[Federal Register Volume 85, Number 222 (Tuesday, November 17, 2020)]
[Proposed Rules]
[Pages 73244-73252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24538]


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DEPARTMENT OF STATE

22 CFR Part 54

[Public Notice: 11237]
RIN 1400-AE37


Passports; Procedures for Passport Couriers

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: The Department of State (the Department) proposes regulations 
to continue a registration program and hand delivery procedures for 
courier companies used by applicants to transport their passport 
applications, and U.S. passports issued to them, to and from 
participating passport agencies. The purpose of these proposed rules is 
to continue the program that was established by policy, to maintain 
vigilance over the security of the passport application process, 
require companies to register with the Department prior to providing 
hand delivery services to certain applicants for U.S. passports, and to 
follow a uniform set of hand delivery procedures.

DATES: Written comments must be received on or before January 19, 2021.

ADDRESSES: Interested parties may submit comments to the Department by 
any of the following methods:
    Visit the Regulations.gov website at: http://www.regulations.gov 
and search for the Regulatory Information Number (RIN) 1400-AE37 or 
docket number DOS-2020-0045.
    Mail (paper, disk, or CD-ROM): Office of Adjudication, Passport 
Services, U.S. Department of State, 44132 Mercure Circle, P.O. Box 
1227, Sterling, VA 20166-1227, ATTN: Courier Regulation.
    Email: [email protected]. You must include the RIN (1400-
AE37) in the subject line of your message.
    All comments should include the commenter's name, the organization 
the commenter represents, if applicable, and the commenter's address. 
If the Department is unable to read your comment for any reason, and 
cannot contact you for clarification, the Department may not be able to 
consider your comment. After the conclusion of the comment period, the 
Department anticipates publishing a final rule (in which it will 
address relevant comments) as expeditiously as possible.

FOR FURTHER INFORMATION CONTACT: Karen A. Pizza, Office of 
Adjudication, [email protected], (202) 485-8800.

SUPPLEMENTARY INFORMATION:

Why is the Department proposing this rule?

    The mission of the Passport Services directorate within the Bureau 
of Consular Affairs, Department of State, is to issue secure travel 
documents while providing the highest level of customer service, 
professionalism, and integrity. Passport Services recognizes that some 
applicants residing in the continental United States who are using 
expedited passport processing (22 CFR 51.56) might want to hire a 
private courier company to deliver their passport applications to a 
domestic passport agency for processing and to retrieve their issued 
passports. This hand delivery program for registered courier companies 
recognizes that for these domestic applicants with urgent travel needs, 
peace of mind comes from the additional support that a courier company 
may offer. Accordingly, this program is limited to applicants 
requesting expedited passport processing, and is available both to 
applicants who are required to submit an application by personal 
appearance pursuant to 22 CFR 51.21 (i.e., a DS-11), (and in these 
cases executed before a designated passport acceptance agent pursuant 
to 22 CFR 51.22(b)), as well as to applicants who may submit a renewal 
passport application pursuant to 22 CFR 51.21(b) (i.e., a DS-82). As 
this program applies only to domestic passport agencies, its scope is 
limited to the continental United States.
    To facilitate the processing of passport applications and promote 
fair and efficient use of Department resources, this rule formalizes 
procedures for private domestic courier companies that applicants use 
to transport their passport applications and issued passports to and 
from domestic passport agencies. The procedures proposed in this 
rulemaking are a formalization and update of practices and procedures 
already in place, which are familiar to private courier companies. 
These procedures will be implemented by domestic passport agencies 
participating in the Department's passport hand delivery program for 
registered courier companies.

How will the program work?

    A courier company must be registered at a passport agency before it 
may hand deliver passport applications or passports to or from that 
passport agency. The courier company must be registered with each 
passport agency at which it proposes to offer hand delivery services.
    The Department will collect identifying information from the 
courier company for its registration and require the courier company to 
certify that the requirements set out in this proposed rule are met by 
all of its employees who will hand deliver passport applications or 
passports. The Department will notify a courier company and the 
passport agency or agencies where its registration is accepted, and the 
start date after which it can provide hand delivery services at each 
agency.
    Passport agencies' resources are utilized to serve customers who 
apply in person at a passport agency, to process applications of 
customers who apply at a passport acceptance facility or renew through 
the mail, and to process applications submitted by registered courier 
companies. The priority is to serve customers with urgent travel who 
apply in person. Passport agencies assign resources to each of these 
work flows based upon historical data and demand projections to best 
meet the needs of U.S. citizens, particularly those with immediate 
travel.
    The total number of companies that may be registered at each 
passport agency will be established by the Department and is based upon 
available

[[Page 73245]]

resources and workload. The passport agency must be able to 
simultaneously provide continued and uninterrupted service to 
applicants who are not utilizing hand delivery services. Once the total 
number of slots allotted for registered companies has been filled, an 
unregistered courier company may request to be placed on the 
Department's waitlist. (A slot is the daily maximum number of passport 
applications that may be submitted to a passport agency.)

What does the passport applicant do?

