81_FR_84629 81 FR 84403 - The U.S. Asia-Pacific Economic Cooperation Business Travel Card Program

81 FR 84403 - The U.S. Asia-Pacific Economic Cooperation Business Travel Card Program

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 81, Issue 226 (November 23, 2016)

Page Range84403-84415
FR Document2016-28177

This rule adopts as final, with two changes, interim amendments to the Department of Homeland Security's (DHS) regulations published in the Federal Register on May 13, 2014 establishing the U.S. Asia-Pacific Economic Cooperation (APEC) Business Travel Card Program. The U.S. APEC Business Travel Card Program provides qualified U.S. business travelers engaged in business in the APEC region, or U.S. Government officials actively engaged in APEC business, the ability to access fast-track immigration lanes at participating airports in foreign APEC economies.

Federal Register, Volume 81 Issue 226 (Wednesday, November 23, 2016)
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Rules and Regulations]
[Pages 84403-84415]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28177]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

8 CFR Parts 103 and 235

[Docket No. USCBP-2013-0029; CBP Decision No. 16-20]
RIN 1651-AB01


The U.S. Asia-Pacific Economic Cooperation Business Travel Card 
Program

AGENCY: U.S. Customs and Border Protection; Department of Homeland 
Security.

ACTION: Final rule.

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SUMMARY: This rule adopts as final, with two changes, interim 
amendments to the Department of Homeland Security's (DHS) regulations 
published in the Federal Register on May 13, 2014 establishing the U.S. 
Asia-Pacific Economic Cooperation (APEC) Business Travel Card Program. 
The U.S. APEC Business Travel Card Program provides qualified U.S. 
business travelers engaged in business in the APEC region, or U.S. 
Government officials actively engaged in APEC business, the ability to 
access fast-track immigration lanes at participating airports in 
foreign APEC economies.

DATES: This rule is effective December 23, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Garret Conover, Office of Field 
Operations, (202) 325-4062, Garret.A.Conover@cbp.dhs.gov.

I. Background

A. The Asia-Pacific Economic Cooperation Business Travel Card Program

    The United States is a member of APEC, which is an economic forum 
comprised of twenty-one members whose primary goal is to support 
sustainable economic growth and prosperity in the Asia-Pacific 
region.\1\ One of APEC's business facilitation initiatives is the APEC 
Business Travel Card (ABTC) Program. The operating procedures for the 
ABTC Program are set out in the APEC Business Travel Card Operating 
Framework (APEC Framework).\2\ Under the ABTC Program, APEC members can 
issue cards to business travelers and senior government officials who 
meet certain criteria. The cards provide simpler, short-term entry 
procedures within the APEC region.
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    \1\ APEC members are also referred to as `economies' since the 
APEC process is primarily concerned with trade and economic issues 
with the members engaging each other as economic entities. The most 
recently updated list of members is available at the APEC Web site 
at www.apec.org/About-Us/About-APEC/Member-Economies.aspx. For 
simplicity, CBP will generally refer to them in the preamble of this 
document as APEC members.
    \2\ Although participating members intend to follow the 
operating principles and procedures outlined, the document is not 
legally binding. The most recent version of the APEC Framework is 
Version 19, dated July 7, 2015.
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B. U.S. Participation in ABTC

    On November 12, 2011, President Obama signed the Asia-Pacific 
Economic Cooperation Business Travel Cards Act of 2011 (APEC Act). 
Public Law 112-54, 125 Stat. 550. The APEC Act authorizes the Secretary 
of Homeland Security, in coordination with the Secretary of State, to 
issue ABTCs through September 30, 2018 to any eligible person, 
including business persons and U.S. Government officials actively 
engaged in APEC business. On May 13, 2014, U.S. Customs and Border 
Protection (CBP) published an interim final rule (IFR) in the Federal 
Register (79 FR 27161) amending the DHS regulations to establish the 
U.S. ABTC Program and an application fee. See 8 CFR 235.13 and 8 CFR 
103.7.
    The IFR became effective on June 12, 2014 and on that date CBP 
began issuing its own ABTCs (U.S. ABTCs) to qualified U.S. citizens. As 
provided in the IFR, the U.S. ABTC Program is a voluntary program 
designed to facilitate travel for bona fide U.S. business persons 
engaged in business in the APEC region and U.S. government officials 
actively engaged in APEC business within the APEC region. To 
participate in the program, an individual must be an existing member, 
in good standing, of an eligible CBP trusted traveler program or be 
approved for membership in an eligible CBP trusted traveler program 
during the U.S. ABTC application process.\3\ The application process 
requires the applicant to self-certify that he or she is a bona fide 
business person who is engaged in the trade of goods, the provision of 
services or the conduct of investment activities, or is a U.S. 
Government official actively engaged in

[[Page 84404]]

APEC business. The applicant must also provide a signature, which 
appears on the face of the U.S. ABTC. CBP collects the applicant's 
signature at a CBP trusted traveler enrollment center.
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    \3\ For purposes of the U.S. ABTC Program, eligible CBP trusted 
traveler programs include Global Entry, NEXUS, and SENTRI.
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    Successful applicants receive a U.S. ABTC that enables them to 
access fast-track immigration lanes at participating airports in 
foreign APEC member economies. In order to obtain a U.S. ABTC, an 
individual must meet the eligibility requirements, apply in advance, 
pay the requisite fee and be approved as a card holder. Details about 
the program eligibility criteria, the application process, the fee, the 
benefits, and other aspects of the program, are set forth in the 
preamble of the IFR, 8 CFR 235.13, and 8 CFR 103.7.

II. Discussion of Comments

A. Overview

    Although the interim regulatory amendments were promulgated without 
prior public notice and comment procedures pursuant to the foreign 
affairs exemption in 5 U.S.C. 553(a)(1), the IFR provided for the 
submission of public comments that would be considered before adopting 
the interim regulations as a final rule. The prescribed 30-day public 
comment period closed on June 12, 2014. During this time, CBP received 
submissions from five commenters. All five commenters were strongly in 
support of the U.S. ABTC Program and expressed appreciation for the 
introduction of the program. Nonetheless, the commenters presented 
ideas for how to improve the program, and one commenter noted that our 
calculation of a benefit accrued through the U.S. ABTC was inaccurate. 
CBP has grouped the issues by topic and provides responses below.

B. Discussion

1. Overseas Interviews and Signature Collection
    Comment: All five of the commenters noted that many of the U.S. 
ABTC applicants will be U.S. business people living and working abroad, 
who make limited trips to the United States. The commenters asserted 
that requiring applicants to be physically present in the United States 
to obtain a U.S. ABTC will reduce the number of applicants and will 
limit the accessibility of the program. To address these concerns, four 
of the commenters recommended that CBP conduct enrollment interviews 
for the CBP trusted traveler programs overseas, and all five of the 
commenters asked that CBP provide a way for U.S. ABTC signatures to be 
collected abroad. The commenters suggested several different methods 
for CBP to conduct enrollment interviews and/or collect signatures 
overseas, either on a regular basis or intermittently. Their 
suggestions include having CBP use U.S. embassies or consulates in the 
Asia-Pacific region, having CBP open a regional office in Asia, or 
having CBP schedule appointments for interviews and/or signature 
collections around major U.S. regional business events, such as the 
annual meeting of the Asia Pacific Council of American Chambers of 
Commerce. The commenters remarked that conducting enrollment interviews 
and signature collections overseas would increase the number of 
applicants for U.S. ABTCs and would allow individuals to obtain a U.S. 
ABTC more quickly because individuals will not have to wait until they 
are traveling to the United States to do their interview and provide 
their signature.
    Response: CBP appreciates the commenters' suggestions for 
alternative arrangements for CBP trusted traveler interviews and ABTC 
signature collections, but is unable to implement any of them at this 
time. The personal interview and signature collection process is an 
integral part of the CBP trusted traveler and U.S. ABTC application 
processes and these are done at CBP trusted traveler enrollment centers 
located throughout the United States. CBP does not have the facilities 
or resources to regularly conduct interviews and collect signatures 
outside CBP trusted traveler enrollment centers. Furthermore, in order 
to maintain the integrity of the CBP trusted traveler and ABTC 
programs, only CBP officers are authorized to conduct interviews, 
obtain signatures, and approve applications in the Global On-Line 
Enrollment System (GOES). These functions cannot be delegated to the 
Department of State or any other entity.
    While CBP recognizes that some applicants may find it inconvenient 
to travel to the continental United States for their CBP trusted 
traveler program interview and U.S. ABTC signature collection, CBP 
would like to highlight that there are trusted traveler enrollment 
centers located in Hawaii and Guam. Furthermore, CBP is encouraged by 
the fact that there has been a steady stream of applicants thus far, 
indicating that many people have been able to obtain U.S. ABTCs through 
the current system. As of December 2015, nearly 21,000 applications 
have been submitted for the U.S. ABTC Program.\4\
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    \4\ Source: Email correspondence with CBP's Office of Field 
Operations on February 10, 2016.
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2. Appointment Scheduling for Signature Collection
    Comment: Two commenters asked CBP to definitively state that an 
applicant does not need to schedule an appointment for signature 
collection if the applicant is already a member of a CBP trusted 
traveler program. Both commenters noted that the FAQs explicitly state 
that no appointment is necessary while some of the preamble language in 
the IFR suggests otherwise.
    Response: Applicants for the U.S. ABTC Program who are already 
members of a CBP trusted traveler program do not need to schedule an 
appointment for signature collection. Applicants should be aware, 
however, that if they arrive at an enrollment center without an 
appointment, they may have to wait a considerable length of time before 
a CBP officer is able to process their signature. By scheduling an 
appointment, applicants can prevent long wait-times and allow for 
better time management by CBP officers at enrollment centers. As such, 
although appointments are not necessary, they are encouraged.
3. Benefits of the U.S. ABTC Program
    Comment: One commenter indicated that the average amount of time a 
U.S. ABTC holder saves on account of the expedited entry procedures 
associated with the U.S. ABTC Program is greater than anticipated in 
the IFR. The commenter noted that the actual benefit to a U.S. ABTC 
holder is greater than the average calculated time savings of 43 
minutes per trip because travelers can save a significant amount of 
time by arriving at the airport later and by catching flights that they 
would have otherwise missed if not for the U.S. ABTC Program's fast-
track immigration clearance.
    Response: CBP believes the weighted average time savings of 
approximately 43 minutes is an appropriate estimate of the time savings 
a U.S. ABTC holder will receive when clearing foreign immigration 
services using the fast-track immigration lanes. To the extent that 
this estimate understates the time saved by U.S. ABTC holders, the 
benefits of the rule will be higher. Similarly, to the extent that U.S. 
ABTC holders are able to catch flights they would have otherwise missed 
due to lengthy immigration waits, the benefits of this rule will be 
higher.
4. Self-Certification
    Comment: One commenter asked that CBP ease the ``manner for 
determining business travel eligibility'' by allowing applicants to 
self-certify their status as a business traveler.

[[Page 84405]]

    Response: The U.S. ABTC Program already allows for such self-
certification. When applying for the U.S. ABTC, an applicant must 
complete and submit an application electronically through the GOES Web 
site. During the application process, the applicant is prompted to 
self-certify that he or she is a bona fide business person who is 
engaged in the trade of goods, the provision of services or the conduct 
of investment activities, or is a U.S. Government official actively 
engaged in APEC business, and that he or she is not a professional 
athlete, news correspondent, entertainer, musician, artist, or person 
engaged in a similar occupation. See 8 CFR 235.13(c)(2).

III. Conclusion--Regulatory Amendments

    After careful consideration of the comments received, CBP is 
adopting the interim regulations published May 13, 2014 as a final rule 
with the following two changes. First, CBP is changing the validity 
period of U.S. ABTCs from three years to five years based on revisions 
in the APEC Framework. Second, CBP is removing all references in the 
U.S. ABTC regulation to suspension from the program because CBP does 
not use suspension as a remedial action. Further details about these 
changes are discussed below. DHS believes that this rule is excluded 
from APA rulemaking requirements as a foreign affairs function of the 
United States pursuant to 5 U.S.C. 553(a)(1) because it advances the 
President's foreign policy goal of facilitating business travel within 
the APEC region and allows the United States to fulfill its intent 
under the multilateral APEC Framework. Accordingly, these changes are 
exempt from notice and comment rulemaking generally required under 5 
U.S.C. 553.

A. Change in Validity Period

    The IFR provided that the U.S. ABTC is valid for three years or 
until the expiration date of the card holder's passport if that is 
earlier, provided participation is not terminated by CBP prior to the 
end of this period. See 8 CFR 235.13(c)(6). However, the IFR noted that 
any subsequent revisions to the APEC Framework that directly affect the 
U.S. ABTC may require regulatory changes.\5\
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    \5\ Footnote 11 of the IFR states, ``The current version of the 
APEC Framework is Version 17, agreed to on January 30, 2013. Any 
subsequent revisions to the APEC Framework that directly affect the 
U.S. ABTC may require a regulatory change''.
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    The most recent version of the APEC Framework (Version 19) extended 
the validity period of ABTCs to ``a maximum period of five years''. 
(APEC Framework 3.8.1). The Business Mobility Group (BMG), an APEC 
working group comprised of representatives from all member economies, 
is responsible for updating the APEC Framework. The BMG has indicated 
that the ABTC Program is on a trajectory towards requiring a five-year 
validity period for all ABTCs. Given the time constraints of some 
participating members' domestic procedures, however, the BMG 
acknowledges that it may take a significant amount of time for some 
members to be able to comply with this expectation. Accordingly, 
provision 3.8.1 of the APEC Framework allows for some variability in 
validity periods while member economies work towards reaching the goal 
of extending the validity period of new ABTCs to five years.
    In keeping with the United States' intent to follow APEC's 
operating principles and procedures, CBP is changing the validity 
period for U.S. ABTCs to five years. Accordingly, CBP is revising 8 CFR 
235.13(c)(6) by replacing ``3 years'' with ``five years''. Individuals 
who submit a U.S. ABTC application or renewal request on or after 
December 23, 2016 will be eligible to receive a U.S. ABTC with a five-
year validity period.\6\ This change in validity period does not apply 
to current U.S. ABTC holders, whose cards will remain valid only until 
the date printed on their card, subject to earlier revocation by CBP.
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    \6\ If the card holder's passport will expire before the end of 
the validity period, CBP will issue the U.S. ABTC with a shorter 
validity period that matches the passport expiration date. See 8 CFR 
235.13(c)(6).
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    CBP notes that this change in validity period will be beneficial to 
many new U.S. ABTC holders, as they will be able to avail themselves of 
the program for two additional years. The extension in validity period 
will also be beneficial to many U.S. ABTC holders in the event that 
Congress extends the APEC Act.\7\ Should the U.S. ABTC Program be 
extended, individuals who apply concurrently for the U.S. ABTC and a 
CBP trusted traveler program will be able to take advantage of a more 
streamlined renewal process. Currently, Global Entry, NEXUS, and SENTRI 
memberships are all valid for a period of five years, whereas the U.S. 
ABTC Program membership is only valid for three years. Accordingly, 
individuals who apply for both programs concurrently must renew their 
U.S. ABTCs after three years, then renew their CBP trusted traveler 
program membership two years later. By extending the validity period of 
the U.S. ABTC to five years, these individuals will be able to initiate 
the renewal process for both programs at the same time.
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    \7\ The APEC Act authorizes the Secretary to issue U.S. ABTCs 
only through September 30, 2018. Unless the law is amended to extend 
that date, CBP will not issue any new U.S. ABTCs or renew any U.S. 
ABTCs after September 30, 2018. U.S. ABTC holders will retain their 
membership in the U.S. ABTC Program for the full validity period 
(even if the validity period extends past September 30, 2018) unless 
membership is revoked earlier.
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B. Removal of References to Suspension From the Program

    Although 8 CFR 235.13(f) addresses situations in which an applicant 
may be suspended or removed from the program, CBP no longer uses 
suspension as a remedial action. In the event that CBP action is 
necessary under 8 CFR 235.13, CBP removes the U.S. ABTC holder from the 
program. Accordingly, CBP is removing all references to ``suspension'' 
and ``suspended'' from Sec.  235.13(f) and from Sec.  235.13 (c), (g), 
and (h), which also refer to ``suspension'' and ``suspended''. This 
change is also in line with the APEC Framework, which provides for 
cancellation but not suspension of ABTCs.

IV. Statutory and Regulatory Requirements

A. Executive Order 13563 and Executive Order 12866

    Executive Orders 13563 and 12866 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is not a ``significant regulatory action,'' 
under section 3(f) of Executive Order 12866. Accordingly, the Office of 
Management and Budget has not reviewed this rule. CBP has prepared the 
following analysis to help inform stakeholders of the potential impacts 
of this final rule.
1. Synopsis
    This rule adopts as final the interim final rule establishing the 
U.S. ABTC Program with the following changes: It expands the validity 
period for new U.S. ABTCs and it removes all references to

[[Page 84406]]

suspension from the program.\8\ CBP largely adopts the economic 
analysis for the U.S. ABTC Program's IFR for this final rule. However, 
this final rule analysis incorporates recent changes to the IFR's U.S. 
ABTC validity period, applicant projections, application and renewal 
burdens, and program impacts.
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    \8\ 79 FR 27167, May 13, 2014.
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    Pursuant to the authorizing statute, the Secretary of Homeland 
Security is authorized to set a U.S. ABTC Program fee. CBP has 
determined that a $70 fee is necessary to recover its costs of 
administering the U.S. ABTC Program.\9\ As shown in Table 1, initial 
U.S. ABTC applicants incur the $70 U.S. ABTC fee and an opportunity 
cost associated with obtaining a U.S. ABTC. Because participation in a 
CBP trusted traveler program is a prerequisite for obtaining a U.S. 
ABTC, individuals who are not already members of such a program need to 
concurrently apply for a U.S. ABTC and a CBP trusted traveler program, 
and pay the programs' applicable fees. CBP assumes that individuals not 
already in a CBP trusted traveler program will choose to join Global 
Entry because it, like the U.S. ABTC Program, provides expedited 
clearance in the air environment. The application fee for Global Entry 
is currently $100.\10\ CBP estimates the opportunity cost to initially 
obtain a U.S. ABTC for those who are already members of a CBP trusted 
traveler program to be $73.69. CBP estimates the opportunity cost to 
initially obtain a U.S. ABTC for individuals who are not members of a 
CBP trusted traveler program to be $105.27. Accounting for application 
fees and opportunity costs, the total cost of initially obtaining a 
U.S. ABTC ranges from almost $144 for U.S. ABTC applicants who are 
already in a CBP trusted traveler program to $275 for U.S. ABTC 
applicants who are not already in a CBP trusted traveler program, as 
shown in Table 1. Table 1 also shows that the costs to renew U.S. ABTCs 
are much lower than these initial application costs. CBP will provide 
additional details about these estimates later in the analysis.
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    \9\ CBP performed a fee study to determine the yearly costs of 
the program and the cost to establish the program for all relevant 
parties. This fee study, entitled ``Asia-Pacific Economic 
Cooperation Business Travel Card Fee Study,'' is posted on the 
docket as supplemental materials on www.regulations.gov.
    \10\ 8 CFR 103.7.
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    The U.S. ABTC Program is a voluntary program that enables card 
holders to access fast-track immigration lanes at participating 
airports in the 20 other APEC member economies.\11\ CBP estimates that 
U.S. ABTC holders will experience a time savings of approximately 43 
minutes when clearing foreign immigration services using the fast-track 
immigration lanes.\12\ As the U.S. ABTC Program is voluntary, the 
perceived benefits of reduced wait time have to equal or exceed the 
cost of the program over five years (the new validity period of the 
U.S. ABTC) for new potential enrollees to determine whether the program 
is worthwhile. As discussed later in further detail, CBP estimates that 
a U.S. ABTC applicant who is already enrolled in a CBP trusted traveler 
program will need to take a minimum of four trips across the U.S. 
ABTC's five-year validity period for the benefits of the U.S. ABTC 
Program to exceed the costs associated with joining the program. 
Additionally, CBP estimates that a U.S. ABTC applicant who is not 
already a CBP trusted traveler member will need to take a minimum of 
six trips between the United States and an APEC economy over the five-
year validity period for the benefits of the U.S. ABTC Program to 
exceed the costs associated with joining the program. Current U.S. ABTC 
holders will need to take even fewer trips per year for the benefits of 
renewing their program memberships to outweigh the costs.
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    \11\ Asia-Pacific Economic Cooperation, ``Member Economies.'' 
Available at http://www.apec.org/About-Us/About-APEC/Member-Economies.aspx. Accessed July 8, 2015.
    \12\ Based on data from Asia-Pacific Economic Cooperation. 
``Reducing Business Travel Costs: The Success of APEC's Business 
Mobility Initiatives.'' November 2011. Available at http://publications.apec.org/publication-detail.php?pub_id=1214. Accessed 
May 23, 2012.

