80_FR_51628 80 FR 51464 - Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates

80 FR 51464 - Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates

DEPARTMENT OF STATE

Federal Register Volume 80, Issue 164 (August 25, 2015)

Page Range51464-51466
FR Document2015-21042

This rule adopts as final the interim final rule published in the Federal Register on August 28, 2014. Specifically, the rule implemented changes to the Schedule of Fees for Consular Services (``Schedule'') for a number of different fees. This rulemaking addresses public comments and adopts as final the changes to these fees.

Federal Register, Volume 80 Issue 164 (Tuesday, August 25, 2015)
[Federal Register Volume 80, Number 164 (Tuesday, August 25, 2015)]
[Rules and Regulations]
[Pages 51464-51466]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21042]



[[Page 51464]]

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DEPARTMENT OF STATE

22 CFR Part 22

[Public Notice: 9230]
RIN 1400-AD47


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

AGENCY: Department of State.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule adopts as final the interim final rule published in 
the Federal Register on August 28, 2014. Specifically, the rule 
implemented changes to the Schedule of Fees for Consular Services 
(``Schedule'') for a number of different fees. This rulemaking 
addresses public comments and adopts as final the changes to these 
fees.

DATES: The Effective date of the final rule published in the Federal 
Register of August 28, 2014 (79 FR 51247) is confirmed effective 
September 6, 2014.

FOR FURTHER INFORMATION CONTACT: Jill Warning, Office of the 
Comptroller, Bureau of Consular Affairs, Department of State; phone: 
202-485-6683, telefax: 202-485-6826; email: [email protected].

SUPPLEMENTARY INFORMATION: For the complete explanation of the 
background of this rule, including the rationale for the change, the 
authority of the Department of State (``Department'') to make the fee 
changes in question, and an explanation of the study that produced the 
fee amounts, consult the prior public notices cited in the 
``Background'' section below.

Background

    The Department published an interim final rule in the Federal 
Register, 79 FR 51247, on August 28, 2014, amending sections of 22 CFR 
part 22. Specifically, the rule amended the Schedule of Fees for 
Consular Services and provided 60 days for comments from the public. 
During this 60-day comment period, more than 70 comments were received, 
either by mail, email, or through the submission process at 
www.regulations.gov.
    This rule establishes the following fees for the categories below:

--Administrative Processing of Formal Renunciation of U.S. Citizenship 
from $450 to $2,350
--E Category Nonimmigrant Visas from $270 to $205
--K Category Nonimmigrant Visas from $240 to $265
--Immigrant Visa Application Processing Fees (per person)
[cir] Immediate relative and family preference applications from $230 
to $325
[cir] Employment-based applications from $405 to $345
[cir] Other immigrant visa applications (including I-360 self-
petitioners and special immigrant visa applicants) from $220 to $205
--Affidavit of Support Review from $88 to $120
--Special Visa Services
[cir] Determining Returning Resident Status from $275 to $180
[cir] Waiver of Two-Year Residency Requirement from $215 to $120
--Consular Time Charges from $231 to $135

    The fee change for the reduced Border Crossing Card fee for Mexican 
citizens under age 15 whose parent or guardian has or is applying for a 
Border Crossing Card is not included in this final rule. This fee was 
included in the interim final rule published in August 2014, and raised 
from $15 to $16. The same month, Congress ordered this fee to be 
increased by $1 pursuant to Section 2 of Public Law 113-160. This 
additional increase was implemented in a final rule published on 
December 31, 2014, which raised this fee from $16 to $17. See 79 FR 
79064. Therefore, this fee is not included in this final rule.
    The original publication of the interim final rule included an 
incorrect effective date of September 6, 2014, for the above changes in 
fees. That date was subsequently corrected, but the correction 
contained an error (erroneously stating ``September 12, 2104''). See 79 
FR 52197. The correct effective date is reflected herein; it is 
September 12, 2014.

Analysis of Comments

    In the 60-day period since the publication of the interim final 
rule, more than 70 comments were received.
    The large majority of the comments received expressed concern about 
the increased fee for the Administrative Processing of Formal 
Renunciation of U.S. Citizenship.
    Most commenters requested to pay a lower fee for the renunciation 
service, suggesting that they be grandfathered in to the previous fee 
of $450. The majority of these commenters had initiated the process of 
renouncing their nationality prior to the announcement of the new 
fee.\1\ Over half of commenters requested to pay the previous fee after 
the new fee went into effect, five commenters asked for earlier 
appointments in order to pay the previous fee, and one commenter 
requested a refund for the difference between the new fee and the 
previous fee. Several commenters characterized the 15-day notice of the 
fee change as unfair and suggested that they should have been notified 
earlier if the fee was likely to change.
---------------------------------------------------------------------------