    In general, domestic passport applicants must apply for a passport 
through the mail or at a passport acceptance facility. Applicants with 
urgent travel plans, as defined by Passport Services on its website, 
travel.state.gov, may apply in person at a domestic passport agency or 
hire a private courier company to submit their applications to the 
passport agency.
    Passport applicants using a form DS-11 to apply for a passport must 
have the application executed by a passport acceptance agent 
(``acceptance agent'') in accordance with 22 CFR 51.21(a). Designated 
passport acceptance facilities are listed on the Department's website 
at travel.state.gov. When an applicant appears before an acceptance 
agent (such as, for example, at a U.S. Post Office), the applicant must 
inform the acceptance agent whether he or she intends to hire a courier 
company to hand deliver the executed application to a passport agency. 
As part of the documentation provided to the acceptance agent, an 
applicant using a courier company must submit a letter of authorization 
authorizing one registered courier company to deliver the application, 
respond to any correspondence from the passport agency concerning the 
application, and retrieve the issued passport and supporting 
documentation on the applicant's behalf. The acceptance agent will seal 
the letter of authorization with the executed passport application and 
release the executed passport application to the applicant, who can 
then give the executed passport application to a private courier 
company registered to provide hand-carry services at a passport agency.
    Passport applicants using a form DS-82 to apply for a renewal 
passport are not required to have the application executed by an 
acceptance agent. Applicants wishing to use a registered courier 
company to deliver the renewal application to a passport agency must 
submit a letter of authorization with their application.

Processing the Passport Application

    A passport agency may only accept hand delivered applications from 
a courier company that is registered with that passport agency. 
Individual employees of the courier company must be certified by the 
company in order to hand deliver applications or issued passports to or 
from the passport agency. Each courier employee must show valid 
government-issued photo identification when delivering applications or 
picking up passports and/or supporting documentation from a passport 
agency.

Continuing as a Registered Courier Company

    The proposed rule provides several requirements that must be met by 
companies and their employees to participate in the program, and 
outlines certain behaviors that could result in a courier company being 
terminated from the program. For example, a registered courier company 
must immediately notify the passport agency or agencies with which it 
is registered of any changes in courier company or employee information 
submitted as part of the registration process.
    Failure to follow the requirements in this proposed rule, including 
the requirements in proposed Sec.  54.30, could result in a courier 
company losing its registration temporarily or permanently with the 
passport agency or agencies where it is registered.
    Although Passport Services would like to enable urgently departing 
citizens to have access to this optional private service, the 
Department's goal is to maintain vigilance over the security of the 
passport application process. These uniform national procedures will 
facilitate the Department's efforts to thwart attempts to distribute 
misinformation to passport applicants, or commit offenses such as fraud 
or identity theft.

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as a proposed rule, with a 
60-day provision for public comments.

Regulatory Flexibility Act/Executive Order 13272: Small Business 
Impacts

    The Department has reviewed this rule and, by approving it, 
certifies that the de minimis cost will not have a significant economic 
impact on a substantial number of small entities as defined in 5 U.S.C. 
601(6). However, to better inform the public as to the costs and 
burdens of this rule, the Department notes that this regulation will 
affect the operations of approximately 370 companies participating in 
the Department's passport hand delivery program for couriers in the 
following ways. The Department welcomes feedback on these estimates.

Numbers of Small Businesses

    Currently, approximately 370 courier companies and 1285 courier 
company employees are registered across the 14 U.S. passport agencies 
that are already participating in the program. Although this regulation 
proposes a new system of allocating slots on an annual first-come, 
first-serve basis, the number of courier companies registered in the 
program is expected to remain relatively constant. Companies in the 
program may include private passport and visa service expediting 
companies, courier and messenger services, travel companies, law firms, 
corporate travel departments, and commercial photography services, 
among others. We estimate that courier companies in this program or 
seeking to enroll in the program have less than 1,500 employees, well 
below the Small Business Administration size standard.

Company and Employee Eligibility for Registration

    To register in this program, courier companies are required to 
provide contact information at participating passport agencies at which 
they wish to register on an annual basis. This proposed rule will also 
require courier company owners to certify that the company has no 
judgments for illegal business practices, that the owners and employees 
are lawfully permitted to work in the United States, do not have a 
record of a felony, or any misdemeanor related to mismanaging funds, 
identity theft, and/or document fraud, and that the owners and 
employees are not under indictment for such an offense. In addition, 
courier company owners will be required to submit a copy of proof of 
the company's registration with the city or state, such as a valid 
business tax certificate or license, issued by the competent state or 
city authority, as appropriate, where each passport agency at which the 
company wishes to register with is located. For example, if a company 
wishes to register at the San Francisco Passport Agency, the company 
must submit a valid San Francisco Business Registration Certificate. 
The Department will only allow the company name listed on the business 
tax certificate or license, including the ``doing business as'' (DBA) 
name when appropriate, to register. The owner listed on the supporting 
document(s) must match that provided in the company's

[[Page 73246]]