                                      Table 1--Total Cost by Applicant Type
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         Applicant type             Cost category            Initial costs                  Renewal costs
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U.S. ABTC Applicants Already in  U.S. ABTC Fee.....  $70..........................  $70
 a CBP Trusted Traveler Program. Global Entry Fee *  n/a..........................  n/a
                                 U.S. ABTC           $73.69 (1.17 hrs)............  $10.53 (0.17 hrs)
                                  Opportunity Cost
                                  [dagger].
                                                    ------------------------------------------------------------
    Total (rounded to nearest    ..................  $144.........................  $81
     $1).
U.S. ABTC Applicants Not         U.S. ABTC Fee.....  $70..........................  $70
 Already in a CBP Trusted        Global Entry Fee *  $100.........................  $100
 Traveler Program.               U.S. ABTC and       $105.27 (1.67 hrs)...........  $10.53 (0.17 hrs)
                                  Global Entry
                                  Opportunity Cost
                                  [dagger].
                                                    ------------------------------------------------------------
                                    Total (rounded   $275.........................  $181
                                     to nearest $1).
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* CBP anticipates that those U.S. ABTC applicants who must choose a CBP trusted traveler program when applying
  for the U.S. ABTC will choose to join Global Entry because, like the U.S. ABTC Program, Global Entry provides
  expedited clearance in the air environment.
[dagger] This value is based on the U.S. Department of Transportation's (DOT) guidance regarding the valuation
  of travel time for business travelers in 2013 U.S. dollars, adjusted to 2017 U.S. dollars using the DOT's
  recommended annual growth rate of one percent. Source: U.S. Department of Transportation, Office of
  Transportation Policy. The Value of Travel Time Savings: Departmental Guidance for Conducting Economic
  Evaluations Revision 2 (2015 Update). ``Table 4 (Revision 2-corrected): Recommended Hourly Values of Travel
  Time Savings.'' 2015. Available at http://www.transportation.gov/sites/dot.gov/files/docs/Revised%20Departmental%20Guidance%20on%20Valuation%20of%20Travel%20Time%20in%20Economic%20Analysis.pdf.
  Accessed February 16, 2016.
Note: There are two categories of U.S. ABTC applicants: Those who are already in a CBP trusted traveler program
  and those who are not. CBP does not consider the cost of joining a CBP trusted traveler program for those
  applicants who are already members of a CBP trusted traveler program. These applicants have already,
  independent of any decision to join the U.S. ABTC Program, determined that the benefits of a CBP trusted
  traveler program outweigh the costs associated with the program they have chosen to join.

2. Background
    The U.S. ABTC Program is a voluntary program that allows U.S. 
citizens with U.S. ABTCs to access fast-track immigration lanes at 
participating airports in the 20 other APEC member economies. In order 
to be eligible for a U.S. ABTC, a U.S. citizen is required to be a bona 
fide business person engaged in business in the APEC region or a U.S. 
Government official actively engaged in APEC business. Additionally, 
the U.S. ABTC applicant must be a member in good standing of a CBP 
trusted traveler

[[Page 84407]]

program or approved for membership in a CBP trusted traveler program 
during the U.S. ABTC application process. U.S. ABTC applicants who are 
not already CBP trusted traveler program members must also apply for 
membership to a CBP trusted traveler program with their U.S. ABTC 
application.\13\ Since the publication of the U.S. ABTC IFR, APEC 
members (including the United States) endorsed increasing the validity 
period of the ABTC to ``a maximum period of five years.'' However, 
APEC's BMG has indicated that the ABTC Program is on a trajectory 
towards requiring a five-year validity period for all ABTCs. In keeping 
with the United States' intent to follow APEC's operating principles 
and procedures, CBP is changing the validity period for U.S. ABTCs from 
three years to five years (or until the expiration date of the card 
holder's passport if that is earlier) through this rule. With this 
expansion, the U.S. ABTC's validity period will now match that of CBP's 
trusted traveler programs.
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    \13\ As stated in the U.S. ABTC IFR, CBP assumes that a U.S. 
ABTC applicant who is not already a member of a CBP trusted traveler 
program will concurrently apply for a CBP trusted traveler program 
and a U.S. ABTC.
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    Individuals who submit a U.S. ABTC application or renewal request 
on or after this final rule's effective date may be eligible to receive 
a U.S. ABTC with a five-year validity period. If the card holder's 
passport will expire before the end of the five-year validity period, 
CBP will issue the U.S. ABTC with a shorter validity period that 
matches the passport expiration date. If the card holder's CBP trusted 
traveler program membership expires during their U.S. ABTC's validity 
period, CBP may revoke the U.S. ABTC since membership in a CBP trusted 
traveler program is necessary for the entire duration of the U.S. ABTC. 
This change in validity period does not apply to current U.S. ABTC 
holders, whose cards will remain valid only until the date printed on 
their card, subject to earlier revocation by CBP. Similar to CBP 
trusted traveler programs, a U.S. ABTC holder will be required to renew 
his or her membership prior to expiration to continue enjoying the 
benefits of the program.
3. U.S. ABTC Applicant Categories
    There are two categories of initial U.S. ABTC applicants (i.e., 
individuals who are not renewing their U.S. ABTC membership) that CBP 
discusses separately in this analysis: Those who are already part of a 
CBP trusted traveler program and those who are not. This distinction is 
necessary because those applicants who are not already part of a CBP 
trusted traveler program will bear an additional opportunity cost and 
fee associated with applying for a CBP trusted traveler program to be 
eligible for a U.S. ABTC.
a. U.S. ABTC Applicants Who Are Already Members of a CBP Trusted 
Traveler Program
    If an initial U.S. ABTC applicant is already a member of a CBP 
trusted traveler program, the applicant will have to apply for a U.S. 
ABTC by self-certifying, via the GOES Web site, that: He or she is an 
existing member in good standing in a CBP trusted traveler program; he 
or she is either a bona fide U.S. business person engaged in business 
in the APEC region or a U.S. Government official actively engaged in 
APEC business; and he or she is not a professional athlete, news 
correspondent, entertainer, musician, artist, or person engaged in a 
similar occupation. In addition to the self-certification, the U.S. 
ABTC applicant will also be required to pay the U.S. ABTC fee via the 
GOES Web site and visit a CBP trusted traveler enrollment center in 
order for his or her signature to be digitally captured for the U.S. 
ABTC. CBP estimates that U.S. ABTC applicants will experience an 
opportunity cost of 10 minutes to complete the U.S. ABTC self-
certification, pay the U.S. ABTC fee, and have their signature 
digitally captured at an enrollment center.\14\ These applicants will 
also experience a one-hour opportunity cost to travel to and from an 
enrollment center and wait to have their signature digitally captured. 
For the purposes of this rule, CBP does not consider the costs or 
benefits of joining a CBP trusted traveler program as impacts of this 
rule for those U.S. ABTC Program applicants who are already members of 
a CBP trusted traveler program. These applicants have previously, 
independent of any decision to join the U.S. ABTC Program, determined 
that the benefits of a CBP trusted traveler program outweigh the costs 
associated with the program they have chosen to join. They have not 
chosen to join the U.S. ABTC Program as a direct result of this rule.
---------------------------------------------------------------------------

    \14\ 80 FR 1650, January 13, 2015.
---------------------------------------------------------------------------

b. U.S. ABTC Applicants Who Are Not Already Members of a CBP Trusted 
Traveler Program
    An initial U.S. ABTC applicant who is not already a member of a CBP 
trusted traveler program will be required to apply for a U.S. ABTC and 
a CBP trusted traveler program, and self-certify that: He or she has 
submitted an application to a CBP trusted traveler program; he or she 
is either a bona fide U.S. business person engaged in business in the 
APEC region or a U.S. Government official actively engaged in APEC 
business; and he or she is not a professional athlete, news 
correspondent, entertainer, musician, artist, or person engaged in a 
similar occupation. Because these applicants would not have joined a 
CBP trusted traveler program if not for the U.S. ABTC Program, CBP 
includes the costs and benefits for these applicants to join these 
programs in this analysis.
    CBP anticipates that those initial U.S. ABTC applicants who must 
choose a CBP trusted traveler program when applying for the U.S. ABTC 
Program will choose to join Global Entry because, like the U.S. ABTC 
Program, Global Entry provides expedited clearance in the air 
environment. As described in the Global Entry final rule, CBP estimates 
that a Global Entry applicant will experience an opportunity cost of 40 
minutes to complete the Global Entry application in GOES.\15\ When 
concurrently applying for a U.S. ABTC and Global Entry, CBP anticipates 
that the U.S. ABTC applicant will be able to complete the Global Entry 
application, complete the U.S. ABTC self-certification, schedule their 
required Global Entry enrollment interview, pay the program application 
fees, and have their signature digitally captured for the U.S. ABTC 
Program in the 40 minutes estimated for the Global Entry 
application.\16\ Based on the Global Entry final rule, CBP estimates 
that Global Entry applicants also applying for a U.S. ABTC will 
experience an opportunity cost of one hour to travel to and from a CBP 
trusted traveler enrollment center and undergo the required Global 
Entry interview.\17\
---------------------------------------------------------------------------

    \15\ 77 FR 5681, February 6, 2012.
    \16\ As described above, the self-certification only entails 
certifying in GOES that the U.S. ABTC applicant is an existing 
member in good standing in a CBP trusted traveler program or that he 
or she has submitted an application to a CBP trusted traveler 
program; that he or she is either a bona fide U.S. business person 
engaged in business in the APEC region or a U.S. Government official 
actively engaged in APEC business; and that he or she is not a 
professional athlete, news correspondent, entertainer, musician, 
artist, or person engaged in a similar occupation.
    \17\ 77 FR 5681, February 6, 2012.
---------------------------------------------------------------------------

4. Number of U.S. ABTC Applicants
    In the U.S. ABTC IFR, CBP projected that 12,750 U.S. citizens would 
enroll in the U.S. ABTC Program within the first three years of the 
program's start date based on National Center for Asia-

[[Page 84408]]

Pacific Economic Cooperation \18\ estimates.\19\ Between the U.S. ABTC 
IFR's effective date in FY 2014 and December 2015, CBP has received 
nearly 21,000 initial U.S. ABTC Program applications, exceeding the 
IFR's projections.\20\ Based on worldwide ABTC growth, CBP expects to 
receive new, initial U.S. ABTC applications past the first three years 
of the U.S. ABTC's implementation, which contrasts to the U.S. ABTC 
IFR's assumption that initial applicants would occur in only a three-
year period.\21\ To project U.S. ABTC application volumes following 
this final rule's implementation, CBP first uses the latest data 
available to determine a base value for future applications. During the 
first three months of FY 2016 (October 2015 to December 2015), CBP 
received 1,163 U.S. ABTC applications that corresponded to current CBP 
trusted traveler program members and 2,423 that did not.\22\ CBP then 
extrapolates this partial-year data to the full 2016 fiscal year by 
multiplying the three-month totals of historical FY 2016 application 
data according to the applicant type (1,163 for applicants already in a 
CBP trusted traveler program and 2,423 for applicants not already in a 
CBP trusted traveler program) and multiplying each of the totals by 4 
to account for 12 months, or a full year, of application volumes. 
Through this estimation method, CBP finds that 4,652 of the projected 
new, initial U.S. ABTC Program applications in FY 2016, the base year, 
will correspond to individuals who are already CBP trusted traveler 
program members, while 9,692 new, initial U.S. ABTC applications will 
correspond to individuals who are not already CBP trusted traveler 
program members (see Table 2).\23\ CBP chose to use extrapolated FY 
2016 data rather than the FY 2015 statistics as a base for future U.S. 
ABTC demand because the partial-year FY 2016 data indicated an increase 
in the second year of total U.S. ABTC applications, which is consistent 
with CBP expectations of program growth in this time period.
---------------------------------------------------------------------------

    \18\ The National Center for Asia-Pacific Economic Cooperation 
is a U.S. business association focused on facilitating the private 
sector input into the APEC process.
    \19\ See http://csis.org/publication/why-us-approval-apec-business-travel-card-matters.
    \20\ The total U.S. ABTC applications figure represents 
applications received between the U.S. ABTC Program's interim 
effective date of June 12, 2014 through December 2015. Source: Email 
correspondence with CBP's Office of Field Operations on August 12, 
2015 and February 10, 2016.
    \21\ According to APEC, the ABTC ``has experienced significant 
growth in recent years. The number of active card users in the year 
to 30 June 2015 increased by more than 15 per cent, to over 190,000, 
compared to around 164,000 in mid-2014.'' Source: Asia-Pacific 
Economic Cooperation. ``APEC Business Travel Card to be Extended to 
Five Years from 1 September.'' 2015. Available at http://www.apecsec.org.sg/Press/News-Releases/2015/0728_ABTC.aspx. Accessed 
March 3, 2016.
    \22\ Source: Email correspondence with CBP's Office of Field 
Operations on February 10, 2016.
    \23\ 1,163 U.S. ABTC applications corresponding to individuals 
who are already in a trusted traveler program received during first 
three months of fiscal year 2016 x 4 = 4,652. 2,423 U.S. ABTC 
applications corresponding to individuals who are not already in a 
trusted traveler program received during first three months of 
fiscal year 2016 x 4 = 9,692.
---------------------------------------------------------------------------

    Given the newness of the U.S. ABTC Program and its subsequently 
limited historical data available to establish a specific longer term 
growth rate in U.S. ABTC applications, CBP assumes that the total 
number of U.S. ABTC applications projected for FY 2016 will remain the 
same for FY 2017 and FY 2018. Accordingly, CBP estimates that 4,652 
new, initial U.S. ABTC Program applications each year from individuals 
who are already CBP trusted traveler program members and 9,692 new, 
initial U.S. ABTC applications from individuals who are not already CBP 
trusted traveler program members (see Table 2). In accordance with the 
U.S. ABTC's authorizing law, CBP does not plan to issue any new U.S. 
ABTCs or renew any U.S. ABTCs after September 30, 2018, the end of FY 
2018. Unless the law is amended to extend the duration of U.S. ABTC 
issuance, all U.S. ABTCs will expire within a five-year validity period 
lasting up to September 29, 2023. Therefore, CBP does not forecast any 
new applications beyond FY 2018 and assumes that no new U.S. ABTCs will 
be issued thereafter for the purposes of this analysis. Table 2 
presents the historical and projected initial applications for the U.S. 
ABTC Program. As Table 2 shows, CBP estimates that almost 61,000 U.S. 
citizens will initially apply for the U.S. ABTC Program during the 
period of analysis spanning from FY 2014 through FY 2018, with 21,000 
applicants already possessing a CBP trusted traveler program membership 
and 40,000 applicants not already CBP trusted traveler program members. 
CBP assumes that each application signifies a single, unique applicant.
---------------------------------------------------------------------------

    \24\ Although the accompanying U.S. ABTC fee study includes 
CBP's costs related to the processing and printing of 5,000 Canadian 
ABTCs, CBP excludes these costs from this analysis because Canadian 
ABTC enrollees are not members of the U.S. ABTC Program and CBP is 
reimbursed for the costs associated with processing their 
applications.

   Table 2--Historical and Projected Numbers of U.S. ABTC Applicants Already and Not Already in a CBP Trusted
                                              Traveler Program \24\
----------------------------------------------------------------------------------------------------------------
                                                                    Number of
                                                                  initial U.S.      Number of
                                                                      ABTC         initial U.S.
                                                                   applicants    ABTC applicants   Total initial
                          Fiscal year                             already in a    Not already in     U.S. ABTC
                                                                   CBP trusted    a CBP trusted    applications
                                                                    traveler         traveler
                                                                     program         program
----------------------------------------------------------------------------------------------------------------
2014 *.........................................................           2,126           2,477            4,603
2015...........................................................           4,976           8,138           13,114
2016 **........................................................           4,652           9,692           14,344
2017 ***.......................................................           4,652           9,692           14,344
2018 ***.......................................................           4,652           9,692           14,344
                                                                ------------------------------------------------
    Total......................................................          21,058          39,691           60,749
----------------------------------------------------------------------------------------------------------------
* Partial year of historical data spanning from the U.S. ABTC Program's effective date of June 12, 2014 to the
  end of FY 2014.
** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated
  for the remaining months of FY 2016.
*** Projection.


[[Page 84409]]

    Although CBP received nearly 21,000 initial U.S. ABTC applications 
between June 2014 and December 2015, the agency only processed around 
18,000 applications during that time period. Of those applications 
processed, CBP approved 88 percent on average.\25\ During FY 2016, and 
before the implementation of this final rule and its establishment of a 
new U.S. ABTC validity period in FY 2017, CBP assumes that the agency 
will process the backlog of U.S. ABTC Program applications as well as 
new applications submitted in FY 2016. This would result in the 
processing of 17,370 initial U.S. ABTC applications in FY 2016. CBP 
also assumes that the agency will approve 88 percent of these 
applications, which would bring the total U.S. ABTC Program membership 
up to 28,303 by the end of FY 2016 (see Table 3). For initial U.S. ABTC 
applications received from FY 2017 to FY 2018, CBP assumes that it 
would maintain a processing rate equal to its projected application 
rate, with 14,344 U.S. ABTC applications received and processed each 
year. Among the projected applications processed between FY 2017 and FY 
2018, CBP believes that 88 percent will receive approvals based on the 
historical U.S. ABTC application approval rate. Thus, about 25,000 new 
individuals will become members of the U.S. ABTC Program from FY 2017 
to FY 2018, as Table 3 illustrates. CBP assumes that these 25,000 
individuals will generally receive U.S. ABTCs with five-year validity 
rates and maintain their program membership for the full validity 
period.
---------------------------------------------------------------------------

    \25\ From June 2014 through December 2015, CBP approved 15,854 
U.S. ABTC applications and denied 2,166 U.S. ABTC applications, for 
an approval rate of 88 percent. Source: Email correspondence with 
CBP's Office of Field Operations on August 12, 2015 and February 10, 
2016.

                 Table 3--Projected Number of Initial U.S. ABTC Membership Approvals and Denials
----------------------------------------------------------------------------------------------------------------
                                                                    Number of
                                                                  initial U.S.
                                                                      ABTC          Number of
                                                                  applications     initial U.S.    Total initial
                          Fiscal year                               approved           ABTC          U.S. ABTC
                                                                   (i.e., new      applications    applications
                                                                    U.S. ABTC         denied         processed
                                                                     program
                                                                    members)
----------------------------------------------------------------------------------------------------------------
2014 *.........................................................           2,619             273            2,892
2015...........................................................          10,398           1,401           11,799
2016 **........................................................          15,286           2,084           17,370
2017 ***.......................................................          12,623           1,721           14,344
2018 ***.......................................................          12,623           1,721           14,344
                                                                ------------------------------------------------
    Total......................................................          53,549           7,200           60,749
----------------------------------------------------------------------------------------------------------------
* Partial year of historical data spanning from the U.S. ABTC Program's effective date of June 12, 2014 to the
  end of FY 2014.
** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated
  for the remaining months of FY 2016.
*** Projection.
Note: Estimates may not sum to total due to rounding.

    Without complete data on the number of approved U.S. ABTC 
applications that corresponded to existing CBP trusted traveler program 
members, CBP assumes that all of the U.S. ABTC applications submitted 
between FY 2014 and FY 2018 from individuals already in a CBP trusted 
traveler program will correspond to an approved application in those 
respective application years. CBP assumes this because these applicants 
have already been approved for a trusted traveler program (see Table 
2). The remaining U.S. ABTC applications approved during the period of 
analysis will correspond to individuals who concurrently applied, or 
will concurrently apply, for the U.S. ABTC program and a CBP trusted 
traveler program. Table 4 summarizes the number of new, initial U.S. 
ABTC applications approved according to applicants' CBP trusted 
traveler membership statuses. As illustrated, CBP estimates that 21,000 
initial U.S. ABTC members are expected to already be CBP trusted 
traveler program members prior to applying for a U.S. ABTC between FY 
2014 and FY 2018, while 32,000 are not expected to be current members 
of a CBP trusted traveler program during that period (see Table 4).

    Table 4--Projected Number of U.S. ABTC Applications Approved for Members Already and Not Already in a CBP
                                            Trusted Traveler Program
----------------------------------------------------------------------------------------------------------------
                                                                    Number of       Number of
                                                                  initial U.S.     initial U.S.    Total initial
                                                                      ABTC             ABTC          U.S. ABTC
                                                                  applications     applications    applications
                                                                  approved for     approved for      approved
                          Fiscal year                                members       members Not      (i.e., U.S.
                                                                  already in a     already in a    ABTC program
                                                                   CBP trusted     CBP trusted    members) (from
                                                                    traveler         traveler        Table 3)
                                                                     program         program
----------------------------------------------------------------------------------------------------------------
2014 *.........................................................           2,126             493            2,619
2015...........................................................           4,976           5,422           10,398
2016 **........................................................           4,652          10,634           15,286

[[Page 84410]]

 
2017 ***.......................................................           4,652           7,971           12,623
2018 ***.......................................................           4,652           7,971           12,623
                                                                ------------------------------------------------
    Total......................................................          21,058          32,491           53,549
----------------------------------------------------------------------------------------------------------------
* Partial year of historical data spanning from the U.S. ABTC Program's effective date of June 12, 2014 to the
  end of FY 2014.
** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated
  for the remaining months of FY 2016.
*** Projection.
Note: Estimates may not sum to total due to rounding.