    \1\ Section 101(a)(22) of the Immigration and Nationality Act 
(INA) states that ``the term `national of the United States' means 
(A) a citizen of the United States, or (B) a person who, though not 
a citizen of the United States, owes permanent allegiance to the 
United States.'' Therefore, U.S. citizens are also U.S. nationals. 
Section 349(a) of the Immigration and Nationality Act (8 U.S.C. 
1481) governs how a U.S. national shall lose U.S. nationality. 
Therefore, the terms ``national'' and ``nationality'' are used 
throughout this rule except for references to specific instances of 
``citizen'' or ``citizenship.''
---------------------------------------------------------------------------

    The Department's policy for citizenship-related services, including 
the Administrative Processing of Formal Renunciation of U.S. 
Citizenship, is to collect the fee in effect at the time that the 
service is provided. Although the renunciation process involves 
multiple steps, the service is rendered when the oath to renounce one's 
nationality is sworn. U.S. nationals who intend to renounce their 
nationality and have a meeting or information session with the consular 
post for that purpose, but who change their minds and do not take the 
oath, are not charged the fee. In the interest of fairness, the 
Department must assess the renunciation fee when the core service is 
performed, rather than upon the provision of information. Therefore, 
the Department does not offer a lower fee or refunds for those who 
receive the renunciation service after the new fee went into effect on 
September 12, 2014. Furthermore, embassies and consulates do not have 
authority to waive the fee, reduce the fee, or provide a refund where 
the fee is properly collected. In addition, although one commenter 
contended that the rule-making process was ``truncated,'' the interim 
final rule was published pursuant to the ``good cause'' exceptions set 
forth at 5 U.S.C. 553(b)(3)(B) and 553(d)(3). The Department deemed 
that delaying implementation would be contrary to the public interest 
because several fees included in this rulemaking pay for consular 
services that are critical to national security. Rules that are exempt 
from notice and comment are often effective immediately upon 
publication, so the 15-day notice in this case was more notice than is 
often provided in such instances.
    More than one-third of the comments suggested that the increased 
fee to process renunciations is a burden. These commenters asserted 
that the new fee is too costly. Some expressed concern about their own 
ability to afford the higher fee, pointing to personal

[[Page 51465]]

circumstances including low income, student status, and senior citizen 
status. In addition, a few of these commenters asserted that 
nationality renunciation is a constitutional or human right. They 
stated that the increased fee acts as a deterrent to renouncing one's 
nationality, thereby violating the right to expatriate, and suggested 
that the renunciation service should be offered at no or low cost. 
Specifically, two commenters cited the Expatriation Act of 1868 and 
Universal Declaration of Human Rights, both of which address the right 
of expatriation.
    In raising the fee to process renunciations, the Department has not 
restricted or burdened the right of expatriation. Further, the fee is 
not punitive, and is unrelated to the IRS tax legislation criticized in 
some comments, except to the extent that the legislation caused an 
increase in consular workload that must be paid for by user fees. 
Rather, the fee is a cost-based user fee for consular services. 
Conforming to guidance from the Office of Management and Budget (OMB), 
federal agencies make every effort to ensure that each service provided 
to specific recipients is self-sustaining, charging fees that are 
sufficient to recover the full cost to the government. (See OMB 
Circular A-25, ] 6(a)(1), (a)(2)(a).) Because costs change from year to 
year, the Department conducts an annual update of the Cost of Service 
Model (CoSM) to obtain the most accurate calculation of the costs of 
providing consular services. In addition to enabling the government to 
recover costs, the study also helps the Department to avoid charging 
consumers more than the cost of the services they consume. In sum, the 
increased fee for processing renunciations is a ``user charge,'' which 
reflects the full cost to the U.S. government of providing the service.
    On a per-service basis, renunciation is among the most time-
consuming of all consular services. In the past, however, the 
Department charged less than the full cost of the renunciation service. 
The total number of renunciations was previously small and constituted 
a minor demand on the Department's resources. Consequently, it was 
difficult to assess accurately the cost of the service. In contrast, in 
recent years, the number of people requesting the renunciation service 
has risen dramatically, driven in part by tax legislation affecting 
U.S. taxpayers abroad, including the Foreign Account Tax Compliance Act 
(FATCA), materially increasing the resources devoted to providing the 
