[Federal Register Volume 78, Number 59 (Wednesday, March 27, 2013)]
[Rules and Regulations]
[Pages 18457-18473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06974]



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 Rules and Regulations
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  Federal Register / Vol. 78, No. 59 / Wednesday, March 27, 2013 / 
Rules and Regulations  

[[Page 18457]]



DEPARTMENT OF HOMELAND SECURITY

8 CFR Parts 1, 210, 212, 214, 215, 231, 235, 245, 245a, 247, 253, 
264, 274a, and 286

[USCBP-2013-0011; CBP Dec. No. 13-06]
RIN 1651-AA96


Definition of Form I-94 To Include Electronic Format

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: Interim final rule.

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SUMMARY: The Form I-94 is issued by the Department of Homeland Security 
(DHS) to certain aliens and is used for various purposes such as 
documenting status in the United States, the approved length of stay, 
and departure. DHS generally issues the Form I-94 to aliens at the time 
they lawfully enter the United States. This rule adds a new definition 
of the term ``Form I-94'' that includes the collection of arrival/
departure and admission or parole information by DHS, whether in paper 
or electronic format. The definition also clarifies various terms that 
are associated with the use of the Form I-94 to accommodate an 
electronic version of the Form I-94. This rule also adds a valid, 
unexpired nonimmigrant DHS admission or parole stamp in a foreign 
passport to the list of documents designated as evidence of alien 
registration. These revisions to the regulations will enable DHS to 
transition to an automated process whereby DHS will create a Form I-94 
in an electronic format based on passenger, passport and visa 
information DHS currently obtains electronically from air and sea 
carriers and the Department of State as well as through the inspection 
process.

DATES: Effective date: This interim rule is effective April 26, 2013. 
In the event that CBP receives public comment that identifies a 
credible basis for the Agency to conclude that automation of the form 
I-94 should be delayed, CBP retains discretion to extend implementation 
for an additional thirty days. If CBP concludes that such extension is 
appropriate, the Agency will post the new implementation date on its 
Web site, www.cbp.gov, no later than April 29, 2013.
    Comment date: Written comments must be submitted on or before April 
26, 2013.

ADDRESSES: You may submit comments identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number.
     Mail: Regulations and Rulings, Office of International 
Trade, U.S. Customs and Border Protection, Attention: Border Security 
Regulations Branch, 90 K Street NE., 10th Floor, Washington, DC 20229.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on this rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read comments received, go to 
http://www.regulations.gov. Submitted comments may also be inspected on 
regular business days between the hours of 9 a.m. and 4:30 p.m. at 
Regulations and Rulings, Office of International Trade, U.S. Customs 
and Border Protection, 90 K Street NE., 10th Floor, Washington, DC. 
Arrangements to inspect submitted comments should be made in advance by 
calling Mr. Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Suzanne Shepherd, CBP Office of Field 
Operations by telephone (202) 344-2073 or by email, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of this 
interim final rule. U.S. Customs and Border Protection (CBP) also 
invites comments that relate to the economic, environmental, or 
federalism effects that might result from this regulatory change. 
Comments that will provide the most assistance to CBP will reference a 
specific portion of the rule, explain the reason for any recommended 
change, and include data, information or authority that support such 
recommended change. Written comments must be submitted on or before 
April 26, 2013. CBP will consider those comments and make any changes 
appropriate after consideration of those comments. CBP expects to 
publish a final rule, which will respond to comments received, 18 
months from the close of the comment period.

Executive Summary

    The Form I-94 is issued by DHS to certain aliens upon arrival in 
the United States or when changing status in the United States. The 
Form I-94 is used to document arrival and departure and provides 
evidence of the terms of admission or parole. U.S. Customs and Border 
Protection (CBP), a component of DHS, generally issues the Form I-94 to 
aliens at the time they lawfully enter the United States. Aliens use 
the Form I-94 for various purposes such as completing employment 
eligibility verification (the Form I-9), applying for immigration 
benefits, or to present to a university to verify eligibility for 
enrollment. Information gathered on the Form I-94 is also used for 
statistical purposes.

Transition to an Automated Form I-94

    The Form I-94 is currently a paper form. For aliens arriving by air 
or sea, the carrier distributes the Forms I-94 to the aliens required 
to complete the form while en route to the United States. The alien 
presents the completed form to the CBP Officer at primary inspection. 
The officer stamps the Form I-94 and the alien's passport, detaches the 
bottom portion of the form, which is the departure portion, and returns 
it to the alien along with the alien's passport. The admission stamp 
contains the port of arrival and date of arrival and is annotated with 
the class of admission

[[Page 18458]]

and admitted-to date. The top portion of the form--the arrival 
portion--is sent to a data entry facility where the information on the 
form is entered into CBP's computer systems. The departure portion of 
the Form I-94 retained by the alien may be shown to government or other 
stakeholders when required. The alien turns in the departure portion of 
the Form I-94 upon departure, generally to the carrier; the carrier 
returns the forms to CBP.
    With the implementation of the Advance Passenger Information System 
(APIS \1\) following 9/11, CBP now collects information on aliens 
traveling by air or sea to the United States electronically from 
carriers in advance of arrival. As outlined in Table 1 below, nearly 
all the information collected on the Form I-94 is collected 
electronically via APIS. CBP also now uses the Arrival and Departure 
Information System (ADIS), which draws information from APIS, to 
electronically document an alien's arrival and departure. Thus, for 
aliens arriving in the United States by air or sea, CBP obtains almost 
all of the information contained on the paper Form I-94 electronically 
and in advance. The few fields on the Form I-94 that are not collected 
via APIS are either already collected by the Department of State and 
transmitted to CBP or will be collected by the CBP Officer from the 
individual at the time of inspection. Thus, the same data elements 
found on the paper Form I-94 will be collected and maintained in the 
electronic Form I-94. This means that CBP no longer needs to collect 
Form I-94 information as a matter of course directly from aliens 
traveling to the United States by air or sea.
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    \1\ For more information, please see: http://www.cbp.gov/xp/cgov/travel/inspections_carriers_facilities/apis/.
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    Therefore, CBP is transitioning to an automated process whereby CBP 
will create an electronic Form I-94 based on the information in its 
databases. This rule makes the necessary changes to the regulations to 
enable CBP to transition to an automated process. At this time, the 
automated process will apply only to aliens arriving at air and sea 
ports of entry.\2\ In order to make this a seamless transition, CBP is 
making the electronic Form I-94 available to aliens through a Web 
site.\3\ To access the Form I-94 through the Web site the traveler will 
need to input information from his/her passport; thus, a third party 
without access to the traveler's passport will not be able to access 
the Form I-94 from the Web site. If needed, aliens may print out a copy 
of the Form I-94 from the Web site and present it to third parties in 
lieu of the departure portion of the paper form. CBP intends to 
continue to provide a paper Form I-94 to certain classes of aliens, 
such as certain refugees, asylees, and parolees, and others as 
requested or whenever CBP determines the issuance of a paper form is 
appropriate.
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    \2\ Because CBP does not currently collect advance travel 
information from aliens arriving by land, this automation will not 
apply to land ports of entry at this time.
    \3\ DHS intends to publish a privacy impact assessment and make 
it available at http://www.dhs.gov/privacy-documents-us-customs-and-border-protection. For more information on the privacy implications 
please see the Privacy section of this document.
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    Though in some cases CBP collects APIS information for travelers 
arriving in the United States via methods of transportation other than 
commercial air and sea, CBP does not consistently receive APIS 
information for these other methods or in some instances is unable to 
consistently access the information at the time the traveler presents 
him or herself for inspection. Thus, at this time, CBP will still need 
to collect Form I-94 information directly from travelers arriving by 
other methods of transportation. CBP anticipates expanding the 
automation of the Form I-94 to other methods of transportation in the 
future.
    Because the regulations that address the Form I-94 and its uses 
were written at a time when a paper form was the only option to collect 
arrival and departure information, many of these regulations 
contemplate only the use of the paper form. In order to enable CBP to 
transition from a paper Form I-94 to a CBP-created electronic Form I-
94, CBP is adding a definition of ``Form I-94'' in 8 CFR part 1 that 
allows for the collection of Form I-94 information in either paper or 
electronic format. The definition also clarifies various terms in 8 CFR 
that are associated with the use of the Form I-94 to include the 
electronic version of the Form I-94.
    The automation provides immediate and substantial benefits to the 
traveling public, to carriers, to CBP and other stakeholders. This 
automation will eliminate most of the duplicative paper Form I-94 
process and reduce wait times at passenger processing, which will 
facilitate entry of all travelers. The automation will eliminate the 
paper Form I-94 for most air and sea travelers and, with it, the 8-
minute time burden; this would result in an estimated total reduction 
of 9.6 million Forms I-94 completed by paper, and an estimated 
reduction of 1,276,800 paperwork burden hours. For more information on 
the reduction in the paperwork burden, see the Paperwork Reduction Act 
section below. The automation will also save the time and expense 
associated with lost Forms I-94, as travelers will simply be able to 
print out a new copy from the Web site if needed rather than file an I-
102, as currently required, which has a fee of $330 and a time burden 
of 25 minutes. CBP estimates that the time to access the Web site and 
print the electronic Form I-94 to be 4 minutes.
    Additionally, carriers will no longer have to print, store, and 
distribute the forms, and CBP will not have to process them. This will 
result in significant cost savings (benefits) for foreign travelers, 
carriers, and CBP. Guidance from the Office of Management and Budget 
(OMB) states regulatory analyses should focus on benefits and costs 
that accrue to citizens and residents of the United States.\4\ In order 
to make this distinction clear, CBP provides costs and benefits of this 
rule to foreign travelers as well as to U.S. entities. CBP anticipates 
the total net benefits to both domestic and foreign entities in 2013 
range from $76.5 million to $115.5 million. Separately, CBP anticipates 
a net benefit in 2013 of between $59.7 million and $98.7 million for 
foreign travelers, $1.3 million for carriers, and $15.5 million for 
CBP. Net benefits to U.S. entities (carriers and CBP) in 2013 total 
$16.8 million. CBP seeks comment on the potential benefits or costs of 
this rule for foreign travelers.
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    \4\ See OMB Circular A-4, page 15 (http://www.whitehouse.gov/sites/default/files/omb/assets/regulatory_matters_pdf/a-4.pdf).
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Background

The Form I-94

    The DHS Form I-94 is generally issued to aliens at the time they 
lawfully enter the United States other than aliens traveling to the 
United States under the Visa Waiver Program,\5\ or aliens who are 
otherwise exempt. See 8 CFR 235.1(h). The Form I-94 is also issued when 
an alien changes immigration status within the United States. The Form 
I-94 is used to document status in the United States, the authorized 
length of stay, and departure. Biographical information, visa and 
passport information, and the address and phone number where the alien 
can be reached while in the United States are also collected on the 
Form I-94. When an alien is admitted to the United States, the Form I-
94 becomes the evidence of the terms of the admission. For aliens 
paroled into the

[[Page 18459]]

United States, the Form I-94 reflects the duration and classification 
of parole.
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    \5\ The Form I-94 is not required for aliens seeking admission 
into the United States under the Visa Waiver Program (VWP). The Form 
I-94W is the form required for aliens seeking admission into the 
United States under the VWP. In 2009, the ESTA program automated the 
Form I-94W in the air and sea environments.
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    The Form I-94 has been used for approximately 50 years by DHS, its 
predecessor agencies, and external stakeholders for a variety of 
purposes. CBP and U.S. Immigration and Customs Enforcement (ICE), 
components of DHS, use the form to document arrival and departure, as 
well as class of admission or duration of parole. U.S. Citizenship and 
Immigration Services (USCIS), also a component of DHS, issues Forms I-
94 to aliens extending their authorized length of stay or changing 
their immigration status while in the United States. USCIS also uses 
Form I-94 information to verify lawful admission or parole when 
adjudicating immigration benefit requests, confirming employment 
authorization for employers participating in USCIS's E-Verify program, 
or verifying immigration status for benefit granting state and federal 
government agencies participating in USCIS's Systematic Alien 
Verification for Entitlements (SAVE) program. The Form I-94 is also 
used by the Social Security Administration (SSA), state agencies, such 
as Departments of Motor Vehicles (DMV), and public assistance agencies 
and organizations, to verify eligibility for benefits. The form is used 
by certain aliens for evidence of lawful admission or parole, as well 
as, where applicable, employment eligibility and eligibility for public 
benefits. Information collected by the Form I-94 is also provided to 
the Department of Commerce (DOC) for statistical purposes, including 
use by the DOC Office of Travel and Tourism Industries to collect 
monthly visitation data and for reporting of travel by country of 
residence to comply with the United Nations World Tourism Organization 
recommendation for reporting arrivals to all countries.