registration at a passport agency. This requirement is designed to 
prevent companies from registering under multiple fictitious names to 
acquire more slots. This information will be requested on the DS-5538 
Courier Company Registration Form. The costs associated with 
registering a company are estimated to require 20 minutes, multiplied 
by 370 courier companies, divided by 60 minutes, multiplied by $76.17 
weighted wage, or an annual $9,394.30 hour burden cost, in addition to 
the costs of printing two $.22 pages of the DS-5538 Courier Company 
Registration Form, making a $.22 photocopy of a government-issued photo 
identification card, and making a $.22 photocopy of a valid business 
license, or a total additional cost of $325.60 annually. The business 
license photocopies will be a new cost.
    Employees trusted with delivering applications and retrieving 
issued passports and supporting materials are currently required to 
provide their contact information at the passport agencies where they 
register to perform hand delivery services. Employees may not submit 
applications on behalf of another courier company. Thus, an employee 
may only be registered to submit applications for one company; however, 
a company may register more than one of its employees at a passport 
agency. This requirement is to ensure that the Department can readily 
identify eligible courier company employees who are authorized to hand 
deliver passport applications and retrieve completed passports at a 
passport agency, and to mitigate a common practice among some courier 
companies in which they register employees from other companies to 
provide these services on their behalf. Such employees and/or the 
company owners will be required to certify that they do not have a 
record of a felony, or any misdemeanor related to mismanaging funds, 
identity theft, document fraud, and are not under indictment for such 
an offense. Courier companies will also have to certify that they 
participate in the Department of Homeland Security's E-verify program, 
maintain a drug free work place and provide notice in writing to each 
customer as to whether or not the courier company maintains liability 
insurance. Employers must certify that the employee is legally 
authorized to work in the United States. In addition, employers are 
required to certify that the employee is not subject to a felony, or 
any misdemeanor related to mismanaging funds, identity theft, and/or 
document fraud. This information will be requested on the DS-5539 
Courier Employee Registration Form. The costs associated with 
registering an employee are estimated to require 40 minutes, multiplied 
by approximately 1285 employees, divided by 60 minutes, multiplied by 
$20.19 weighted wage, or an annual $17,296.10 hour burden cost, plus 
additional costs of printing two $.22 pages of the DS-5539 Courier 
Employee Registration Form, and making a $.22 photocopy of a 
government-issued photo identification card, or a total additional cost 
of $848.10 annually.
    The costs associated with participating in the Department of 
Homeland Security's E-verify program will vary based on the number of 
employees a courier company has. There is no fee to participate in the 
program; however, a courier company owner or manager will need to spend 
time registering for the program, learning to use the system, reviewing 
the Memorandum of Understanding signed as part of the program, and 
entering employee data into the E-verify system. Therefore, the 
estimated cost of participating in the program is $406.23 per company, 
plus an additional $30.46 per each employee whose information the 
company must enter into the e-verify system. These costs multiplied by 
370 courier companies with approximately 1285 employees is $189,446.20 
annually.
    The costs associated with complying with the requirements contained 
in the Drug Free Work Place Act, 41 U.S.C. 8102, include developing a 
policy to maintain a drug free workplace, providing written notice to 
employees of the company's policy, providing employees with a drug free 
workplace awareness program, and reporting violations of the drug free 
workplace policy to the Department. The estimated cost of developing 
the drug free workplace awareness program and conducting training for 
employees is $182.73 per company and $13.91 per employee. That cost 
multiplied by 370 courier companies with approximately 1285 employees 
is $85,484.35 annually. The estimated cost of printing the one page 
notice of the drug free work place policy is $.22 per page. Since the 
notice must be provided to an estimated 1285 employees, the total cost 
is $282.70 annually.

Company Participation

    Registered companies participating in this program are required to 
deliver a DS-4283 Courier Drop-Off List with each set of applications 
delivered to a passport agency. The information provided on these forms 
assists the Department in tracking the intake of applications and 
materials delivered by courier companies to a passport agency. The 
costs associated with providing these forms are estimated to require 10 
minutes, multiplied by 238,554 lists received in 2018, divided by 60 
minutes, multiplied by $20.19 weighted wage for employees, or an annual 
$802,734 hour burden cost, plus additional costs of printing one $.22 
page of the DS-4283 Courier Drop-Off List, multiplied by 238,554 DS-
4283 Courier Drop-Off List Forms received by the Department in 2018, or 
a total additional estimated cost of $52,482 annually. This is not a 
new cost. The DS-4283 is currently in use, approved under the Paperwork 
Reduction Act (Office of Management and Budget (OMB) Control No. 1405-
0222).

Unfunded Mandates Reform Act of 1995

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

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by 5 U.S.C. 804 for the 
purposes of Congressional review of agency rulemaking under the Small 
Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801-
808). This rule will not result in an annual effect on the economy of 
$100 million or more; a major increase in costs or prices; or 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of U.S.-based companies to 
compete with foreign-based companies in domestic and export markets.

Executive Order 12866 and 13563

    The Department has reviewed this rule to ensure its consistency 
with the regulatory philosophy and principles set forth in the 
Executive orders and submitted the rule to the Office of Management and 
Budget's Office of Information and Regulatory Affairs.
    The Department requires company owners and employees to submit 
documentation of their eligibility to participate in the program, 
including the submission of a copy of proof of the company's 
registration with the city or state, such as a valid business tax 
certificate or license, issued by the competent state or city 
authority, as appropriate, where each passport

[[Page 73247]]