service. At one post alone, renunciations rose from under 100 in 2009 
to more than 1,100 in the first ten months of 2014. Finally, 
improvements to the CoSM made the cost of the renunciation service more 
apparent. For all these reasons, the Department decided to raise the 
fee to reflect the full cost of the service.
    The Department has closely examined comments regarding the right of 
expatriation, which is addressed in the Immigration and Nationality Act 
and the Universal Declaration of Human Rights. The increased fee, 
however, does not impinge on the right of expatriation. Rather, the 
increased fee reflects the amount of resources necessary for the U.S. 
government to verify that all constitutional and other requirements for 
expatriation are satisfied in every case. As described in detail below, 
the process of expatriation for a U.S. national requires a thorough, 
serious, time-consuming process, in view of U.S. Supreme Court 
jurisprudence that declared unconstitutional an involuntary or forcible 
expatriation. In Afroyim v. Rusk, 387 U.S. 253 (1967) and Vance v. 
Terrazas, 444 U.S. 252 (1980), the Supreme Court ruled that 
expatriation requires the voluntary commission of an expatriating act 
with the intention or assent of the citizen to relinquish citizenship. 
It is therefore incumbent upon the Department to maintain and implement 
procedures, as described below, that allow consular officers and other 
Department employees to ensure these requirements are satisfied in 
every expatriation case.
    A few commenters questioned the rationale for raising the 
renunciation fee, seeking more insight into how the fee is determined. 
Some commenters disputed that the higher fee actually represents the 
true cost of processing a renunciation. In particular, one commenter 
applied the Consular Time Charge of $135 to the renunciation fee and 
asked whether the service actually takes 17 hours. Another commenter 
specifically requested more information about the CoSM.
    As described in the interim final rule, the CoSM uses activity-
based costing to identify, describe, assign costs to, and report on 
agency operations. Using a process view, the model assigns resource 
costs such as salaries, travel, and supplies to different activities 
such as adjudicating an application or printing a visa foil. These 
activity costs are then assigned to cost objects, or products and 
services (visas, passports, administrative processing of a 
renunciation), to determine how much each service costs.
    The CoSM demonstrated that documenting a U.S. national's 
renunciation of nationality is extremely costly. The cost of the 
service is not limited to the time consular officers spend with the 
renunciant at the appointment. The application is reviewed both 
overseas and domestically, requiring a substantial amount of time to 
ensure full compliance with the law. Through the provision of 
substantial information and one or two in-person interviews, the 
consular officer must determine that the individual is indeed a U.S. 
national, advise the individual on the consequences of loss of 
nationality, and determine that the individual fully intends to 
relinquish all the rights and privileges attendant to U.S. nationality, 
including the ability to reside in the United States unless properly 
documented as an alien. The consular officer also must determine 
whether the individual is seeking loss of nationality voluntarily or is 
under duress, a process that can be demanding in the case of minors or 
individuals with a developmental disability or mental illness. At the 
oath-taking interview, the consular officer must document the 
renunciation service on several forms signed by the individual seeking 
loss of nationality. The consular officer also must document the 
service in consular systems as well as in memoranda from the consular 
officer to headquarters. All forms and memoranda are closely reviewed 
at headquarters by a country officer and a senior approving officer 
within the Bureau of Consular Affairs, and may include consultation 
with legal advisers within the Bureau of Consular Affairs and the 
Office of the Legal Adviser. Some applications require multiple rounds 
of correspondence between post and headquarters.
    Each individual issued a Certificate of Loss of Nationality also is 
advised of the possibility of seeking a future Administrative Review of 
the loss of nationality, a process that is conducted by the Office of 
Legal Affairs, Directorate of Overseas Citizens Service, Bureau of 
Consular Affairs. This review must consider whether the statute 
pursuant to which the initial finding of loss of nationality was made 
has been deemed to be unconstitutional. The review must also take 
notice of any significant change in the analysis of expatriation cases 
following a holding of the Supreme Court. Furthermore, the review must 
also take notice of any change in the interpretation of expatriation 
law that is adopted by the Department. Lastly, the review must evaluate 
evidence submitted by the expatriate that indicates that his or her 
commission of a statutory act of expatriation was either involuntary or