    As previously mentioned, the statute authorizing U.S. ABTC issuance 
currently expires at the end of FY 2018. Consistent with the U.S. ABTC 
IFR, CBP estimates that the 2,619 members approved for the U.S. ABTC 
Program in FY 2014 will renew their memberships in FY 2017 upon the 
expiration of their three-year validity periods (see Table 4). 
Likewise, CBP estimates that the 10,398 members approved for the U.S. 
ABTC Program in FY 2015 will renew their memberships in FY 2018 upon 
the expiration of their three-year validity periods (see Table 4). For 
continued program use after FY 2018, CBP estimates that the 15,286 U.S. 
ABTC applicants approved in FY 2016 will renew their U.S. ABTC Program 
memberships in FY 2018 before their initial U.S. ABTC validity periods 
end (see Table 4). As stated in the U.S. ABTC IFR, it is possible that 
individuals initially approved for the U.S. ABTC Program will change to 
a job function that does not require conducting APEC business, making 
them ineligible for a U.S. ABTC. In these cases, CBP assumes that the 
individual's replacement in that position will enroll in the U.S. ABTC 
Program, in lieu of the original enrollee, in order to benefit from the 
expedited immigration process while visiting APEC member economies. Due 
to the short timeframe between this final rule's implementation and the 
expiration of the U.S. ABTC Program, CBP does not believe that 
individuals who enroll in the U.S. ABTC Program between FY 2017 and FY 
2018 will renew their memberships during the period of analysis. This 
is because CBP thinks it is unlikely that these individuals will incur 
U.S. ABTC application fees and time costs to get less than two years of 
additional U.S. ABTC use.
    Table 5 shows the projected number of U.S. ABTC members who will 
renew their U.S. ABTC Program memberships during the period of analysis 
according to their current CBP trusted traveler program membership 
status. As illustrated, all 28,303 U.S. ABTC applicants approved for 
memberships prior to FY 2017 will renew their U.S. ABTC memberships by 
FY 2018's end. In accordance with this rule's extended U.S. ABTC 
validity period, these members will generally receive U.S. ABTCs that 
will expire within a five-year validity period lasting up to September 
29, 2023. For simplicity of the analysis, CBP counts both the original 
U.S. ABTC holder who renews and any replacement applicants, if 
applicable, as a renewal in Table 5. Note that renewals are not 
forecasted beyond FY 2018 because the statute authorizing the U.S. ABTC 
expires at the end of that year.

 Table 5--Projected Number of U.S. ABTC Program Membership Renewals for Members Already and Not Already in a CBP
                                            Trusted Traveler Program
----------------------------------------------------------------------------------------------------------------
                                                                                  Number of U.S.
                                                                 Number of U.S.   ABTC  renewals
                                                                 ABTC  renewals    from members
                                                                  from members    Not previously    Total U.S.
                          Fiscal year                             previously in      in a CBP     ABTC  renewals
                                                                  a CBP trusted      trusted
                                                                    traveler         traveler
                                                                     program         program
----------------------------------------------------------------------------------------------------------------
2014...........................................................  ..............  ...............  ..............
2015...........................................................  ..............  ...............  ..............
2016 **........................................................  ..............  ...............  ..............
2017 ***.......................................................           2,126             493            2,619
2018 ***.......................................................           9,628          16,056           25,684
                                                                ------------------------------------------------
    Total......................................................          11,754          16,549           28,303
----------------------------------------------------------------------------------------------------------------
** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated
  for the remaining months of FY 2016.
*** Projection.
Note: Estimates may not sum to total due to rounding.


[[Page 84411]]

5. Costs
    CBP has determined that a $70 fee is necessary to recover its costs 
associated with the U.S. ABTC Program. These costs include the cost to 
issue the U.S. ABTCs and the information technology infrastructure 
costs, initial and recurring, required to run the U.S. ABTC 
Program.\26\ In addition to the U.S. ABTC fee, initial U.S. ABTC 
applicants will also experience an opportunity cost associated with 
obtaining a U.S. ABTC. As previously discussed, CBP estimates that new, 
initial U.S. ABTC applicants who are already members of a CBP trusted 
traveler program will experience a 1 hour and 10-minute (70-minute) 
application-related opportunity cost, while U.S. ABTC applicants who 
are not already members of a CBP trusted traveler program will 
experience a 1 hour and 40-minute (100-minute) application-related 
opportunity cost. U.S. ABTC applicants who are not already members of a 
CBP trusted traveler program are required to pay another fee to join 
the U.S. ABTC Program--the $100 application fee associated with the 
Global Entry program.\27\ The Department of Transportation's guidance 
on the valuation of travel time for air passengers estimates a business 
traveler's value to be $63.16 per hour.\28\ Using this estimate as well 
as the opportunity cost and fees just described, CBP estimates that it 
will cost a new, initial U.S. ABTC applicant who is already a CBP 
trusted traveler program member approximately $144 to join the U.S. 
ABTC Program.\29\ For new, initial U.S. ABTC applicants who are not 
already members of a CBP trusted traveler program, CBP estimates that 
it will cost approximately $275 to join the U.S. ABTC Program.\30\ By 
applying the U.S. ABTC applicant projections according to CBP trusted 
traveler program membership statuses (see Table 2) to their respective 
U.S. ABTC application costs ($144 for applicants already in a CBP 
trusted traveler program and $275 for applicants not already in a CBP 
trusted traveler program), CBP finds that new, initial U.S. ABTC 
applicants have incurred or will incur undiscounted costs totaling 
$13.9 million during this rule's period of analysis (see Table 6).
---------------------------------------------------------------------------

    \26\ The Asia-Pacific Economic Cooperation Business Travel Card 
Fee Study is posted in the docket for this rulemaking on 
www.regulations.gov.
    \27\ As previously discussed, CBP anticipates U.S. ABTC 
applicants who are not already members of a CBP trusted traveler 
program will join the Global Entry program.
    \28\ As previously mentioned, this value is based on the U.S. 
Department of Transportation's (DOT) guidance regarding the 
valuation of travel time for business travelers in 2013 U.S. 
dollars, adjusted to 2017 U.S. dollars using the DOT's recommended 
annual growth rate of one percent. Source: U.S. Department of 
Transportation, Office of Transportation Policy. The Value of Travel 
Time Savings: Departmental Guidance for Conducting Economic 
Evaluations Revision 2 (2015 Update). ``Table 4 (Revision 2-
corrected): Recommended Hourly Values of Travel Time Savings.'' 
2015. Available at http://www.transportation.gov/sites/dot.gov/files/docs/Revised%20Departmental%20Guidance%20on%20Valuation%20of%20Travel%20Time%20in%20Economic%20Analysis.pdf. Accessed February 16, 2016.
    \29\ $63.16 x (70 minutes/60 minutes per hour) = $73.69; $73.69 
+ $70 U.S. ABTC fee = $143.69, or $144 when rounded to the nearest 
dollar. CBP estimates that U.S. ABTC applicants who are already in a 
CBP trusted traveler program will experience an opportunity cost of 
10 minutes to complete a self-certification, schedule an appointment 
at an enrollment center, and have their signature digitally 
captured. Additionally, CBP estimates these applicants will 
experience an opportunity cost of 1 hour (60 minutes) to travel to 
and from an enrollment center and wait to have their signature 
digitally captured. In total, CBP estimates U.S. ABTC applicants who 
are already members of a CBP trusted traveler program will 
experience an opportunity cost of 70 minutes with this rule.
    \30\ $63.16 x (100 minutes/60 minutes per hour) = $105.27; 
$105.27 + $100 Global Entry program fee + $70 U.S. ABTC fee = 
$275.27, or $275 when rounded to the nearest dollar. CBP estimates 
that U.S. ABTC applicants who are not already in a CBP trusted 
traveler program will experience an opportunity cost of 40 minutes 
to complete the Global Entry application and the U.S. ABTC self-
certification, schedule their required Global Entry enrollment 
interview, pay the program application fees, and have their 
signature digitally captured for the U.S. ABTC Program. 
Additionally, CBP estimates these applicants will experience an 
opportunity cost of 1 hour (60 minutes) to travel to and from an 
enrollment center and complete the interview for Global Entry. In 
total, CBP estimates U.S. ABTC applicants who are not already 
members of a CBP trusted traveler program will experience an 
opportunity cost of 100 minutes with this rule.

                     Table 6--U.S. ABTC Program Application Costs to New, Initial Applicants
                                                 [Undiscounted]
----------------------------------------------------------------------------------------------------------------
                                                                      Total                            Total
                                                   Number of       application      Number of       application
                                                  initial U.S.    cost for U.S.    initial U.S.    cost for U.S.
                                                ABTC applicants       ABTC       ABTC applicants       ABTC
                  Fiscal year                     already in a     applicants     Not already in  applicants Not
                                                  CBP trusted     already in a    a CBP trusted    already in a
                                                    traveler       CBP trusted       traveler       CBP trusted
                                                    program         traveler         program         traveler
                                                                     program                          program
                                                           (A)       ($144 x A)             (B)       ($275 x B)
----------------------------------------------------------------------------------------------------------------
2014..........................................           2,126         $306,144           2,477         $681,175
2015..........................................           4,976          716,544           8,138        2,237,950
2016..........................................           4,652          669,888           9,692        2,665,300
2017..........................................           4,652          669,888           9,692        2,665,300
2018..........................................           4,652          669,888           9,692        2,665,300
                                               -----------------------------------------------------------------
    Total.....................................          21,058        3,032,352          39,691       10,915,025
----------------------------------------------------------------------------------------------------------------

    As mentioned earlier, CBP estimates that 28,303 U.S. ABTC 
applicants approved for memberships prior to FY 2017 will successfully 
renew their U.S. ABTC memberships by FY 2018's end (see Table 5). 
However, these members will incur different renewal costs according to 
their initial CBP trusted traveler program membership status. U.S. ABTC 
members already in a CBP trusted traveler program must complete the 
U.S. ABTC application (i.e., a self-certification) and pay the U.S. 
ABTC fee using GOES to renew their U.S. ABTC membership. These members 
will spend an estimated 10 minutes completing such renewal steps, at an 
opportunity cost of $10.53 per renewal.\31\ This contrasts to the IFR's 
analysis, which assumed that individuals would incur the same time 
burden when initially

[[Page 84412]]

applying for or renewing a U.S. ABTC. Because the U.S. ABTC Program's 
initial digital signature capture requirement is generally not 
necessary for program membership renewal, CBP no longer believes that 
the time burdens to apply for and renew U.S. ABTC applications are the 
same. With U.S. ABTC renewals, members will not have to travel to a CBP 
trusted traveler enrollment center to have their signature digitally 
captured, thus decreasing their renewal burden assumed in the IFR. 
Along with the $10.53 renewal opportunity cost, U.S. ABTC applicants 
who were already members of a CBP trusted traveler program will be 
required to pay the $70 U.S. ABTC fee upon membership renewal, for a 
total U.S. ABTC renewal cost of approximately $81.\32\ Note that CBP 
does not consider the costs for current CBP trusted traveler program 
members to renew their CBP trusted traveler program memberships because 
they would presumably incur those costs even in the absence of this 
rule.
---------------------------------------------------------------------------

    \31\ $63.16 hourly time for business traveler x (10 minutes/60 
minutes per hour) = $10.53.
    \32\ $10.53 opportunity cost to renew U.S. ABTC Program 
membership + $70 U.S. ABTC fee = $80.53, or $81 when rounded to the 
nearest dollar.
---------------------------------------------------------------------------

    Although CBP's trusted traveler program and U.S. ABTC Program 
validity periods previously differed (five years vs. three years for 
memberships approved before FY 2017), CBP continues to assume for the 
simplicity of this analysis that U.S. ABTC applicants who joined a CBP 
trusted traveler program exclusively for the ability to obtain a U.S. 
ABTC will concurrently renew their U.S. ABTC and trusted traveler 
program memberships during the period of analysis. As such, CBP 
believes that to renew their U.S. ABTC memberships, U.S. ABTC members 
not previously in a CBP trusted traveler program will concurrently 
complete the U.S. ABTC application (i.e., a self-certification), Global 
Entry renewal, and pay the U.S. ABTC and Global Entry fees using GOES. 
These members will spend an estimated 10 minutes completing such 
renewal steps, at an opportunity cost of $10.53 per renewal.\33\ This 
burden contrasts to the IFR's analysis, which assumed that individuals 
would incur the same time burden when initially applying for or 
renewing a U.S. ABTC. Because the initial CBP trusted traveler program 
interview and the U.S. ABTC Program's digital signature capture 
requirements are generally not necessary for program membership 
renewals, CBP no longer believes that the time burdens to apply for and 
renew U.S. ABTC applications are the same. With U.S. ABTC renewals, 
members will not have to travel to a CBP trusted traveler enrollment 
center to have their signature digitally captured or undergo another 
interview, thus decreasing their renewal burden assumed in the IFR. 
Individuals concurrently renewing their U.S. ABTC and Global Entry 
memberships will also be required to pay the $70 U.S. ABTC fee and the 
$100 fee associated with the Global Entry program, for a total U.S. 
ABTC and Global Entry membership renewal cost of about $181.\34\
---------------------------------------------------------------------------

    \33\ $63.16 hourly time for business traveler x (10 minutes/60 
minutes per hour) = $10.53.
    \34\ $10.53 opportunity cost to concurrently renew U.S. ABTC and 
Global Entry Program memberships + $100 Global Entry program fee + 
$70 U.S. ABTC fee = $180.53, or $181 when rounded to the nearest 
dollar.
---------------------------------------------------------------------------

    By applying the U.S. ABTC renewal projections according to CBP 
trusted traveler program membership statuses (see Table 5) to their 
respective U.S. ABTC membership renewal costs ($81 for applicants 
already in a CBP trusted traveler program and $181 for applicants not 
already in a CBP trusted traveler program), CBP finds that U.S. ABTC 
Program members will incur a total undiscounted cost of $3.9 million to 
renew their memberships during the period of analysis (see Table 7).

                               Table 7--U.S. ABTC Program Renewal Costs to Members
                                                 [Undiscounted]
----------------------------------------------------------------------------------------------------------------
                                                   Number of      Total renewal     Number of      Total renewal
                                                 renewals from      cost for      renewals from      cost from
                                                    members          members       members Not      members Not
                  Fiscal year                   previously in a   previously in  previously in a   previously in
                                                  CBP trusted     a CBP trusted    CBP trusted     a CBP trusted
                                                    traveler        traveler         traveler        traveler
                                                    program          program         program          program
                                                           (A)        ($81 x A)             (B)       ($181 x B)
----------------------------------------------------------------------------------------------------------------
2014..........................................  ...............  ..............  ...............  ..............
2015..........................................  ...............  ..............  ...............  ..............
2016..........................................  ...............  ..............  ...............  ..............
2017..........................................           2,126         $172,206             493          $89,233
2018..........................................           9,628          779,868          16,056        2,906,136
                                               -----------------------------------------------------------------
    Total.....................................          11,754          952,074          16,549        2,995,369
----------------------------------------------------------------------------------------------------------------

    Accounting for initial application and renewal costs, the total 
undiscounted cost of this rule is $17.9 million. In present value 
terms, the overall cost of this rule will range from approximately 
$18.1 million to $18.3 million from FY 2014 to FY 2018 (see Table 8). 
The total annualized cost of this rule over the period of analysis will 
equal between $3.4 million and $3.5 million. These estimates vary 
according to the discount rate applied.

              Table 8--Total Cost of Rule, FY 2014-FY 2018
                           [2017 U.S. dollars]
------------------------------------------------------------------------
                                            3% Discount     7% Discount
                                               rate            rate
------------------------------------------------------------------------
Present Value Cost......................     $18,061,855     $18,319,248

[[Page 84413]]

 
Annualized Cost.........................       3,504,094       3,408,535
------------------------------------------------------------------------

6. Benefits
    As stated earlier, the U.S. ABTC Program will enable card holders 
to access fast-track immigration lanes at participating airports in the 
20 other APEC member economies. Although the ABTC Program is relatively 
new for U.S. citizens, it is a well-established program for the other 
APEC member economies. In an effort to quantify the benefits of the 
ABTC, APEC commissioned the report ``Reducing Business Travel Costs: 
The Success of APEC's Business Mobility Initiatives'' (APEC 
Report).\35\ The APEC Report quantified seven key performance 
indicators, one of which quantifies the time savings an ABTC holder 
receives by using its fast-track immigration lanes. As shown in Table 
9, the time savings each member economy's ABTC holders receive can vary 
greatly. Like in the U.S. ABTC IFR, CBP believes the weighted average 
time savings of approximately 43 minutes is an appropriate estimate of 
the time savings a U.S. ABTC holder will receive when clearing foreign 
immigration services using the fast-track immigration lanes. To the 
extent that our estimate understates the time saved by U.S. ABTC 
holders, the benefits of the rule will be higher. Similarly, to the 
extent that U.S. ABTC holders are able to catch flights they would have 
otherwise missed due to lengthy immigration waits, the benefits of this 
rule will be higher.
---------------------------------------------------------------------------

    \35\ Asia-Pacific Economic Cooperation. ``Reducing Business 
Travel Costs: The Success of APEC's Business Mobility Initiatives.'' 
November 2011. Available at http://publications.apec.org/publication-detail.php?pub_id=1214. Accessed May 23, 2012.

   Table 9--Key Performance Indicator 4--Total Time Savings Clearing Immigration at the Border by ABTC Holders
----------------------------------------------------------------------------------------------------------------
                                                                   Average time                     Total time
                                                                   savings/ABTC    ABTC holders     savings by
                             Economy                                  holder          (2011)       ABTC holders
                                                                     (minutes)                       (minutes)
----------------------------------------------------------------------------------------------------------------
Australia.......................................................           46.52          24,286       1,129,713
Brunei Darussalam...............................................           32.81              43           1,411
Chile...........................................................           49.33             416          20,520
China...........................................................           38.74           3,895         150,882
Hong Kong China.................................................           26.28          10,659         280,137
Indonesia.......................................................            60.2           1,495          90,003
Japan...........................................................           51.49           2,541         130,840
South Korea.....................................................           43.26           8,422         364,351
Malaysia........................................................           66.19           4,140         274,043
Mexico..........................................................          103.51             185          19,149
New Zealand.....................................................           48.11           6,538         314,527
Papua New Guinea................................................           27.03              22             595
Peru............................................................           40.78           1,277          52,082
Philippines.....................................................           45.22             476          21,525
Singapore.......................................................           64.15           8,137         522,013
Thailand........................................................           28.94           5,564         161,006
Vietnam.........................................................           24.29           8,730         212,011
                                                                 -----------------------------------------------
    Total.......................................................             n/a          86,826       3,744,808
    Weighted Average............................................           43.13             n/a             n/a
----------------------------------------------------------------------------------------------------------------
Source: Asia-Pacific Economic Cooperation. ``Reducing Business Travel Costs: The Success of APEC's Business
  Mobility Initiatives.'' October 2011. Available at http://publications.apec.org/publication-detail.php?pub_id=1214. Accessed May 23, 2012.

