57012 Federal Register / Vol. 77, No. 180 / Monday, September 17, 2012 / Rules and Regulations 

Issued in Washington, DC, on September 

11, 2012. 

Gary A. Norek, 

Manager, Airspace Policy and ATC 

Procedures Group. 

[FR Doc. 2012–22802 Filed 9–14–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF STATE 

[Public Notice: 8026] 

22 CFR Parts 22 and 42 

RIN 1400–AD06 

Schedule of Fees for Consular 

Services, Department of State and 

Overseas Embassies and Consulates 

AGENCY: Bureau of Consular Affairs, 

Department of State. 

ACTION: Final rule. 

SUMMARY: This rulemaking addresses 

public comments regarding an Interim 

Final Rule that makes changes to the 

Schedule of Fees for Consular Services 

(Schedule) for a number of different visa 

fees. The Department of State adopts the 

rule as final, without change. 

DATES: Effective September 17, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Special Assistant, Office of the 

Comptroller, Bureau of Consular Affairs, 

Department of State; phone: 202–663– 

1576, telefax: 202–663–2526; email: 

fees@state.gov. 

SUPPLEMENTARY INFORMATION: For the 

complete explanation of the background 

of this rule, including the rationale for 

the change, the authority of the 

Department of State (‘‘Department’’) to 

make the fee changes in question, and 

an explanation of the study that 

produced the fee amounts, consult the 

prior public notices: 77 FR 18907 

(March 29, 2012); 77 FR 20294 (April 4, 

2012); and 75 FR 14111 (March 24, 

2010). 

Background 

The Department published an interim 

final rule in the Federal Register (77 FR 

18907, March 29, 2012) amending 22 

CFR parts 22 and 42. Specifically, the 

rule made changes to the Schedule of 

Fees for Consular Services for visa fees 

and provided 60 days for comments 

from the public. During the comment 

period 18 comments were received, 

either by email or through the 

submission process at 

www.regulations.gov. The Department 

analyzed these 18 comments and 

reproduces that analysis in the Analysis 

of Comments section below. 

This rule finalizes the following fees 

for the categories below, as determined 

by the Cost of Service Model (CoSM), 

which took effect on April 13, 2012. 

• Non-Petition based Nonimmigrant 

Visa Application (except E category): 

from $140 to $160 

• H, L, O, P, Q and R visa categories: 

from $150 to $190 

• E visa category: from $390 to $270 

• K visa category: from $350 to $240 

• BCC Adult: from $140 to $160 

• BCC Minor: from $14 to $15 

• Family-Based Immigrant visa: from 

$330 to $230 

• Employment-Based Immigrant visa: 

from $720 to $405 

• Other Immigrant visas (including I– 

360 self-petitioners and special 

immigrant visas): from $305 to $220 

• Diversity Visa Lottery Fee (per person 

applying as a result of the lottery 

program): from $440 to $330 

• Determining Returning Resident 

Status: from $380 to $275 

• Transportation Letters for Lawful 

Permanent Residents of the United 

States: from $165 to $0 

Analysis of Comments 

The interim rule was published for 

public comment on March 29, 2012. 

During this period, the Department 

received 18 comments/questions. The 

following analysis addresses these 18 

comments. 

Four comments were questions 

regarding when the fee changes took 

effect. To answer: applicants paid the 

fee amount that was effective on the 

date they paid the fee. Receipts for fees 

paid under the prior fee schedule were 

accepted for 90 days following the 

effective fee change (i.e., July 12, 2012). 

In short, if a fee was paid on or before 

April 12, 2012 the receipt for the prior 

fee was valid until July 12, 2012. If a fee 

was paid April 13, 2012 or later, an 

applicant paid the new fee. 

Four comments criticized the increase 

of the nonimmigrant visa application 

processing fee, arguing that the increase 

would make it more difficult for visitors 

to bring their families to the United 

States to visit. Although the Department 

understands the financial difficulties 

that may result from a fee increase, the 

Department must recover the cost of 

providing those services and sets the 

fees for those services accordingly, 

including nonimmigrant visa 

application processing fees. 