[[Page 51466]]

done without intending to relinquish his/her U.S. nationality.
    In addition to the time spent processing renunciations overseas and 
domestically, the full cost of processing renunciations includes a 
portion of overhead costs that support consular operations overseas per 
OMB Circular A-25, Revised. These costs include overseas rent and 
security, information technology equipment, and applicable headquarters 
support. The Consular Time Charge of $135 per hour was not used in 
calculating the cost of a renunciation service. The Consular Time 
Charge is used in conjunction with other for-fee services listed on the 
Schedule of Fees for Consular Services that are provided outside of the 
office or outside of normal working hours.
    Four comments asserted that the renunciation should be made more 
efficient rather than more costly. A few asked if there were ways to 
reduce bureaucracy and paperwork to lower the cost of the service. 
Specifically, one commenter pointed to the German renunciation process, 
which involves an online application, mailed certified copies of 
certain documents, and no in-person interviews. As described above, 
certain legal requirements exist in the U.S. system, unique to our laws 
and jurisprudence, to protect both the integrity of the process and the 
rights of those renouncing. The renunciation process involves 
significant safeguards to ensure that the renunciant is a U.S. 
national, fully understands the serious consequences of renunciation, 
and seeks to renounce voluntarily and intentionally. In short, the 
comprehensive process of expatriation under U.S. law does not impinge, 
but rather protects, the right of expatriation.
    Finally, two comments raised questions about payment options and 
sought clarification on the effective date for the fee change. The new 
fee for processing renunciations took effect September 12, 2014. 
Payment by credit card (at most posts) or cash (in local or U.S. 
currency) is accepted at post at the time that the oath of renunciation 
is sworn.
    In addition to the comments on the renunciation fee increase, the 
Department also received eight comments about the changes in immigrant 
and nonimmigrant visa fees. Most sought clarification on how the visa 
fees were changing, which payment options are available, and when the 
new fees will go into effect. One commenter asserted that the visa fees 
are set too low.
    All tiered immigrant and nonimmigrant visa fees addressed in this 
rulemaking are set to reflect the costs of providing each service. The 
new visa fees went into effect on September 12, 2014. Further details 
on particular fees, including payment options, can be found on the Web 
site of the embassy or consulate where the applicant would like to make 
a visa appointment.