    As previously discussed, the DOT's guidance regarding the valuation 
of travel time estimates a business air traveler's value to be $63.16 
per hour. Using this hourly time value and the 43 minutes in time 
savings from the ABTC per trip, CBP estimates each U.S. ABTC holder 
will save approximately $45 per visit to an APEC member economy.\36\ In 
addition to the time savings per trip to an APEC member economy, CBP 
estimates a new, initial U.S. ABTC applicant who is not already a CBP 
trusted traveler member will also save an additional 7 minutes on net, 
or $7 in opportunity costs, by using a Global Entry kiosk for expedited 
CBP clearance upon returning to the United States from an APEC 
economy.\37\
---------------------------------------------------------------------------

    \36\ $63.16 x (43 minutes/60 minutes per hour) = $45.26, or $45 
when rounded to the nearest dollar.
    \37\ $63.16 x (7 minutes/60 minutes per hour) = $7.37, or $7 
when rounded to the nearest dollar. Source: 77 FR 5681, February 6, 
2012.
---------------------------------------------------------------------------

7. Net Benefits
    Because participation in the U.S. ABTC Program is voluntary, the 
perceived benefits of its reduced wait times have to equal or exceed 
the cost of the program over five years for potential enrollees to 
determine whether or not the program is worthwhile to join. As 
previously discussed, CBP estimates that each U.S. ABTC holder will 
save approximately $45 per trip by using the fast-track immigration 
lanes in foreign APEC member economies. Although CBP is unable to 
estimate the number of trips each individual U.S. ABTC holder will

[[Page 84414]]

take to an APEC member economy, CBP can estimate the minimum number of 
trips a U.S. ABTC holder will have to take over the five-year U.S. ABTC 
validity period for the benefits of initial U.S. ABTC membership to 
equal or exceed the costs of initially obtaining a U.S. ABTC by using 
the estimated savings per trip ($45) previously described. CBP 
estimates that a new, initial U.S ABTC applicant who is already 
enrolled in a CBP trusted traveler program will need to take a minimum 
of four trips between the United States and an APEC member economy over 
five years for the benefits of the U.S. ABTC Program to exceed the 
costs associated with joining the program.\38\ Accounting for the $45 
in time savings per trip to an APEC member economy and the $7 in time 
savings by using a Global Entry kiosk for expedited CBP clearance upon 
returning to the United States from an APEC economy, CBP estimates that 
a new, initial U.S. ABTC applicant who is not already a CBP trusted 
traveler member will need to take a minimum of six trips between the 
United States and an APEC member economy over five years for the 
benefits of the U.S. ABTC Program to exceed the costs associated with 
joining the program and Global Entry.\39\ Current U.S. ABTC holders 
will need to take even fewer trips per year for the benefits of 
renewing their program memberships to outweigh the costs.
---------------------------------------------------------------------------

    \38\ (Rounded) $143 U.S. ABTC opportunity cost and fee/$45 
savings per trip = 3.2 trips.
    \39\ (Rounded) $45 fast-track immigration clearance savings + $7 
expedited CBP clearance savings from Global Entry = $52 U.S. ABTC 
holder savings; (Rounded) $274 U.S. ABTC and Global Entry 
opportunity cost and fees/$52 U.S. ABTC holder savings = 5.3 trips.
---------------------------------------------------------------------------

B. The Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.), as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people). Although this rule regulates 
people and not businesses, a U.S. citizen is required to be either a 
bona fide U.S. business person engaged in business in the APEC region 
or a U.S. Government official actively engaged in APEC business in 
order to qualify for a U.S. ABTC. Therefore, CBP has considered the 
impact of this rule on small entities.
    The U.S. ABTC Program is voluntary and has an initial application 
cost of approximately $144 if a U.S. ABTC applicant is a current member 
of a CBP trusted traveler program or approximately $275 if a U.S. ABTC 
applicant must concurrently apply for a U.S. ABTC and a CBP trusted 
traveler program. While the U.S. ABTC applicant will bear the cost 
associated with obtaining a U.S. ABTC, a business may voluntarily 
reimburse the applicant for the fee and his or her opportunity cost. 
CBP cannot estimate the number of small entities that will voluntarily 
reimburse its employees. CBP recognizes that it is possible that a 
substantial number of small entities will be impacted by this 
regulation. However, CBP does not believe an application cost of either 
$144 or $275, depending on whether a U.S. ABTC applicant is currently 
enrolled in a CBP trusted traveler program, constitutes a significant 
economic impact. Moreover, as previously discussed, each U.S. ABTC 
holder will save approximately 43 minutes, or approximately $45 in 
opportunity costs, per trip, while new, initial U.S. ABTC applicants 
who are not already CBP trusted traveler members will also save an 
additional 7 minutes on net, or $7 in opportunity costs, by using a 
Global Entry kiosk for expedited CBP clearance upon returning to the 
United States from an APEC economy. U.S. ABTC Program members can 
dedicate these time savings to productive, APEC business-related use. 
After approximately four or six trips to an APEC member economy, the 
benefits of an ABTC will exceed the full cost of obtaining a U.S. ABTC 
(fees + opportunity costs). CBP also notes that a one-time expense of 
$144 or $275, depending on whether the U.S. ABTC applicant is already 
enrolled in a CBP trusted traveler program, is a fraction of the cost 
of frequent trans-Pacific travel. Thus, CBP certifies this regulation 
will not have a significant economic impact on a substantial number of 
small entities. CBP received no public comments challenging this 
certification.

C. 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 one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions are necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

D. Executive Order 13132

    The rule 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, this rule does not have sufficient federalism implications 
to warrant the preparation of a federalism summary impact statement.

E. Paperwork Reduction Act

    The collections of information in this document will be submitted 
for review by OMB in accordance with the requirements of the Paperwork 
Reduction Act (44 U.S.C. 3507) under control number 1651-0121. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a valid 
control number assigned by OMB. The collections of information in these 
regulations are contained in Title 8, Part 235 of the CFR. The 
revisions to OMB clearance 1651-0121 for the U.S. ABTC Program 
application \40\ reflect the following changes:
---------------------------------------------------------------------------

    \40\ Source: U.S. Department of Homeland Security, Customs and 
Border Protection. Supporting Statement for Paperwork Reduction Act 
Submission: 1651-0121, Trusted Traveler Programs and U.S. APEC 
Business Travel Card. September 2015. Available at http://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201509-1651-002. 
Accessed March 29, 2016.
---------------------------------------------------------------------------

    U.S. ABTC Applications: \41\
---------------------------------------------------------------------------

    \41\ CBP estimates that a total of 14,344 applicants will 
initially apply for U.S. ABTC Program membership each year (see 
``Executive Order 13563 and Executive Order 12866'' section, Table 
2-- ``Total Initial U.S. ABTC Applications'' in FY 2017). However, 
as described in the ``Executive Order 13563 and Executive Order 
12866'' section above, an estimated 4,652 of these applicants will 
already be current CBP trusted traveler program members, while 9,692 
will not. Because the U.S. ABTC Program application requirements 
differ according to an applicant's CBP trusted traveler program 
membership status, the U.S. ABTC application time burdens for 
individuals will differ. The estimated 4,652 U.S. ABTC applicants 
who are already CBP trusted traveler program members will incur a 
time burden of 10 minutes to complete the U.S. ABTC self-
certification and have their signature digitally captured at a CBP 
trusted traveler enrollment center for their U.S. ABTC application. 
These U.S. ABTC application estimates account for the 4,652 
individuals who are already in a CBP trusted traveler program and 
their related U.S. ABTC application burdens. CBP considers the 
remaining additional burden to the 9,692 individuals who will 
concurrently apply for an initial U.S. ABTC and a CBP trusted 
traveler program membership in the following ``Global Entry 
Applications'' estimates. Additionally, CBP estimates that a total 
of 2,619 existing U.S. ABTC Program members will choose to renew 
their U.S. ABTC memberships and Global Entry memberships (if they 
were not already in a CBP trusted traveler program at the time of 
their initial ABTC application) (see ``Executive Order 13563 and 
Executive Order 12866'' section, Table 5-- ``Total U.S. ABTC 
Renewals'' in FY 2017). For the purposes of this information 
collection, CBP includes the renewal figures in the overall U.S. 
ABTC application estimates because the burden for initial U.S. ABTC 
Program application and renewal are both assumed to be 10 minutes.

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

[[Page 84415]]

    Increase in estimated number of annual respondents: 1,643.
    Increase in estimated number of annual responses: 1,643.
    Estimated average time burden per response: 10 minutes (0.17 
hours).
    Increase in estimated total annual time burden: 279 hours.
    Initial U.S. ABTC applicants who join Global Entry to meet a U.S. 
ABTC Program membership requirement increased the number of Global 
Entry applications and burden hours as follows:
    Global Entry Applications: \42\
---------------------------------------------------------------------------

    \42\ Individuals interested in joining the U.S. ABTC Program who 
are not already CBP trusted traveler members will need to initially 
apply for a CBP trusted traveler program membership to meet one of 
the U.S. ABTC Program's membership requirements. CBP estimates that 
the 9,692 initial applicants who are not already in a CBP trusted 
traveler program will concurrently apply for the U.S. ABTC Program 
and CBP's Global Entry trusted traveler program, incurring a 40-
minute time burden to complete the Global Entry application, 
complete the U.S. ABTC self-certification, schedule their required 
Global Entry enrollment interview, pay the program application fees, 
and have their signature digitally captured for the U.S. ABTC 
Program. These initial Global Entry application estimates account 
for the 9,692 individuals who are not already in a CBP trusted 
traveler program and their related U.S. ABTC application burdens.
---------------------------------------------------------------------------

    Increase in estimated number of annual respondents: 2,099.
    Increase in estimated number of annual responses: 2,099.
    Estimated average time burden per response: 40 minutes (0.67 
hours).
    Increase in estimated total annual time burden: 1,407 hours.
    Approved U.S. ABTC members who joined Global Entry for their U.S. 
ABTC Program membership also increased the Global Entry kiosk usage 
rate and burden hours through their use of the kiosks for expedited CBP 
clearance upon returning to the United States from an APEC economy. The 
additional Global Entry kiosk burden hours directly resulting from the 
U.S. ABTC Program are as follows:
    Global Entry Kiosk Use: \43\
---------------------------------------------------------------------------

    \43\ CBP now estimates that by the end of FY 2017, 24,520 
individuals who were not already members of a CBP trusted traveler 
program will become joint members of the U.S. ABTC Program and 
Global Entry (see ``Executive Order 13563 and Executive Order 
12866'' section, Table 4-- ``Number of Initial U.S. ABTC 
Applications Approved for Members Not Already in a CBP Trusted 
Traveler Program'' in FY 2014-FY 2017). Due to data limitations, CBP 
assumes that these 24,520 U.S. ABTC Program members will use Global 
Entry kiosks twice per year as this is the minimum number of annual 
trips one of these members would have to take for the benefits of 
joining the U.S. ABTC Program to outweigh its costs. This translates 
to an additional 49,040 kiosk responses per year. These Global Entry 
kiosk use estimates account for the 49,040 kiosk responses and the 
related burdens.
---------------------------------------------------------------------------

    Increase in estimated number of annual respondents: 11,106.
    Increase in estimated number of annual responses: 22,212.
    Estimated average time burden per response: 1 minute (0.016 hours).
    Increase in estimated total annual time burden: 356 hours.

F. Privacy

    DHS will ensure that all Privacy Act requirements and policies are 
adhered to in the implementation of this rule. In this regard, DHS has 
updated the Privacy Impact Assessment for the Global Enrollment System 
(GES) on November 1, 2016, which fully outlines processes to ensure 
compliance with Privacy Act protections relevant to this rule. See 
https://www.dhs.gov/sites/default/files/publications/privacy-pia-cbp-ges-november2016.pdf.

VII. Authority

    This regulation is issued under the authority of 5 U.S.C. 301, 6 
U.S.C. 112, 203 and 211, 8 U.S.C. 1103 and 19 U.S.C. 2, 66 and 1624, 
and Public Law 112-54.

List of Subjects in 8 CFR Part 235

    Administrative practice and procedure, Aliens, Immigration, 
Reporting and recordkeeping requirements.

Amendments to Regulations

    For the reasons set forth in the preamble, the IFR amending 8 CFR 
103.7(b)(1)(ii)(N) and adding a new section 235.13, which was published 
at 79 FR 27161 on May 13, 2014, is adopted as final with the following 
changes:

PART 235--INSPECTION OF PERSONS APPLYING FOR ADMISSION

0
1. The authority citation for part 235 continues to read as follows: 8 
U.S.C. 1101 and note, 1103, 1183, 1185 (pursuant to E.O.13323, 69 FR 
241, 3 CFR, 2004 Comp., p.278), 1201, 1224, 1225, 1226, 1228, 1365a 
note, 1365b, 1379, 1731-32; Title VII of Public Law 110-229; 8 U.S.C. 
1185 note (section 7209 of Pub. L. 108-458); Public Law 112-54.


Sec.  235.13   [Amended]

0
2. Amend Sec.  235.13 as follows:
0
a. In paragraph (c)(6), first sentence, remove the number ``3'' and add 
in its place the word ``five'' and remove the words ``suspended or'';
0
b. Revise the paragraph (f) subject heading to read ``Denial and 
removal'';
0
c. In paragraph (f)(2) introductory text, first sentence, remove the 
words ``suspended or'';
0
d. In paragraph (f)(3), first and second sentences, remove the words 
``suspension or'';
0
e. In paragraph (f)(4), remove ``, suspended,'';
0
f. In paragraph (g)(1), remove all occurrences of the phrase ``denial, 
suspension or removal'' and add in its place ``denial or removal'' and 
remove the words ``date of suspension or removal'' and add in their 
place ``date of removal'';
0
g. In paragraph (g)(2), remove the phrase ``denial, suspension or 
removal'' and add in its place ``denial or removal''; and
0
h. In paragraph (h), second sentence, remove the words ``suspended 
or''.

    Dated: November 17, 2016.
 Jeh Charles Johnson,
Secretary.
[FR Doc. 2016-28177 Filed 11-22-16; 8:45 am]
 BILLING CODE 9111-14-P



                                                             Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                                84403

                                                available information, it is hereby found                 Dated: November 18, 2016.                           One of APEC’s business facilitation
                                                that this rule, as hereinafter set forth,               Elanor Starmer,                                       initiatives is the APEC Business Travel
                                                will tend to effectuate the declared                    Administrator, Agricultural Marketing                 Card (ABTC) Program. The operating
                                                policy of the Act.                                      Service.                                              procedures for the ABTC Program are
                                                   Pursuant to 5 U.S.C. 553, it is also                 [FR Doc. 2016–28251 Filed 11–22–16; 8:45 am]          set out in the APEC Business Travel
                                                                                                        BILLING CODE 3410–02–P                                Card Operating Framework (APEC
                                                found and determined that good cause
                                                                                                                                                              Framework).2 Under the ABTC Program,
                                                exists for not postponing the effective
                                                                                                                                                              APEC members can issue cards to
                                                date of this rule until 30 days after                                                                         business travelers and senior
                                                publication in the Federal Register                     DEPARTMENT OF HOMELAND
                                                                                                        SECURITY                                              government officials who meet certain
                                                because removal of the word ‘‘midget’’                                                                        criteria. The cards provide simpler,
                                                should not impact the application of the                                                                      short-term entry procedures within the
                                                                                                        U.S. Customs and Border Protection
                                                order or the import regulations, since                                                                        APEC region.
                                                the word ‘‘midget’’ is redundant and                    8 CFR Parts 103 and 235
                                                appears in parentheses after the word                                                                         B. U.S. Participation in ABTC
                                                ‘‘small.’’ Thus, removing the word                      [Docket No. USCBP–2013–0029; CBP                         On November 12, 2011, President
                                                ‘‘midget’’ has no effect on interpretation              Decision No. 16–20]                                   Obama signed the Asia-Pacific
                                                of the order or the import regulations;                 RIN 1651–AB01                                         Economic Cooperation Business Travel
                                                and, therefore, has no effect on handlers                                                                     Cards Act of 2011 (APEC Act). Public
                                                or raisin importers. Further, handlers                  The U.S. Asia-Pacific Economic                        Law 112–54, 125 Stat. 550. The APEC
                                                are aware of this rule, which was                       Cooperation Business Travel Card                      Act authorizes the Secretary of
                                                recommended at two public meetings.                     Program                                               Homeland Security, in coordination
                                                Also, a 30-day comment period was                                                                             with the Secretary of State, to issue
                                                                                                        AGENCY:  U.S. Customs and Border                      ABTCs through September 30, 2018 to
                                                provided for in the proposed rule.                      Protection; Department of Homeland                    any eligible person, including business
                                                List of Subjects                                        Security.                                             persons and U.S. Government officials
                                                                                                        ACTION: Final rule.                                   actively engaged in APEC business. On
                                                7 CFR Part 989
                                                                                                                                                              May 13, 2014, U.S. Customs and Border
                                                                                                        SUMMARY:   This rule adopts as final, with            Protection (CBP) published an interim
                                                  Grapes, Marketing agreements,
                                                                                                        two changes, interim amendments to the                final rule (IFR) in the Federal Register
                                                Raisins, Reporting and recordkeeping                    Department of Homeland Security’s
                                                requirements.                                                                                                 (79 FR 27161) amending the DHS
                                                                                                        (DHS) regulations published in the                    regulations to establish the U.S. ABTC
                                                7 CFR Part 999                                          Federal Register on May 13, 2014                      Program and an application fee. See 8
                                                                                                        establishing the U.S. Asia-Pacific                    CFR 235.13 and 8 CFR 103.7.
                                                  Dates, Filberts, Food grades and                      Economic Cooperation (APEC) Business                     The IFR became effective on June 12,
                                                standards, Imports, Nuts, Prunes,                       Travel Card Program. The U.S. APEC                    2014 and on that date CBP began issuing
                                                Raisins, Reporting and recordkeeping                    Business Travel Card Program provides                 its own ABTCs (U.S. ABTCs) to
                                                requirements, Walnuts.                                  qualified U.S. business travelers                     qualified U.S. citizens. As provided in
                                                                                                        engaged in business in the APEC region,               the IFR, the U.S. ABTC Program is a
                                                  For the reasons set forth in the                      or U.S. Government officials actively
                                                preamble, 7 CFR parts 989 and 999 are                                                                         voluntary program designed to facilitate
                                                                                                        engaged in APEC business, the ability to              travel for bona fide U.S. business
                                                amended as follows:                                     access fast-track immigration lanes at                persons engaged in business in the
                                                                                                        participating airports in foreign APEC                APEC region and U.S. government
                                                PART 989—RAISINS PRODUCED
                                                                                                        economies.                                            officials actively engaged in APEC
                                                FROM GRAPES GROWN IN
                                                CALIFORNIA                                              DATES: This rule is effective December                business within the APEC region. To
                                                                                                        23, 2016.                                             participate in the program, an
                                                ■ 1. The authority citation for 7 CFR                   FOR FURTHER INFORMATION CONTACT: Mr.                  individual must be an existing member,
                                                part 989 continues to read as follows:                  Garret Conover, Office of Field                       in good standing, of an eligible CBP
                                                                                                        Operations, (202) 325–4062,                           trusted traveler program or be approved
                                                    Authority: 7 U.S.C. 601–674.                                                                              for membership in an eligible CBP
                                                                                                        Garret.A.Conover@cbp.dhs.gov.
                                                § 989.702    [Amended]
                                                                                                                                                              trusted traveler program during the U.S.
                                                                                                        I. Background                                         ABTC application process.3 The
                                                ■ 2. Paragraph (a) of § 989.702 is                      A. The Asia-Pacific Economic                          application process requires the
                                                amended by removing ‘‘small (midget-                    Cooperation Business Travel Card                      applicant to self-certify that he or she is
                                                sized)’’ and adding ‘‘small sized’’ in its              Program                                               a bona fide business person who is
                                                place.                                                                                                        engaged in the trade of goods, the
                                                                                                          The United States is a member of                    provision of services or the conduct of
                                                                                                        APEC, which is an economic forum                      investment activities, or is a U.S.
                                                PART 999—SPECIALTY CROPS;
                                                                                                        comprised of twenty-one members                       Government official actively engaged in
                                                IMPORT REGULATIONS                                      whose primary goal is to support
                                                                                                        sustainable economic growth and                       For simplicity, CBP will generally refer to them in
                                                ■ 3. The authority citation for 7 CFR                   prosperity in the Asia-Pacific region.1               the preamble of this document as APEC members.
mstockstill on DSK3G9T082PROD with RULES




                                                part 999 continues to read as follows:                                                                          2 Although participating members intend to

                                                    Authority: 7 U.S.C. 601–674.                          1 APEC members are also referred to as              follow the operating principles and procedures
                                                                                                        ‘economies’ since the APEC process is primarily       outlined, the document is not legally binding. The
                                                ■ 4. Paragraph (b)(1) of § 999.300 is                   concerned with trade and economic issues with the     most recent version of the APEC Framework is
                                                                                                        members engaging each other as economic entities.     Version 19, dated July 7, 2015.
                                                amended by removing ’’ small (midget)
                                                                                                        The most recently updated list of members is            3 For purposes of the U.S. ABTC Program, eligible
                                                sized’’ and adding ‘‘small sized’’ in its               available at the APEC Web site at www.apec.org/       CBP trusted traveler programs include Global Entry,
                                                place.                                                  About-Us/About-APEC/Member-Economies.aspx.            NEXUS, and SENTRI.