agency at which the company wishes to register with is located. The 
Department believes that companies already register their business with 
the city or state in which they provide products or services in the 
course of their normal business practices. As a result, the cost to 
companies of providing a photocopy is minimal. This requirement will 
help the Department ensure greater fairness in the distribution of 
slots by preventing companies from registering under multiple 
fictitious names and unfairly obtain additional slots. The cost of 
obtaining a photocopy of proof of city or state registration is 
estimated at $.22 per copy, multiplied by approximately 370 
respondents, or a $81.40 new cost.
    The costs associated with registering a company are estimated to 
require 20 minutes, multiplied by 370 courier companies, divided by 60 
minutes, multiplied by $76.17 weighted wage, or an annual $9,394.30 
hour burden cost, in addition to the costs of printing two $.22 pages 
of the DS-5538 Courier Company Registration Form, making a $.22 
photocopy of a government-issued photo identification card, and making 
a $.22 photocopy of a valid business license, or a total additional 
cost of $325.60 annually.
    The costs associated with registering an employee are estimated to 
require 40 minutes, multiplied by approximately 1285 employees, divided 
by 60 minutes, multiplied by $20.19 weighted wage, or an annual 
$17,296.10 hour burden cost, plus additional costs of printing two $.22 
pages of the DS-5539 Courier Employee Registration Form, and making a 
$.22 photocopy of a government-issued photo identification card, or a 
total additional costs of $848.10 annually.
    The costs associated with participating in the Department of 
Homeland Security's E-verify program will vary based on the number of 
employees a courier company has. There is no fee to participate in the 
program; however, a courier company owner or manager will need to spend 
time registering for the program, learning to use the system, reviewing 
the Memorandum of Understanding signed as part of the program, and 
entering employee data into the E-verify system. Therefore, the 
estimated cost of participating in the program is $406.23 per company, 
plus an additional $30.46 per each employee whose information the 
company must enter into the E-verify system. These costs multiplied by 
370 courier companies with approximately 1285 employees is $189,446.20 
annually.
    The costs associated with complying with the requirements contained 
in the Drug Free Work Place Act, 41 U.S.C. 8102, include developing a 
policy to maintain a drug free workplace, providing written notice to 
employees of the company's policy, providing employees with a drug free 
workplace awareness program, and reporting violations of the drug free 
workplace policy to the Department. The estimated cost of developing 
the drug free workplace awareness program and conducting training for 
employees is $182.73 per company and $13.91 per employee. That cost 
multiplied by 370 courier companies with approximately 1285 employees 
is $85,484.35 annually. The estimated cost of printing the one page 
notice of the drug free work place policy is $.22 per page. Since the 
notice must be provided to an estimated 1285 employees, the total cost 
is $282.70 annually.
    Under E.O. 12866 and OMB Circular A-4, agencies are encouraged to 
consider alternative solutions to the proposed regulatory action. The 
Department of State considered, but is not proposing at this time, 
allocating available slots through an alternative mechanism other than 
``first come, first serve,'' as described above. First, the Department 
considered assigning a fee to each slot in alignment with full cost 
recovery to the Department of State, as described in OMB Circular A-25 
(``A user charge . . . will be assessed against each identifiable 
recipient for special benefits derived from Federal activities beyond 
those received by the general public.''). A user fee would ensure that 
the special benefits provided by being a registered passport courier 
with access to slots for passport application submission would align 
with the costs the Department of State incurs by dedicating staff time 
and resources for this service.
    Additionally, the Department considered, but does not propose, 
allowing for distribution of slots amongst couriers via annual 
auctioning, permit trading, or other market-based solutions. The 
Department of State broadly solicits comment on its approach, including 
the alternatives discussed in this section, for how it will allocate 
slots via this program. The Department specifically seeks comment 
regarding:
     Should the Department charge a fee on a per-registration 
or per-slot basis? If so, the Department would rely on its Cost of 
Service Model to estimate the costs of this service and set the fee, 
but the Department seeks further comment regarding any additional 
considerations that could bear on where such a fee would be set?
     How should slots be allocated to passport courier firms? 
Are you aware of other allocation systems?

Executive Orders 12372 and 13132--Federalism

    This regulation will not have substantial direct effects on the 
states, on the relationship between the National Government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this regulation.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

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

Paperwork Reduction Act

    The information collection contained in this proposed rule is 
pursuant to the Paperwork Reduction Act (PRA), 44 U.S.C. Chapter 35, 
and, if approved, will be assigned an OMB Control Number. As part of 
this rulemaking, the Department is seeking comment on the 
administrative burden associated with this collection of information. 
This proposed rule requires certain collections of information and the 
Department has submitted an information collection request to OMB for 
review and approval under the PRA.
    This information collection will provide a way for courier 
companies to register with the Department to provide hand delivery 
passport courier services to the public. Note that OMB Control No. 
1405-0222, Courier Drop-Off List for U.S. Passport Applications also 
relates to this rulemaking.
    (1) Type of Information Collection: New.
    (2) Title of the Form/Collection: Passport Hand Delivery Program 
for Couriers.
    (3) Agency form numbers: DS-5538 Courier Company Registration Form, 
DS-5539 Courier Employee Registration Form, DS-4283 Courier Drop-off 
List.

[[Page 73248]]