Conclusion

    The Department adjusted the fees in light of the CoSM's findings 
that the U.S. government was not fully covering its costs for providing 
these consular services. Pursuant to OMB guidance, the Department 
endeavors to recover the cost of providing services that benefit 
specific individuals, as opposed to the general public. See OMB 
Circular A-25, ] 6(a)(1), (a)(2)(a). For this reason, the Department 
has adjusted the Schedule.

Regulatory Findings

    For a summary of the regulatory findings and analyses regarding 
this rulemaking, please refer to the findings and analyses published 
with the interim final rule, which can be found at 79 FR 51247, which 
are adopted herein. The rule became effective September 6, 2014. As 
noted above, the Department has considered the comments submitted in 
response to the interim final rule, and does not adopt them. Thus, the 
rule remains in effect.
    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866, Regulatory Planning and Review, 
as supplemented by Executive Order 13563, Improving Regulation and 
Regulatory Review, and does not require an assessment of potential 
costs and benefits under section 6(a)(3) of Executive Order 12866 or 
under section 1 of Executive Order 13563. OMB has not reviewed it under 
those Orders. The Department of State has also considered this rule in 
light of Executive Order 13563, dated January 18, 2011, and affirms 
that this regulation is consistent with the guidance therein.

List of Subjects in 22 CFR Part 22

    Consular services, Fees, Passports, and Visas.

    Accordingly, the interim final rule amending 22 CFR part 22, which 
was published in the Federal Register, 79 FR 51247, on August 28, 2014 
(Public Notice 8850), effective September 6, 2014, is adopted.

    Dated: August 10, 2015.
Patrick F. Kennedy,
Under Secretary of State for Management, U.S. Department of State.
[FR Doc. 2015-21042 Filed 8-24-15; 8:45 am]
 BILLING CODE 4710-06-P