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                                                84404        Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                APEC business. The applicant must also                  enrollment interviews and/or collect                  2. Appointment Scheduling for
                                                provide a signature, which appears on                   signatures overseas, either on a regular              Signature Collection
                                                the face of the U.S. ABTC. CBP collects                 basis or intermittently. Their                           Comment: Two commenters asked
                                                the applicant’s signature at a CBP                      suggestions include having CBP use                    CBP to definitively state that an
                                                trusted traveler enrollment center.                     U.S. embassies or consulates in the                   applicant does not need to schedule an
                                                   Successful applicants receive a U.S.                 Asia-Pacific region, having CBP open a                appointment for signature collection if
                                                ABTC that enables them to access fast-                  regional office in Asia, or having CBP                the applicant is already a member of a
                                                track immigration lanes at participating                schedule appointments for interviews                  CBP trusted traveler program. Both
                                                airports in foreign APEC member                         and/or signature collections around                   commenters noted that the FAQs
                                                economies. In order to obtain a U.S.                    major U.S. regional business events,                  explicitly state that no appointment is
                                                ABTC, an individual must meet the                                                                             necessary while some of the preamble
                                                                                                        such as the annual meeting of the Asia
                                                eligibility requirements, apply in                                                                            language in the IFR suggests otherwise.
                                                                                                        Pacific Council of American Chambers
                                                advance, pay the requisite fee and be                                                                            Response: Applicants for the U.S.
                                                approved as a card holder. Details about                of Commerce. The commenters
                                                                                                        remarked that conducting enrollment                   ABTC Program who are already
                                                the program eligibility criteria, the                                                                         members of a CBP trusted traveler
                                                application process, the fee, the                       interviews and signature collections
                                                                                                        overseas would increase the number of                 program do not need to schedule an
                                                benefits, and other aspects of the                                                                            appointment for signature collection.
                                                program, are set forth in the preamble of               applicants for U.S. ABTCs and would
                                                                                                        allow individuals to obtain a U.S. ABTC               Applicants should be aware, however,
                                                the IFR, 8 CFR 235.13, and 8 CFR 103.7.                                                                       that if they arrive at an enrollment
                                                                                                        more quickly because individuals will
                                                II. Discussion of Comments                                                                                    center without an appointment, they
                                                                                                        not have to wait until they are traveling
                                                                                                                                                              may have to wait a considerable length
                                                A. Overview                                             to the United States to do their
                                                                                                                                                              of time before a CBP officer is able to
                                                   Although the interim regulatory                      interview and provide their signature.                process their signature. By scheduling
                                                amendments were promulgated without                        Response: CBP appreciates the                      an appointment, applicants can prevent
                                                prior public notice and comment                         commenters’ suggestions for alternative               long wait-times and allow for better
                                                procedures pursuant to the foreign                      arrangements for CBP trusted traveler                 time management by CBP officers at
                                                affairs exemption in 5 U.S.C. 553(a)(1),                interviews and ABTC signature                         enrollment centers. As such, although
                                                the IFR provided for the submission of                  collections, but is unable to implement               appointments are not necessary, they
                                                public comments that would be                           any of them at this time. The personal                are encouraged.
                                                considered before adopting the interim                  interview and signature collection                    3. Benefits of the U.S. ABTC Program
                                                regulations as a final rule. The                        process is an integral part of the CBP
                                                prescribed 30-day public comment                        trusted traveler and U.S. ABTC                           Comment: One commenter indicated
                                                period closed on June 12, 2014. During                  application processes and these are                   that the average amount of time a U.S.
                                                this time, CBP received submissions                                                                           ABTC holder saves on account of the
                                                                                                        done at CBP trusted traveler enrollment
                                                from five commenters. All five                                                                                expedited entry procedures associated
                                                                                                        centers located throughout the United
                                                commenters were strongly in support of                                                                        with the U.S. ABTC Program is greater
                                                                                                        States. CBP does not have the facilities              than anticipated in the IFR. The
                                                the U.S. ABTC Program and expressed                     or resources to regularly conduct
                                                appreciation for the introduction of the                                                                      commenter noted that the actual benefit
                                                                                                        interviews and collect signatures                     to a U.S. ABTC holder is greater than
                                                program. Nonetheless, the commenters
                                                                                                        outside CBP trusted traveler enrollment               the average calculated time savings of
                                                presented ideas for how to improve the
                                                                                                        centers. Furthermore, in order to                     43 minutes per trip because travelers
                                                program, and one commenter noted that
                                                                                                        maintain the integrity of the CBP trusted             can save a significant amount of time by
                                                our calculation of a benefit accrued
                                                through the U.S. ABTC was inaccurate.                   traveler and ABTC programs, only CBP                  arriving at the airport later and by
                                                CBP has grouped the issues by topic and                 officers are authorized to conduct                    catching flights that they would have
                                                provides responses below.                               interviews, obtain signatures, and                    otherwise missed if not for the U.S.
                                                                                                        approve applications in the Global On-                ABTC Program’s fast-track immigration
                                                B. Discussion                                           Line Enrollment System (GOES). These                  clearance.
                                                1. Overseas Interviews and Signature                    functions cannot be delegated to the                     Response: CBP believes the weighted
                                                Collection                                              Department of State or any other entity.              average time savings of approximately
                                                                                                           While CBP recognizes that some                     43 minutes is an appropriate estimate of
                                                   Comment: All five of the commenters                                                                        the time savings a U.S. ABTC holder
                                                noted that many of the U.S. ABTC                        applicants may find it inconvenient to
                                                                                                                                                              will receive when clearing foreign
                                                applicants will be U.S. business people                 travel to the continental United States
                                                                                                                                                              immigration services using the fast-track
                                                living and working abroad, who make                     for their CBP trusted traveler program
                                                                                                                                                              immigration lanes. To the extent that
                                                limited trips to the United States. The                 interview and U.S. ABTC signature                     this estimate understates the time saved
                                                commenters asserted that requiring                      collection, CBP would like to highlight               by U.S. ABTC holders, the benefits of
                                                applicants to be physically present in                  that there are trusted traveler enrollment            the rule will be higher. Similarly, to the
                                                the United States to obtain a U.S. ABTC                 centers located in Hawaii and Guam.                   extent that U.S. ABTC holders are able
                                                will reduce the number of applicants                    Furthermore, CBP is encouraged by the                 to catch flights they would have
                                                and will limit the accessibility of the                 fact that there has been a steady stream              otherwise missed due to lengthy
                                                program. To address these concerns,                     of applicants thus far, indicating that               immigration waits, the benefits of this
                                                four of the commenters recommended                      many people have been able to obtain                  rule will be higher.
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                                                that CBP conduct enrollment interviews                  U.S. ABTCs through the current system.
                                                for the CBP trusted traveler programs                   As of December 2015, nearly 21,000                    4. Self-Certification
                                                overseas, and all five of the commenters                applications have been submitted for                     Comment: One commenter asked that
                                                asked that CBP provide a way for U.S.                   the U.S. ABTC Program.4                               CBP ease the ‘‘manner for determining
                                                ABTC signatures to be collected abroad.                                                                       business travel eligibility’’ by allowing
                                                The commenters suggested several                          4 Source: Email correspondence with CBP’s Office    applicants to self-certify their status as
                                                different methods for CBP to conduct                    of Field Operations on February 10, 2016.             a business traveler.


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                                                              Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                          84405

                                                  Response: The U.S. ABTC Program                        validity period of ABTCs to ‘‘a                        of five years, whereas the U.S. ABTC
                                                already allows for such self-                            maximum period of five years’’. (APEC                  Program membership is only valid for
                                                certification. When applying for the U.S.                Framework 3.8.1). The Business                         three years. Accordingly, individuals
                                                ABTC, an applicant must complete and                     Mobility Group (BMG), an APEC                          who apply for both programs
                                                submit an application electronically                     working group comprised of                             concurrently must renew their U.S.
                                                through the GOES Web site. During the                    representatives from all member                        ABTCs after three years, then renew
                                                application process, the applicant is                    economies, is responsible for updating                 their CBP trusted traveler program
                                                prompted to self-certify that he or she is               the APEC Framework. The BMG has                        membership two years later. By
                                                a bona fide business person who is                       indicated that the ABTC Program is on                  extending the validity period of the U.S.
                                                engaged in the trade of goods, the                       a trajectory towards requiring a five-year             ABTC to five years, these individuals
                                                provision of services or the conduct of                  validity period for all ABTCs. Given the               will be able to initiate the renewal
                                                investment activities, or is a U.S.                      time constraints of some participating                 process for both programs at the same
                                                Government official actively engaged in                  members’ domestic procedures,                          time.
                                                APEC business, and that he or she is not                 however, the BMG acknowledges that it
                                                a professional athlete, news                             may take a significant amount of time                  B. Removal of References to Suspension
                                                correspondent, entertainer, musician,                    for some members to be able to comply                  From the Program
                                                artist, or person engaged in a similar                   with this expectation. Accordingly,                       Although 8 CFR 235.13(f) addresses
                                                occupation. See 8 CFR 235.13(c)(2).                      provision 3.8.1 of the APEC Framework                  situations in which an applicant may be
                                                III. Conclusion—Regulatory                               allows for some variability in validity                suspended or removed from the
                                                Amendments                                               periods while member economies work                    program, CBP no longer uses suspension
                                                                                                         towards reaching the goal of extending                 as a remedial action. In the event that
                                                   After careful consideration of the                    the validity period of new ABTCs to five
                                                comments received, CBP is adopting the                                                                          CBP action is necessary under 8 CFR
                                                                                                         years.                                                 235.13, CBP removes the U.S. ABTC
                                                interim regulations published May 13,                       In keeping with the United States’
                                                2014 as a final rule with the following                                                                         holder from the program. Accordingly,
                                                                                                         intent to follow APEC’s operating                      CBP is removing all references to
                                                two changes. First, CBP is changing the                  principles and procedures, CBP is
                                                validity period of U.S. ABTCs from                                                                              ‘‘suspension’’ and ‘‘suspended’’ from
                                                                                                         changing the validity period for U.S.                  § 235.13(f) and from § 235.13 (c), (g),
                                                three years to five years based on                       ABTCs to five years. Accordingly, CBP
                                                revisions in the APEC Framework.                                                                                and (h), which also refer to
                                                                                                         is revising 8 CFR 235.13(c)(6) by                      ‘‘suspension’’ and ‘‘suspended’’. This
                                                Second, CBP is removing all references                   replacing ‘‘3 years’’ with ‘‘five years’’.
                                                in the U.S. ABTC regulation to                                                                                  change is also in line with the APEC
                                                                                                         Individuals who submit a U.S. ABTC                     Framework, which provides for
                                                suspension from the program because                      application or renewal request on or
                                                CBP does not use suspension as a                                                                                cancellation but not suspension of
                                                                                                         after December 23, 2016 will be eligible               ABTCs.
                                                remedial action. Further details about                   to receive a U.S. ABTC with a five-year
                                                these changes are discussed below. DHS                   validity period.6 This change in validity              IV. Statutory and Regulatory
                                                believes that this rule is excluded from                 period does not apply to current U.S.                  Requirements
                                                APA rulemaking requirements as a                         ABTC holders, whose cards will remain
                                                foreign affairs function of the United                                                                          A. Executive Order 13563 and Executive
                                                                                                         valid only until the date printed on their             Order 12866
                                                States pursuant to 5 U.S.C. 553(a)(1)                    card, subject to earlier revocation by
                                                because it advances the President’s                      CBP.                                                      Executive Orders 13563 and 12866
                                                foreign policy goal of facilitating                         CBP notes that this change in validity              direct agencies to assess the costs and
                                                business travel within the APEC region                   period will be beneficial to many new                  benefits of available regulatory
                                                and allows the United States to fulfill its              U.S. ABTC holders, as they will be able                alternatives and, if regulation is
                                                intent under the multilateral APEC                       to avail themselves of the program for                 necessary, to select regulatory
                                                Framework. Accordingly, these changes                    two additional years. The extension in                 approaches that maximize net benefits
                                                are exempt from notice and comment                       validity period will also be beneficial to             (including potential economic,
                                                rulemaking generally required under                      many U.S. ABTC holders in the event                    environmental, public health and safety
                                                5 U.S.C. 553.                                            that Congress extends the APEC Act.7                   effects, distributive impacts, and
                                                A. Change in Validity Period                             Should the U.S. ABTC Program be                        equity). Executive Order 13563
                                                                                                         extended, individuals who apply                        emphasizes the importance of
                                                   The IFR provided that the U.S. ABTC                   concurrently for the U.S. ABTC and a                   quantifying both costs and benefits, of
                                                is valid for three years or until the                    CBP trusted traveler program will be                   reducing costs, of harmonizing rules,
                                                expiration date of the card holder’s                     able to take advantage of a more                       and of promoting flexibility. This rule is
                                                passport if that is earlier, provided                    streamlined renewal process. Currently,                not a ‘‘significant regulatory action,’’
                                                participation is not terminated by CBP                   Global Entry, NEXUS, and SENTRI                        under section 3(f) of Executive Order
                                                prior to the end of this period. See 8                   memberships are all valid for a period                 12866. Accordingly, the Office of
                                                CFR 235.13(c)(6). However, the IFR
                                                                                                                                                                Management and Budget has not
                                                noted that any subsequent revisions to                     6 If the card holder’s passport will expire before
                                                                                                                                                                reviewed this rule. CBP has prepared
                                                the APEC Framework that directly affect                  the end of the validity period, CBP will issue the     the following analysis to help inform
                                                the U.S. ABTC may require regulatory                     U.S. ABTC with a shorter validity period that
                                                                                                         matches the passport expiration date. See 8 CFR        stakeholders of the potential impacts of
                                                changes.5
                                                   The most recent version of the APEC                   235.13(c)(6).                                          this final rule.
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                                                                                                           7 The APEC Act authorizes the Secretary to issue
                                                Framework (Version 19) extended the                      U.S. ABTCs only through September 30, 2018.            1. Synopsis
                                                                                                         Unless the law is amended to extend that date, CBP
                                                   5 Footnote 11 of the IFR states, ‘‘The current        will not issue any new U.S. ABTCs or renew any            This rule adopts as final the interim
                                                version of the APEC Framework is Version 17,             U.S. ABTCs after September 30, 2018. U.S. ABTC         final rule establishing the U.S. ABTC
                                                agreed to on January 30, 2013. Any subsequent            holders will retain their membership in the U.S.       Program with the following changes: It
                                                revisions to the APEC Framework that directly            ABTC Program for the full validity period (even if
                                                affect the U.S. ABTC may require a regulatory            the validity period extends past September 30,
                                                                                                                                                                expands the validity period for new U.S.
                                                change’’.                                                2018) unless membership is revoked earlier.            ABTCs and it removes all references to


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                                                84406         Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                suspension from the program.8 CBP                         application fee for Global Entry is                                             clearing foreign immigration services
                                                largely adopts the economic analysis for                  currently $100.10 CBP estimates the                                             using the fast-track immigration lanes.12
                                                the U.S. ABTC Program’s IFR for this                      opportunity cost to initially obtain a                                          As the U.S. ABTC Program is voluntary,
                                                final rule. However, this final rule                      U.S. ABTC for those who are already                                             the perceived benefits of reduced wait
                                                analysis incorporates recent changes to                   members of a CBP trusted traveler                                               time have to equal or exceed the cost of
                                                the IFR’s U.S. ABTC validity period,                      program to be $73.69. CBP estimates the                                         the program over five years (the new
                                                applicant projections, application and                    opportunity cost to initially obtain a                                          validity period of the U.S. ABTC) for
                                                renewal burdens, and program impacts.                     U.S. ABTC for individuals who are not                                           new potential enrollees to determine
                                                   Pursuant to the authorizing statute,                   members of a CBP trusted traveler                                               whether the program is worthwhile. As
                                                the Secretary of Homeland Security is                     program to be $105.27. Accounting for                                           discussed later in further detail, CBP
                                                authorized to set a U.S. ABTC Program                     application fees and opportunity costs,                                         estimates that a U.S. ABTC applicant
                                                fee. CBP has determined that a $70 fee                    the total cost of initially obtaining a U.S.                                    who is already enrolled in a CBP trusted
                                                is necessary to recover its costs of                      ABTC ranges from almost $144 for U.S.                                           traveler program will need to take a
                                                administering the U.S. ABTC Program.9                     ABTC applicants who are already in a                                            minimum of four trips across the U.S.
                                                As shown in Table 1, initial U.S. ABTC                    CBP trusted traveler program to $275 for                                        ABTC’s five-year validity period for the
                                                applicants incur the $70 U.S. ABTC fee                    U.S. ABTC applicants who are not                                                benefits of the U.S. ABTC Program to
                                                and an opportunity cost associated with                   already in a CBP trusted traveler                                               exceed the costs associated with joining
                                                obtaining a U.S. ABTC. Because                            program, as shown in Table 1. Table 1                                           the program. Additionally, CBP
                                                participation in a CBP trusted traveler                   also shows that the costs to renew U.S.                                         estimates that a U.S. ABTC applicant
                                                program is a prerequisite for obtaining                   ABTCs are much lower than these                                                 who is not already a CBP trusted
                                                a U.S. ABTC, individuals who are not                      initial application costs. CBP will                                             traveler member will need to take a
                                                already members of such a program                         provide additional details about these                                          minimum of six trips between the
                                                need to concurrently apply for a U.S.                     estimates later in the analysis.                                                United States and an APEC economy
                                                ABTC and a CBP trusted traveler                             The U.S. ABTC Program is a                                                    over the five-year validity period for the
                                                program, and pay the programs’                            voluntary program that enables card                                             benefits of the U.S. ABTC Program to
                                                applicable fees. CBP assumes that                         holders to access fast-track immigration                                        exceed the costs associated with joining
                                                individuals not already in a CBP trusted                  lanes at participating airports in the 20                                       the program. Current U.S. ABTC holders
                                                traveler program will choose to join                      other APEC member economies.11 CBP                                              will need to take even fewer trips per
                                                Global Entry because it, like the U.S.                    estimates that U.S. ABTC holders will                                           year for the benefits of renewing their
                                                ABTC Program, provides expedited                          experience a time savings of                                                    program memberships to outweigh the
                                                clearance in the air environment. The                     approximately 43 minutes when                                                   costs.

                                                                                                        TABLE 1—TOTAL COST BY APPLICANT TYPE
                                                                  Applicant type                                                    Cost category                                                  Initial costs                  Renewal costs

                                                U.S. ABTC Applicants Already in a CBP                   U.S. ABTC Fee .....................................................                $70 ............................    $70
                                                  Trusted Traveler Program.                             Global Entry Fee * .................................................               n/a .............................   n/a
                                                                                                        U.S. ABTC Opportunity Cost † .............................                         $73.69 (1.17 hrs) .......           $10.53 (0.17 hrs)

                                                    Total (rounded to nearest $1) .................     ...............................................................................    $144 ..........................     $81
                                                U.S. ABTC Applicants Not Already in a CBP               U.S. ABTC Fee .....................................................                $70 ............................    $70
                                                  Trusted Traveler Program.                             Global Entry Fee * .................................................               $100 ..........................     $100
                                                                                                        U.S. ABTC and Global Entry Opportunity Cost †                                      $105.27 (1.67 hrs) .....            $10.53 (0.17 hrs)

                                                                                                               Total (rounded to nearest $1) ........................                      $275 ..........................     $181
                                                   * CBP anticipates that those U.S. ABTC applicants who must choose a CBP trusted traveler program when applying for the U.S. ABTC will
                                                choose to join Global Entry because, like the U.S. ABTC Program, Global Entry provides expedited clearance in the air environment.
                                                   † This value is based on the U.S. Department of Transportation’s (DOT) guidance regarding the valuation of travel time for business travelers
                                                in 2013 U.S. dollars, adjusted to 2017 U.S. dollars using the DOT’s recommended annual growth rate of one percent. Source: U.S. Department
                                                of Transportation, Office of Transportation Policy. The Value of Travel Time Savings: Departmental Guidance for Conducting Economic Evalua-
                                                tions Revision 2 (2015 Update). ‘‘Table 4 (Revision 2-corrected): Recommended Hourly Values of Travel Time Savings.’’ 2015. Available at
                                                http://www.transportation.gov/sites/dot.gov/files/docs/Revised%20Departmental%20Guidance%20on%20Valuation%20of%20Travel%20Time
                                                %20in%20Economic%20Analysis.pdf. Accessed February 16, 2016.
                                                   Note: There are two categories of U.S. ABTC applicants: Those who are already in a CBP trusted traveler program and those who are not.
                                                CBP does not consider the cost of joining a CBP trusted traveler program for those applicants who are already members of a CBP trusted trav-
                                                eler program. These applicants have already, independent of any decision to join the U.S. ABTC Program, determined that the benefits of a CBP
                                                trusted traveler program outweigh the costs associated with the program they have chosen to join.


                                                2. Background                                             track immigration lanes at participating                                        in business in the APEC region or a U.S.
                                                                                                          airports in the 20 other APEC member                                            Government official actively engaged in
                                                   The U.S. ABTC Program is a                             economies. In order to be eligible for a                                        APEC business. Additionally, the U.S.
                                                voluntary program that allows U.S.                        U.S. ABTC, a U.S. citizen is required to                                        ABTC applicant must be a member in
                                                citizens with U.S. ABTCs to access fast-                  be a bona fide business person engaged                                          good standing of a CBP trusted traveler
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                                                  8 79 FR 27167, May 13, 2014.                            docket as supplemental materials on                                               12 Based on data from Asia-Pacific Economic

                                                  9 CBP  performed a fee study to determine the           www.regulations.gov.                                                            Cooperation. ‘‘Reducing Business Travel Costs: The
                                                                                                            10 8 CFR 103.7.
                                                yearly costs of the program and the cost to establish                                                                                     Success of APEC’s Business Mobility Initiatives.’’
                                                                                                            11 Asia-Pacific Economic Cooperation, ‘‘Member
                                                the program for all relevant parties. This fee study,                                                                                     November 2011. Available at http://
                                                entitled ‘‘Asia-Pacific Economic Cooperation              Economies.’’ Available at http://www.apec.org/                                  publications.apec.org/publication-detail.php?pub_
                                                                                                          About-Us/About-APEC/Member-Economies.aspx.                                      id=1214. Accessed May 23, 2012.
                                                Business Travel Card Fee Study,’’ is posted on the
                                                                                                          Accessed July 8, 2015.