Current Paper Form I-94 Process at Airports and Seaports

    The paper Form I-94 consists of two parts, the arrival portion and 
the departure portion. Air and sea carriers print and store the Form I-
94 and provide each alien passenger with a blank paper Form I-94.\6\ 
Each alien arriving by air or sea for whom a Form I-94 is required 
completes both the arrival and departure portions of the form either en 
route or upon arrival in the United States. Each carrier is responsible 
for presenting a completed Form I-94 for each arriving alien to a CBP 
Officer. See 8 CFR 231.1. In practice, the carrier accomplishes this by 
ensuring that each passenger presents him/herself to a CBP Officer for 
inspection at a U.S. port-of-entry, generally with the aid of security 
protocols. The Form I-94 is then presented to the CBP Officer at 
primary inspection, along with the alien's passport and any other 
applicable documents and information. After the successful completion 
of the inspection process, a CBP Officer stamps the alien's Form I-94 
and passport. The DHS admission stamp contains the port of arrival and 
date of arrival, and is annotated with the class of admission and the 
authorized length of stay. The parole stamp contains the port of 
arrival and date of arrival, and is annotated with the duration of 
parole and parole classification. The CBP Officer retains the arrival 
portion of the Form I-94 and returns the departure portion and the 
passport to the alien. The departure portion of the form is provided to 
the alien to retain in his or her possession for the duration of his or 
her stay and to surrender upon departure. In some circumstances, an 
alien is required to have the Form I-94 in his or her possession at all 
times while in the United States. Air and sea carriers are responsible 
for presenting a completed Form I-94 for each departing alien passenger 
to a CBP Officer. See 8 CFR 231.2(b). If the alien is departing by 
commercial air or sea carrier, he or she turns in the departure portion 
to the airline or shipping line prior to departure. The carrier then 
returns the form to CBP.
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    \6\ CBP also prints Form I-94s, which are available at ports of 
entry for travelers who may need an additional blank form.
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    The information requested on the upper portion of the I-94, the 
arrival portion, includes:
     Family name
     First (Given) Name
     Birth Date
     Country of Citizenship
     Sex (Male or Female)
     Passport Issuance Date \7\
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    \7\ Passport issuance date, passport expiration date, telephone 
number, and email address are newer fields not found on all forms 
currently in circulation.
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     Passport Expiration Date
     Passport Number
     Airline and Flight number (if applicable)
     Country Where You Live
     Country Where You Boarded
     City Where Visa Was issued
     Date Issued
     Address While in the United States (number, street, city, 
and state)
     Telephone Number in the United States Where You Can be 
Reached
     Email Address
    The following information currently is requested on the lower 
portion of the Form I-94, the departure portion:
     Family Name
     First (Given) Name
     Birth Date
     Country of Citizenship
    Once an alien is admitted to the United States, the Form I-94 is 
evidence of the terms of the admission. For aliens paroled into the 
United States, the Form I-94 includes the terms of parole. CBP collects 
the arrival portions of the Forms I-94 daily at each port of entry and 
boxes and mails them to a centralized data processing center for 
logging/processing/scanning, and data capture. The data is then 
uploaded to a CBP database. DHS components have access to the database 
that contains the Form I-94 information, and can use this database to 
verify an alien's admission or parole information and immigration 
status. Entities outside DHS, such as SSA or state DMVs, can verify 
information by querying a DHS system or contacting DHS.

Automation of the Form I-94 at Airports and Seaports

    The Form I-94 was established prior to advances in technology and 
the implementation of security measures that enable CBP to collect 
advance arrival and departure information about passengers 
electronically. For aliens arriving in or departing from the United 
States by air or sea, the data elements collected on the paper Form I-
94 duplicate the information that CBP collects through other 
mechanisms. As explained in this section (including Table 1), CBP 
collects this information from APIS, visa information and information 
provided to CBP at the time of inspection.
    As a result of enhanced security measures implemented by CBP 
subsequent to the September 11, 2001 terrorist attacks, CBP regulations 
require commercial vessel carriers and commercial and private air 
carriers to electronically transmit advance manifest information 
regarding their passengers, crew members, and non-crew members (cargo 
flights only) arriving in and departing from the United States. 
Passengers, crew members, and non-crew members are required to submit 
certain biographical information to the carriers, which the carriers 
then collect and submit to CBP prior to the alien's arrival in or 
departure from the United States. The information is transmitted to CBP 
through APIS (including eAPIS,\8\ as

[[Page 18460]]

applicable). See 19 CFR 4.7b, 4.64, 122.22, 122.49a-122.49c, 122.75a, 
and 122.75b.
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    \8\ eAPIS is a CBP web-based application that provides for the 
collection of electronic traveler manifest information for 
international travel both in to and out of the United States. eAPIS 
collects and passes electronic manifests to APIS.
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    The information transmitted to CBP by carriers using APIS consists 
of information that appears on the biographical data page of travel 
documents, such as passports issued by governments worldwide, as well 
as carrier information. For passengers, APIS data consists of certain 
biographical information and conveyance details collected via the 
passenger reservation and check-in processes. The information submitted 
for each individual onboard the aircraft or vessel includes:
     Full name (last, first, and, if available, middle)
     Date of birth
     Gender (F = female; M = male)
     Citizenship
     Country of residence
     Status on board the aircraft/vessel
     Travel document type (e.g., P = passport, A = alien 
registration)
     Passport number, if a passport is required, or DHS-
Approved travel document number, as applicable
     Passport country of issuance, if a passport is required, 
or DHS-Approved travel document country of issuance, as applicable
     Passport expiration date, if a passport is required, or 
DHS-Approved travel document expiration date, as applicable
     Alien registration number, where applicable
     Address while in the United States
    In addition to the manifest information for each individual, the 
air or sea carrier also must provide information about the flight or 
voyage. The flight or voyage information the air or sea carrier must 
provide that is relevant to the Form I-94 is the airline and flight 
number and the place of departure.
    Visa information is made available to CBP by the Department of 
State via the Consular Consolidated Database (CCD). At the time of 
inspection and admission or parole, the CBP Officer is able to collect 
additional data, such as email address, phone number, and updated 
address while in the United States. Table 1 below lists the source of 
each data element for the electronic Form I-94.

           Table 1-- Sources of Data for Electronic Form I-94
------------------------------------------------------------------------
                                              Source for electronic Form
                Data element                             I-94
------------------------------------------------------------------------
Arrival Portion:
    Family name............................  APIS
    First (given) name.....................  APIS
    Birth date.............................  APIS
    Country of citizenship.................  APIS
    Sex (male or female)...................  APIS
    Passport issuance date.................  APIS
    Passport expiration date...............  APIS
    Passport number........................  APIS
    Airline and Flight number (if            APIS
     applicable).
    Country where you live.................  APIS
    Country where you boarded..............  APIS
    City where visa was issued.............  State Department via CCD.
    Date visa was issued...................  State Department via CCD.
    Address while in the United States.....  APIS, and may be updated at
                                              time of inspection.
    Telephone number while in the United     Officer at time of
     States.                                  inspection.
    Email address..........................  Officer at time of
                                              inspection.
Departure Portion:
    Family name............................  APIS
    First (given) name.....................  APIS
    Birth date.............................  APIS
    Country of citizenship.................  APIS
------------------------------------------------------------------------

    Thus, for aliens arriving in the United States by air or sea, CBP 
obtains almost all of the information contained on the paper Form I-94 
electronically from the carriers and the Department of State and is 
able to collect any additional fields from the individual at the time 
of inspection. This means that CBP no longer needs to collect Form I-94 
information from these travelers as a matter of course. Therefore, CBP 
is transitioning to an automated process whereby CBP will create an 
electronic Form I-94 based on the information in its databases, which 
CBP will make available to the alien through the Web site: www.cbp.gov/I94. At this time, the automated process will apply only to aliens 
arriving at air and sea ports of entry. This is because the electronic 
record draws largely from APIS information submitted by air and sea 
carriers. CBP will continue to provide a paper Form I-94 to those who 
request such form, as well as to certain classes of aliens, such as 
certain refugees, asylees, and parolees, and whenever CBP determines 
the issuance of a paper form is appropriate. For these individuals 
arriving by air and sea carriers, an electronic Form I-94 will also be 
created.
    The electronic Form I-94 will be created during the inspection 
process at the time of admission or parole when the CBP Officer pulls 
information from the traveler's APIS record and any CCD record, and 
enters any additional data obtained during the inspection process. The 
same data elements found on the paper Form I-94 will be collected and 
maintained in the electronic Form I-94. Any information the officer 
would have written or stamped on the paper form at the time of 
admission or parole can be entered into the electronic form. The 
departure record is created from APIS using the Arrival and Departure 
Information System (ADIS) to match the departure to the correct arrival 
record.
    Alien travelers will be able to access and print their electronic 
Form I-94 via the Web site CBP has established for this purpose: 
www.cbp.gov/I94. Travelers to whom an electronic Form I-94 has been 
issued will be able to log on to the Web site using identifying 
information and print a copy of the electronic Form I-94. In order to 
access the Form I-94 from the Web site, the traveler will be required 
to enter information from his or her passport; thus, a third party 
without access to the traveler's passport will not be able to access 
the Form I-94 from the Web site. The printout from the Web site will be 
the functional equivalent of the departure portion of the paper form 
and will contain the same information as the departure portion of the 
paper form. CBP will continue to stamp the traveler's passport at the 
time of inspection and any admission or parole and will annotate the 
stamp with the class of admission or parole and duration of admission 
or parole. CBP will distribute a tear sheet to each alien who is issued 
an electronic Form I-94 at the time of inspection with information 
about the Web site and procedures for obtaining a printout to the alien 
upon arrival in the United States.
    Aliens who may be required to present the Form I-94 to a third 
party for some purpose, such as employment or benefit eligibility, may 
present the printout from the Web site. For example, nonimmigrants who 
are employment authorized incident to status (see, e.g., nonimmigrants 
listed at 8 CFR 274a.12(b)) may print a copy of their electronic Form 
I-94 for evidence of employment authorization. The printout is the 
equivalent of the paper Form I-94 acceptable to present to