    (4) Affected public: This information collection will be used by 
courier company owners and their employees.
    (5) An estimate of the total number of respondents: The Department 
estimates a total of 370 respondents per year.
    (6) An estimate of the total annual public burden (in hours) 
associated with the collection: The average burden associated with the 
DS-5538 Courier Company Registration Form information collection is 
estimated to be 20 minutes per respondent. As there are 370 registered 
companies, the Department estimates the total annual burden for this 
information collection to be 123.3 hours. The average burden associated 
with the DS-5539 Courier Employee Registration Form information 
collection is estimated to be 40 minutes per respondent, and 1285 
employees currently participate in the program. Therefore, the 
Department estimates the total annual burden for this information 
collection to be 856.67 hours.
    (9) Submit comments to both OMB and the Department of State by the 
following methods:
    Office of Management and Budget (OMB):
    [cir] Email: [email protected]. You must include the DS 
form number, information collection title, and the OMB control number 
in the subject line of your message.
    [cir] Fax: 202-395-5806. Attention: Desk Officer for Department of 
State.
    Department of State:
     Web: Persons with access to the internet may view this 
notice and provide comments by going to the regulations.gov website at: 
http://www.regulations.gov/index.cfm. Search for Docket No. DOS-2020-
0045 or for RIN number 1400-AE37.
     Mail: Office of Adjudication, Passport Services, U.S. 
Department of State, 44132 Mercure Circle, P.O. Box 1227, Sterling, VA 
20166-1227, ATTN: Courier Regulation, Email: [email protected]:--
You must include the DS form number, information collection title, and 
the OMB control number in any correspondence.
    (8) The Department seeks public comment on:
     Whether the collection of information is necessary for the 
proper performance of the functions of the Department, including 
whether the information will have practical utility;
     the accuracy of the Department's estimate of the burden of 
the collection of information, including the validity of the 
methodology and assumptions used;
     the quality, utility, and clarity of the information to be 
collected;
     how to minimize the burden of the collection of 
information on those who are to respond, including through the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses;
     should the Department charge a fee on a per-registration 
or per-slot basis? If so, the Department would rely on its Cost of 
Service Model to estimate the costs of this service and set the fee, 
but the Department seeks further comment regarding any additional 
considerations that could bear on where such a fee would be set.
     how should slots be allocated to passport courier firms? 
Are you aware of other allocation systems?
    Abstract of proposed collection:
    This information collection will enable companies to register to 
participate in the Department's passport hand delivery program for 
couriers, as well as certify that they and their employees meet the 
Department's requirements for the program.
    Methodology:
    The forms introduced by this information collection will be made 
available online on the Department's website and upon request at 
participating passport agencies, and must be submitted to the 
Department as noted in this rule.

List of Subjects in 22 CFR Part 54

    Administrative practice and procedure, Passports.

    Accordingly, for the reasons stated in the preamble, 22 CFR part 54 
is proposed to be added to read as follows:

PART 54--PROCEDURES FOR REGISTERED COURIERS

Subpart A--General
Sec.
54.10 Purpose.
54.11 Definitions.
Subpart B--Requirements for Courier Companies
54.20 Courier company registration.
54.21 Submitting applications to a participating passport agency.
54.22 Annual company registration and allocation of slots.
Subpart C--Courier Company and Employee Conduct
54.30 Requirements for registered courier companies and employees.
54.31 Administrative review of restrictive actions.

    Authority: 22 U.S.C. 2651a; 22 U.S.C. 211a, 213; 22 U.S.C. 2670; 
E.O. 11295, 31 FR 10603, 3 CFR, 1966-1970 Comp., p. 570.

Subpart A--General


Sec.  54.10  Purpose.

    To facilitate the processing of passport applications and promote 
fair and efficient use of Department of State (the Department) 
resources, this part establishes certain procedures for courier 
companies used by applicants residing in the continental United States 
at participating domestic passport agencies to hand deliver their 
passport applications and obtain issued passports.


Sec.  54.11  Definitions.

    For the purposes of this part, the following definitions apply:
    (a) Hand delivery services refers to the written authorization 
given by an applicant to a courier company to deliver a passport 
application to the Department for processing, to correspond with the 
Department about the passport application, and to retrieve an issued 
passport and supporting documentation on behalf of the applicant.
    (b) Registration to provide hand delivery services refers to the 
written permission given by the Department to a courier company to 
perform hand delivery services for passport applicants at a 
participating domestic passport agency or agencies.
    (c) Slot(s) refers to the daily maximum number of passport 
applications by service type (i.e., Same-Day, Two-Day, Three-Day, and 
Expedited Mail-Outs) that the Department permits a courier company to 
hand deliver at a passport agency. A slot is a privilege; it does not 
constitute property and the courier company to which it is temporarily 
allocated does not obtain a protected property interest. Slots may be 
granted, withdrawn, or reallocated by the Department at its discretion 
consistent with the provisions of Sec.  54.22.
    (d) Categorical limits refer to the restrictions on slot service 
type. The Department may alter categorical limits at each passport 
agency at its discretion, consistent with the provisions of Sec.  
54.22.
    (e) Wait list refers to the list maintained by the Department that 
ranks the order of courier companies that applied to register with the 
Department pursuant to Sec.  54.20 but did not receive slots.
    (f) National Courier Program refers to those domestic passport 
agencies that permit courier companies to hand-deliver passport 
applications and retrieve completed passports at their agencies, 
courier companies, and employees who are registered at participating 
domestic passport

[[Page 73249]]

agencies, and the requirements and procedures that must be followed in 
order for a registered courier company to hand deliver passport 
applications and retrieve completed passports at a passport agency.
    (g) Customer refers to any passport applicant for whom a courier 
company provides hand delivery services.
    (h) Employee refers to any individual who, under the usual common 
law rules applicable in determining the employer-employee relationship, 
has the status of an employee, as well as any individual who performs 
services for remuneration for a courier company.
    (i) Owner refers to a corporation, S corporation, partnership, and 
association, as well as a natural person who owns a courier company.
    (j) Courier company refers to a private-sector entity that charges 
a passport applicant a service fee for hand delivering his or her 
passport application to a domestic U.S. passport agency and retrieving 
the completed passport and/or related documents on behalf of the 
applicant. The service fee charged by a courier company is in addition 
to the passport fees collected by the Department of State for 
processing a passport application.

Subpart B--Requirements for Courier Companies


Sec.  54.20  Courier company registration.