                                           51464             Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations

                                           DEPARTMENT OF STATE                                     Æ Immediate relative and family                          to pay the previous fee after the new fee
                                                                                                        preference applications from $230                   went into effect, five commenters asked
                                           22 CFR Part 22                                               to $325                                             for earlier appointments in order to pay
                                                                                                   Æ Employment-based applications from                     the previous fee, and one commenter
                                           [Public Notice: 9230]
                                                                                                        $405 to $345                                        requested a refund for the difference
                                           RIN 1400–AD47                                           Æ Other immigrant visa applications                      between the new fee and the previous
                                                                                                        (including I–360 self-petitioners                   fee. Several commenters characterized
                                           Schedule of Fees for Consular                                and special immigrant visa                          the 15-day notice of the fee change as
                                           Services, Department of State and                            applicants) from $220 to $205                       unfair and suggested that they should
                                           Overseas Embassies and Consulates                       —Affidavit of Support Review from $88                    have been notified earlier if the fee was
                                                                                                      to $120                                               likely to change.
                                           AGENCY:    Department of State.                         —Special Visa Services                                      The Department’s policy for
                                           ACTION:   Final rule.                                   Æ Determining Returning Resident                         citizenship-related services, including
                                                                                                        Status from $275 to $180                            the Administrative Processing of Formal
                                           SUMMARY:   This rule adopts as final the                Æ Waiver of Two-Year Residency                           Renunciation of U.S. Citizenship, is to
                                           interim final rule published in the                          Requirement from $215 to $120                       collect the fee in effect at the time that
                                           Federal Register on August 28, 2014.                    —Consular Time Charges from $231 to                      the service is provided. Although the
                                           Specifically, the rule implemented                         $135                                                  renunciation process involves multiple
                                           changes to the Schedule of Fees for                        The fee change for the reduced Border                 steps, the service is rendered when the
                                           Consular Services (‘‘Schedule’’) for a                  Crossing Card fee for Mexican citizens                   oath to renounce one’s nationality is
                                           number of different fees. This                          under age 15 whose parent or guardian                    sworn. U.S. nationals who intend to
                                           rulemaking addresses public comments                    has or is applying for a Border Crossing                 renounce their nationality and have a
                                           and adopts as final the changes to these                Card is not included in this final rule.                 meeting or information session with the
                                           fees.                                                   This fee was included in the interim                     consular post for that purpose, but who
                                           DATES: The Effective date of the final                  final rule published in August 2014, and                 change their minds and do not take the
                                           rule published in the Federal Register                  raised from $15 to $16. The same                         oath, are not charged the fee. In the
                                           of August 28, 2014 (79 FR 51247) is                     month, Congress ordered this fee to be                   interest of fairness, the Department must
                                           confirmed effective September 6, 2014.                  increased by $1 pursuant to Section 2 of                 assess the renunciation fee when the
                                           FOR FURTHER INFORMATION CONTACT: Jill                   Public Law 113–160. This additional                      core service is performed, rather than
                                           Warning, Office of the Comptroller,                     increase was implemented in a final                      upon the provision of information.
                                           Bureau of Consular Affairs, Department                  rule published on December 31, 2014,                     Therefore, the Department does not offer
                                           of State; phone: 202–485–6683, telefax:                 which raised this fee from $16 to $17.                   a lower fee or refunds for those who
                                           202–485–6826; email: fees@state.gov.                    See 79 FR 79064. Therefore, this fee is                  receive the renunciation service after
                                                                                                   not included in this final rule.                         the new fee went into effect on
                                           SUPPLEMENTARY INFORMATION: For the
                                                                                                      The original publication of the                       September 12, 2014. Furthermore,
                                           complete explanation of the background
                                                                                                   interim final rule included an incorrect                 embassies and consulates do not have
                                           of this rule, including the rationale for
                                                                                                   effective date of September 6, 2014, for                 authority to waive the fee, reduce the
                                           the change, the authority of the
                                                                                                   the above changes in fees. That date was                 fee, or provide a refund where the fee
                                           Department of State (‘‘Department’’) to
                                                                                                   subsequently corrected, but the                          is properly collected. In addition,
                                           make the fee changes in question, and                                                                            although one commenter contended that
                                           an explanation of the study that                        correction contained an error
                                                                                                   (erroneously stating ‘‘September 12,                     the rule-making process was
                                           produced the fee amounts, consult the                                                                            ‘‘truncated,’’ the interim final rule was
                                           prior public notices cited in the                       2104’’). See 79 FR 52197. The correct
                                                                                                   effective date is reflected herein; it is                published pursuant to the ‘‘good cause’’
                                           ‘‘Background’’ section below.                                                                                    exceptions set forth at 5 U.S.C.
                                                                                                   September 12, 2014.
                                           Background                                                                                                       553(b)(3)(B) and 553(d)(3). The
                                                                                                   Analysis of Comments                                     Department deemed that delaying
                                              The Department published an interim
                                                                                                     In the 60-day period since the                         implementation would be contrary to
                                           final rule in the Federal Register, 79 FR
                                                                                                   publication of the interim final rule,                   the public interest because several fees
                                           51247, on August 28, 2014, amending
                                                                                                   more than 70 comments were received.                     included in this rulemaking pay for
                                           sections of 22 CFR part 22. Specifically,                                                                        consular services that are critical to
                                                                                                     The large majority of the comments
                                           the rule amended the Schedule of Fees                                                                            national security. Rules that are exempt
                                                                                                   received expressed concern about the
                                           for Consular Services and provided 60                                                                            from notice and comment are often
                                                                                                   increased fee for the Administrative
                                           days for comments from the public.                                                                               effective immediately upon publication,
                                                                                                   Processing of Formal Renunciation of
                                           During this 60-day comment period,                                                                               so the 15-day notice in this case was
                                                                                                   U.S. Citizenship.
                                           more than 70 comments were received,                                                                             more notice than is often provided in
                                                                                                     Most commenters requested to pay a
                                           either by mail, email, or through the                                                                            such instances.
                                                                                                   lower fee for the renunciation service,
                                           submission process at                                                                                               More than one-third of the comments
                                                                                                   suggesting that they be grandfathered in
                                           www.regulations.gov.                                                                                             suggested that the increased fee to
                                                                                                   to the previous fee of $450. The majority
                                              This rule establishes the following                                                                           process renunciations is a burden.
                                                                                                   of these commenters had initiated the
                                           fees for the categories below:                                                                                   These commenters asserted that the new
                                                                                                   process of renouncing their nationality
                                           —Administrative Processing of Formal                    prior to the announcement of the new                     fee is too costly. Some expressed
                                              Renunciation of U.S. Citizenship from                fee.1 Over half of commenters requested                  concern about their own ability to afford
                                              $450 to $2,350                                                                                                the higher fee, pointing to personal
Lhorne on DSK5TPTVN1PROD with RULES




                                           —E Category Nonimmigrant Visas from                        1 Section 101(a)(22) of the Immigration and

                                              $270 to $205                                         Nationality Act (INA) states that ‘‘the term ‘national   the Immigration and Nationality Act (8 U.S.C. 1481)
                                           —K Category Nonimmigrant Visas from                     of the United States’ means (A) a citizen of the         governs how a U.S. national shall lose U.S.
                                                                                                   United States, or (B) a person who, though not a         nationality. Therefore, the terms ‘‘national’’ and
                                              $240 to $265                                         citizen of the United States, owes permanent             ‘‘nationality’’ are used throughout this rule except
                                           —Immigrant Visa Application                             allegiance to the United States.’’ Therefore, U.S.       for references to specific instances of ‘‘citizen’’ or
                                              Processing Fees (per person)                         citizens are also U.S. nationals. Section 349(a) of      ‘‘citizenship.’’