[[Page 18461]]

employers to comply with the Employment Eligibility Verification form 
(Form I-9) requirements. As discussed in detail in the 12866 section 
below, because so many parties at various levels of government and 
outside of the government use the Form I-94, we cannot estimate the 
number of aliens who use the Form I-94 for these purposes. For the 
12866 analysis, we assume that all non-B-1/B-2 travelers (about 26 
percent of the total) will need to use the Form I-94 for some purpose. 
See INA section 274A(a)(1)(B), 8 U.S.C. 1324a(a)(1)(B); 8 CFR 
274a.2(b)(1)(v)(A)(5) and (b)(1)(v)(C)(8).
    As described more fully in the section entitled ``Executive Order 
12866 (Regulatory Planning and Review) and Executive Order 13563 
(Improving Regulation and Regulatory Review),'' the elimination of the 
paper Form I-94 in the air and sea environments has many benefits. 
Carriers will no longer have to print, store, and distribute the paper 
form to its alien passengers or collect the form when the alien 
departs. These aliens will not have to complete the form when arriving 
in the United States or turn in the form when they depart the United 
States. Additionally, an alien will have the convenience of being able 
to access his or her form electronically, and will be able to print a 
new copy if one is lost, or to print multiple copies if needed. CBP 
will not have to collect the forms, stamp them, return the departure 
portion to the alien and manually enter the Form I-94 information into 
its database. This streamlines CBP's inspection process. The effect 
will be the elimination of most of the duplicative paper Form I-94 
process and the reduction of wait times at passenger processing, which 
will facilitate entry of all travelers.
    Because the Form I-94 is used for various purposes, CBP has been 
working closely with other DHS components and other government 
stakeholders to ensure that the transition to the automated Form I-94 
is as smooth as possible and done in a manner that addresses the needs 
of these stakeholders. For the past year, CBP has been meeting 
regularly with stakeholders, including U.S. Government agencies, DMVs, 
and universities, on all aspects of automating the Form I-94 to ensure 
that stakeholders are prepared for the additional acceptance of the 
electronic Form I-94. For stakeholders that rely on the Form I-94 for 
immigration status verification or other purposes, a benefit of 
automation is that the electronic version of the Form I-94 is 
immediately available to them through their connections to CBP's 
database. By contrast, with the paper form, there is typically a lag 
time of approximately five business days or longer between arrival, 
data entry, and the availability of the records on the CBP database. 
CBP anticipates that most stakeholders will not require a change to 
their operations as a result of this automation. Government 
stakeholders will continue to access an alien's Form I-94 information 
in the same way that they currently do: Through their connection to 
CBP's database. For stakeholders who now access the Form I-94 
information when the alien presents his or her form, the process will 
also not meaningfully change; the alien will now simply present a 
printout from the Web site rather than the departure portion of a paper 
Form I-94. CBP seeks comments from these stakeholders on the above 
assumptions.

Regulatory Change: New Form I-94 Definition

    Many provisions in 8 CFR refer to the Form I-94 and its use. 
However, because these regulations were written at a time when a paper 
form was the only option to collect arrival and departure information, 
many of these regulations contemplate only the use of the paper form. 
In order to enable CBP to transition from a paper Form I-94 to a CBP-
created electronic Form I-94, CBP is adding a definition of ``Form I-
94'' in 8 CFR part 1 that allows for the collection of Form I-94 
information in either paper or electronic format. It provides that 
``[t]he term Form I-94'' ``includes the collection of arrival/departure 
and admission or parole information by DHS, whether in paper or 
electronic format, which is made available to the person about whom the 
information has been collected, as may be prescribed by DHS.'' 8 CFR 
1.4.
    As discussed earlier, CBP, USCIS, ICE, and other government 
agencies use the Form I-94 in a variety of ways, many of which are 
specified in 8 CFR. For example, the form is included in the list of 
acceptable documentation that may be presented to employers to 
demonstrate employment authorization during the employment eligibility 
verification process (Form I-9). The Form I-94 is also necessary for 
completing USCIS forms requesting immigration benefits, such as the 
Application to Register Permanent Residence or Adjust Status (Form I-
485), or when seeking the admission of an alien for the duration of an 
unexpired period of a previous admission.\9\ Therefore, the definition 
of ``Form I-94'' also clarifies the various terms in 8 CFR that are 
associated with the use of the Form I-94 to include the electronic 
version of the Form I-94. For example, the definition specifies that 
``presentation'' of the Form I-94 includes providing a printout of the 
electronic record. ``Issuance'' of the Form I-94 includes the creation 
of the electronic Form I-94 for a traveler. To comply with regulations 
requiring the alien to turn in the departure portion of the Form I-94 
at the time of departure, the definition provides that in the case of 
an alien with an electronic Form I-94, he or she must comply with any 
DHS departure controls. The carrier providing departure conveyance must 
submit departure information to CBP for each departing alien.
---------------------------------------------------------------------------

    \9\ Seeking admission for the duration of an unexpired period of 
a previous admission is referred to as automatic revalidation. 
Pursuant to 8 CFR 214.1 and 22 CFR 41.112, automatic revalidation 
applies to unexpired nonimmigrant visas of aliens who have been out 
of the United States for thirty days or less in a contiguous 
territory.
---------------------------------------------------------------------------

    As described in the section entitled ``Current paper Form I-94 
process at airports and seaports,'' sections 231.1 and 231.2 of the DHS 
regulations require air and sea carriers to submit a completed Form I-
94 for each arriving alien and to submit the departure portion of this 
Form I-94 for each departing alien. Because these sections concern the 
carriers rather than the nonimmigrant aliens directly, the terms 
``present,'' ``submit,'' and ``submission'' used elsewhere in the DHS 
regulations pertaining to the Form I-94 are employed somewhat 
differently in sections 231.1 and 231.2. Thus, the definitions of these 
terms for the purposes of sections 231.1 and 231.2 are tailored to this 
unique situation. For purposes of section 231.1, the terms ``present'' 
or ``submission'' of the Form I-94 includes ensuring that each 
passenger presents him/herself to a CBP Officer for inspection at a 
U.S. port-of-entry. This definition reflects the carriers' current 
practice for arriving passengers, as also discussed in the section on 
``Current paper Form I-94 process at airports and seaports.'' For the 
purposes of section 231.2, the terms ``present,'' ``submit,'' or 
``submission'' of the Form I-94 include ensuring that each passenger is 
available for inspection by a CBP Officer upon request.
    CBP is also amending section 264.1(b) to add to the list of 
documents that constitute evidence of registration of a valid, 
unexpired nonimmigrant DHS admission or parole stamp in a foreign 
passport. Additionally, for clarity, CBP is amending provisions 
throughout 8 CFR to include a reference to the new definition 
immediately following the

[[Page 18462]]

first use of the term ``Form I-94'' in a section. This is to ensure 
that those reading these provisions are aware that the new definition 
exists.

Statutory and Regulatory Requirements

Executive Order 12866 (Regulatory Planning and Review) and Executive 
Order 13563 (Improving Regulation and Regulatory Review)

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is a ``significant regulatory action,'' under 
section 3(f) of Executive Order 12866. Accordingly, the Office of 
Management and Budget has reviewed this regulation.
    This rule results in substantial cost savings (benefits) for 
travelers, carriers, and CBP. CBP anticipates the total net benefits to 
both domestic and foreign entities in 2013 range from $76.4 million to 
$115.5 million.\10\ Separately, CBP anticipates a net benefit in 2013 
of between $59.7 million and $98.7 million for foreign travelers, $1.3 
million for carriers, and $15.5 million for CBP. Net benefits to U.S. 
entities (carriers and CBP) in 2013 total $16.8 million. The following 
discussion provides an assessment of costs, benefits, and net impacts 
of the rule.
---------------------------------------------------------------------------

    \10\ OMB Circular A-4 states regulatory analyses should focus on 
benefits and costs that accrue to citizens and residents of the 
United States (http://www.whitehouse.gov/sites/default/files/omb/assets/regulatory_matters_pdf/a-4.pdf; see ``Scope of Analysis'' 
section on page 15). In order to make this distinction clear, CBP 
has shown the costs and benefits to foreign travelers as well as 
impacts to U.S. entities.
---------------------------------------------------------------------------

1. Baseline Condition
    A Form I-94 is generally provided during the inspection process at 
the time of admission or parole for any alien who is not arriving in 
the United States under the Visa Waiver Program, unless otherwise 
exempt. When arriving by air and sea, the carrier provides the form to 
the alien while en route to the United States. The alien typically 
completes the form while en route to the United States. The Form I-94 
takes the alien approximately 8 minutes to fill out, according to CBP's 
Paperwork Reduction Act time burden estimate. Upon arrival at the 
airport or seaport, the alien presents the completed Form I-94 to the 
CBP Officer for inspection. The officer tears the form at the 
perforation, stamps the lower portion, and returns it to the alien. The 
officer sends the top portion of the form to a centralized facility 
where all Forms I-94 are entered into CBP's systems. The alien later 
returns the lower portion of the Form I-94 to the carrier when 
departing the United States, who in turn returns it to CBP.
    A third party, such as a university or a local or state government 
benefit-granting agency, may require an alien to present evidence of 
admission or parole to the United States. In these cases, the alien may 
present the bottom portion of the Form I-94, which was returned to them 
when they were admitted, paroled, or granted their immigration status. 
Aliens may also choose to present Form I-94 to establish employment 
eligibility and identity or eligibility for certain public benefits.
    If an alien loses the bottom portion of the Form I-94, he or she 
may file Form I-102, Application for Replacement/Initial Nonimmigrant 
Arrival-Departure Document, with USCIS to request a replacement. The 
form has a Paperwork Reduction Act burden of 25 minutes and a fee of 
$330. According to the USCIS, 17,700 Forms I-102 are filed each year. 
CIS expects this to decrease to 8,804 in fiscal year 2013 and 5,771 in 
subsequent years. \11\ The 2013 numbers are higher because the 
projection is done on a fiscal year basis and includes several months 
before this rule is in effect. For the purpose of this analysis, we 
assume that rule will result in only 5,771 Forms I-102, which is a 
reduction of 11,929 from the current estimate.
---------------------------------------------------------------------------

    \11\ Source: Communication with USCIS on February 8, 2013.
---------------------------------------------------------------------------

    According to the Office of Immigration Statistics (OIS),\12\ about 
46.4 million aliens entered the United States using a Form I-94 or 
equivalent in 2010. Of these, about 18.2 million entered under the Visa 
Waiver Program (VWP). These aliens do not use a Form I-94 and are 
therefore unaffected by this rule,\13\ so we exclude them from this 
analysis. Additionally, OIS figures include all modes of 
transportation. This rule affects only aliens arriving by air and sea, 
so we must exclude those arriving by land. We therefore subtract the 
number of aliens entering the U.S. at land border ports using a Form I-
94 in 2010. According to CBP's Office of Field Operations, about 11.5 
million aliens arriving from Mexico and 1.3 million arriving from 
Canada entered the United States at the land border using a Form I-94 
in 2010. We subtract these from the total, leaving 15,360,126 non-VWP 
aliens who arrived in the U.S. by air or sea using a Form I-94 in 2010.
---------------------------------------------------------------------------

    \12\ Source: 2010 Yearbook of Immigration Statistics. Table 28. 
http://www.dhs.gov/files/statistics/publications/yearbook.shtm
    \13\ In addition to automating the I-94, this rule adds a valid, 
unexpired nonimmigrant DHS admission or parole stamp to the list of 
documents that constitute evidence of registration. Thus, upon 
implementation of this rule, such a stamp could serve as evidence of 
registration for Visa Waiver Program travelers and for travelers 
arriving by land who would otherwise be required to comply with any 
registration requirement under the INA. However, the addition of the 
passport stamp to the list of documents that constitute evidence of 
registration does not have an economic impact on travelers. 
Therefore, this analysis focuses on the changes to the I-94.
---------------------------------------------------------------------------

    We next estimate the number of I-94 travelers in future years. To 
do this, we use the traveler projections developed by the Office of 
Travel and Tourism Industries (OTTI) within the U.S. Department of 
Commerce. The OTTI forecasts travel for most countries through 2016. 
The vast majority of travelers from most countries arrive by air and 
sea, so we assume that air traveler growth rates are the same as those 
for the total traveler population. For Mexico and Canada, we subtract 
the number of I-94 travelers arriving by land in 2010 before applying 
the projected growth rates.\14\ We apply the OTTI projected growth 
rates to the number of Forms I-94 by country we obtained from OIS. We 
present the total number of projected Forms I-94 for each year from 
2010-2016 in Exhibit 1 below.
---------------------------------------------------------------------------

    \14\ For the purposes of these projections, we assume that 
aliens arriving from Mexico and Canada at land borders are Mexican 
and Canadian citizens. There are a small number of citizens of other 
countries who enter the U.S. at land borders. Because the number for 
each country is small, the effect on the projections is minimal.

