY: Department of State.

ACTION: Interim final rule; request for comments.

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SUMMARY: This rule amends the Schedule of Fees for Consular Services. 
Specifically, it raises from $65 to $100 the fee charged for the 
processing of an application for a nonimmigrant visa (MRV) or a 
combined nonimmigrant visa and border crossing card (BCC). The 
Department of State is raising the fee as an emergency measure to 
ensure that sufficient resources are available to meet the costs of 
processing nonimmigrant visas, the demand for which has dropped at the 
same time that the processing of nonimmigrant visa applications has 
become more labor intensive because of the increased security screening 
of visa applicants in the aftermath of the September 11, 2001 attacks 
on New York and Washington and in Pennsylvania. This rule further 
corrects the item listed as the ``border crossing card'' for minors 
under age 15 by deleting reference to a 5-year period of validity.

DATES: Effective date: This interim rule is effective on November 1, 
2002.
    Comment period: The Department of State will accept written 
comments from interested persons up to November 8, 2002.

ADDRESSES: Written comments may be submitted to the Office of the 
Executive Director, Bureau of Consular Affairs, U.S. Department of 
State, Suite H1004, 2401 E Street NW., Washington, DC 20520, or by e-
mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Susan Abeyta, Office of the Executive 
Director, Bureau of Consular Affairs, Department of State; phone: 202-
663-2505, telefax: 202-663-2499; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

What Is the Authority for This Action?

    The majority of the Department of State's consular fees are 
established pursuant to the general user charges statute, 31 U.S.C. 
9701 (which directs that certain government services be self-sustaining 
to the extent possible), and/or U.S.C. 4219, which as implemented 
through Executive Order 10718 of June

[[Page 62885]]

27, 1957, authorizes the Secretary of State to establish fees to be 
charged for official services provided by U.S. embassies and 
consulates. In addition, a number of statutes address specific fees. A 
cost-based, nonimmigrant visa processing fee for the machine readable 
visa (MRV) and for a combined border crossing and nonimmigrant visa 
card (BCC) (22 CFR 41.32) is authorized by section 140(a) of the 
Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, Public 
Law 103-236 (April 30, 1994), as amended. In addition, aliens under 15 
are in certain circumstances entitled to a combined MRV/BCC for a 
statutorily established fee of $13, which is below the full cost of 
service, pursuant to section 410 of title III of the Commerce, Justice, 
State Appropriations Act enacted as part of the Omnibus FY 1999 
Appropriations Act, Public Law 105-277 (Oct. 21, 1998). Various 
statutes permit the Department to retain some of the consular fees it 
collects, including the MRV and MRV/BCC fees. Section 103 of the 
Enhanced Border Security and Visa Entry Reform Act of 2002, Public Law 
107-173 (May 14, 2002), amended section 140(a) of Public Law 103-235 
(which authorizes the MRV fee) to permit the Department to retain all 
MRV fees until they are expended.
    Consistent with OMB Circular A-25 guidelines, the Department 
conducted a cost-of-service study from September 1999 to October 2001 
to update the Schedule of Fees for Consular Services. The results of 
that study were the foundation of the current Schedule, which was 
published as a final rule on May 16, 2002, at Volume 67, No. 95 FR 
34831. The Schedule went into effect on June 1, 2002.

Why Is the Department Raising the MRV and BCC Application Processing 
Fee to $100 at This Time?

    The $65 MRV/BCC fee that went into effect on June 1, 2002 was based 
on worldwide nonimmigrant visa operations' total costs distributed over 
an anticipated applicant level of approximately 10.5 million per year. 
It is now clear, however, that the estimate of the number of 
nonimmigrant visa applicants was too high. Visa demand worldwide has 
dropped by approximately 19.6% overall for the current fiscal year, 
which has been affected by international economic conditions and the 
events of September 11, 2001. The trend is continuing downward: 
nonimmigrant visa demand was down 26% during the normally peak season 
of June 1 to August 31. In August 2002, visa demand was down 32.9%. 
There has been no corresponding decline in the Department's costs of 
administering nonimmigrant visa services; such costs have remained the 
same in part because the processing of each application has become more 
time consuming and labor intensive as a result of enhanced security 
screening requirements for applicants instituted since September 11, 
2001. Thus, the Department is facing a critical revenue shortfall 
because its nonimmigrant visa application processing costs can no 
longer be recovered by MRV revenues generated by the MRV fee when set 
at $65. Taking the 2001 Cost of Service Study's figures as a baseline, 
but now distributing the costs of nonimmigrant visa application 
processing services over a smaller number of applicants, based on the 
smaller number of applicants that the Department has seen in the 
current fiscal year, the Department has determined that an MRV fee of 
$100 will be required to recover the full cost of processing 
nonimmigrant visa applications during the anticipated period of the 
current Schedule of Fees. Given the uncertainty with respect to when 
the applicant volume will recover, it is reasonable and appropriate to 
raise the fee now. Failing to do so could jeopardize the Department's 
ability to continue critical programs, including enhanced border 
security measures recently undertaken.