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                                                             Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations                                        51465

                                           circumstances including low income,                     under 100 in 2009 to more than 1,100                  costly. The cost of the service is not
                                           student status, and senior citizen status.              in the first ten months of 2014. Finally,             limited to the time consular officers
                                           In addition, a few of these commenters                  improvements to the CoSM made the                     spend with the renunciant at the
                                           asserted that nationality renunciation is               cost of the renunciation service more                 appointment. The application is
                                           a constitutional or human right. They                   apparent. For all these reasons, the                  reviewed both overseas and
                                           stated that the increased fee acts as a                 Department decided to raise the fee to                domestically, requiring a substantial
                                           deterrent to renouncing one’s                           reflect the full cost of the service.                 amount of time to ensure full
                                           nationality, thereby violating the right to               The Department has closely examined                 compliance with the law. Through the
                                           expatriate, and suggested that the                      comments regarding the right of                       provision of substantial information and
                                           renunciation service should be offered                  expatriation, which is addressed in the               one or two in-person interviews, the
                                           at no or low cost. Specifically, two                    Immigration and Nationality Act and                   consular officer must determine that the
                                           commenters cited the Expatriation Act                   the Universal Declaration of Human                    individual is indeed a U.S. national,
                                           of 1868 and Universal Declaration of                    Rights. The increased fee, however, does              advise the individual on the
                                           Human Rights, both of which address                     not impinge on the right of expatriation.             consequences of loss of nationality, and
                                           the right of expatriation.                              Rather, the increased fee reflects the                determine that the individual fully
                                              In raising the fee to process                        amount of resources necessary for the                 intends to relinquish all the rights and
                                           renunciations, the Department has not                   U.S. government to verify that all                    privileges attendant to U.S. nationality,
                                           restricted or burdened the right of                     constitutional and other requirements                 including the ability to reside in the
                                           expatriation. Further, the fee is not                   for expatriation are satisfied in every               United States unless properly
                                           punitive, and is unrelated to the IRS tax               case. As described in detail below, the               documented as an alien. The consular
                                           legislation criticized in some comments,                process of expatriation for a U.S.                    officer also must determine whether the
                                           except to the extent that the legislation               national requires a thorough, serious,                individual is seeking loss of nationality
                                           caused an increase in consular workload                 time-consuming process, in view of U.S.               voluntarily or is under duress, a process
                                           that must be paid for by user fees.                     Supreme Court jurisprudence that                      that can be demanding in the case of
                                           Rather, the fee is a cost-based user fee                declared unconstitutional an                          minors or individuals with a
                                           for consular services. Conforming to                    involuntary or forcible expatriation. In              developmental disability or mental
                                           guidance from the Office of                             Afroyim v. Rusk, 387 U.S. 253 (1967)                  illness. At the oath-taking interview, the
                                           Management and Budget (OMB), federal                    and Vance v. Terrazas, 444 U.S. 252                   consular officer must document the
                                           agencies make every effort to ensure that               (1980), the Supreme Court ruled that                  renunciation service on several forms
                                           each service provided to specific                       expatriation requires the voluntary                   signed by the individual seeking loss of
                                           recipients is self-sustaining, charging                 commission of an expatriating act with                nationality. The consular officer also
                                           fees that are sufficient to recover the full            the intention or assent of the citizen to             must document the service in consular
                                           cost to the government. (See OMB                        relinquish citizenship. It is therefore               systems as well as in memoranda from
                                           Circular A–25, ¶ 6(a)(1), (a)(2)(a).)                   incumbent upon the Department to                      the consular officer to headquarters. All
                                           Because costs change from year to year,                 maintain and implement procedures, as                 forms and memoranda are closely
                                           the Department conducts an annual                       described below, that allow consular                  reviewed at headquarters by a country
                                           update of the Cost of Service Model                     officers and other Department                         officer and a senior approving officer
                                           (CoSM) to obtain the most accurate                      employees to ensure these requirements                within the Bureau of Consular Affairs,
                                           calculation of the costs of providing                   are satisfied in every expatriation case.             and may include consultation with legal
                                           consular services. In addition to                         A few commenters questioned the
                                                                                                                                                         advisers within the Bureau of Consular
                                           enabling the government to recover                      rationale for raising the renunciation
                                                                                                                                                         Affairs and the Office of the Legal
                                           costs, the study also helps the                         fee, seeking more insight into how the
                                                                                                   fee is determined. Some commenters                    Adviser. Some applications require
                                           Department to avoid charging
                                                                                                   disputed that the higher fee actually                 multiple rounds of correspondence
                                           consumers more than the cost of the
                                                                                                   represents the true cost of processing a              between post and headquarters.
                                           services they consume. In sum, the
                                           increased fee for processing                            renunciation. In particular, one                         Each individual issued a Certificate of
                                           renunciations is a ‘‘user charge,’’ which               commenter applied the Consular Time                   Loss of Nationality also is advised of the
                                           reflects the full cost to the U.S.                      Charge of $135 to the renunciation fee                possibility of seeking a future
                                           government of providing the service.                    and asked whether the service actually                Administrative Review of the loss of
                                              On a per-service basis, renunciation is              takes 17 hours. Another commenter                     nationality, a process that is conducted
                                           among the most time-consuming of all                    specifically requested more information               by the Office of Legal Affairs,
                                           consular services. In the past, however,                about the CoSM.                                       Directorate of Overseas Citizens Service,
                                           the Department charged less than the                      As described in the interim final rule,             Bureau of Consular Affairs. This review
                                           full cost of the renunciation service. The              the CoSM uses activity-based costing to               must consider whether the statute
                                           total number of renunciations was                       identify, describe, assign costs to, and              pursuant to which the initial finding of
                                           previously small and constituted a                      report on agency operations. Using a                  loss of nationality was made has been
                                           minor demand on the Department’s                        process view, the model assigns                       deemed to be unconstitutional. The
                                           resources. Consequently, it was difficult               resource costs such as salaries, travel,              review must also take notice of any
                                           to assess accurately the cost of the                    and supplies to different activities such             significant change in the analysis of
                                           service. In contrast, in recent years, the              as adjudicating an application or                     expatriation cases following a holding of
                                           number of people requesting the                         printing a visa foil. These activity costs            the Supreme Court. Furthermore, the
                                           renunciation service has risen                          are then assigned to cost objects, or                 review must also take notice of any
                                           dramatically, driven in part by tax                     products and services (visas, passports,              change in the interpretation of
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                                           legislation affecting U.S. taxpayers                    administrative processing of a                        expatriation law that is adopted by the
                                           abroad, including the Foreign Account                   renunciation), to determine how much                  Department. Lastly, the review must
                                           Tax Compliance Act (FATCA),                             each service costs.                                   evaluate evidence submitted by the
                                           materially increasing the resources                       The CoSM demonstrated that                          expatriate that indicates that his or her
                                           devoted to providing the service. At one                documenting a U.S. national’s                         commission of a statutory act of
                                           post alone, renunciations rose from                     renunciation of nationality is extremely              expatriation was either involuntary or