 
             Exhibit 1--Projected I-94 Air and Sea Travelers
------------------------------------------------------------------------
 
------------------------------------------------------------------------
2010.......................................................   15,360,126
2011.......................................................   16,586,753
2012.......................................................   17,868,246
2013.......................................................   19,339,773
2014.......................................................   20,875,058
2015.......................................................   22,672,552
2016.......................................................   24,495,264
------------------------------------------------------------------------

    We next estimate the costs and benefits of this rule for all 
affected parties. For the purposes of this analysis only, we assume the 
rule went into effect on January 1, 2013. To the extent the rule goes 
into effect after this date, costs and benefits will be lower. The 
period of analysis for this rule is 2012 to 2016, the last year for 
which OTTI has projected annual U.S. visitor growth rates.

[[Page 18463]]

2. Costs
    We now examine the costs of this rule to CBP. CBP seeks comments on 
the assumptions discussed below. If implemented, the costs of this rule 
will be borne by both CBP and aliens traveling to the United States. 
This rule would automate the paper Form I-94 in the air and sea 
environments.\15\ Almost all of the traveler information collected on 
the Form I-94 is redundant because CBP already obtains the same 
information electronically from other sources. In advance of the 
implementation of this rule, CBP has linked its data systems to use the 
information from these alternate sources to create an electronic Form 
I-94 during the admissions process. CBP will create the electronic Form 
I-94 by pulling information from the traveler's APIS record and any CCD 
record and by entering any additional data obtained during the 
inspection process. This electronic process will also allow 
stakeholders that currently have access to CBP's databases to continue 
to have access to traveler information electronically. CBP estimates 
the cost to link data systems and to fully automate the Form I-94 to be 
about $1 million in calendar year 2012. In addition, it estimates the 
cost to develop the secure Web site to be about $321,000 in 2012. CBP 
anticipates spending $92,000 per year in operations and maintenance 
costs for these systems. In total, CBP anticipates this rule will cost 
the agency $1,321,000 in 2012 and $92,000 in following years.
---------------------------------------------------------------------------

    \15\ A small number of Forms I-94 will still be used for certain 
aliens such as refugees, applicants for asylum, parolees, and those 
who request a paper Form I-94.
---------------------------------------------------------------------------

    We next examine the costs of this rule that will be borne by 
travelers to the United States. While most travelers do not use the 
Form I-94 for any reason once they are admitted or paroled to the 
United States, others do make use of the form to demonstrate lawful 
admission or parole to the United States to universities, DMVs, or some 
other party. Aliens may also choose to present a Form I-94 to establish 
employment eligibility and identity, or eligibility for certain public 
benefits. To accommodate this need for a Form I-94, CBP will make an 
electronic Form I-94 available to aliens on a secure Web site. 
Travelers will receive written information on how to access the Web 
site upon their arrival to the United States. Aliens may log into the 
Web site using 7 pieces of basic identifying information that is either 
known to the traveler (their first name, last name and date of birth) 
or readily available on their passport (passport number, country of 
issuance, date of entry, and class of admission). CBP estimates that it 
will take the traveler 4 minutes to log into the Web site using 
identifying information and print the electronic form. This is less 
time than the paper Form I-94's 8 minute time burden for entering the 
17 data elements. This 4 minute estimate does not include the time it 
takes to travel to a location with computer and Internet access; that 
cost is treated separately later in this section. In addition, CBP will 
continue to make the paper Form I-94 available at ports of entry to 
certain classes of aliens and upon request, though CBP does not 
anticipate that many travelers will request the paper form.
    To estimate the costs to travelers to access their Form I-94 
electronically, we must first determine the number of aliens who will 
access the Web site, the number who do not have ready access to the 
Internet, the distance they would have to travel to access the 
Internet, and the average wage rate for all aliens entering the United 
States by air or sea. First, we assess the number of aliens who will 
access the Web site. Exhibit 2 shows the number of travelers who 
entered the United States by air or sea in 2010 sorted by various 
categories of admission.\16\ The majority of Form I-94 visitors to the 
United States--about 74 percent--are tourists and business travelers 
entering on B-1/B-2 visas. These visitors do not have a need for their 
Form I-94 now that the passport stamp will serve as evidence of alien 
registration. While in the U.S., these B-1/B-2 visa travelers may use 
their foreign driver's license, so there is no need for them to apply 
for a U.S. driver's license. They are ineligible for employment or 
enrollment in a university while traveling on a B-1/B-2 visa. They are 
generally not eligible for public benefits without a change in status. 
If B-1/B-2 travelers change their status with USCIS, they will receive 
a paper Form I-94. Therefore, for the purposes of this analysis, we 
assume that no B-1/B-2 travelers will need to access the Web site.
---------------------------------------------------------------------------

    \16\ Source: CBP analysis of data from 2010 Yearbook of 
Immigration Statistics. Table 28.http://www.dhs.gov/files/statistics/publications/yearbook.shtm

         Exhibit 2--2010 Air and Sea I-94s by Class of Admission
------------------------------------------------------------------------
                                                   Number     Percentage
------------------------------------------------------------------------
Tourists and Business Travelers (B-1/B-2).....   11,352,569         73.9
Students......................................    1,526,786          9.9
Temporary workers.............................    1,523,039          9.9
Other/Unknown.................................      624,181          4.1
Diplomats.....................................      333,550          2.2
                                               -------------------------
    Total.....................................   15,360,126  ...........
------------------------------------------------------------------------

    Because so many parties at various levels of government and outside 
of the government use the Form I-94, CBP cannot estimate how many 
aliens who are not B-1/B-2 travelers will access the Web site. As noted 
above, CBP will continue to make the paper Form I-94 available at ports 
of entry upon request. Those with a need for a Form I-94 and who face 
obstacles to electronic access of their Form I-94 may request a paper 
I-94 upon arrival at the port of entry. Because we do not know how many 
people need a physical copy of their Form I-94 or how many face 
obstacles to accessing their electronic I-94, for the purposes of this 
analysis, we assume that every traveler, other than B-1/B-2 travelers, 
who currently receives a paper Form I-94 will log into the Web site to 
print off their electronic Form I-94. In 2010, we estimate this to be 
4,007,557 travelers. To the extent that some of these aliens do not 
access the Web site, costs will be lower.
    We next estimate the number of aliens who do not have ready access 
to the Internet while in the United States and would need to travel to 
access their electronic Form I-94. We assume that students and 
diplomats have ready access to the Internet at their schools or places 
of business, respectively. Also, as noted above, CBP will continue to 
make the paper Form I-94 available at ports of entry upon request. 
Those with a need for a Form I-94 and who face obstacles to accessing 
their electronic Form I-94 may request a paper I-94 upon arrival at the 
port of entry.
    Temporary workers come to the United States for varying lengths of 
time to fill positions where there is a shortage of labor in the United 
States. These positions can be in very highly technical occupations, 
such as computer programming, but can also be in less technical 
occupations, such as agricultural labor. Because this category of 
admission includes such a wide range of workers, we cannot say with 
certainty that all temporary workers have ready access to the Internet 
while in the United States. Similarly, we do not know how accessible 
the Internet is for those in the ``Other/Unknown''

[[Page 18464]]

category. The aliens least likely to have Internet access are those 
working as temporary agricultural laborers. According to the U.S. 
Department of Agriculture (USDA), approximately 62 percent of farms 
have Internet access.\17\ The primary use for the electronic Form I-94 
for these workers is to demonstrate employment eligibility to their 
employers. Until the workers present a copy of their electronic Form I-
94 to their employer, they are not able to work. The employers have 
spent a considerable amount of money bringing the employee to the 
country to work. Allowing the employee to use the Internet to access 
their electronic Form I-94 will allow the employee to begin working 
sooner. Because this incremental use of the Internet is virtually 
costless to the employer and the employer would benefit from their 
employee's prompt access to their electronic Form I-94, we assume that 
employers with Internet access will allow their employees to use their 
Internet connection to access their electronic Forms I-94.\18\ As 
stated previously, 62 percent of farms have Internet access. For the 
purposes of this analysis, we assume that 38 percent (100 percent minus 
62 percent) of travelers in the ``Temporary Workers'' and ``Other/
Unknown'' categories (815,944 travelers in 2010) would need to travel 
to access their electronic Form I-94. CBP seeks comment on these 
assumptions. Once again, we note that CBP will continue to make the 
paper Form I-94 available at ports of entry upon request. CBP intends 
to have a considerable outreach effort in place by the time that this 
rule is effective including outreach to airlines and travelers to 
communicate that requesting a paper Form I-94 continues to be an 
option. Those with a need for a Form I-94 and who face obstacles to 
electronic access of their Form I-94 may request a paper I-94 upon 
arrival at the port of entry. To the extent that they request paper I-
94s, the number of aliens who will need to travel to a place where they 
can access the Internet will be lower.
---------------------------------------------------------------------------

    \17\ Source: ``Farm Computer Usage and Ownership, ``United 
States Department of Agriculture National Agricultural Statistics. 
August 2011. Available at: http://usda01.library.cornell.edu/usda/current/FarmComp/FarmComp-08-12-2011.pdf.
    \18\ It is also possible that some employers without Internet 
access will help transport their employees to a location with 
Internet access. Employers have expended considerable effort to 
sponsor temporary workers and they may view this as part of the cost 
of using foreign temporary workers. However, as the burden of 
demonstrating employment eligibility is on the worker, we assume 
that the worker must bear any travel costs to obtain their 
electronic Form I-94. To the extent that the employer is able to 
provide more efficient access to the Internet, costs will be lower.
---------------------------------------------------------------------------

    Now that we have estimated the number of aliens who do not have 
ready access to the Internet, we need to develop an assumption for how 
long it takes to travel to a location where they can access the 
Internet. Based on our online review of Internet services provided by 
public libraries, we found public libraries provide public access to 
computers and the Internet, though many charge a nominal fee for 
printing. There are 16,698 public libraries in the United States.\19\ 
According to the Department of Education, 94 percent of households live 
within 10 miles of a public library and 83 percent live within 5 miles 
of one.\20\ Because of the large number of locations nationwide that 
provide access to the Internet and the fact that CBP will continue to 
make the paper Form I-94 available at ports upon request, we believe 
most aliens will have to travel only a short distance to access the 
Internet. We estimate that round-trip travel to a public library to 
access a computer terminal will be 20 miles and will take 60 minutes of 
an alien's time, which includes the time to enter the library and 
locate an available computer and any wait time to access a computer. In 
this analysis, we assume that users pay $0.25 to print their electronic 
Form I-94 based on a review of available online printing fees charged 
at public libraries.
---------------------------------------------------------------------------