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                                                             Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                                    84407

                                                program or approved for membership in                   a CBP trusted traveler program will bear               application to a CBP trusted traveler
                                                a CBP trusted traveler program during                   an additional opportunity cost and fee                 program; he or she is either a bona fide
                                                the U.S. ABTC application process. U.S.                 associated with applying for a CBP                     U.S. business person engaged in
                                                ABTC applicants who are not already                     trusted traveler program to be eligible                business in the APEC region or a U.S.
                                                CBP trusted traveler program members                    for a U.S. ABTC.                                       Government official actively engaged in
                                                must also apply for membership to a                                                                            APEC business; and he or she is not a
                                                                                                        a. U.S. ABTC Applicants Who Are
                                                CBP trusted traveler program with their                                                                        professional athlete, news
                                                                                                        Already Members of a CBP Trusted
                                                U.S. ABTC application.13 Since the                                                                             correspondent, entertainer, musician,
                                                                                                        Traveler Program
                                                publication of the U.S. ABTC IFR, APEC                                                                         artist, or person engaged in a similar
                                                members (including the United States)                      If an initial U.S. ABTC applicant is                occupation. Because these applicants
                                                endorsed increasing the validity period                 already a member of a CBP trusted
                                                                                                                                                               would not have joined a CBP trusted
                                                of the ABTC to ‘‘a maximum period of                    traveler program, the applicant will
                                                                                                                                                               traveler program if not for the U.S.
                                                five years.’’ However, APEC’s BMG has                   have to apply for a U.S. ABTC by self-
                                                                                                                                                               ABTC Program, CBP includes the costs
                                                indicated that the ABTC Program is on                   certifying, via the GOES Web site, that:
                                                                                                        He or she is an existing member in good                and benefits for these applicants to join
                                                a trajectory towards requiring a five-year                                                                     these programs in this analysis.
                                                validity period for all ABTCs. In                       standing in a CBP trusted traveler
                                                keeping with the United States’ intent to               program; he or she is either a bona fide                  CBP anticipates that those initial U.S.
                                                follow APEC’s operating principles and                  U.S. business person engaged in                        ABTC applicants who must choose a
                                                procedures, CBP is changing the validity                business in the APEC region or a U.S.                  CBP trusted traveler program when
                                                period for U.S. ABTCs from three years                  Government official actively engaged in                applying for the U.S. ABTC Program
                                                to five years (or until the expiration date             APEC business; and he or she is not a                  will choose to join Global Entry
                                                of the card holder’s passport if that is                professional athlete, news                             because, like the U.S. ABTC Program,
                                                earlier) through this rule. With this                   correspondent, entertainer, musician,                  Global Entry provides expedited
                                                expansion, the U.S. ABTC’s validity                     artist, or person engaged in a similar                 clearance in the air environment. As
                                                period will now match that of CBP’s                     occupation. In addition to the self-                   described in the Global Entry final rule,
                                                trusted traveler programs.                              certification, the U.S. ABTC applicant                 CBP estimates that a Global Entry
                                                   Individuals who submit a U.S. ABTC                   will also be required to pay the U.S.                  applicant will experience an
                                                application or renewal request on or                    ABTC fee via the GOES Web site and                     opportunity cost of 40 minutes to
                                                after this final rule’s effective date may              visit a CBP trusted traveler enrollment                complete the Global Entry application
                                                be eligible to receive a U.S. ABTC with                 center in order for his or her signature               in GOES.15 When concurrently applying
                                                a five-year validity period. If the card                to be digitally captured for the U.S.                  for a U.S. ABTC and Global Entry, CBP
                                                holder’s passport will expire before the                ABTC. CBP estimates that U.S. ABTC                     anticipates that the U.S. ABTC applicant
                                                end of the five-year validity period, CBP               applicants will experience an                          will be able to complete the Global
                                                will issue the U.S. ABTC with a shorter                 opportunity cost of 10 minutes to                      Entry application, complete the U.S.
                                                validity period that matches the                        complete the U.S. ABTC self-
                                                                                                                                                               ABTC self-certification, schedule their
                                                passport expiration date. If the card                   certification, pay the U.S. ABTC fee, and
                                                                                                                                                               required Global Entry enrollment
                                                holder’s CBP trusted traveler program                   have their signature digitally captured at
                                                                                                                                                               interview, pay the program application
                                                membership expires during their U.S.                    an enrollment center.14 These
                                                                                                        applicants will also experience a one-                 fees, and have their signature digitally
                                                ABTC’s validity period, CBP may revoke
                                                                                                        hour opportunity cost to travel to and                 captured for the U.S. ABTC Program in
                                                the U.S. ABTC since membership in a
                                                                                                        from an enrollment center and wait to                  the 40 minutes estimated for the Global
                                                CBP trusted traveler program is
                                                necessary for the entire duration of the                have their signature digitally captured.               Entry application.16 Based on the Global
                                                U.S. ABTC. This change in validity                      For the purposes of this rule, CBP does                Entry final rule, CBP estimates that
                                                period does not apply to current U.S.                   not consider the costs or benefits of                  Global Entry applicants also applying
                                                ABTC holders, whose cards will remain                   joining a CBP trusted traveler program                 for a U.S. ABTC will experience an
                                                valid only until the date printed on their              as impacts of this rule for those U.S.                 opportunity cost of one hour to travel to
                                                card, subject to earlier revocation by                  ABTC Program applicants who are                        and from a CBP trusted traveler
                                                CBP. Similar to CBP trusted traveler                    already members of a CBP trusted                       enrollment center and undergo the
                                                programs, a U.S. ABTC holder will be                    traveler program. These applicants have                required Global Entry interview.17
                                                required to renew his or her                            previously, independent of any decision                4. Number of U.S. ABTC Applicants
                                                membership prior to expiration to                       to join the U.S. ABTC Program,
                                                continue enjoying the benefits of the                   determined that the benefits of a CBP                    In the U.S. ABTC IFR, CBP projected
                                                program.                                                trusted traveler program outweigh the                  that 12,750 U.S. citizens would enroll in
                                                3. U.S. ABTC Applicant Categories                       costs associated with the program they                 the U.S. ABTC Program within the first
                                                                                                        have chosen to join. They have not                     three years of the program’s start date
                                                   There are two categories of initial U.S.             chosen to join the U.S. ABTC Program                   based on National Center for Asia-
                                                ABTC applicants (i.e., individuals who                  as a direct result of this rule.
                                                are not renewing their U.S. ABTC                                                                                 15 77  FR 5681, February 6, 2012.
                                                membership) that CBP discusses                          b. U.S. ABTC Applicants Who Are Not                      16 As  described above, the self-certification only
                                                separately in this analysis: Those who                  Already Members of a CBP Trusted                       entails certifying in GOES that the U.S. ABTC
                                                are already part of a CBP trusted traveler              Traveler Program                                       applicant is an existing member in good standing
                                                program and those who are not. This                                                                            in a CBP trusted traveler program or that he or she
                                                                                                           An initial U.S. ABTC applicant who
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                                                                                                                                                               has submitted an application to a CBP trusted
                                                distinction is necessary because those                  is not already a member of a CBP trusted               traveler program; that he or she is either a bona fide
                                                applicants who are not already part of                  traveler program will be required to                   U.S. business person engaged in business in the
                                                                                                        apply for a U.S. ABTC and a CBP                        APEC region or a U.S. Government official actively
                                                  13 As stated in the U.S. ABTC IFR, CBP assumes                                                               engaged in APEC business; and that he or she is not
                                                                                                        trusted traveler program, and self-certify             a professional athlete, news correspondent,
                                                that a U.S. ABTC applicant who is not already a
                                                member of a CBP trusted traveler program will
                                                                                                        that: He or she has submitted an                       entertainer, musician, artist, or person engaged in
                                                concurrently apply for a CBP trusted traveler                                                                  a similar occupation.
                                                program and a U.S. ABTC.                                  14 80   FR 1650, January 13, 2015.                      17 77 FR 5681, February 6, 2012.




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                                                84408              Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                Pacific Economic Cooperation 18                                             program) and multiplying each of the                                     who are already CBP trusted traveler
                                                estimates.19 Between the U.S. ABTC                                          totals by 4 to account for 12 months, or                                 program members and 9,692 new, initial
                                                IFR’s effective date in FY 2014 and                                         a full year, of application volumes.                                     U.S. ABTC applications from
                                                December 2015, CBP has received                                             Through this estimation method, CBP                                      individuals who are not already CBP
                                                nearly 21,000 initial U.S. ABTC Program                                     finds that 4,652 of the projected new,                                   trusted traveler program members (see
                                                applications, exceeding the IFR’s                                           initial U.S. ABTC Program applications                                   Table 2). In accordance with the U.S.
                                                projections.20 Based on worldwide                                           in FY 2016, the base year, will                                          ABTC’s authorizing law, CBP does not
                                                ABTC growth, CBP expects to receive                                         correspond to individuals who are                                        plan to issue any new U.S. ABTCs or
                                                new, initial U.S. ABTC applications past                                    already CBP trusted traveler program                                     renew any U.S. ABTCs after September
                                                the first three years of the U.S. ABTC’s                                    members, while 9,692 new, initial U.S.                                   30, 2018, the end of FY 2018. Unless the
                                                implementation, which contrasts to the                                      ABTC applications will correspond to                                     law is amended to extend the duration
                                                U.S. ABTC IFR’s assumption that initial                                     individuals who are not already CBP                                      of U.S. ABTC issuance, all U.S. ABTCs
                                                applicants would occur in only a three-                                     trusted traveler program members (see                                    will expire within a five-year validity
                                                year period.21 To project U.S. ABTC                                         Table 2).23 CBP chose to use                                             period lasting up to September 29, 2023.
                                                                                                                            extrapolated FY 2016 data rather than
                                                application volumes following this final                                                                                                             Therefore, CBP does not forecast any
                                                                                                                            the FY 2015 statistics as a base for
                                                rule’s implementation, CBP first uses                                                                                                                new applications beyond FY 2018 and
                                                                                                                            future U.S. ABTC demand because the
                                                the latest data available to determine a                                                                                                             assumes that no new U.S. ABTCs will
                                                                                                                            partial-year FY 2016 data indicated an
                                                base value for future applications.                                         increase in the second year of total U.S.                                be issued thereafter for the purposes of
                                                During the first three months of FY 2016                                    ABTC applications, which is consistent                                   this analysis. Table 2 presents the
                                                (October 2015 to December 2015), CBP                                        with CBP expectations of program                                         historical and projected initial
                                                received 1,163 U.S. ABTC applications                                       growth in this time period.                                              applications for the U.S. ABTC Program.
                                                that corresponded to current CBP                                               Given the newness of the U.S. ABTC                                    As Table 2 shows, CBP estimates that
                                                trusted traveler program members and                                        Program and its subsequently limited                                     almost 61,000 U.S. citizens will initially
                                                2,423 that did not.22 CBP then                                              historical data available to establish a                                 apply for the U.S. ABTC Program during
                                                extrapolates this partial-year data to the                                  specific longer term growth rate in U.S.                                 the period of analysis spanning from FY
                                                full 2016 fiscal year by multiplying the                                    ABTC applications, CBP assumes that                                      2014 through FY 2018, with 21,000
                                                three-month totals of historical FY 2016                                    the total number of U.S. ABTC                                            applicants already possessing a CBP
                                                application data according to the                                           applications projected for FY 2016 will                                  trusted traveler program membership
                                                applicant type (1,163 for applicants                                        remain the same for FY 2017 and FY                                       and 40,000 applicants not already CBP
                                                already in a CBP trusted traveler                                           2018. Accordingly, CBP estimates that                                    trusted traveler program members. CBP
                                                program and 2,423 for applicants not                                        4,652 new, initial U.S. ABTC Program                                     assumes that each application signifies
                                                already in a CBP trusted traveler                                           applications each year from individuals                                  a single, unique applicant.

                                                   TABLE 2—HISTORICAL AND PROJECTED NUMBERS OF U.S. ABTC APPLICANTS ALREADY AND NOT ALREADY IN A CBP
                                                                                     TRUSTED TRAVELER PROGRAM 24
                                                                                                                                                                                                                       Number of
                                                                                                                                                                                                    Number of          initial U.S.
                                                                                                                                                                                                     initial U.S.          ABTC
                                                                                                                                                                                                        ABTC                                   Total
                                                                                                                                                                                                                       applicants
                                                                                                                                                                                                     applicants                            initial U.S.
                                                                                                               Fiscal year                                                                                             Not already
                                                                                                                                                                                                    already in a                              ABTC
                                                                                                                                                                                                                        in a CBP
                                                                                                                                                                                                    CBP trusted                           applications
                                                                                                                                                                                                                          trusted
                                                                                                                                                                                                       traveler          traveler
                                                                                                                                                                                                      program            program

                                                2014 * ..........................................................................................................................................           2,126              2,477              4,603
                                                2015 ............................................................................................................................................           4,976              8,138             13,114
                                                2016 ** .........................................................................................................................................           4,652              9,692             14,344
                                                2017 *** ........................................................................................................................................           4,652              9,692             14,344
                                                2018 *** ........................................................................................................................................           4,652              9,692             14,344

                                                      Total .....................................................................................................................................          21,058             39,691             60,749
                                                  * Partial year of historical data spanning from the U.S. ABTC Program’s effective date of June 12, 2014 to the end of FY 2014.
                                                  ** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated for the remaining months of
                                                FY 2016.
                                                  *** Projection.

                                                  18 The National Center for Asia-Pacific Economic                             21 According to APEC, the ABTC ‘‘has                                  program received during first three months of fiscal
                                                Cooperation is a U.S. business association focused                          experienced significant growth in recent years. The                      year 2016 × 4 = 4,652. 2,423 U.S. ABTC
                                                on facilitating the private sector input into the                           number of active card users in the year to 30 June                       applications corresponding to individuals who are
                                                APEC process.                                                               2015 increased by more than 15 per cent, to over                         not already in a trusted traveler program received
                                                  19 See http://csis.org/publication/why-us-                                190,000, compared to around 164,000 in mid-                              during first three months of fiscal year 2016 × 4 =
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                                                                                                                            2014.’’ Source: Asia-Pacific Economic Cooperation.
                                                approval-apec-business-travel-card-matters.                                                                                                          9,692.
                                                                                                                            ‘‘APEC Business Travel Card to be Extended to Five
                                                  20 The total U.S. ABTC applications figure                                                                                                           24 Although the accompanying U.S. ABTC fee
                                                                                                                            Years from 1 September.’’ 2015. Available at http://
                                                represents applications received between the U.S.                           www.apecsec.org.sg/Press/News-Releases/2015/                             study includes CBP’s costs related to the processing
                                                ABTC Program’s interim effective date of June 12,                           0728_ABTC.aspx. Accessed March 3, 2016.                                  and printing of 5,000 Canadian ABTCs, CBP
                                                2014 through December 2015. Source: Email                                      22 Source: Email correspondence with CBP’s                            excludes these costs from this analysis because
                                                correspondence with CBP’s Office of Field                                   Office of Field Operations on February 10, 2016.                         Canadian ABTC enrollees are not members of the
                                                Operations on August 12, 2015 and February 10,                                 23 1,163 U.S. ABTC applications corresponding to                      U.S. ABTC Program and CBP is reimbursed for the
                                                2016.                                                                       individuals who are already in a trusted traveler                        costs associated with processing their applications.



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                                                                   Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                                                                 84409

                                                  Although CBP received nearly 21,000                                       submitted in FY 2016. This would result                                   Among the projected applications
                                                initial U.S. ABTC applications between                                      in the processing of 17,370 initial U.S.                                  processed between FY 2017 and FY
                                                June 2014 and December 2015, the                                            ABTC applications in FY 2016. CBP also                                    2018, CBP believes that 88 percent will
                                                agency only processed around 18,000                                         assumes that the agency will approve 88                                   receive approvals based on the
                                                applications during that time period. Of                                    percent of these applications, which                                      historical U.S. ABTC application
                                                those applications processed, CBP                                           would bring the total U.S. ABTC                                           approval rate. Thus, about 25,000 new
                                                approved 88 percent on average.25                                           Program membership up to 28,303 by                                        individuals will become members of the
                                                During FY 2016, and before the                                              the end of FY 2016 (see Table 3). For                                     U.S. ABTC Program from FY 2017 to FY
                                                implementation of this final rule and its                                   initial U.S. ABTC applications received                                   2018, as Table 3 illustrates. CBP
                                                establishment of a new U.S. ABTC                                            from FY 2017 to FY 2018, CBP assumes                                      assumes that these 25,000 individuals
                                                validity period in FY 2017, CBP                                             that it would maintain a processing rate                                  will generally receive U.S. ABTCs with
                                                assumes that the agency will process the                                    equal to its projected application rate,                                  five-year validity rates and maintain
                                                backlog of U.S. ABTC Program                                                with 14,344 U.S. ABTC applications                                        their program membership for the full
                                                applications as well as new applications                                    received and processed each year.                                         validity period.

                                                                         TABLE 3—PROJECTED NUMBER OF INITIAL U.S. ABTC MEMBERSHIP APPROVALS AND DENIALS
                                                                                                                                                                                                      Number of
                                                                                                                                                                                                      initial U.S.
                                                                                                                                                                                                          ABTC           Number of       Total initial
                                                                                                                                                                                                     applications        initial U.S.    U.S. ABTC
                                                                                                               Fiscal year                                                                             approved             ABTC         applications
                                                                                                                                                                                                       (i.e., new       applications      processed
                                                                                                                                                                                                     U.S. ABTC             denied
                                                                                                                                                                                                        program
                                                                                                                                                                                                      members)

                                                2014 * ..........................................................................................................................................            2,619                273            2,892
                                                2015 ............................................................................................................................................           10,398              1,401           11,799
                                                2016 ** .........................................................................................................................................           15,286              2,084           17,370
                                                2017 *** ........................................................................................................................................           12,623              1,721           14,344
                                                2018 *** ........................................................................................................................................           12,623              1,721           14,344

                                                      Total .....................................................................................................................................           53,549              7,200           60,749
                                                  * Partial year of historical data spanning from the U.S. ABTC Program’s effective date of June 12, 2014 to the end of FY 2014.
                                                  ** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated for the remaining months of
                                                FY 2016.
                                                  *** Projection.
                                                  Note: Estimates may not sum to total due to rounding.


                                                  Without complete data on the number                                       been approved for a trusted traveler                                      membership statuses. As illustrated,
                                                of approved U.S. ABTC applications                                          program (see Table 2). The remaining                                      CBP estimates that 21,000 initial U.S.
                                                that corresponded to existing CBP                                           U.S. ABTC applications approved                                           ABTC members are expected to already
                                                trusted traveler program members, CBP                                       during the period of analysis will                                        be CBP trusted traveler program
                                                assumes that all of the U.S. ABTC                                           correspond to individuals who                                             members prior to applying for a U.S.
                                                applications submitted between FY                                           concurrently applied, or will                                             ABTC between FY 2014 and FY 2018,
                                                2014 and FY 2018 from individuals                                           concurrently apply, for the U.S. ABTC                                     while 32,000 are not expected to be
                                                already in a CBP trusted traveler                                           program and a CBP trusted traveler                                        current members of a CBP trusted
                                                program will correspond to an approved                                      program. Table 4 summarizes the                                           traveler program during that period (see
                                                application in those respective                                             number of new, initial U.S. ABTC                                          Table 4).
                                                application years. CBP assumes this                                         applications approved according to
                                                because these applicants have already                                       applicants’ CBP trusted traveler

                                                 TABLE 4—PROJECTED NUMBER OF U.S. ABTC APPLICATIONS APPROVED FOR MEMBERS ALREADY AND NOT ALREADY IN
                                                                                  A CBP TRUSTED TRAVELER PROGRAM

                                                                                                                                                                                                    Number of ini-   Number of ini-        Total initial
                                                                                                                                                                                                    tial U.S. ABTC   tial U.S. ABTC       U.S. ABTC
                                                                                                                                                                                                      applications     applications       applications
                                                                                                                                                                                                      approved for     approved for     approved (i.e.,
                                                                                                               Fiscal year                                                                              members       members Not         U.S. ABTC
                                                                                                                                                                                                      already in a     already in a         program
                                                                                                                                                                                                      CBP trusted      CBP trusted         members)
                                                                                                                                                                                                         traveler         traveler      (from Table 3)
                                                                                                                                                                                                        program          program
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                                                2014 * ..........................................................................................................................................            2,126                493            2,619
                                                2015 ............................................................................................................................................            4,976              5,422           10,398
                                                2016 ** .........................................................................................................................................            4,652             10,634           15,286

                                                  25 From June 2014 through December 2015, CBP                              approval rate of 88 percent. Source: Email                                Operations on August 12, 2015 and February 10,
                                                approved 15,854 U.S. ABTC applications and                                  correspondence with CBP’s Office of Field                                 2016.
                                                denied 2,166 U.S. ABTC applications, for an



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                                                84410              Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                 TABLE 4—PROJECTED NUMBER OF U.S. ABTC APPLICATIONS APPROVED FOR MEMBERS ALREADY AND NOT ALREADY IN
                                                                            A CBP TRUSTED TRAVELER PROGRAM—Continued

                                                                                                                                                                                                    Number of ini-             Number of ini-                Total initial
                                                                                                                                                                                                    tial U.S. ABTC             tial U.S. ABTC               U.S. ABTC
                                                                                                                                                                                                      applications               applications               applications
                                                                                                                                                                                                      approved for               approved for             approved (i.e.,
                                                                                                               Fiscal year                                                                              members                 members Not                 U.S. ABTC
                                                                                                                                                                                                      already in a               already in a                 program
                                                                                                                                                                                                      CBP trusted                CBP trusted                 members)
                                                                                                                                                                                                         traveler                   traveler              (from Table 3)
                                                                                                                                                                                                        program                    program

                                                2017 *** ........................................................................................................................................                  4,652                     7,971                    12,623
                                                2018 *** ........................................................................................................................................                  4,652                     7,971                    12,623

                                                      Total .....................................................................................................................................                21,058                     32,491                     53,549
                                                  * Partial year of historical data spanning from the U.S. ABTC Program’s effective date of June 12, 2014 to the end of FY 2014.
                                                  ** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated for the remaining months of
                                                FY 2016.
                                                  *** Projection.
                                                  Note: Estimates may not sum to total due to rounding.