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                                           51466             Federal Register / Vol. 80, No. 164 / Tuesday, August 25, 2015 / Rules and Regulations

                                           done without intending to relinquish                    costs of providing each service. The new              DEPARTMENT OF HOUSING AND
                                           his/her U.S. nationality.                               visa fees went into effect on September               URBAN DEVELOPMENT
                                              In addition to the time spent                        12, 2014. Further details on particular
                                           processing renunciations overseas and                   fees, including payment options, can be               24 CFR Parts 203, 207, 220, 221, 232,
                                           domestically, the full cost of processing               found on the Web site of the embassy                  236 and 241
                                           renunciations includes a portion of                     or consulate where the applicant would                [Docket No. FR–5805–F–02]
                                           overhead costs that support consular                    like to make a visa appointment.
                                           operations overseas per OMB Circular                                                                          RIN 2502–AJ26
                                           A–25, Revised. These costs include                      Conclusion
                                           overseas rent and security, information                                                                       Federal Housing Administration (FHA):
                                                                                                      The Department adjusted the fees in                Standardizing Method of Payment for
                                           technology equipment, and applicable                    light of the CoSM’s findings that the
                                           headquarters support. The Consular                                                                            FHA Insurance Claims
                                                                                                   U.S. government was not fully covering
                                           Time Charge of $135 per hour was not                    its costs for providing these consular                AGENCY:  Office of the Assistant
                                           used in calculating the cost of a                       services. Pursuant to OMB guidance, the               Secretary for Housing-Federal Housing
                                           renunciation service. The Consular                      Department endeavors to recover the                   Commissioner, HUD.
                                           Time Charge is used in conjunction                                                                            ACTION: Final rule.
                                                                                                   cost of providing services that benefit
                                           with other for-fee services listed on the
                                                                                                   specific individuals, as opposed to the
                                           Schedule of Fees for Consular Services                                                                        SUMMARY:    This final rule is a cost-
                                                                                                   general public. See OMB Circular A–25,
                                           that are provided outside of the office or                                                                    savings measure to update HUD’s
                                                                                                   ¶ 6(a)(1), (a)(2)(a). For this reason, the
                                           outside of normal working hours.                                                                              regulations regarding the payment of
                                              Four comments asserted that the                      Department has adjusted the Schedule.
                                                                                                                                                         FHA insurance claims in debentures.
                                           renunciation should be made more                        Regulatory Findings                                   Section 520(a) of the National Housing
                                           efficient rather than more costly. A few                                                                      Act grants the Secretary discretion to
                                           asked if there were ways to reduce                         For a summary of the regulatory                    pay insurance claims in cash or
                                           bureaucracy and paperwork to lower the                  findings and analyses regarding this                  debentures. Although some sections of
                                           cost of the service. Specifically, one                  rulemaking, please refer to the findings              HUD’s regulations have provided
                                           commenter pointed to the German                         and analyses published with the interim               mortgagees the option to elect payment
                                           renunciation process, which involves an                 final rule, which can be found at 79 FR               of FHA insurance claims in debentures,
                                           online application, mailed certified                    51247, which are adopted herein. The                  HUD has not paid an FHA insurance
                                           copies of certain documents, and no in-                 rule became effective September 6,                    claim in debentures under these
                                           person interviews. As described above,                  2014. As noted above, the Department                  regulations in approximately 5 years.
                                           certain legal requirements exist in the                 has considered the comments submitted                 This final rule amends applicable FHA
                                           U.S. system, unique to our laws and                     in response to the interim final rule, and            regulations to bring consistency in
                                           jurisprudence, to protect both the                      does not adopt them. Thus, the rule                   determining the method of payment for
                                           integrity of the process and the rights of              remains in effect.                                    FHA insurance claims. This final rule
                                           those renouncing. The renunciation                         This proposed rule is not a significant            follows publication of the February 20,
                                           process involves significant safeguards                 regulatory action under section 3(f) of               2015, proposed rule and adopts the
                                           to ensure that the renunciant is a U.S.                 Executive Order 12866, Regulatory                     proposed rule without change.
                                           national, fully understands the serious                 Planning and Review, as supplemented                  DATES: Effective Date: September 24,
                                           consequences of renunciation, and seeks                 by Executive Order 13563, Improving                   2015.
                                           to renounce voluntarily and                             Regulation and Regulatory Review, and
                                           intentionally. In short, the                                                                                  FOR FURTHER INFORMATION CONTACT: For
                                                                                                   does not require an assessment of
                                           comprehensive process of expatriation                                                                         information about: HUD’s Single Family
                                                                                                   potential costs and benefits under
                                           under U.S. law does not impinge, but                                                                          Housing program, contact Ivery Himes,
                                                                                                   section 6(a)(3) of Executive Order 12866
                                           rather protects, the right of expatriation.                                                                   Director, Office of Single Family Asset
                                                                                                   or under section 1 of Executive Order
                                              Finally, two comments raised                                                                               Management, Office of Housing,
                                                                                                   13563. OMB has not reviewed it under
                                           questions about payment options and                                                                           Department of Housing and Urban
                                                                                                   those Orders. The Department of State
                                           sought clarification on the effective date                                                                    Development, 451 7th Street SW., Room
                                                                                                   has also considered this rule in light of
                                           for the fee change. The new fee for                                                                           9172, Washington, DC 20410; telephone
                                                                                                   Executive Order 13563, dated January
                                           processing renunciations took effect                                                                          number 202–708–1672; HUD’s
                                                                                                   18, 2011, and affirms that this regulation
                                           September 12, 2014. Payment by credit                                                                         Multifamily Housing program, contact
                                                                                                   is consistent with the guidance therein.
                                           card (at most posts) or cash (in local or                                                                     Sivert Ritchie, Multifamily Claims
                                           U.S. currency) is accepted at post at the               List of Subjects in 22 CFR Part 22                    Branch, Office of Housing, Department
                                           time that the oath of renunciation is                                                                         of Housing and Urban Development,
                                           sworn.                                                    Consular services, Fees, Passports,                 451 7th Street SW., Room 6252,
                                              In addition to the comments on the                   and Visas.                                            Washington, DC 20410–8000; telephone
                                           renunciation fee increase, the                            Accordingly, the interim final rule                 number 202–708–2510. The telephone
                                           Department also received eight                          amending 22 CFR part 22, which was                    numbers listed above are not toll-free
                                           comments about the changes in                           published in the Federal Register, 79 FR              numbers. Persons with hearing or
                                           immigrant and nonimmigrant visa fees.                   51247, on August 28, 2014 (Public                     speech impairments may access these
                                           Most sought clarification on how the                    Notice 8850), effective September 6,                  numbers through TTY by calling the
                                           visa fees were changing, which payment                  2014, is adopted.                                     Federal Relay Service at 800–877–8339
                                           options are available, and when the new                                                                       (this is a toll-free number).
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                                                                                                     Dated: August 10, 2015.
                                           fees will go into effect. One commenter                                                                       SUPPLEMENTARY INFORMATION:
                                           asserted that the visa fees are set too                 Patrick F. Kennedy,
                                           low.                                                    Under Secretary of State for Management,              I. Background—the February 20, 2015,
                                              All tiered immigrant and                             U.S. Department of State.                             Proposed Rule
                                           nonimmigrant visa fees addressed in                     [FR Doc. 2015–21042 Filed 8–24–15; 8:45 am]              On February 20, 2015, HUD published
                                           this rulemaking are set to reflect the                  BILLING CODE 4710–06–P                                a rule in the Federal Register, at 80 FR


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Document Created: 2018-02-23 11:02:58
Document Modified: 2018-02-23 11:02:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThe Effective date of the final rule published in the Federal Register of August 28, 2014 (79 FR 51247) is confirmed effective September 6, 2014.
ContactJill Warning, Office of the Comptroller, Bureau of Consular Affairs, Department of State; phone: 202-485-6683, telefax: 202-485-6826; email: [email protected]
FR Citation80 FR 51464 
RIN Number1400-AD47
CFR AssociatedConsular Services; Fees; Passports and Visas

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