    (a) A list of passport agencies participating in the Department's 
National Courier Program will be provided on the Department's website, 
www.travel.state.gov. This list is subject to change at the 
Department's discretion.
    (b) The Department will determine which passport agencies will 
participate and the number of courier companies that may be registered 
at any given time on an annual basis, consistent with Sec.  54.22. A 
courier company that does not receive registration in a calendar year 
may be placed on a wait list in rank order, based on the time and date 
the Department received the courier company's registration documents.
    (c) Only courier companies that are registered at a passport agency 
may hand deliver passport applications and pick up completed passports 
and/or related documents on behalf of the applicants. Non-registered 
courier companies are prohibited from hand delivering passport 
applications to a passport agency.
    (d) To register, a courier company must submit a registration 
package to the Department that includes:
    (1) Courier company and employee identifying information;
    (2) A certification that the courier company owner:
    (i) Does not have a record of either a Federal or state felony 
conviction, or a misdemeanor conviction for embezzlement, identity 
theft, misappropriation, document fraud, or dishonesty in carrying out 
a responsibility involving public trust; and
    (ii) Is not currently under indictment for a felony or a 
misdemeanor for embezzlement, identify theft, misappropriation, 
document fraud, or dishonesty in carrying out a responsibility 
involving public trust;
    (3) Certifications that each employee performing hand-carry 
services:
    (i) Is legally authorized to work in the United States;
    (ii) Does not have a record of either a Federal or state felony 
conviction, or a misdemeanor conviction for embezzlement, identity 
theft, misappropriation, document fraud, or dishonesty in carrying out 
a responsibility involving public trust; and
    (iii) Is not currently under indictment for a felony, or a 
misdemeanor for embezzlement, identify theft, misappropriation, 
document fraud, or dishonesty in carrying out a responsibility 
involving public trust; and
    (4) Certifications that each courier company:
    (i) Is enrolled in the Department of Homeland Security's E-Verify 
System; and
    (ii) Provides notice in writing to each customer as to whether or 
not the courier company maintains liability insurance that would cover 
losses to customers resulting from action or inaction on the part of 
courier company owners or employees.
    (5) Courier companies must also certify that the company maintains 
a Drug Free Workplace by:
    (i) Publishing a statement notifying its employees that the 
unlawful manufacture, distribution, dispensation, possession, or use of 
a controlled substance is prohibited in the company's workplace, and 
specifying the actions that will be taken against employees for 
violations of such prohibition;
    (iii) Establishing an ongoing drug-free awareness program to inform 
its employees about:
    (A) The dangers of drug abuse in the work place;
    (B) The company's policy of maintaining a drug-free workplace;
    (C) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (D) The penalties that may be imposed upon employees for drug abuse 
violations in the workplace;
    (iii) Providing all employees with a copy of the statement required 
by paragraph (d)(5)(i) of this section;
    (iv) Notifying its employees in writing about--
    (A) The company's policy of maintaining a drug-free workplace;
    (B) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (C) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (v) Notifying all employees in writing, that as a condition of 
employment, the employee will--
    (A) Abide by the terms of the statement required by paragraph 
(d)(5)(i) of this section; and
    (B) Notify the employer in writing of the employee's conviction 
under a criminal drug statute for a violation occurring in the 
workplace no later than five days after such conviction;
    (vi) Notifying the Department in writing within ten days after 
receiving notice of an employee's conviction under a criminal drug 
statute for a violation occurring in the workplace. The notice shall 
include the position title of the employee; and
    (vii) Within 30 days after receiving notice under paragraph 
(d)(5)(v) of this section of a conviction, taking one of the following 
actions with respect to any employee who is convicted of a drug abuse 
violation occurring in the workplace:
    (A) Taking appropriate personnel action against such employee, up 
to and including termination; or
    (B) Requiring such employee to satisfactorily participate in a drug 
abuse assistance or rehabilitation program approved for such purposes 
by a Federal, State, or local health, law enforcement, or other 
appropriate agency.
    (6) A copy of proof of the company's registration with the city or 
state, such as a valid business tax certificate or license, issued by 
the competent state or city authority, as appropriate, where each 
passport agency at which the company wishes to register with is 
located. For example, if a company wishes to register at the San 
Francisco Passport Agency, the company must submit a valid San 
Francisco Business Registration Certificate.
    (i) The Department will only allow the company name listed on the 
business tax certificate or license, including the ``doing business 
as'' (DBA) name when appropriate, to register.

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    (ii) The owner(s) listed on these documents must match the owner(s) 
listed on the courier company's registration.
    (e) The Department may not register a courier company with 
outstanding judgments that were based on illegal business practices, or 
a courier company that is owned or operated by an individual who has 
owned or operated a courier company that was permanently banned from 
hand delivering passport applications to a passport agency.
    (f) A courier company must notify the Department in writing and 
within 14 calendar days of any changes to the responses provided on or 
in support of company or employee registrations, including changes in 
ownership, acquisition, merger, or ``doing business as'' (DBA) name, as 
well as company and employee eligibility certifications. The successor 
courier company must resubmit a new registration package, including 
employee certifications, under the new courier company's name. Slots 
are not a property interest and are not transferrable. Courier 
companies and employees must remain eligible to participate in the 
Department's National Courier Program at all times.
    (g) The Department may cancel the registration of any registered 
courier company that fails to submit a completed passport application, 
using their allotted slots, within 30 consecutive calendar days. The 
cancellation is effective the day the Department sends written 
notification to the courier company.