    \19\ Source: American Library Association. http://www.ala.org/tools/libfactsheets/alalibraryfactsheet01 Accessed May 7, 2012.
    \20\ Source: Department of Education: Households' Use of Public 
and Other Types of Libraries: 2002. Derived from Table 19. Available 
at http://harvester.census.gov/imls/pubs/Publications/2007327.pdf.
---------------------------------------------------------------------------

    We next estimate the value of time for those travelers affected by 
this rule. Federal agencies typically estimate a monetary value of time 
used or saved as a result of their regulatory actions. This allows 
agencies to estimate the additional costs and benefits of their 
regulatory actions on affected parties. The U.S. Department of 
Transportation (DOT) provides guidance on the value of time to use for 
economic analysis.\21\ This guidance provides point estimates as well 
as ranges for values of time for travelers based on average wage rate 
analysis for different categories of travel. According to DOT 
estimates, the value of travel time is more than twice as high for air 
travelers than for those traveling by surface modes, which can be 
explained by the relatively high cost of air travel. We note that these 
DOT estimates are intended to be used to analyze actions that will 
reduce the time spent traveling. A person's value of time while 
traveling may differ from their value of reducing travel time. In most 
instances, this rule will not reduce the time spent traveling because 
the Form I-94 is typically completed while en route to the United 
States, but rather reduces the time spent on paperwork while traveling. 
The traveler will now be able to spend this time on leisure or business 
activities such as reading or drafting documents. CBP believes that 
using the DOT values of travel time in this situation is the most 
appropriate estimate because it reflects the higher values of time for 
air travelers. Further, we note that to the extent a person's value of 
time while traveling is different than their value of reducing travel 
time, this difference is likely encompassed in the DOT plausible range 
for the value of travel time. We request comments on the value of time 
used in this analysis.
---------------------------------------------------------------------------

    \21\ Source: U.S. Department of Transportation: ``Revised 
Departmental Guidance on Valuation of Travel Time in Economic 
Analysis.'' September 28, 2011. Table 5. Available at http://ostpxweb.dot.gov/policy/reports.htm.
---------------------------------------------------------------------------

    As a primary estimate, we use the DOT's point estimate for the 
value of time for all-purpose air travel, which includes both personal 
and business travel. This point estimate is $42.10. We also use the 
DOT's range for all-purpose travel to show a range of low and high 
estimates. This range is from $34.80 to $52.20. We apply these values 
of time to the travelers in our analysis.\22\
---------------------------------------------------------------------------

    \22\ We use this travel value of time framework to estimate the 
costs and savings of this rule, since affected aliens previously 
completed the paper form I-94 while travelling.
---------------------------------------------------------------------------

    However, we recognize that those who must travel to access the 
internet are a special case of travelers and probably have different 
values of time than the average air traveler. As previously discussed, 
the aliens least likely to have internet access are those working as 
temporary agricultural laborers. To estimate the value of time for 
these aliens, we use the wage rate for H-2A temporary workers. H-2A 
workers are seasonal agricultural workers. According to the Department 
of Labor, H-2A workers have an average wage rate of $9.50 per hour.\23\ 
We recognize that there are other classes of temporary workers, notably 
H-1B visa holders, who likely have higher wage rates. However, these 
workers are predominantly in specialized occupations such as medicine 
and computer programming and are likely to have ready access to the 
internet.
---------------------------------------------------------------------------

    \23\ Source: Calculated from Department of Labor data: available 
at http://www.foreignlaborcert.doleta.gov/quarterlydata.cfm. 
Accessed on May 8, 2012.
---------------------------------------------------------------------------

    Now that we have estimated the number of aliens who will log into

[[Page 18465]]

CBP's Web site to print their electronic Form I-94, the time it takes 
to access that Web site, the number of people who will need to travel 
to access the internet, the time it will take to travel to and from an 
internet access site, and the values of time for these groups, we can 
calculate this rule's cost to these travelers. We first address the 
cost to log into CBP's electronic Form I-94 Web site. Once again, CBP 
estimates that it will take travelers 4 minutes to access and print 
their electronic Form I-94, and that it costs them $0.25 per page to 
print their electronic Form I-94. Exhibit 3 shows the 2013-2016 
travelers' costs for accessing and printing their electronic Forms I-
94. The findings in Exhibit 3 assume that all travelers, except B-1/B-2 
travelers, will access and print their electronic Forms I-94.\24\ As 
shown, in 2013, traveler costs of time to access electronic I-94s and 
their cost to print it would range from $13.0 million to $18.8 million, 
with a primary estimate of $15.4 million.
---------------------------------------------------------------------------

    \24\ The annual estimates of I-94s in Exhibit 3 are based on 
projections for all travelers, except B-1/B-2 travelers, developed 
by the Office of Travel and Tourism Industries within the U.S. 
Department of Commerce.

                Exhibit 3--Traveler Costs of Time to Access and Cost to Print Electronic I-94 \*\
----------------------------------------------------------------------------------------------------------------
                                                       2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
I-94s...........................................       5,047,681       5,448,390       5,917,536       6,393,264
DOT--Low ($)....................................           34.80           34.80           34.80           34.80
DOT--Primary ($)................................           42.10           42.10           42.10           42.10
DOT--High ($)...................................           52.20           52.20           52.20           52.20
Time Cost--Low ($)..............................      11,710,620      12,640,265      13,728,684      14,832,372
Time Cost--Primary ($)..........................      14,167,158      15,291,815      16,608,551      17,943,761
Time Cost--High ($).............................      17,565,929      18,960,397      20,593,026      22,248,559
Printing Cost ($)...............................       1,261,920       1,362,098       1,479,384       1,598,316
                                                 ---------------------------------------------------------------
    Total Cost--Low ($).........................      12,972,540      14,002,362      15,208,068      16,430,688
    Total Cost--Primary ($).....................      15,429,078      16,653,912      18,087,935      19,542,077
    Total Cost--High ($)........................      18,827,850      20,322,495      22,072,410      23,846,875
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

    We next address the travel cost for those aliens who do not have 
ready access to the internet. Once again, we assume that 38 percent of 
travelers in the ``Temporary Workers'' and ``Other/Unknown'' categories 
(see exhibit 2) would need to travel 20 miles and 60 minutes to access 
their electronic Form I-94, that their values of time are best 
characterized by the average H2A wage rate. For the cost of travel, we 
use the IRS standard mileage rate for business travel of 55.5 cents per 
mile.\25\ Exhibit 4 shows the 2013-2016 aliens' travel costs to access 
the internet. As shown, in 2013, total travel costs would be $21.2 
million.
---------------------------------------------------------------------------

    \25\ Source: Internal Revenue Service. IR-2011-116, December 9, 
2011. Available at http://www.irs.gov/newsroom/article/0,,id=250882,00.html.

                                           Exhibit 4--Travel Costs\*\
----------------------------------------------------------------------------------------------------------------
                                                       2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
Affected Aliens.................................       1,028,876       1,110,553       1,206,180       1,303,148
H2A Wage Rate ($)...............................            9.50            9.50            9.50            9.50
Time Cost ($)...................................       9,774,321      10,550,254      11,458,708      12,379,907
Mileage Cost ($)................................      11,420,523      12,327,139      13,388,595      14,464,944
    Total Travel Cost ($).......................      21,194,844      22,877,393      24,847,303      26,844,850
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

    To summarize, both CBP and aliens would bear costs as a result of 
this rule. CBP would bear costs to link its data systems and to build a 
Web site so aliens can access their electronic Forms I-94. Aliens 
arriving as diplomats and students would bear costs when logging into 
the Web site and printing electronic I-94s. Using the primary estimate 
for a traveler's value of time, these costs average $3.06 per diplomat 
and student traveler in 2013. The temporary workers and aliens in the 
``Other/Unknown'' category (see Exhibit 2) bear costs when logging into 
the Web site, traveling to a location with public internet access, and 
printing a paper copy of their electronic Form I-94. These costs 
average $23.66 per traveler in 2013 for the temporary worker and 
``Other/Unknown'' category of travelers. Exhibit 5 summarizes the 2012-
2016 costs of this rule. As shown, costs for this rule for 2013 would 
range from $34.2 million to $40.1 million. In our primary estimate, 
costs for this rule are $36.7 million in 2013. Less than one percent of 
these costs are incurred by the U.S. entities. These are CBP's costs 
for automating the electronic Form I-94 and developing the Web site 
travelers will use to access their electronic Form I-94. In 2013, CBP's 
costs are $92,000. CBP seeks comment on these costs and their 
underlying assumptions.

                                         Exhibit 5--Cost Summary ($)\*\
----------------------------------------------------------------------------------------------------------------
                                       2012            2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
CBP Costs.......................       1,321,000          92,000          92,000          92,000          92,000
Traveler Costs:

[[Page 18466]]

 
    Website Access Costs--Low...               0      11,710,620      12,640,265      13,728,684      14,832,372
    Website Access Costs--                     0      14,167,158      15,291,815      16,608,551      17,943,761
     Primary....................
    Website Access Costs--High..               0      17,565,929      18,960,397      20,593,026      22,248,559
    Printing Costs..............               0       1,261,920       1,362,098       1,479,384       1,598,316
    Travel Time Costs...........               0       9,774,321      10,550,254      11,458,708      12,379,907
    Mileage Costs...............               0      11,420,523      12,327,139      13,388,595      14,464,944
Total Traveler Costs--Low.......               0      34,167,384      36,879,756      40,055,371      43,275,539
Total Traveler Costs--Primary...               0      36,623,922      39,531,305      42,935,239      46,386,927
Total Traveler Costs--High......               0      40,022,694      43,199,888      46,919,713      50,691,725
Grand Total Costs--Low..........       1,321,000      34,259,384      36,971,756      40,147,371      43,367,539
Grand Total Costs--Primary......       1,321,000      36,715,922      39,623,305      43,027,239      46,478,927
Grand Total Costs--High.........       1,321,000      40,114,694      43,291,888      47,011,713      50,783,725
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

3. Benefits
    If implemented, this rule would have benefits for CBP, carriers, 
and travelers to the United States. We first examine the benefits of 
this rule for CBP. Currently, CBP returns the bottom portion of the 
Form I-94 to the traveler and retains the top portion of the form. The 
information on the top portion of the form is entered into CBP systems 
for use by CBP and other agencies. CBP also gets this information 
electronically from other sources. CBP has linked its data systems so 
that CBP can create an electronic Form I-94. Therefore, there is no 
longer any need to continue entering the data from the paper Form I-94 
for air and sea travelers into CBP systems. CBP spends approximately 
$17.8 million per year on contract support for this task. CBP will 
still need to spend approximately $2.4 million to enter data from the 
paper Forms I-94 collected at the land border and the few that will 
continue to be collected at airports and seaports. We therefore 
estimate that this rule would save CBP $15.4 million a year in contract 
costs.
    CBP processing would also become more efficient as a result of this 
rule. Currently, when the traveler gives the completed Form I-94 to the 
CBP Officer at inspection, the officer reviews the form for errors and 
makes corrections as needed. The officer then stamps the top and bottom 
portions of the form with an admission or parole stamp, writes the 
classification and duration of admission or parole and staples it to 
the traveler's passport. This rule would eliminate this process for 
most travelers. To the extent that eliminating the paper Form I-94 will 
reduce processing times, CBP will be able to focus its resources on 
other areas, improving security and expediting the processing of 
passengers. CBP will monitor the processing times as a result of this 
rule to ensure that resources are allocated efficiently. CBP's final 
rule will include information regarding current processing times that 
reflect the use of the automated I-94.
    We next examine the printing savings this rule will generate for 
CBP and carriers. Currently, both CBP and carriers print and store 
Forms I-94. CBP prints forms for use in primary and secondary passenger 
inspections when the traveler has not filled out a form in advance or 
when the traveler has made an error in filling out the form. In FY 
2011, CBP spent $153,306 printing the Form I-94 for air and sea 
travelers. If this rule is implemented, CBP would no longer need to 
print the Form I-94 for most of these travelers,\26\ which would 
eliminate this expense.
---------------------------------------------------------------------------