                                                  As previously mentioned, the statute                                      Program will change to a job function                                       their U.S. ABTC Program memberships
                                                authorizing U.S. ABTC issuance                                              that does not require conducting APEC                                       during the period of analysis according
                                                currently expires at the end of FY 2018.                                    business, making them ineligible for a                                      to their current CBP trusted traveler
                                                Consistent with the U.S. ABTC IFR, CBP                                      U.S. ABTC. In these cases, CBP assumes                                      program membership status. As
                                                estimates that the 2,619 members                                            that the individual’s replacement in that                                   illustrated, all 28,303 U.S. ABTC
                                                approved for the U.S. ABTC Program in                                       position will enroll in the U.S. ABTC                                       applicants approved for memberships
                                                FY 2014 will renew their memberships                                        Program, in lieu of the original enrollee,                                  prior to FY 2017 will renew their U.S.
                                                in FY 2017 upon the expiration of their                                     in order to benefit from the expedited                                      ABTC memberships by FY 2018’s end.
                                                three-year validity periods (see Table 4).                                  immigration process while visiting                                          In accordance with this rule’s extended
                                                Likewise, CBP estimates that the 10,398                                     APEC member economies. Due to the                                           U.S. ABTC validity period, these
                                                members approved for the U.S. ABTC                                          short timeframe between this final rule’s
                                                                                                                                                                                                        members will generally receive U.S.
                                                Program in FY 2015 will renew their                                         implementation and the expiration of
                                                memberships in FY 2018 upon the                                                                                                                         ABTCs that will expire within a five-
                                                                                                                            the U.S. ABTC Program, CBP does not
                                                expiration of their three-year validity                                                                                                                 year validity period lasting up to
                                                                                                                            believe that individuals who enroll in
                                                periods (see Table 4). For continued                                        the U.S. ABTC Program between FY                                            September 29, 2023. For simplicity of
                                                program use after FY 2018, CBP                                              2017 and FY 2018 will renew their                                           the analysis, CBP counts both the
                                                estimates that the 15,286 U.S. ABTC                                         memberships during the period of                                            original U.S. ABTC holder who renews
                                                applicants approved in FY 2016 will                                         analysis. This is because CBP thinks it                                     and any replacement applicants, if
                                                renew their U.S. ABTC Program                                               is unlikely that these individuals will                                     applicable, as a renewal in Table 5. Note
                                                memberships in FY 2018 before their                                         incur U.S. ABTC application fees and                                        that renewals are not forecasted beyond
                                                initial U.S. ABTC validity periods end                                      time costs to get less than two years of                                    FY 2018 because the statute authorizing
                                                (see Table 4). As stated in the U.S.                                        additional U.S. ABTC use.                                                   the U.S. ABTC expires at the end of that
                                                ABTC IFR, it is possible that individuals                                      Table 5 shows the projected number                                       year.
                                                initially approved for the U.S. ABTC                                        of U.S. ABTC members who will renew

                                                   TABLE 5—PROJECTED NUMBER OF U.S. ABTC PROGRAM MEMBERSHIP RENEWALS FOR MEMBERS ALREADY AND NOT
                                                                             ALREADY IN A CBP TRUSTED TRAVELER PROGRAM
                                                                                                                                                                                                      Number of                  Number of
                                                                                                                                                                                                      U.S. ABTC                  U.S. ABTC
                                                                                                                                                                                                    renewals from              renewals from                 Total U.S.
                                                                                                                                                                                                       members                 members Not
                                                                                                               Fiscal year                                                                                                                                     ABTC
                                                                                                                                                                                                    previously in a            previously in a               renewals
                                                                                                                                                                                                     CBP trusted                CBP trusted
                                                                                                                                                                                                        traveler                  traveler
                                                                                                                                                                                                       program                    program

                                                2014 ............................................................................................................................................   ........................   ........................   ........................
                                                2015 ............................................................................................................................................   ........................   ........................   ........................
                                                2016 ** .........................................................................................................................................   ........................   ........................   ........................
                                                2017 *** ........................................................................................................................................                  2,126                         493                     2,619
                                                2018 *** ........................................................................................................................................                  9,628                    16,056                     25,684
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                                                      Total .....................................................................................................................................                11,754                     16,549                     28,303
                                                  ** Estimate based on historical data spanning from start of October 2015 to December 2015 and data extrapolated for the remaining months of
                                                FY 2016.
                                                  *** Projection.
                                                  Note: Estimates may not sum to total due to rounding.




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                                                                 Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                                                                 84411

                                                5. Costs                                                                    already members of a CBP trusted                                     member approximately $144 to join the
                                                                                                                            traveler program will experience a 1                                 U.S. ABTC Program.29 For new, initial
                                                  CBP has determined that a $70 fee is                                      hour and 40-minute (100-minute)                                      U.S. ABTC applicants who are not
                                                necessary to recover its costs associated                                   application-related opportunity cost.                                already members of a CBP trusted
                                                with the U.S. ABTC Program. These                                           U.S. ABTC applicants who are not                                     traveler program, CBP estimates that it
                                                costs include the cost to issue the U.S.                                    already members of a CBP trusted                                     will cost approximately $275 to join the
                                                ABTCs and the information technology                                        traveler program are required to pay                                 U.S. ABTC Program.30 By applying the
                                                infrastructure costs, initial and                                           another fee to join the U.S. ABTC                                    U.S. ABTC applicant projections
                                                recurring, required to run the U.S.                                         Program—the $100 application fee                                     according to CBP trusted traveler
                                                ABTC Program.26 In addition to the U.S.                                     associated with the Global Entry                                     program membership statuses (see Table
                                                ABTC fee, initial U.S. ABTC applicants                                      program.27 The Department of                                         2) to their respective U.S. ABTC
                                                will also experience an opportunity cost                                    Transportation’s guidance on the                                     application costs ($144 for applicants
                                                associated with obtaining a U.S. ABTC.                                      valuation of travel time for air                                     already in a CBP trusted traveler
                                                As previously discussed, CBP estimates                                      passengers estimates a business                                      program and $275 for applicants not
                                                that new, initial U.S. ABTC applicants                                      traveler’s value to be $63.16 per hour.28                            already in a CBP trusted traveler
                                                who are already members of a CBP                                            Using this estimate as well as the                                   program), CBP finds that new, initial
                                                trusted traveler program will experience                                    opportunity cost and fees just described,                            U.S. ABTC applicants have incurred or
                                                a 1 hour and 10-minute (70-minute)                                          CBP estimates that it will cost a new,                               will incur undiscounted costs totaling
                                                application-related opportunity cost,                                       initial U.S. ABTC applicant who is                                   $13.9 million during this rule’s period
                                                while U.S. ABTC applicants who are not                                      already a CBP trusted traveler program                               of analysis (see Table 6).

                                                                                  TABLE 6—U.S. ABTC PROGRAM APPLICATION COSTS TO NEW, INITIAL APPLICANTS
                                                                                                                                                      [Undiscounted]

                                                                                                                                                                                                                                           Total
                                                                                                                                                                           Number of                Total          Number of           application
                                                                                                                                                                           initial U.S.         application        initial U.S.       cost for U.S.
                                                                                                                                                                              ABTC             cost for U.S.           ABTC                ABTC
                                                                                                                                                                           applicants              ABTC            applicants          applicants
                                                                                                 Fiscal year                                                               already in           applicants         Not already        Not already
                                                                                                                                                                              a CBP            already in a         in a CBP            in a CBP
                                                                                                                                                                             trusted           CBP trusted            trusted             trusted
                                                                                                                                                                             traveler             traveler           traveler            traveler
                                                                                                                                                                            program              program             program             program

                                                                                                                                                                                 (A)           ($144 × A)              (B)             ($275 × B)

                                                2014   ................................................................................................................                2,126       $306,144                  2,477         $681,175
                                                2015   ................................................................................................................                4,976        716,544                  8,138        2,237,950
                                                2016   ................................................................................................................                4,652        669,888                  9,692        2,665,300
                                                2017   ................................................................................................................                4,652        669,888                  9,692        2,665,300
                                                2018   ................................................................................................................                4,652        669,888                  9,692        2,665,300

                                                     Total .........................................................................................................               21,058          3,032,352              39,691         10,915,025



                                                  As mentioned earlier, CBP estimates                                       according to their initial CBP trusted                               membership. These members will spend
                                                that 28,303 U.S. ABTC applicants                                            traveler program membership status.                                  an estimated 10 minutes completing
                                                approved for memberships prior to FY                                        U.S. ABTC members already in a CBP                                   such renewal steps, at an opportunity
                                                2017 will successfully renew their U.S.                                     trusted traveler program must complete                               cost of $10.53 per renewal.31 This
                                                ABTC memberships by FY 2018’s end                                           the U.S. ABTC application (i.e., a self-                             contrasts to the IFR’s analysis, which
                                                (see Table 5). However, these members                                       certification) and pay the U.S. ABTC fee                             assumed that individuals would incur
                                                will incur different renewal costs                                          using GOES to renew their U.S. ABTC                                  the same time burden when initially
                                                   26 The Asia-Pacific Economic Cooperation                                 %20Guidance%20on%20Valuation%20of                                      30 $63.16 x (100 minutes/60 minutes per hour) =

                                                Business Travel Card Fee Study is posted in the                             %20Travel%20Time%20in%20Economic                                     $105.27; $105.27 + $100 Global Entry program fee
                                                docket for this rulemaking on www.regulations.gov.                          %20Analysis.pdf. Accessed February 16, 2016.                         + $70 U.S. ABTC fee = $275.27, or $275 when
                                                   27 As previously discussed, CBP anticipates U.S.                           29 $63.16 x (70 minutes/60 minutes per hour) =                     rounded to the nearest dollar. CBP estimates that
                                                ABTC applicants who are not already members of                              $73.69; $73.69 + $70 U.S. ABTC fee = $143.69, or                     U.S. ABTC applicants who are not already in a CBP
                                                a CBP trusted traveler program will join the Global                         $144 when rounded to the nearest dollar. CBP                         trusted traveler program will experience an
                                                Entry program.                                                                                                                                   opportunity cost of 40 minutes to complete the
                                                                                                                            estimates that U.S. ABTC applicants who are
                                                   28 As previously mentioned, this value is based                                                                                               Global Entry application and the U.S. ABTC self-
                                                                                                                            already in a CBP trusted traveler program will
                                                on the U.S. Department of Transportation’s (DOT)                                                                                                 certification, schedule their required Global Entry
                                                                                                                            experience an opportunity cost of 10 minutes to                      enrollment interview, pay the program application
                                                guidance regarding the valuation of travel time for
                                                                                                                            complete a self-certification, schedule an                           fees, and have their signature digitally captured for
                                                business travelers in 2013 U.S. dollars, adjusted to
                                                                                                                            appointment at an enrollment center, and have their                  the U.S. ABTC Program. Additionally, CBP
                                                2017 U.S. dollars using the DOT’s recommended
                                                                                                                            signature digitally captured. Additionally, CBP
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                                                annual growth rate of one percent. Source: U.S.                                                                                                  estimates these applicants will experience an
                                                Department of Transportation, Office of                                     estimates these applicants will experience an                        opportunity cost of 1 hour (60 minutes) to travel to
                                                Transportation Policy. The Value of Travel Time                             opportunity cost of 1 hour (60 minutes) to travel to                 and from an enrollment center and complete the
                                                Savings: Departmental Guidance for Conducting                               and from an enrollment center and wait to have                       interview for Global Entry. In total, CBP estimates
                                                Economic Evaluations Revision 2 (2015 Update).                              their signature digitally captured. In total, CBP                    U.S. ABTC applicants who are not already members
                                                ‘‘Table 4 (Revision 2-corrected): Recommended                               estimates U.S. ABTC applicants who are already                       of a CBP trusted traveler program will experience
                                                Hourly Values of Travel Time Savings.’’ 2015.                               members of a CBP trusted traveler program will                       an opportunity cost of 100 minutes with this rule.
                                                Available at http://www.transportation.gov/sites/                           experience an opportunity cost of 70 minutes with                      31 $63.16 hourly time for business traveler × (10

                                                dot.gov/files/docs/Revised%20Departmental                                   this rule.                                                           minutes/60 minutes per hour) = $10.53.



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                                                84412             Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                applying for or renewing a U.S. ABTC.                                        approved before FY 2017), CBP                                                renewals, CBP no longer believes that
                                                Because the U.S. ABTC Program’s initial                                      continues to assume for the simplicity                                       the time burdens to apply for and renew
                                                digital signature capture requirement is                                     of this analysis that U.S. ABTC                                              U.S. ABTC applications are the same.
                                                generally not necessary for program                                          applicants who joined a CBP trusted                                          With U.S. ABTC renewals, members
                                                membership renewal, CBP no longer                                            traveler program exclusively for the                                         will not have to travel to a CBP trusted
                                                believes that the time burdens to apply                                      ability to obtain a U.S. ABTC will                                           traveler enrollment center to have their
                                                for and renew U.S. ABTC applications                                         concurrently renew their U.S. ABTC                                           signature digitally captured or undergo
                                                are the same. With U.S. ABTC renewals,                                       and trusted traveler program                                                 another interview, thus decreasing their
                                                members will not have to travel to a                                         memberships during the period of                                             renewal burden assumed in the IFR.
                                                CBP trusted traveler enrollment center                                       analysis. As such, CBP believes that to                                      Individuals concurrently renewing their
                                                to have their signature digitally                                            renew their U.S. ABTC memberships,                                           U.S. ABTC and Global Entry
                                                captured, thus decreasing their renewal                                      U.S. ABTC members not previously in                                          memberships will also be required to
                                                burden assumed in the IFR. Along with                                        a CBP trusted traveler program will                                          pay the $70 U.S. ABTC fee and the $100
                                                the $10.53 renewal opportunity cost,                                         concurrently complete the U.S. ABTC                                          fee associated with the Global Entry
                                                U.S. ABTC applicants who were already                                        application (i.e., a self-certification),                                    program, for a total U.S. ABTC and
                                                members of a CBP trusted traveler                                            Global Entry renewal, and pay the U.S.                                       Global Entry membership renewal cost
                                                program will be required to pay the $70                                      ABTC and Global Entry fees using                                             of about $181.34
                                                U.S. ABTC fee upon membership                                                GOES. These members will spend an                                               By applying the U.S. ABTC renewal
                                                renewal, for a total U.S. ABTC renewal                                       estimated 10 minutes completing such                                         projections according to CBP trusted
                                                cost of approximately $81.32 Note that                                       renewal steps, at an opportunity cost of                                     traveler program membership statuses
                                                CBP does not consider the costs for                                          $10.53 per renewal.33 This burden                                            (see Table 5) to their respective U.S.
                                                current CBP trusted traveler program                                         contrasts to the IFR’s analysis, which                                       ABTC membership renewal costs ($81
                                                members to renew their CBP trusted                                           assumed that individuals would incur                                         for applicants already in a CBP trusted
                                                traveler program memberships because                                         the same time burden when initially                                          traveler program and $181 for
                                                they would presumably incur those                                            applying for or renewing a U.S. ABTC.                                        applicants not already in a CBP trusted
                                                costs even in the absence of this rule.                                      Because the initial CBP trusted traveler                                     traveler program), CBP finds that U.S.
                                                   Although CBP’s trusted traveler                                           program interview and the U.S. ABTC                                          ABTC Program members will incur a
                                                program and U.S. ABTC Program                                                Program’s digital signature capture                                          total undiscounted cost of $3.9 million
                                                validity periods previously differed (five                                   requirements are generally not                                               to renew their memberships during the
                                                years vs. three years for memberships                                        necessary for program membership                                             period of analysis (see Table 7).

                                                                                                     TABLE 7—U.S. ABTC PROGRAM RENEWAL COSTS TO MEMBERS
                                                                                                                                                       [Undiscounted]

                                                                                                                                                                             Number of                Total renewal                Number of                Total renewal
                                                                                                                                                                           renewals from                 cost for                renewals from                cost from
                                                                                                                                                                             members                    members                  members Not                members Not
                                                                                                                                                                             previously                previously                  previously                previously
                                                                                                  Fiscal year                                                                in a CBP                   in a CBP                   in a CBP                   in a CBP
                                                                                                                                                                               trusted                    trusted                    trusted                    trusted
                                                                                                                                                                              traveler                   traveler                   traveler                   traveler
                                                                                                                                                                              program                    program                    program                    program

                                                                                                                                                                                    (A)                   ($81 × A)                       (B)                  ($181 × B)

                                                2014    ................................................................................................................   ........................   ........................   ........................   ........................
                                                2015    ................................................................................................................   ........................   ........................   ........................   ........................
                                                2016    ................................................................................................................   ........................   ........................   ........................   ........................
                                                2017    ................................................................................................................                  2,126                $172,206                            493                 $89,233
                                                2018    ................................................................................................................                  9,628                  779,868                      16,056                2,906,136

                                                      Total .........................................................................................................                   11,754                  952,074                      16,549                 2,995,369



                                                  Accounting for initial application and                                     this rule will range from approximately                                      period of analysis will equal between
                                                renewal costs, the total undiscounted                                        $18.1 million to $18.3 million from FY                                       $3.4 million and $3.5 million. These
                                                cost of this rule is $17.9 million. In                                       2014 to FY 2018 (see Table 8). The total                                     estimates vary according to the discount
                                                present value terms, the overall cost of                                     annualized cost of this rule over the                                        rate applied.

                                                                                                                TABLE 8—TOTAL COST OF RULE, FY 2014–FY 2018
                                                                                                                                                    [2017 U.S. dollars]

                                                                                                                                                                                                                                   3% Discount               7% Discount
                                                                                                                                                                                                                                      rate                      rate
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                                                Present Value Cost ..................................................................................................................................................                $18,061,855                $18,319,248


                                                  32 $10.53 opportunity cost to renew U.S. ABTC                                33 $63.16 hourly time for business traveler × (10                          + $100 Global Entry program fee + $70 U.S. ABTC
                                                Program membership + $70 U.S. ABTC fee =                                     minutes/60 minutes per hour) = $10.53.                                       fee = $180.53, or $181 when rounded to the nearest
                                                                                                                               34 $10.53 opportunity cost to concurrently renew
                                                $80.53, or $81 when rounded to the nearest dollar.                                                                                                        dollar.
                                                                                                                             U.S. ABTC and Global Entry Program memberships



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                                                                   Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                                                                     84413

                                                                                                    TABLE 8—TOTAL COST OF RULE, FY 2014–FY 2018—Continued
                                                                                                                                                   [2017 U.S. dollars]

                                                                                                                                                                                                                          3% Discount       7% Discount
                                                                                                                                                                                                                             rate              rate

                                                Annualized Cost .......................................................................................................................................................      3,504,094           3,408,535



                                                6. Benefits                                                                  The Success of APEC’s Business                                             savings a U.S. ABTC holder will receive
                                                                                                                             Mobility Initiatives’’ (APEC Report).35                                    when clearing foreign immigration
                                                   As stated earlier, the U.S. ABTC                                          The APEC Report quantified seven key                                       services using the fast-track immigration
                                                Program will enable card holders to                                          performance indicators, one of which                                       lanes. To the extent that our estimate
                                                access fast-track immigration lanes at                                       quantifies the time savings an ABTC                                        understates the time saved by U.S.
                                                participating airports in the 20 other                                       holder receives by using its fast-track                                    ABTC holders, the benefits of the rule
                                                APEC member economies. Although the                                          immigration lanes. As shown in Table 9,                                    will be higher. Similarly, to the extent
                                                ABTC Program is relatively new for U.S.                                      the time savings each member                                               that U.S. ABTC holders are able to catch
                                                citizens, it is a well-established program                                   economy’s ABTC holders receive can                                         flights they would have otherwise
                                                for the other APEC member economies.                                         vary greatly. Like in the U.S. ABTC IFR,                                   missed due to lengthy immigration
                                                In an effort to quantify the benefits of                                     CBP believes the weighted average time
                                                                                                                                                                                                        waits, the benefits of this rule will be
                                                the ABTC, APEC commissioned the                                              savings of approximately 43 minutes is
                                                                                                                                                                                                        higher.
                                                report ‘‘Reducing Business Travel Costs:                                     an appropriate estimate of the time

                                                   TABLE 9—KEY PERFORMANCE INDICATOR 4—TOTAL TIME SAVINGS CLEARING IMMIGRATION AT THE BORDER BY ABTC
                                                                                              HOLDERS
                                                                                                                                                                                                      Average time                          Total time
                                                                                                                                                                                                      savings/ABTC        ABTC holders      savings by
                                                                                                                  Economy                                                                                 holder             (2011)        ABTC holders
                                                                                                                                                                                                        (minutes)                            (minutes)

                                                Australia .......................................................................................................................................             46.52              24,286          1,129,713
                                                Brunei Darussalam ......................................................................................................................                      32.81                  43              1,411
                                                Chile .............................................................................................................................................           49.33                 416             20,520
                                                China ............................................................................................................................................            38.74               3,895            150,882
                                                Hong Kong China ........................................................................................................................                      26.28              10,659            280,137
                                                Indonesia .....................................................................................................................................                60.2               1,495             90,003
                                                Japan ...........................................................................................................................................             51.49               2,541            130,840
                                                South Korea .................................................................................................................................                 43.26               8,422            364,351
                                                Malaysia .......................................................................................................................................              66.19               4,140            274,043
                                                Mexico ..........................................................................................................................................            103.51                 185             19,149
                                                New Zealand ................................................................................................................................                  48.11               6,538            314,527
                                                Papua New Guinea .....................................................................................................................                        27.03                  22                595
                                                Peru .............................................................................................................................................            40.78               1,277             52,082
                                                Philippines ....................................................................................................................................              45.22                 476             21,525
                                                Singapore .....................................................................................................................................               64.15               8,137            522,013
                                                Thailand .......................................................................................................................................              28.94               5,564            161,006
                                                Vietnam ........................................................................................................................................              24.29               8,730            212,011

                                                       Total ......................................................................................................................................              n/a             86,826          3,744,808
                                                       Weighted Average ................................................................................................................                       43.13                n/a                n/a
                                                  Source: Asia-Pacific Economic Cooperation. ‘‘Reducing Business Travel Costs: The Success of APEC’s Business Mobility Initiatives.’’ October
                                                2011. Available at http://publications.apec.org/publication-detail.php?pub_id=1214. Accessed May 23, 2012.