Sec.  54.21  Submitting applications to a participating passport 
agency.

    (a) A courier company must be registered at each participating 
passport agency where it performs hand delivery services. Courier 
companies that attempt to hand deliver passport applications at a 
passport agency where they are not registered are subject to permanent 
ban from participation in the Department's National Courier Program, at 
the Department's discretion.
    (b) Each passport application hand delivered to a participating 
passport agency by a registered courier company must include:
    (1) A letter of authorization permitting the registered courier 
company to deliver the passport application, correspond with the 
Department about the passport application, and retrieve the issued 
passport and associated documents.
    (2) Documentation showing that the passport applicant is departing 
the United States within 14 calendar days or needs a passport within 
four weeks to obtain a foreign visa.
    (c) When picking up passports and supporting documentation at the 
passport agency, courier company employees must show valid government-
issued photo identification.
    (d) Courier companies must return undeliverable passports and 
supporting documentation within 14 calendar days of pick-up to the 
passport agency that issued the passports.
    (e) A courier company must notify applicants within 24 hours of 
becoming aware of any passports and/or passport applications that are 
damaged, lost, or stolen while in the courier company's possession.
    (f) A courier company must not make, accept, maintain, or submit 
copies of passports, passport applications, or supporting 
documentation, except as provided in procedures established by the 
Department described in paragraph (g) of this section.
    (g) In addition to the regulations in paragraphs (a) through (g) of 
this section, the Department may establish hand delivery procedures for 
registered couriers that are consistent with the requirements contained 
in this part. Courier companies and their employees that fail to follow 
these procedures may be subject to the penalties described in Sec.  
54.30. The Department will provide these procedures in writing to 
registered courier companies, and send written notification to 
registered courier companies of any updates to these procedures at 
least 30 calendar days in advance of implementing changes.


Sec.  54.22  Annual company registration and allocation of slots.

    (a) The Department will determine the total number of slots 
available to courier companies and establish categorical limits.
    (b) During the annual registration period, company owners must 
submit a DS-5538 form for themselves and a DS-5539 form for each 
designated employee with all requested information and supporting 
documentation. Registration will be on a first-come, first-served 
basis, until the maximum number of registered companies at a passport 
agency has been reached. A company's rank order will be determined 
according to the date and time that the Department received a company's 
complete registration submission. The Department will not process any 
incomplete submission nor will it retain partial documents.
    (c) Slots will be distributed equally among registered courier 
companies.
    (d) The Department will, at least once per year, reassess workload, 
resources, slot allocation, slot usage, the number of registered 
courier companies, and the number of wait-listed courier companies to 
determine whether slots or categorical limits should be increased, 
decreased, or redistributed. The Department will send written notice to 
affected courier companies of any changes to the courier company's slot 
allocation or categorical limits at least 30 calendar days in advance 
of implementing such changes.
    (e) If additional slots become available, they will be allocated to 
courier companies in the order dictated by the wait list. Wait-listed 
courier companies must confirm they will accept the available slots and 
send written notice to the Department of any updates to their 
registration submissions within 30 calendar days. Wait-listed courier 
companies will not be permitted to perform hand delivery services until 
their registration is updated and acknowledged by the Department in 
writing. Wait-listed courier companies that fail to provide such 
documentation in the required timeframe will forfeit the available 
slots, and the Department will then make the slots available to the 
next courier company on the wait list.
    (f) If no courier companies are on a wait list, any additional 
slots that become available at a passport agency will be distributed 
among courier companies registered at the passport agency according to 
their date of registration, with the oldest registered courier company 
receiving slots first.
    (g) Courier companies that submit more applications than their 
allocated slots or categorical limits permit, or otherwise attempt to 
circumvent their submission maximums in any way, may face restrictions 
in their registration, as provided in Sec.  54.30.

Subpart C--Courier Company and Employee Conduct


Sec.  54.30  Requirements for registered courier companies and 
employees.

    (a) Courier companies are responsible for their employees' conduct 
and for ensuring that their employees do not violate the rules set 
forth in this part or the Department's hand delivery procedures for 
registered couriers described in Sec.  54.21(g). Courier companies must 
immediately report any employee conduct that violates this part or the 
Department's hand delivery procedures for registered couriers described 
in Sec.  54.21(g) to the Department. Failure to do so may result in 
penalties in accordance with this section.
    (b) Failure to follow any of the requirements of this part or the

[[Page 73251]]