    \26\ CBP will still print a small number of forms for use at 
airports and seaports for certain aliens such as refugees, asylees, 
parolees, and those who request a paper Form I-94.
---------------------------------------------------------------------------

    Carriers print the forms for their passengers to complete before 
their arrival in the United States. To estimate printing costs for 
carriers, CBP obtained an estimate of total Form I-94 printing and 
storage costs from a major airline. We increased this cost 
proportionally based on annual international inbound passenger volumes 
to estimate the entire industry cost. Based on this methodology, CBP 
estimates that carriers spend $1,344,450 annually to print and store 
the Form I-94. If this rule is implemented, carriers would no longer 
need to print and store the Form I-94, which would eliminate this 
expense.
    We next estimate the value of air and sea travelers' time savings 
resulting from the elimination of the paper Form I-94. Currently, 
travelers spend 8 minutes filling out the Form I-94 while in transit to 
the United States. If implemented, this rule would eliminate the paper 
Form I-94 for air and sea travelers and, with it, their 8-minute time 
burden.\27\ We again apply the DOT range of plausible values of time 
for air travelers, as well as their point estimate for this value, to 
these aliens. Exhibit 7 shows the 2013-2016 travelers' reduction in 
time burden resulting from no longer needing to fill out the paper Form 
I-94. As shown, in 2013, the value of the reduction in time burden 
would range from $89.7 million to $134.6 million. In our primary 
estimate, the reduction in time burden would be $108.6 million in 2013.
---------------------------------------------------------------------------

    \27\ For those with a need to access their electronic Form I-94, 
this burden relief is partially offset by the 4 minute time burden 
to access the Web site. The costs for this access are discussed in 
the costs section above.

                                     Exhibit 7--Reduction in Time Burden\*\
----------------------------------------------------------------------------------------------------------------
                                                       2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
I-94s...........................................      19,339,773      20,875,058      22,672,552      24,495,264
DOT--Low ($)....................................           34.80           34.80           34.80           34.80
DOT--Primary ($)................................           42.10           42.10           42.10           42.10
DOT--High ($)...................................           52.20           52.20           52.20           52.20
Benefit--Low ($)................................      89,736,549      96,860,267     105,200,642     113,658,027
Benefit--Primary ($)............................     108,560,595     117,178,657     127,268,592     137,500,084

[[Page 18467]]

 
Benefit--High ($)...............................     134,604,823     145,290,401     157,800,962     170,487,040
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

    We next examine the savings to aliens who need a replacement Form 
I-94. If aliens lose the bottom portion of their Form I-94, they may 
file Form I-102, Application for Replacement/Initial Nonimmigrant 
Arrival-Departure Document, with USCIS to request a replacement. The 
form has a Paperwork Reduction Act burden of 25 minutes and a fee of 
$330. As stated earlier, currently 17,700 Forms I-102 or filed annually 
and this rule would reduce that amount by 11,929. If this rule is 
implemented, these travelers would be able to access their electronic 
Form I-94, which would save these individuals 25 minutes and $330.\28\ 
We calculate the value of this time savings using USCIS's hourly wage 
estimate for Form I-102 filers of $30.44.\29\ Exhibit 8 shows the time 
and fee cost savings for those who would have otherwise needed to file 
an I-102 from 2012 to 2016. As shown, in 2013 the value of this time 
and fee savings would be $4.2 million. CBP seeks comment on these 
assumptions.
---------------------------------------------------------------------------

    \28\ As discussed in the costs section, we estimate a 4 minute 
time burden for travelers who need to access their electronic Form 
I-94. See the cost section for a complete discussion of the costs of 
accessing the Web site as well as the cost to travel to a location 
where they can access the Web site, where necessary.
    \29\ USCIS estimates are based on BLS data for occupational 
employment statistics. The latest supporting statement for the I-102 
is available at: http://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201206-1615-003. This supporting statement 
uses an older wage estimate of $30.74. USCIS has since updated the 
wage rates used in their supporting statements to $30.44 based on 
more recent BLS statistics. These estimates will be used in the next 
renewal of the I-102 information collection report.

                                        Exhibit 8--I-102 Cost Savings\*\
----------------------------------------------------------------------------------------------------------------
                                                       2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
I-102 Reduction.................................          11,929          11,929          11,929          11,929
Time Burden.....................................              25              25              25              25
USCIS hourly wage ($)...........................           30.44           30.44           30.44           30.44
Time Savings ($)................................         151,299         151,299         151,299         151,299
Fee Savings ($).................................       3,936,570       3,936,570       3,936,570       3,936,570
                                                 ---------------------------------------------------------------
    Total Savings ($)...........................       4,087,869       4,087,869       4,087,869       4,087,869
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

    In summary, CBP, carriers, and aliens would accrue benefits as a 
result of this rule. CBP would save contract and printing costs. 
Carriers would save printing costs. All aliens would save the 8-minute 
time burden for filling out the paper Form I-94 and certain aliens who 
lose the Form I-94 would save the $330 fee and 25 minute time burden 
for filling out the Form I-102. Because we do not expect B-1/B-2 
travelers to use the Web site to access their electronic Form I-94, the 
benefits associated with the Form I-102 accrue only to non-B-1/B-2 
travelers. Using the primary estimate for a traveler's value of time, 
the time burden savings for all travelers is $5.61 per traveler. In 
addition, those non-B-1/B-2 travelers who no longer need to use a Form 
I-102 would achieve an additional time and fee savings of $342.68 per 
traveler. Exhibit 9 summarizes the benefits of this rule to each party. 
As shown, benefits for this rule for 2013 would range from $110.7 
million to $155.6 million. In our primary estimate, the benefits of 
this rule would be $129.5 million in 2013. CBP seeks comment on these 
benefits and their underlying assumptions.

                                        Exhibit 9--Benefit Summary ($)\*\
----------------------------------------------------------------------------------------------------------------
                                                       2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
CBP Benefits:
    CBP Contract Savings........................      15,400,000      15,400,000      15,400,000      15,400,000
    CBP Printing Savings........................         153,360         153,360         153,360         153,360
Total CBP Benefits..............................      15,553,360      15,553,360      15,553,360      15,553,360
Carrier Printing Savings........................       1,344,450       1,344,450       1,344,450       1,344,450
Traveler Benefits:
    I-94 Time Savings--Low......................      89,736,549      96,860,267     105,200,642     113,658,027
    I-94 Time Savings--Primary..................     108,560,595     117,178,657     127,268,592     137,500,084
    I-94 Time Savings--High.....................     134,604,823     145,290,401     157,800,962     170,487,040
    I-102 Time Savings..........................         151,299         215,863         215,863         215,863
    I-102 Fee Savings...........................       3,936,570       3,936,570       3,936,570       3,936,570
        Total Traveler Benefits--Low............      93,824,418     100,948,137     109,288,511     117,745,896
        Total Traveler Benefits--Primary........     112,648,464     121,266,526     131,356,462     141,587,954
        Total Traveler Benefits--High...........     138,692,692     149,378,271     161,888,832     174,574,910
        Grand Total Benefits--Low...............     110,722,228     117,845,947     126,186,321     134,643,706
        Grand Total Benefits--Primary...........     129,546,274     138,164,336     148,254,272     158,485,764

[[Page 18468]]

 
        Grand Total Benefits--High..............     155,590,502     166,276,081     178,786,642     191,472,720
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

4. Net Benefits
    Exhibit 10 compares the costs of this rule to the benefits, both in 
total and for each party affected. As shown, in 2013, CBP has a net 
benefit of $15.5 million, carriers have a net benefit of $1.3 million, 
and travelers have a net benefit of between $59.7 million and $98.7 
million. In our primary analysis, the net benefit to travelers is $76.0 
million in 2013. Total 2013 net benefits range from $76.5 million to 
$115.5 million. In our primary analysis, the total net benefits are 
$92.8 million in 2013.

                                            Exhibit 10--Net Benefits*
----------------------------------------------------------------------------------------------------------------
                                       2012            2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
CBP.............................      -1,321,000      15,461,360      15,461,360      15,461,360      15,461,360
Carriers........................               0       1,344,450       1,344,450       1,344,450       1,344,450
Travelers--Low..................               0      59,657,034      64,068,381      69,233,140      74,470,358
Travelers--Primary..............               0      76,024,542      81,735,221      88,421,223      95,201,026
Travelers--High.................               0      98,669,998     106,178,383     114,969,119     123,883,185
Grand Total--Low................      -1,321,000      76,462,844      80,874,191      86,038,950      91,276,168
Grand Total--Primary............      -1,321,000      92,830,352      98,541,031     105,227,033     112,006,836
Grand Total--High...............      -1,321,000     115,475,808     122,984,193     131,774,929     140,688,995
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.

    Exhibits 11 and 12 present the net benefits of this rule, 
discounted at the 3 and 7 percent discount rates. Exhibit 13 presents 
annualized net benefits at the 3 and 7 percent discount rates. 
Annualized net benefits range from $65.6 million to $101.7 million. In 
the primary analysis, annualized net benefits range from $79.8 million 
to $81.6 million, depending on the discount rate used.

                             Exhibit 11--Net Benefits Discounted at a 3 Percent Rate
                                                 [2012 Dollars]*
----------------------------------------------------------------------------------------------------------------
                                       2012            2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
CBP.............................      -1,321,000      15,011,029      14,573,815      14,149,335      13,737,218
Carriers........................  ..............       1,305,291       1,267,273       1,230,362       1,194,526
Travelers--Low..................  ..............      57,919,450      60,390,594      63,358,131      66,165,948
Travelers--Primary..............  ..............      73,810,235      77,043,285      80,917,945      84,584,879
Travelers--High.................  ..............      95,796,115     100,083,309     105,213,030     110,068,605
Grand Total--Low................      -1,321,000      74,235,771      76,231,682      78,737,828      81,097,693
Grand Total--Primary............      -1,321,000      90,126,555      92,884,373      96,297,642      99,516,623
Grand Total--High...............      -1,321,000     112,112,435     115,924,397     120,592,727     125,000,350
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.


                             Exhibit 12--Net Benefits Discounted at a 7 Percent Rate
                                                 [2012 Dollars]*
----------------------------------------------------------------------------------------------------------------
                                       2012            2013            2014            2015            2016
----------------------------------------------------------------------------------------------------------------
CBP.............................      -1,321,000      14,449,869      13,504,551      12,621,075      11,795,398
Carriers........................  ..............       1,256,495       1,174,295       1,097,472       1,025,674
Travelers--Low..................  ..............      55,754,237      55,959,805      56,514,865      56,813,079
Travelers--Primary..............  ..............      71,050,974      71,390,707      72,178,057      72,628,407
Travelers--High.................  ..............      92,214,952      92,740,311      93,849,048      94,509,889
Grand Total--Low................      -1,321,000      71,460,602      70,638,651      70,233,412      69,634,151
Grand Total--Primary............      -1,321,000      86,757,338      86,069,553      85,896,604      85,449,479
Grand Total--High...............      -1,321,000     107,921,316     107,419,157     107,567,595     107,330,961
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.