                                                   As previously discussed, the DOT’s                                        applicant who is not already a CBP                                         times have to equal or exceed the cost
                                                guidance regarding the valuation of                                          trusted traveler member will also save                                     of the program over five years for
                                                travel time estimates a business air                                         an additional 7 minutes on net, or $7 in                                   potential enrollees to determine
                                                traveler’s value to be $63.16 per hour.                                      opportunity costs, by using a Global                                       whether or not the program is
                                                Using this hourly time value and the 43                                      Entry kiosk for expedited CBP clearance                                    worthwhile to join. As previously
                                                minutes in time savings from the ABTC                                        upon returning to the United States                                        discussed, CBP estimates that each U.S.
                                                per trip, CBP estimates each U.S. ABTC                                       from an APEC economy.37                                                    ABTC holder will save approximately
                                                holder will save approximately $45 per                                                                                                                  $45 per trip by using the fast-track
                                                visit to an APEC member economy.36 In                                        7. Net Benefits                                                            immigration lanes in foreign APEC
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                                                addition to the time savings per trip to                                       Because participation in the U.S.                                        member economies. Although CBP is
                                                an APEC member economy, CBP                                                  ABTC Program is voluntary, the                                             unable to estimate the number of trips
                                                estimates a new, initial U.S. ABTC                                           perceived benefits of its reduced wait                                     each individual U.S. ABTC holder will
                                                  35 Asia-Pacific Economic Cooperation. ‘‘Reducing                           publication-detail.php?pub_id=1214. Accessed May                             37 $63.16 × (7 minutes/60 minutes per hour) =

                                                Business Travel Costs: The Success of APEC’s                                 23, 2012.                                                                  $7.37, or $7 when rounded to the nearest dollar.
                                                Business Mobility Initiatives.’’ November 2011.                                36 $63.16 × (43 minutes/60 minutes per hour) =
                                                                                                                                                                                                        Source: 77 FR 5681, February 6, 2012.
                                                Available at http://publications.apec.org/                                   $45.26, or $45 when rounded to the nearest dollar.



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                                                84414        Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations

                                                take to an APEC member economy, CBP                     Therefore, CBP has considered the                     D. Executive Order 13132
                                                can estimate the minimum number of                      impact of this rule on small entities.                  The rule will not have substantial
                                                trips a U.S. ABTC holder will have to                     The U.S. ABTC Program is voluntary                  direct effects on the States, on the
                                                take over the five-year U.S. ABTC                       and has an initial application cost of                relationship between the National
                                                validity period for the benefits of initial             approximately $144 if a U.S. ABTC                     Government and the States, or on the
                                                U.S. ABTC membership to equal or                        applicant is a current member of a CBP                distribution of power and
                                                exceed the costs of initially obtaining a               trusted traveler program or                           responsibilities among the various
                                                U.S. ABTC by using the estimated                        approximately $275 if a U.S. ABTC                     levels of government. Therefore, in
                                                savings per trip ($45) previously                       applicant must concurrently apply for a               accordance with section 6 of Executive
                                                described. CBP estimates that a new,                    U.S. ABTC and a CBP trusted traveler                  Order 13132, this rule does not have
                                                initial U.S ABTC applicant who is                       program. While the U.S. ABTC                          sufficient federalism implications to
                                                already enrolled in a CBP trusted                       applicant will bear the cost associated               warrant the preparation of a federalism
                                                traveler program will need to take a                    with obtaining a U.S. ABTC, a business                summary impact statement.
                                                minimum of four trips between the                       may voluntarily reimburse the applicant
                                                United States and an APEC member                        for the fee and his or her opportunity                E. Paperwork Reduction Act
                                                economy over five years for the benefits                cost. CBP cannot estimate the number of                 The collections of information in this
                                                of the U.S. ABTC Program to exceed the                  small entities that will voluntarily                  document will be submitted for review
                                                costs associated with joining the                       reimburse its employees. CBP                          by OMB in accordance with the
                                                program.38 Accounting for the $45 in                    recognizes that it is possible that a                 requirements of the Paperwork
                                                time savings per trip to an APEC                        substantial number of small entities will             Reduction Act (44 U.S.C. 3507) under
                                                member economy and the $7 in time                       be impacted by this regulation.                       control number 1651–0121. An agency
                                                savings by using a Global Entry kiosk for               However, CBP does not believe an                      may not conduct or sponsor, and a
                                                expedited CBP clearance upon returning                  application cost of either $144 or $275,              person is not required to respond to, a
                                                to the United States from an APEC                       depending on whether a U.S. ABTC                      collection of information unless it
                                                economy, CBP estimates that a new,                      applicant is currently enrolled in a CBP              displays a valid control number
                                                initial U.S. ABTC applicant who is not                  trusted traveler program, constitutes a               assigned by OMB. The collections of
                                                already a CBP trusted traveler member                   significant economic impact. Moreover,                information in these regulations are
                                                will need to take a minimum of six trips                as previously discussed, each U.S.                    contained in Title 8, Part 235 of the
                                                                                                        ABTC holder will save approximately                   CFR. The revisions to OMB clearance
                                                between the United States and an APEC
                                                                                                        43 minutes, or approximately $45 in                   1651–0121 for the U.S. ABTC Program
                                                member economy over five years for the
                                                                                                        opportunity costs, per trip, while new,               application 40 reflect the following
                                                benefits of the U.S. ABTC Program to
                                                                                                        initial U.S. ABTC applicants who are                  changes:
                                                exceed the costs associated with joining
                                                                                                        not already CBP trusted traveler                        U.S. ABTC Applications: 41
                                                the program and Global Entry.39 Current
                                                                                                        members will also save an additional 7
                                                U.S. ABTC holders will need to take
                                                                                                        minutes on net, or $7 in opportunity                     40 Source: U.S. Department of Homeland Security,
                                                even fewer trips per year for the benefits
                                                                                                        costs, by using a Global Entry kiosk for              Customs and Border Protection. Supporting
                                                of renewing their program memberships                                                                         Statement for Paperwork Reduction Act
                                                                                                        expedited CBP clearance upon returning
                                                to outweigh the costs.                                                                                        Submission: 1651–0121, Trusted Traveler Programs
                                                                                                        to the United States from an APEC                     and U.S. APEC Business Travel Card. September
                                                B. The Regulatory Flexibility Act                       economy. U.S. ABTC Program members                    2015. Available at http://www.reginfo.gov/public/
                                                                                                        can dedicate these time savings to                    do/PRAViewDocument?ref_nbr=201509-1651-002.
                                                  This section examines the impact of                   productive, APEC business-related use.                Accessed March 29, 2016.
                                                                                                                                                                 41 CBP estimates that a total of 14,344 applicants
                                                the rule on small entities as required by               After approximately four or six trips to              will initially apply for U.S. ABTC Program
                                                the Regulatory Flexibility Act (5 U.S.C.                an APEC member economy, the benefits                  membership each year (see ‘‘Executive Order 13563
                                                601 et. seq.), as amended by the Small                  of an ABTC will exceed the full cost of               and Executive Order 12866’’ section, Table 2—
                                                Business Regulatory Enforcement                         obtaining a U.S. ABTC (fees +                         ‘‘Total Initial U.S. ABTC Applications’’ in FY 2017).
                                                Fairness Act of 1996. A small entity may                                                                      However, as described in the ‘‘Executive Order
                                                                                                        opportunity costs). CBP also notes that               13563 and Executive Order 12866’’ section above,
                                                be a small business (defined as any                     a one-time expense of $144 or $275,                   an estimated 4,652 of these applicants will already
                                                independently owned and operated                        depending on whether the U.S. ABTC                    be current CBP trusted traveler program members,
                                                business not dominant in its field that                 applicant is already enrolled in a CBP                while 9,692 will not. Because the U.S. ABTC
                                                                                                                                                              Program application requirements differ according
                                                qualifies as a small business per the                   trusted traveler program, is a fraction of            to an applicant’s CBP trusted traveler program
                                                Small Business Act); a small not-for-                   the cost of frequent trans-Pacific travel.            membership status, the U.S. ABTC application time
                                                profit organization; or a small                         Thus, CBP certifies this regulation will              burdens for individuals will differ. The estimated
                                                governmental jurisdiction (locality with                not have a significant economic impact                4,652 U.S. ABTC applicants who are already CBP
                                                                                                                                                              trusted traveler program members will incur a time
                                                fewer than 50,000 people). Although                     on a substantial number of small                      burden of 10 minutes to complete the U.S. ABTC
                                                this rule regulates people and not                      entities. CBP received no public                      self-certification and have their signature digitally
                                                businesses, a U.S. citizen is required to               comments challenging this certification.              captured at a CBP trusted traveler enrollment center
                                                be either a bona fide U.S. business                                                                           for their U.S. ABTC application. These U.S. ABTC
                                                                                                        C. Unfunded Mandates Reform Act of                    application estimates account for the 4,652
                                                person engaged in business in the APEC
                                                                                                        1995                                                  individuals who are already in a CBP trusted
                                                region or a U.S. Government official                                                                          traveler program and their related U.S. ABTC
                                                actively engaged in APEC business in                      This rule will not result in the                    application burdens. CBP considers the remaining
                                                order to qualify for a U.S. ABTC.                       expenditure by State, local, and tribal               additional burden to the 9,692 individuals who will
                                                                                                        governments, in the aggregate, or by the              concurrently apply for an initial U.S. ABTC and a
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                                                                                                                                                              CBP trusted traveler program membership in the
                                                  38 (Rounded) $143 U.S. ABTC opportunity cost          private sector, of $100 million or more               following ‘‘Global Entry Applications’’ estimates.
                                                and fee/$45 savings per trip = 3.2 trips.               in any one year, and it will not                      Additionally, CBP estimates that a total of 2,619
                                                  39 (Rounded) $45 fast-track immigration clearance     significantly or uniquely affect small                existing U.S. ABTC Program members will choose
                                                savings + $7 expedited CBP clearance savings from       governments. Therefore, no actions are                to renew their U.S. ABTC memberships and Global
                                                Global Entry = $52 U.S. ABTC holder savings;                                                                  Entry memberships (if they were not already in a
                                                (Rounded) $274 U.S. ABTC and Global Entry
                                                                                                        necessary under the provisions of the                 CBP trusted traveler program at the time of their
                                                opportunity cost and fees/$52 U.S. ABTC holder          Unfunded Mandates Reform Act of                       initial ABTC application) (see ‘‘Executive Order
                                                savings = 5.3 trips.                                    1995.                                                 13563 and Executive Order 12866’’ section, Table



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                                                              Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Rules and Regulations                                             84415

                                                  Increase in estimated number of                         Increase in estimated number of                     ■  c. In paragraph (f)(2) introductory text,
                                                annual respondents: 1,643.                              annual respondents: 11,106.                           first sentence, remove the words
                                                  Increase in estimated number of                         Increase in estimated number of                     ‘‘suspended or’’;
                                                annual responses: 1,643.                                annual responses: 22,212.                             ■ d. In paragraph (f)(3), first and second
                                                  Estimated average time burden per                       Estimated average time burden per                   sentences, remove the words
                                                response: 10 minutes (0.17 hours).                      response: 1 minute (0.016 hours).                     ‘‘suspension or’’;
                                                  Increase in estimated total annual                      Increase in estimated total annual                  ■ e. In paragraph (f)(4), remove ‘‘,
                                                time burden: 279 hours.                                 time burden: 356 hours.                               suspended,’’;
                                                  Initial U.S. ABTC applicants who join                 F. Privacy                                            ■ f. In paragraph (g)(1), remove all
                                                Global Entry to meet a U.S. ABTC                                                                              occurrences of the phrase ‘‘denial,
                                                Program membership requirement                            DHS will ensure that all Privacy Act
                                                                                                                                                              suspension or removal’’ and add in its
                                                                                                        requirements and policies are adhered
                                                increased the number of Global Entry                                                                          place ‘‘denial or removal’’ and remove
                                                                                                        to in the implementation of this rule. In
                                                applications and burden hours as                                                                              the words ‘‘date of suspension or
                                                                                                        this regard, DHS has updated the
                                                follows:                                                                                                      removal’’ and add in their place ‘‘date
                                                                                                        Privacy Impact Assessment for the
                                                  Global Entry Applications: 42                                                                               of removal’’;
                                                                                                        Global Enrollment System (GES) on
                                                   Increase in estimated number of                                                                            ■ g. In paragraph (g)(2), remove the
                                                                                                        November 1, 2016, which fully outlines
                                                annual respondents: 2,099.                                                                                    phrase ‘‘denial, suspension or removal’’
                                                                                                        processes to ensure compliance with
                                                   Increase in estimated number of                                                                            and add in its place ‘‘denial or
                                                                                                        Privacy Act protections relevant to this
                                                annual responses: 2,099.                                                                                      removal’’; and
                                                                                                        rule. See https://www.dhs.gov/sites/
                                                   Estimated average time burden per                                                                          ■ h. In paragraph (h), second sentence,
                                                                                                        default/files/publications/privacy-pia-
                                                response: 40 minutes (0.67 hours).                                                                            remove the words ‘‘suspended or’’.
                                                                                                        cbp-ges-november2016.pdf.
                                                   Increase in estimated total annual                                                                           Dated: November 17, 2016.
                                                time burden: 1,407 hours.                               VII. Authority
                                                                                                                                                              Jeh Charles Johnson,
                                                   Approved U.S. ABTC members who                         This regulation is issued under the
                                                joined Global Entry for their U.S. ABTC                                                                       Secretary.
                                                                                                        authority of 5 U.S.C. 301, 6 U.S.C. 112,              [FR Doc. 2016–28177 Filed 11–22–16; 8:45 am]
                                                Program membership also increased the                   203 and 211, 8 U.S.C. 1103 and 19
                                                Global Entry kiosk usage rate and                       U.S.C. 2, 66 and 1624, and Public Law
                                                                                                                                                              BILLING CODE 9111–14–P
                                                burden hours through their use of the                   112–54.
                                                kiosks for expedited CBP clearance
                                                upon returning to the United States                     List of Subjects in 8 CFR Part 235                    FEDERAL RESERVE SYSTEM
                                                from an APEC economy. The additional                      Administrative practice and
                                                Global Entry kiosk burden hours                         procedure, Aliens, Immigration,                       12 CFR Part 209
                                                directly resulting from the U.S. ABTC                   Reporting and recordkeeping                           [Regulation I; Docket No. R–1533]
                                                Program are as follows:                                 requirements.
                                                                                                                                                              RIN 7100–AE 47
                                                   Global Entry Kiosk Use: 43
                                                                                                        Amendments to Regulations
                                                                                                                                                              Federal Reserve Bank Capital Stock
                                                5— ‘‘Total U.S. ABTC Renewals’’ in FY 2017). For          For the reasons set forth in the
                                                the purposes of this information collection, CBP        preamble, the IFR amending 8 CFR                      AGENCY:  Board of Governors of the
                                                includes the renewal figures in the overall U.S.        103.7(b)(1)(ii)(N) and adding a new
                                                ABTC application estimates because the burden for                                                             Federal Reserve System.
                                                initial U.S. ABTC Program application and renewal       section 235.13, which was published at                ACTION: Final rule.
                                                are both assumed to be 10 minutes.                      79 FR 27161 on May 13, 2014, is
                                                   42 Individuals interested in joining the U.S. ABTC   adopted as final with the following                   SUMMARY:   The Board of Governors
                                                Program who are not already CBP trusted traveler        changes:                                              (Board) is adopting, in final form and
                                                members will need to initially apply for a CBP
                                                trusted traveler program membership to meet one                                                               without change, an interim final rule
                                                of the U.S. ABTC Program’s membership
                                                                                                        PART 235—INSPECTION OF PERSONS                        amending Regulation I. The final rule
                                                requirements. CBP estimates that the 9,692 initial      APPLYING FOR ADMISSION                                establishes procedures for payment of
                                                applicants who are not already in a CBP trusted                                                               dividends by the Federal Reserve Banks
                                                traveler program will concurrently apply for the        ■ 1. The authority citation for part 235
                                                U.S. ABTC Program and CBP’s Global Entry trusted        continues to read as follows: 8 U.S.C.                (Reserve Banks) to implement the
                                                traveler program, incurring a 40-minute time            1101 and note, 1103, 1183, 1185                       provisions of section 32203 of the
                                                burden to complete the Global Entry application,
                                                                                                        (pursuant to E.O.13323, 69 FR 241, 3                  ‘‘Fixing America’s Surface
                                                complete the U.S. ABTC self-certification, schedule                                                           Transportation Act.’’ The final rule sets
                                                their required Global Entry enrollment interview,       CFR, 2004 Comp., p.278), 1201, 1224,
                                                pay the program application fees, and have their        1225, 1226, 1228, 1365a note, 1365b,                  out the dividend rates applicable to
                                                signature digitally captured for the U.S. ABTC          1379, 1731–32; Title VII of Public Law                Reserve Bank depository institution
                                                Program. These initial Global Entry application
                                                                                                        110–229; 8 U.S.C. 1185 note (section                  stockholders and amends provisions of
                                                estimates account for the 9,692 individuals who are                                                           Regulation I regarding treatment of
                                                not already in a CBP trusted traveler program and       7209 of Pub. L. 108–458); Public Law
                                                their related U.S. ABTC application burdens.            112–54.                                               accrued dividends when a Reserve Bank
                                                   43 CBP now estimates that by the end of FY 2017,                                                           issues or cancels Federal Reserve Bank
                                                24,520 individuals who were not already members         § 235.13    [Amended]                                 capital stock.
                                                of a CBP trusted traveler program will become joint
                                                members of the U.S. ABTC Program and Global
                                                                                                        ■ 2. Amend § 235.13 as follows:                       DATES: This final rule is effective on
                                                Entry (see ‘‘Executive Order 13563 and Executive        ■ a. In paragraph (c)(6), first sentence,             January 1, 2017.
                                                Order 12866’’ section, Table 4— ‘‘Number of Initial     remove the number ‘‘3’’ and add in its                FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK3G9T082PROD with RULES




                                                U.S. ABTC Applications Approved for Members             place the word ‘‘five’’ and remove the                Evan Winerman, Counsel (202–872–
                                                Not Already in a CBP Trusted Traveler Program’’ in      words ‘‘suspended or’’;
                                                FY 2014–FY 2017). Due to data limitations, CBP                                                                7578), Legal Division; or Kimberly
                                                                                                        ■ b. Revise the paragraph (f) subject
                                                assumes that these 24,520 U.S. ABTC Program                                                                   Zaikov, Financial Project Leader (202/
                                                members will use Global Entry kiosks twice per          heading to read ‘‘Denial and removal’’;               452–2256), Reserve Bank Operations
                                                year as this is the minimum number of annual trips
                                                one of these members would have to take for the         49,040 kiosk responses per year. These Global Entry
                                                                                                                                                              and Payments Systems Division. Users
                                                benefits of joining the U.S. ABTC Program to            kiosk use estimates account for the 49,040 kiosk      of Telecommunication Device for Deaf
                                                outweigh its costs. This translates to an additional    responses and the related burdens.                    (TDD) only, call (202) 263–4869.


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Document Created: 2016-11-23 05:30:21
Document Modified: 2016-11-23 05:30:21
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.
DatesThis rule is effective December 23, 2016.
ContactMr. Garret Conover, Office of Field Operations, (202) 325-4062, [email protected]
FR Citation81 FR 84403 
RIN Number1651-AB01
CFR Citation8 CFR 103
8 CFR 235
CFR AssociatedAdministrative Practice and Procedure; Aliens; Immigration and Reporting and Recordkeeping Requirements

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