Department's hand delivery procedures for registered couriers described 
in Sec.  54.21(g) may result in the courier company and/or employee 
receiving a warning, suspension, cancellation of registration, or 
permanent ban from the Department's National Courier Program. Where a 
particular action arises, which in the Department's view, compromises 
the integrity of the program, passport application, or issued passport 
in a manner not described in this part, the Department will take action 
at its discretion. The Department will notify the courier company and/
or employee of relevant penalties in writing. The notification will set 
forth the specific reasons for the penalty and the procedures for 
review available under Sec.  54.31.
    (c) While the Department may exercise discretion in assessing 
penalties for each violation, examples of violations which may trigger 
penalties ranging from a written warning to a permanent ban include but 
are not limited to:
    (1) Failing to abide by submission, pick-up, or waiting room 
conduct requirements. Failing to abide by any of the submission or 
pick-up requirements outlined in this part or the Department's hand 
delivery procedures for registered couriers described in Sec.  
54.21(g).
    (2) Copying passport applications. Making copies of and/or faxing 
passport applications or supporting materials, except as provided in 
the Department's hand delivery procedures for registered couriers 
described in Sec.  54.21(g).
    (3) Submitting courier company checks that cannot be cashed. 
Submitting a courier company check that is returned for any reason.
    (4) Attempting to circumvent slot or categorical limits. Attempting 
to circumvent or bypass slot or categorical limits by any means.
    (5) Selling or swapping slots. Attempting to sell or swap slots 
between courier companies.
    (6) Providing misleading information regarding a courier company's 
relationship with the Department. Implying, misrepresenting, or 
misleading in speech, print, electronic, or any other form of 
communication, a courier company's relationship or status with a 
particular passport agency or the Department. A courier company may 
state that it is ``registered'' at a particular passport agency, but 
may not state that it is ``authorized'' or ``approved by'' the U.S. 
Government, the Department, or a particular passport agency. Use of the 
Department official seal (or the Great Seal of the United States, the 
obverse of which is depicted on the covers of U.S. passports) is 
strictly prohibited.
    (7) Providing misleading information regarding a courier company's 
ability to expedite applications or issue passports. Implying, 
misrepresenting, or misleading in speech, print, electronic, or any 
other form of communication, that the courier company is able to have 
an applicant's passport processed more quickly than if the applicant 
applied directly at a passport agency; or that the courier company 
executes, adjudicates, or prints passports. All applicants receive the 
same timeliness of service by the Department based on the urgency of 
travel needs.
    (8) Returning undeliverable passports and supporting documentation 
to a passport agency after 14 days. Failing to return undeliverable 
passport(s) and supporting documentation within 14 calendar days of 
pickup to the passport agency that issued the passport when the 
applicant cannot be located.
    (9) Leaving passport application materials or passports unattended. 
Losing control of passport applications, passports, correspondence, or 
supporting documentation while such documents are in the custody of a 
courier company.
    (10) Failing to protect an applicant's personal information. 
Compromising the privacy and integrity of an applicant's personal 
information, including but not limited to selling an applicant's 
personal information to a third party, sharing it with a third party, 
or buying it from a third party; and/or failure to notify an applicant 
that his or her personal information has been lost, stolen, or possibly 
compromised.
    (11) Tampering with passport application materials. Tampering with 
a passport application or misrepresenting facts pertaining to an 
application. This includes, but is not limited to:
    (i) Signing a passport application, a supporting document, or a 
letter of authorization on behalf of another individual;
    (ii) Providing any other false information affecting passport 
application processing or issuance, including a fake itinerary;
    (iii) Opening a sealed envelope containing an executed passport 
application; or
    (iv) Providing a photo of an individual other than the applicant.
    (12) Depositing applicant funds into account. Depositing funds 
intended for the Department or any passport agency into a business or 
personal account.
    (13) Retaining an application five days after its execution or 
signature. Failing to timely submit passport applications to a passport 
agency after an applicant's personal appearance before a passport 
acceptance agent in accordance with Sec.  51.21(a), or after the 
applicant signs a renewal passport application in accordance with Sec.  
51.21(b).
    (14) Executing an application. Executing a passport application for 
an applicant.
    (15) Coaching fraudulent information. Coaching applicants to 
provide fraudulent or misleading information on or in support of a 
passport application. This includes, but is not limited to:
    (i) Knowingly directing an individual to engage fraudulent notarial 
services or to produce a fake travel itinerary; and/or
    (ii) Coaching an individual to make a fraudulent statement on any 
document submitted to a passport agency or sign a document submitted 
with a passport application on behalf of another individual.
    (16) Failure to report changes in ownership. Failing to report 
changes in ownership of a courier company. This includes continuing to 
do business under the name and registration of the previous courier 
company or owner without notifying the Department.
    (17) Providing false information on a registration form/failure to 
report material changes. Submitting false or misleading information or 
failing to report material changes to responses provided on or in 
support of a courier company or employee registration form.


Sec.  54.31   Administrative review of restrictive actions.

    (a) A courier company and/or employee whose registration has been 
suspended, cancelled, or permanently banned may send a written request 
for an administrative review to the Department within 14 calendar days 
of receipt of the notice of such restrictive action. The request must 
include a written, sworn statement or declaration submitted under 
penalty of perjury, describing the events at issue and providing 
reasons that the courier company and/or employee believes it/he/she 
should not be found in violation of the requirements of this part and/
or the Department's hand delivery procedures for registered couriers 
described in Sec.  54.21(g).
    (b) Upon examining the materials provided by the courier company 
and/or employee and the relevant documentation of the incident 
forwarded by the passport agency, a review board consisting of at least 
three members of the Department will submit a written recommendation to 
the Managing Director for Passport Issuance Operations. After reviewing 
the request

[[Page 73252]]

for an administrative review and the recommendation of the review 
board, the Managing Director for Passport Issuance Operations will 
decide whether to uphold the suspension, cancellation, or permanent ban 
of the courier company's and/or employee's registration to provide hand 
delivery services.
    (c) The Department will promptly notify the courier company and/or 
employee of the decision in writing. If the decision upholds the 
Department's action, the notification will contain the reasons for the 
decision. The decision is final and not subject to further 
administrative review.

Carl Risch,
Assistant Secretary, Consular Affairs, Department of State.
[FR Doc. 2020-24538 Filed 11-16-20; 8:45 am]
BILLING CODE 4710-06-P