    Exhibit 13--Annualized Net Benefits Discounted at 3 Percent and 7
                                percent*
------------------------------------------------------------------------
                                             3 Percent       7 Percent
------------------------------------------------------------------------
CBP.....................................      11,903,588      11,636,069
Carriers................................       1,059,434       1,038,002
Travelers--Low..........................      52,539,528      51,294,997

[[Page 18469]]

 
Travelers--Primary......................      67,065,877      65,473,972
Travelers--High.........................      87,163,978      85,091,457
Grand Total--Low........................      65,502,550      63,969,068
Grand Total--Primary....................      80,028,899      78,148,043
Grand Total--High.......................     100,126,999      97,765,529
------------------------------------------------------------------------
*Estimates may not total due to rounding.

    While this is a large net benefit to travelers as a whole, it is 
important to note that the net benefits do not accrue uniformly across 
all travelers. We next examine the effect of this rule on each type of 
traveler. Exhibit 14 summarizes the costs and benefits per traveler for 
each class of alien discussed in this analysis. B-1/B-2 travelers will 
no longer need to fill out the paper Form I-94, saving them 8 minutes. 
As discussed earlier, we assume that no B-1/B2 travelers will need to 
access their electronic Form I-94 via the Web site. Because we assume 
they do not use the Form I-94, B-1/B-2 travelers also do not file Form 
I-102 to replace their lost Form I-94. Therefore they will not accrue 
benefits from no longer needing to file Forms I-102. The net effect of 
this rule to each B-1/B-2 traveler is a benefit of $5.61 per traveler.
    Travelers who are students and diplomats would no longer need to 
fill out a paper Form I-94. They would need to access the Web site and 
print their Form I-94, but would not need to travel to a location with 
internet access. The net effect of this rule to travelers who are 
students and diplomats is a benefit of $2.56 per traveler. In addition, 
those students and diplomats who would otherwise need to file a Form I-
102 and pay the $330 fee to obtain a replacement Form I-94 would 
receive an additional benefit of $342.68 as a result of this rule.
    Temporary workers and aliens in the ``Other/Unknown'' category 
would no longer need to fill out a paper Form I-94. They would need to 
access the Web site and print their Form I-94, and some would need to 
travel 20 miles and 30 minutes round-trip to reach a location with 
internet access. The net effect of this rule to temporary workers and 
aliens in the ``Other/Unknown'' category is a cost of $18.04 per 
traveler. We reiterate that those with obstacles to accessing their 
electronic I-94s may request a paper I-94 at the airport or seaport 
upon arrival in the United States. In addition, those temporary workers 
and aliens in the ``Other/Unknown'' category who would otherwise need 
to file a Form I-102 and pay the $330 fee to obtain a replacement Form 
I-94 would receive an additional benefit of $342.68 as a result of this 
rule.\30\
---------------------------------------------------------------------------

    \30\ CBP intends to have a considerable outreach effort in place 
by the time that this rule is effective including outreach to 
airlines and travelers to communicate that requesting a paper Form 
I-94 continues to be an option.

                            Exhibit 14--Annual Effect of Rule by Class of Alien ($) *
----------------------------------------------------------------------------------------------------------------
                                                                   Cost of time
                                   Percentage of                    to access &
                                   total number    8 minute time   cost to print   Travel costs    Net impact **
                                     of aliens     cost savings     electronic
                                                                    form  I-94
----------------------------------------------------------------------------------------------------------------
Tourists and Business Travelers             73.9            5.61               0               0            5.61
 (B-1/B-2)......................
Students........................             9.9            5.61           -3.06               0            2.56
Temporary workers...............             9.9            5.61           -3.06          -20.60          -18.04
Other/Unknown...................             4.1            5.61           -3.06          -20.60          -18.04
Diplomats.......................             2.2            5.61           -3.06               0            2.56
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.
** In addition to this net impact, a small number of non-B-1/B-2 travelers will experience savings resulting
  from no longer needing to file a Form I-102. The primary estimate of Form I-102 cost savings to non-B-1/B-2
  travelers is $342.81 per traveler. We do not include the Form I-102 cost savings in the net impact column of
  Exhibit 14 because few non-B-1/B-2 travelers will benefit from this compared to the overall population of non-
  B-1/B-2 travelers impacted by the rule. Based on data from USCIS, we estimate that 16,853 Form I-102s per year
  will no longer need to be filed as a result of this rule. This is less than one percent of the annual
  population of non-B-1/B-2 travelers affected by the rule (16,853 Form I-102s / 5,047,681 non-B-1/B-2 travelers
  in 2013 < 1%).

    Annualized costs and benefits to U.S. entities are presented in the 
following accounting statement, as required by OMB Circular A-4.

                         Accounting Statement: Classification of Expenditures, 2012-2016
                                                     [$2012]
----------------------------------------------------------------------------------------------------------------
                                              3% Discount rate                     7% Discount rate
----------------------------------------------------------------------------------------------------------------
U.S. Costs:
    Annualized monetized costs.........  $0.352 million............  $0.372 million.
    Annualized quantified, but non-      None......................  None.
     monetized costs.
    Qualitative (non-quantified) costs.  None......................  None.
U.S. Benefits:
    Annualized monetized benefits......  $13.7 million.............  $14.0 million.

[[Page 18470]]

 
    Annualized quantified, but non-      None......................  None.
     monetized benefits.
Qualitative (non-quantified) benefits..  Reduced primary inspection  Reduced primary inspection processing
                                          processing times.           times.
----------------------------------------------------------------------------------------------------------------

    We estimate annualized costs to U.S. entities as a result of this 
rule to be $0.352 million to $0.372 million. These are CBP's costs for 
automating the electronic Form I-94 and developing the Web site 
travelers will use to access their electronic Form I-94. Monetized 
benefits of this rule of $13.7 million to $14.0 million to U.S. 
entities (CBP and carriers) represent reduced Form I-94 printing and 
storage costs and reduced data entry contract costs. Non-quantified 
benefits of this rule include the reduced processing time that could 
result as a result of the automation of the Form I-94. This rule also 
imposes monetized costs and benefits for travelers. However, because 
these are attributable solely to foreign individuals, we do not include 
them in the accounting statement.
5. Regulatory Alternatives
    We consider two alternatives to this rule: eliminating the paper 
Form I-94 in the air and sea environments entirely and providing the 
paper Form I-94 to all travelers who are not B-1/B-2 travelers. If CBP 
were to eliminate the paper Form I-94 entirely in the air and sea 
environment, there are certain classes of vulnerable aliens who would 
be harmed. Under the rule, refugees, applicants for asylum, and 
parolees will be provided a paper Form I-94. These aliens have an 
immediate need for the Form I-94 and cannot wait to access their 
electronic Form I-94 from the Web site. These aliens represent a very 
small portion of overall international travel and providing them with a 
paper Form I-94 and entering the information into CBP data systems is 
not a significant cost to CBP. In addition, under this rule, CBP will 
continue to provide a paper Form I-94 to those travelers who request 
it. CBP is providing this flexibility as a way to minimize the effect 
on those who face obstacles to accessing their electronic Form I-94. As 
CBP does not expect many aliens to request a paper Form I-94, the cost 
to CBP for printing and data entry is minimal. Eliminating the paper 
Form I-94 option for refugees, applicants for asylum, parolees, and 
those travelers who request one would not result in a significant cost 
savings to CBP and would harm travelers who have an immediate need for 
an electronic Form I-94 or who face obstacles to accessing their 
electronic Form I-94.
    A second alternative to the rule is to provide a paper Form I-94 to 
any travelers who are not B-1/B-2 travelers. Under this alternative, 
travelers would receive and complete the paper Form I-94 during their 
inspection when they arrive in the United States. The electronic Form 
I-94 would still be automatically created during the inspection, but 
the CBP Officer would need to verify that the information appearing on 
the form matches the information in CBP's systems. In addition, CBP 
would need to write the Form I-94 number on each paper Form I-94 so 
that their paper form matches the electronic record. As noted earlier, 
25.1 percent of aliens are non-B-1/B-2 travelers. Filling out and 
processing this many paper Forms I-94 at airports and seaports would 
increase processing times considerably. At the same time, it would only 
provide a small savings to the individual traveler. As noted in the Net 
Benefits section, the net cost of this rule to temporary workers and to 
those in the ``Other/Unknown'' category of aliens is only $18.04 per 
traveler and the rule has a net benefit to those arriving as students 
or diplomats.

The Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement and Fairness Act 
of 1996. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people).
    This rule primarily regulates individuals and individuals are not 
considered small entities. In addition, the individual travelers may 
obtain a paper Form I-94 upon request, which would eliminate the 
impacts of this rule for those travelers. Employers who have internet 
access may choose to allow their employees to use their internet 
connection to access the employee's electronic Form I-94, but they are 
not required to do so and are therefore not directly regulated by this 
rule. To the extent an employer chooses to assist an employee with 
accessing the internet and printing an I-94, this impact would not rise 
to being an economically significant impact under the RFA. This rule 
also regulates air and sea carriers by eliminating the need for them to 
provide the paper Form I-94 to their passengers. This rule would impact 
all small carriers that transport passengers to the United States. We 
therefore conclude that this rule will have an impact on a substantial 
number of small entities. As stated in the economic impact analysis 
above, we estimate that carriers spend $1.3 million a year printing and 
storing forms for their passengers, based on 2011 passenger volumes. In 
2011, 16,586,753 Forms I-94 provided by carriers were filed at airports 
and seaports. Dividing these figures, we estimate that carriers spent 8 
cents per form in printing and storage costs. Under this rule, carriers 
would no longer need to print and store the Forms I-94, thus 
eliminating these costs. According to a 2008 study by the Department of 
Commerce's Office of Travel and Tourism Industries,\31\ the average 
ticket price for an international traveler traveling to the United 
States is $1,484. The cost to the carrier of printing a Form I-94 is 
less than one hundredth of one percent of the revenue a carrier 
receives from the average passenger. We therefore do not believe that 
this rule will have a significant economic impact on small entities. We 
also note that any impact to small carriers would be purely beneficial. 
CBP certifies that this rule will not have a significant economic 
impact on a substantial number of small entities. CBP welcomes comments 
on this conclusion.
---------------------------------------------------------------------------

    \31\ U.S. Office of Travel and Tourism Industries. 2008. 
``Overseas Travelers to the United States.'' Table 26.
---------------------------------------------------------------------------

Administrative Procedure Act

    The Administrative Procedure Act (APA) generally requires agencies 
to publish a notice of proposed rulemaking in the Federal Register (5 
U.S.C. 553(b))

[[Page 18471]]

and provide interested persons the opportunity to submit comments (5 
U.S.C. 553(c)). However, the APA provides an exception to this prior 
notice and comment requirement for ``rules of agency organization, 
procedure, or practice'' 5 U.S.C. 553(b)(A).
    This interim final rule is a procedural rule promulgated for 
``agency housekeeping'' and efficiency purposes. CBP believes that will 
not affect the substantive rights or interests of the public.
    Once effective, the rule will change ``the manner'' in which 
arriving aliens present information to CBP, but will not ``alter the 
rights or interests'' of those aliens as they seek admission to the 
United States. Such arriving aliens will no longer be required to 
complete and submit the paper Form I-94. Instead, the information 
previously collected by the paper I-94 will now be automatically 
populated into a new electronic format, which will be printable from 
CBP's Web site: www.cbp.gov/i94.
    The rule neither affects the substantive criteria by which CBP 
officers inspect aliens upon arrival nor the nature of the information 
at CBP's disposal.

Privacy

    CBP will ensure that all Privacy Act requirements and policies are 
adhered to in the implementation of this rule, and will be issuing a 
Privacy Impact Assessment (PIA), which will fully outline how CBP will 
ensure compliance with Privacy Act protections. The PIA will examine 
the privacy impact of the Form I-94 automation process as it relates to 
DHS's Fair Information Practice Principles (FIPPs). The FIPPs account 
for the nature and purpose of the information being collected in 
relation to DHS's mission to preserve, protect, and secure. The PIA 
will address such issues as the security, integrity, and sharing of 
data, use limitation, and transparency. The PIA will be made available 
at: http://www.dhs.gov/privacy-documents-us-customs-and-border-protection.