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as an interim rule, with a 
provision for post-promulgation comments, based on the ``good cause'' 
exceptions set forth at 5 U.S.C. 553(b)(3)(B) and 553(d)(3). The rule 
will not take effect, however, until November 1, 2002. Publishing the 
rule in this way, with a post-promulgation opportunity for comment, 
will allow the Department to make the rule effective at the earliest 
reasonable opportunity. Allowing a full 30-day comment period followed 
by a publication of the final rule with a further 30 days before its 
effective date is not practicable or in the public interest. That 
process would delay imposition of the new fee notwithstanding the 
critical need for the Department to recover its costs and to have 
sufficient resources to conduct activities that are dependent on MRV 
fee revenues, including the enhanced security screening of visa 
applicants and other measures being taken in the aftermath of the 
September 11, 2001 terrorist attacks on the United States. By setting 
the new fee through an interim final rule, the Department will have 
sufficient time to make necessary provisions to implement the new fee 
as early in Fiscal Year 2003 as is feasible. Comments received before 
the end of the comment period will be addressed in a subsequent final 
rule.

Regulatory Flexibility Act

    The Department of State, in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by 
approving it, certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

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 $1 
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.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 804 of the 
Small Business Regulatory Enforcement Act of 1996. This rule will not 
result in an annual effect on the economy of $100 million or more; a 
major increase in costs or prices; or significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based companies to compete with foreign 
based companies in domestic and import markets.

Executive Order 12866

    The Department of State does not consider this rule to be a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review. In addition, the Department is 
exempt from Executive Order 12866 except to the extent that it is 
promulgating regulations in conjunction with a domestic agency that are 
significant regulatory actions. The Department has nevertheless 
reviewed the regulation to ensure its consistency with the regulatory 
philosophy and principles set forth in that Executive Order.

Executive Order 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

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levels of government. Therefore, in accordance with section 6 of 
Executive Order 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.

Paperwork Reduction Act

    This rule does not impose any new reporting or record-keeping 
requirements. It will affect OMB collection number 1405--by increasing 
the public cost burden.

List of Subjects in 22 CFR Part 22

    Consular services, Fees, Passports and visas.

    Accordingly, 22 CFR part 22 is amended as follows:

PART 22--[AMENDED]

    1. The authority citation for part 22 continues to read as follows:

    Authority: 8 U.S.C. 1153 note, 1351, 1351 note; 10 U.S.C. 2602 
(c); 22 U.S.C. 214, 2504(a), 4201, 4206, 4215, 4219; 31 U.S.C. 9701; 
Pub. L. 105-277, 112 Stat. 2681 et seq.; 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. Section 22.1 is amended by revising item No. 21(a), (b), and 
(c), to read as follows:


Sec.  22.1  Schedule of fees.

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                          Item No.                               Fee
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21. Nonimmigrant visa application and border crossing card
 processing fees (per person):
    (a) Nonimmigrant visa [21-MRV Processing]..............         $100
    (b) Border crossing card--10 year (age 15 and over) [22-         100
     BCC 10 Year]..........................................
    (c) Border crossing card--(under age 15). For Mexican             13
     citizen if parent has or is applying for a border
     crossing card (23-BCC Child)..........................
 
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    Dated: September 27, 2002.
Grant S. Green, Jr.,
Under Secretary of State for Management, Department of State.
[FR Doc. 02-25692 Filed 10-4-02; 2:59 pm]
BILLING CODE 4710-06-P