Seven comments from H–2 employers 

opposed the H visa fee increase from 

$150 to $190. Those comments stated 

that the fee increase would be an added 

tax burden and competitive 

disadvantage for U.S. domestic food 

producers who compete in a global 

marketplace. The comments also stated 

that increasing the cost of the H–2 visa 

to fund expanded adjudication capacity 

and physical infrastructure 

improvements at consulates in China 

and Brazil was unfair because very few 

H–2 workers come from either of these 

countries. In addition, the comments 

questioned whether the H–2 fee increase 

would lead to any improvements in the 

H–2 program, particularly in Mexico 

where most employers hire their H–2 

workers. 

The Department is adjusting the 

processing fee for H-category visas from 

$150 to $190 because processing an H 

visa application requires a review of 

extensive documentation and a more indepth interview of the applicant than 

for other categories of nonimmigrant 

visas. Because the fees are set based on 

cost, a more time-consuming process 

necessarily will result in a higher fee. 

Although some of the comments 

expressed the belief that adjudicating H 

category visas should require simpler 

processing for repeat applicants, the 

Cost of Service Model (CoSM) showed 

that H visas require more time and 

resources to process than others. The 

Department determined it would be 

fairer to charge a higher fee for those 

visa categories requiring more complex 

processing (H, L, O, P, Q, R, E, and K), 

rather than spreading those additional 

costs out across all other visa categories. 

In addition, the fees established by this 

rule are based on unit costs, which 

represent the global average costs for 

each service as a whole. The most recent 

CoSM, the activity-based costing model 

the Department used to determine the 

new processing fees, improved 

substantially upon prior cost of service 

models by identifying unit costs not just 

for nonimmigrant visas as a whole, but 

for specific visa classes that involved 

more work to process. The CoSM did 

not, however, distinguish between 

subcategories of visas within a single 

category, such as an H–1B versus an H– 

2. Instead, the cost model averaged 

together the cost of processing all 

subcategories within a particular 

category of visa, which the Department 

used to calculate a single processing fee 

for that visa category. Although the time 

to process individual visa applications 

will vary from application to 

application, the fee is set based on the 

average cost to process a visa 

application from that visa category. 

The costs for worldwide physical 

upgrades and personnel increases, 

including in China and Brazil, were 

spread out across all nonimmigrant visa 

categories in order to keep the impact 

minimal. In addition to the upgrades to 

the Department’s facilities in China and 

Brazil, the Department opened a new 

consulate facility in Tijuana in 2010 and 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 180 / Monday, September 17, 2012 / Rules and Regulations 57013 

plans to open a new facility in 

Monterrey in 2014. The Department also 

recently opened application service 

centers in Mexicali, Piedras Negras, and 

Reynosa to accommodate additional 

applicants along the U.S.-Mexico 

border. 

Of the three remaining comments, one 

noted its support for the reduced K visa 

fee and one applauded the Department 

for decreasing consular fees on certain 

nonimmigrant, immigrant, and special 

visa services, while also expressing 

concern for the increases to the other 

visa categories. One comment expressed 

a desire for a discount on all minor 

NIVs, not just minor BCCs. We note that 

the Department is required by law to set 

the fee for the minor BCC below cost at 

$15. The same requirement does not 

apply to other minor NIVs, which the 

Department sets on the basis of cost as 

described more fully above. 

Conclusion 

The Department has adjusted the fees 

to ensure that sufficient resources are 

available to meet the costs of providing 

consular services in light of the CoSM’s 

findings. Pursuant to OMB guidance 

and federal law, the Department 

endeavors to recover the cost of 

providing services that benefit specific 

individuals rather than the public at 

large. See OMB Circular A–25, sections 

6(a)(1), (a)(2)(a); 31 U.S.C. 9701(b). For 

this reason, the Department has adjusted 

the Schedule. 

Regulatory Findings 

For a summary of the regulatory 

findings and analyses regarding this 

rulemaking, please refer to the findings 

and analyses published with the interim 

final rule, which can be found at 77 FR 

18907, which are adopted herein. The 

rule became effective April 13, 2012. As 

noted above, the Department has 

considered the comments submitted in 

response to the interim final rule, and 

does not adopt them. Thus, the rule 

remains in effect without modification. 