Paperwork Reduction Act

    The collection of information regarding the CBP Form I-94 (Arrival/
Departure Record) was previously reviewed and approved by OMB in 
accordance with the requirements of the Paperwork Reduction Act of 1995 
(44 U.S.C. 3507) under OMB Control Number 1651-0111. This OMB Control 
Number also includes the Electronic System for Travel Authorization 
(ESTA), ESTA fee, and Form I-94W, all of which are unaffected by this 
rule. In addition, information for the electronic Form I-94 will be 
comprised of information already collected for APIS under approval 
1651-0088. An agency may not conduct, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number assigned by OMB.
    The automation of the paper Form I-94 for commercial aircraft and 
vessel passengers in accordance with this Interim Final Rule would 
result in an estimated reduction of 9.6 million Forms I-94 completed by 
paper, and an estimated reduction of 1,276,800 burden hours. The 
remaining estimated burden associated with the Form I-94, which would 
be for aliens arriving at the land border, is as follows:
    Estimated Number of Respondents: 4,400,000.
    Estimated Number of Total Annual Responses: 4,400,000.
    Estimated Time per Response: 8 minutes.
    Estimated Total Annual Burden Hours: 585,200.
    CBP will make the electronic Form I-94 available to aliens on a 
secure Web site. Passengers may log into the Web site using 7 pieces of 
basic identifying information that is either known to the traveler 
(their first name, last name and date of birth) or readily available on 
their passport (passport number, country of issuance, date of entry, 
and class of admission). This information will be used only to grant 
the passenger access to the Web site. CBP estimates that it will take 
the traveler 4 minutes to log into the Web site using identifying 
information and print the electronic form. Because so many parties at 
various levels of government and outside of the government use the Form 
I-94, CBP cannot estimate how many aliens who are not B-1/B-2 travelers 
will access the Web site. Because we do not know how many people need a 
physical copy of their Form I-94 or how many face obstacles to 
accessing their electronic I-94, for the purposes of this analysis, we 
assume that every traveler, other than B-1/B-2 travelers, who currently 
receives a paper Form I-94 will log into the Web site to print off 
their electronic Form I-94. In 2013, we estimate this to be 5,047,681 
travelers. We request comments on the number of travelers that will 
access the Web site and will amend this number accordingly in the final 
rule. The estimated burden associated with the Web site, is as follows:
    Estimated Number of Respondents: 5,047,681.
    Estimated Number of Total Annual Responses: 5,047,681.
    Estimated Time per Response: 4 minutes.
    Estimated Total Annual Burden Hours: 336,512
    The automation of the paper Form I-94 for commercial aircraft and 
vessel passengers in accordance with this Interim Final Rule would 
result in an estimated reduction of 10,918 million Forms I-102 filed, 
and an estimated reduction of 4,541.89 burden hours. The collection of 
information regarding the Form I-102 was previously reviewed and 
approved by OMB in accordance with the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507) under OMB Control Number 1615-
0079. The remaining estimated burden associated with the Form I-102, 
which would be for aliens arriving at the land border, is as follows:
    Estimated Number of Respondents: 6,782.\32\
---------------------------------------------------------------------------

    \32\ As discussed earlier, CBP uses a slightly different figure 
in its regulatory analysis because the analysis is based on a 
calendar year basis which USCIS's estimates are on a fiscal year 
basis.
---------------------------------------------------------------------------

    Estimated Number of Total Annual Responses: 6,782.
    Estimated Time per Response: 25 minutes.
    Estimated Total Annual Burden Hours: 2,821.31.
    The Exhibit 15 summarizes the difference in the burden for the 
current process and the future process. As OMB Control Number 1651-0111 
includes ESTA and I-94W, we include those burden hours for 
informational purposes. We note that these burden hours are unaffected 
by this rule.

                                   Exhibit 15 PRA--Burden Effects of the Rule
----------------------------------------------------------------------------------------------------------------
                                                          Collection                Respondents    Burden hours
----------------------------------------------------------------------------------------------------------------
Pre-IFR....................................  I-94...............................      14,000,000       1,862,000
                                             Website............................               0               0
                                             I-102..............................          17,700           7,363

[[Page 18472]]

 
                                             ESTA...............................      19,140,000       4,785,000
                                             I-94W..............................         100,000         333,147
IFR........................................  I-94...............................       4,400,000         586,667
                                             Website............................       5,047,681         336,512
                                             I-102..............................           6,782           2,821
                                             ESTA...............................      19,140,000       4,785,000
                                             I-94W..............................         100,000          13,333
Difference.................................  I-94...............................      -9,600,000      -1,275,333
                                             Website............................       5,047,681         336,512
                                             I-102..............................         -10,918          -4,542
                                             ESTA...............................               0               0
                                             I-94W..............................               0               0
----------------------------------------------------------------------------------------------------------------

    Comments concerning the accuracy of this cost estimate and 
suggestions for reducing this burden should be directed to the Office 
of Management and Budget, Attention: Desk Officer for the Department of 
Homeland Security, Office of Information and Regulatory Affairs, 
Washington, DC 20503. A copy should also be sent to Regulations and 
Rulings, Office of International Trade, U.S. Customs and Border 
Protection, Attention: Border Security Regulations Branch, 90 K Street 
NE., 10th Floor, Washington, DC 20229.
    CBP has included a copy of the current paper Form I-94 on the 
docket for this rulemaking in the supporting documents section. CBP 
seeks comments on whether the instructions included on the form are 
sufficient or whether they should be revised for clarity in light of 
the automation. Comments on the instructions should be submitted to CBP 
as described in the ADDRESSES portion of this rule above.

List of Subjects

8 CFR Part 1

    Administrative practice and procedure, Immigration.

8 CFR Part 264

    Aliens, Reporting and recordkeeping requirements.

Amendments to the Regulations

    For the reasons discussed in the preamble and under the authority 
of 8 U.S.C. 1103, CBP amends 8 CFR chapter 1 as set forth below.

PART 1--DEFINTIONS

0
1. The general authority for part 1 continues to read as follows:

    Authority:  8 U.S.C. 1101; 8 U.S.C. 1103; 5 U.S.C. 301; Pub. L. 
107-296, 116 Stat. 2135; 6 U.S.C. 1 et seq.


0
2. Add Sec.  1.4 to part 1 to read as follows:


Sec.  1.4  Definition of Form I-94

    The term Form I-94, as used in this chapter I, includes the 
collection of arrival/departure and admission or parole information by 
DHS, whether in paper or electronic format, which is made available to 
the person about whom the information has been collected, as may be 
prescribed by DHS. The following terms, when used in the context of the 
Form I-94, are clarified as to their meaning to accommodate the 
collection of such information in an electronic format.
    (a) The terms ``annotate,'' ``note,'' ``indicate on,'' ``stamp,'' 
and ``endorse,'' unless used in part 231 of this chapter, include, but 
are not limited, to DHS amending, including or completing information 
in its electronic record of admission, or arrival/departure. For 
purposes of part 231, the term ``endorse'' includes but is not limited 
to the submission of electronic departure data to CBP.
    (b) The terms ``completed,'' ``completely executed'' and 
``completed and signed'' include, but are not limited to, DHS 
completing its collection of information into its electronic record of 
admission, or arrival/departure.
    (c) The terms ``issuance'' and ``given'' include, but are not 
limited to, the creation of an electronic record of admission, or 
arrival/departure by DHS following an inspection performed by an 
immigration officer.
    (d) The term ``original I-94'' includes, but is not limited to, any 
printout or electronic transmission of information from DHS systems 
containing the electronic record of admission or arrival/departure.
    (e) The terms ``present,'' ``presentation,'' or ``submission'' of a 
Form I-94, unless they are used in Sec.  231.1 or Sec.  231.2 of this 
chapter, include, but are not limited to, providing a printout of 
information from DHS systems containing an electronic record of 
admission or arrival/departure. For purposes of Sec.  231.1 of this 
chapter, the terms ``present'' or ``submission'' of the Form I-94 
includes ensuring that each passenger presents him/herself to a CBP 
Officer for inspection at a U.S. port-of-entry. For the purposes of 
Sec.  231.2 of this chapter, the terms ``present,'' ``submit,'' or 
``submission'' of the Form I-94 includes ensuring that each passenger 
is available for inspection by a CBP Officer upon request.
    (f) The term ``possession'' with respect to a Form I-94 includes, 
but is not limited to, obtaining a copy or printout of the record of an 
electronic evidence of admission or arrival/departure from the 
appropriate CBP systems.
    (g) The terms ``surrendering,'' ``turning in a Form I-94,'' and 
``departure I-94'' includes, but is not limited to, complying with any 
departure controls under 8 CFR part 215 that may be prescribed by CBP 
in addition to the submission of electronic departure data to CBP by a 
carrier.
* * * * *

PART 264--REGISTRATION AND FINGERPRINTING OF ALIENS IN THE UNITED 
STATES

0
3. The general authority for part 264 continues to read as follows:

    Authority:  8 U.S.C. 1103, 1201, 1303--1305; 8 CFR part 2.
* * * * *


Sec. Sec.  210.4, 212.1, 212.4, 212.6, 214.1, 214.2, 214.6, 214.7, 
214.14, 215.8, 231.1, 231.2, 235.1, 245.15, 245.21, 245.23, 245.24, 
245a.1, 245a.2, 245a.4, 245a.15, 247.12, 253.1, 274a.2, and 
286.9  [Amended]

0
4. In the following locations, add ``(see Sec.  1.4)'' after the first 
mention of the term ``I-94'':
0
a. Sec.  210.4(d)(3);
0
b. Sec.  212.1(q)(1)(vi);
0
c. Sec.  212.4(g);
0
d. Sec.  212.6(b)(2)(iii);
0
e. Sec.  214.1(b)(1)(iv);
0
f. Sec.  214.2(b)(2);

[[Page 18473]]

0
g. Sec.  214.6(g)(1);
0
h. Sec.  214.7(c)(2)(i);
0
i. Sec.  214.14(c)(5)(i)(A);
0
j. Sec.  215.8(a)(1);
0
k. Sec.  231.1(b)(1);
0
l. Sec.  231.2(b)(1);
0
m. Sec.  235.1(f)(1)(ii);
0
n. Sec.  245.15(h)(4);
0
o. Sec.  245.21(g)(3);
0
p. Sec.  245.23(e)(1)(vi);
0
q. Sec.  245.24(d)(6);
0
r. Sec.  245a.1(d)(2);
0
s. Sec.  245a.2(b)(8);
0
t. Sec.  245a.4(b)(2)(i)(F);
0
u. Sec.  245a.15(b)(2)(i);
0
v. Sec.  247.12(a);
0
w. Sec.  253.1(a);
0
x. Sec.  274a.2(b)(1)(v)(A)(5); and
0
y. Sec.  286.9(b)(1).

0
5. In Sec.  264.1, add a note to the end of paragraph (b) to read as 
follows:


Sec.  264.1  Registration and fingerprinting.

* * * * *
    (b) * * *

    Note to paragraph (b): In addition to the forms noted in this 
paragraph (b), a valid, unexpired nonimmigrant DHS admission or 
parole stamp in a foreign passport constitutes evidence of 
registration.


Janet Napolitano,
Secretary.
[FR Doc. 2013-06974 Filed 3-26-13; 8:45 am]
BILLING CODE 9111-14-P