In addition, as noted in the interim 

final rule, this rule was submitted to 

and reviewed by OMB pursuant to E.O. 

12866. The Department of State has also 

considered this rule in light of 

Executive Order 13563, dated January 

18, 2011, and affirms that this regulation 

is consistent with the guidance therein. 

Accordingly, the Interim Final Rule 

amending 22 CFR parts 22 and 42 which 

was published at 77 FR 18907 on March 

29, 2012, is adopted as final without 

change. 

Dated: September 4, 2012. 

Patrick F. Kennedy, 

Under Secretary of State for Management, 

U.S. Department of State. 

[FR Doc. 2012–22862 Filed 9–14–12; 8:45 am] 

BILLING CODE 4710–06–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9598] 

RIN 1545–BK98 

Integrated Hedging Transactions of 

Qualifying Debt 

Correction 

In rule document 2012–21986 

appearing on pages 54808–54811 in the 

issue of Thursday, September 6, 2012 

make the following correction: 

On page 54811, in the first column, on 

the eleventh line from the bottom of the 

page, ‘‘(i) Expiration date. This section 

expires on September 4, 2012’’, should 

read ‘‘(i) Expiration date. This section 

expires on September 4, 2015.’’ 

[FR Doc. C1–2012–21986 Filed 9–14–12; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID DoD–2012–OS–0102] 

32 CFR Part 319 

Privacy Act; Implementation 

AGENCY: Defense Intelligence Agency, 

DoD. 

ACTION: Direct final rule with request for 

comments. 

SUMMARY: The Defense Intelligence 

Agency is updating the Defense 

Intelligence Agency Privacy Act 

Program, by adding the (k)(2) exemption 

to accurately describe the basis for 

exempting the records in the system of 

records notice LDIA 10–0002, Foreign 

Intelligence and Counterintelligence 

Operation Records. This direct final rule 

makes non-substantive changes to the 

Defense Intelligence Agency Privacy 

Program rules. These changes will allow 

the Department to exempt records from 

certain portions of the Privacy Act. This 

will improve the efficiency and 

effectiveness of DoD’s program by 

ensuring the integrity of ongoing 

Foreign Intelligence and 

Counterintelligence Operations Records 

related to the protection of national 

security, DoD personnel, facilities and 

equipment of the Defense Intelligence 

Agency and the Department of Defense. 

This rule is being published as a 

direct final rule as the Department of 

Defense does not expect to receive any 

adverse comments, and so a proposed 

rule is unnecessary. 

DATES: The rule will be effective on 

November 26, 2012 unless comments 

are received that would result in a 

contrary determination. Comments will 

be accepted on or before November 16, 

2012. If adverse comment is received, 

DoD will publish a timely withdrawal of 

the rule in the Federal Register. 

ADDRESSES: You may submit comments, 

identified by docket number and title, 

by any of the following methods: 

* Federal Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

* Mail: Federal Docket Management 

System Office, 4800 Mark Center Drive, 

East Tower, Suite 02G09, Alexandria, 

VA 22350–3100. 

Instructions: All submissions received 

must include the agency name and 

docket number for this Federal Register 

document. The general policy for 

comments and other submissions from 

members of the public is to make these 

submissions available for public 

viewing on the Internet at http:// 

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Theresa Lowery at (202) 231–1193. 

SUPPLEMENTARY INFORMATION: 

Direct Final Rule and Significant 

Adverse Comments 

DoD has determined this rulemaking 

meets the criteria for a direct final rule 

because it involves non-substantive 

changes dealing with DoD’s 

management of its Privacy Programs. 

DoD expects no opposition to the 

changes and no significant adverse 

comments. However, if DoD receives a 

significant adverse comment, the 

Department will withdraw this direct 

final rule by publishing a notice in the 

Federal Register. A significant adverse 

comment is one that explains: (1) Why 

the direct final rule is inappropriate, 

including challenges to the rule’s 

underlying premise or approach; or (2) 

why the direct final rule will be 

ineffective or unacceptable without a 

change. In determining whether a 

comment necessitates withdrawal of 

this direct final rule, DoD will consider 

whether it warrants a substantive 


tkelley on DSK3SPTVN1PROD with RULES