5906 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Rules and Regulations 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g); 40103, 

40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9Z, 

Airspace Designations and Reporting 

Points, dated August 6, 2015, effective 

September 15, 2015, is amended as 

follows: 

Paragraph 6002 Class E Airspace 

designated as surface areas. 

* * * * * 

AGL SD E2 Rapid City, SD (Amended) 

Rapid City Regional Airport, SD 

(Lat. 44°02′43′′ N., long. 103°03′27′′ W.) 

Ellsworth AFB, SD 

(Lat. 44°08′42′′ N., long. 103°06′13′′ W.) 

Rapid City VORTAC 

(Lat. 43°58′34′′ N., long. 103°00′44′′ W.) 

Within a 4.4-mile radius of the Rapid City 

Regional Airport, excluding the portion north 

of a line between the intersection of the 

Rapid City Regional Airport 4.4-mile radius 

and the Ellsworth AFB 4.7-mile radius, and 

that airspace extending upward from the 

surface within 2.6 miles each side of the 

Rapid City VORTAC 155°/335°. radials 

extending from the 4.4-mile radius of the 

Rapid City Regional Airport to 7 miles 

southeast of the VORTAC, excluding that 

airspace within the Rapid City, SD, Class D 

airspace area. 

* * * * * 

Paragraph 6004 Class E Airspace Areas 

Designated as an Extension to a Class D or 

Class E Surface Area. 

* * * * * 

AGL SD E4 Rapid City, SD (Amended) 

Rapid City Regional Airport, SD 

(Lat. 44°02′43′′ N., long. 103°03′27′′ W.) 

Rapid City VORTAC 

(Lat. 43°58′34′′ N., long. 103°00′44′′ W.) 

That airspace extending upward from the 

surface within 2.6 miles each side of the 

Rapid City VORTAC 155°/335° radials 

extending from the 4.4-mile radius of the 

Rapid City Regional Airport to 7 miles 

southeast of the VORTAC, excluding that 

airspace within the Rapid City, SD, Class D 

airspace area. 

Issued in Fort Worth, Texas, on January 27, 

2016. 

Robert W. Beck, 

Manager, Operations Support Group, ATO 

Central Service Center. 

[FR Doc. 2016–02037 Filed 2–3–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF STATE 

22 CFR Part 41 

[Public Notice: 9428] 

RIN 1400–AD17 

Visas: Documentation of 

Nonimmigrants Under the Immigration 

and Nationality Act, as Amended 

AGENCY: Department of State. 

ACTION: Interim final rule. 

SUMMARY: As a result of this rule, a 

passport and a visa will be required of 

a British, French, or Netherlands 

national, or of a national of Antigua, 

Barbados, Grenada, Jamaica, or Trinidad 

and Tobago, who has residence in 

British, French, or Netherlands territory 

located in the adjacent islands of the 

Caribbean area, or has residence in 

Antigua, Barbados, Grenada, Jamaica, or 

Trinidad and Tobago, if the alien is 

proceeding to the United States as an 

agricultural worker. In light of past 

experience, and to promote consistency 

of treatment across H–2A agricultural 

workers, prudent border management 

requires these temporary workers to 

obtain a visa along with most other H– 

2A agricultural workers. 

The previous rule allowing temporary 

workers from these countries to enter 

the United States without a visa 

presented a vulnerability. Temporary 

workers from these countries now 

require H–2A visas to enter the United 

States. 

DATES: This rule is effective February 

19, 2016. Comment period: The 

Department will accept comments until 

April 4, 2016. 

ADDRESSES: 

• Interested parties may submit 

comments at any time by any of the 

following methods: 

• Mail: U.S. Department of State, Visa 

Services, Legislation and Regulations 

Division, 600 19th Street NW., Room 

12–526B, Washington, DC 20006 ATTN: 

Paul-Anthony L. Magadia. 

• If you have access to the Internet 

you may submit comments by going to 

http://www.regulations.gov/#!home and 

searching for Public Notice number 

XXXX. 

FOR FURTHER INFORMATION CONTACT: 

Paul-Anthony L. Magadia, U.S. 

Department of State, Visa Services, 

Legislation and Regulations Division, 

Washington, DC 20006, (202) 485–7641, 

Email: magadiapl@state.gov. 

SUPPLEMENTARY INFORMATION: 

Why is the Department promulgating 

this rule? 

The Department of State (the 

Department) is amending the previous 

rule to alleviate fraud and security 

concerns that have developed 

subsequent to that rule’s publication. 

The previous rule, 22 CFR 41.2(e)(1), 

allowed nationals of certain Caribbean 

countries, as well as nationals of certain 

other countries who have residence in 

such countries’ territories in the 

Caribbean, to enter the United States as 

temporary agricultural workers without 

visas. The amended rule requires that 

temporary workers from these countries 

obtain H–2A visas to enter the United 

States. 

What is the current rule? 

Currently, British, French, and 

Netherlands nationals and nationals of 

Antigua, Barbados, Grenada, Jamaica, 

and Trinidad and Tobago, who have 

their residence in British, French, or 

Netherlands territory located in the 

adjacent islands of the Caribbean area or 

in Antigua, Barbados, Grenada, Jamaica, 

or Trinidad and Tobago, are not 

required to obtain visas before traveling 

to the United States as H–2A 

agricultural workers. 

What will prospective H–2A 

agricultural workers be required to do? 

The amended rule requires these 

prospective H–2A agricultural workers 

to obtain a visa prior to traveling to the 

United States. Any spouses or children 

of these workers also will have to obtain 

a visa. To obtain a visa, these 

nonimmigrant aliens will have to be in 

possession of a valid passport, submit a 

visa application to and appear for an 

interview at a U.S. embassy or 

consulate, and undergo the 

Department’s visa screening process. 

Will the amended rule ensure that 

prospective H–2A agricultural workers 

are properly screened prior to their 

arrival in the United States? 

Requiring these prospective H–2A 

agricultural workers to obtain visas will 

ensure that they are sufficiently 

screened prior to arrival in the United 

States. This will lessen the possibility 

that persons who pose security risks to 

the United States and other potential 

immigration violators may improperly 

gain admission to the United States. At 

the same time, requiring that these 

applicants appear before consular 

officers will provide greater 

opportunities to prescreen for potential 

employment fraud and will promote 

compliance with Department of 

Homeland Security (DHS) and 

Department of Labor (DOL) H–2A rules. 


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Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Rules and Regulations 5907 

How will the amended rule further the 

national security interests of the United 

States? 

The Department, in conjunction with 

DHS, has determined that the visa 

exemption provided a loophole that 

could potentially be exploited by 

terrorists and other persons seeking to 

engage in unlawful activities in the 

United States and threatens the security 

interests of the United States. This visa 

exemption is outdated in the post-9/11 

environment and inconsistent with the 

visa requirement for other H–2A 

agricultural workers from other 

countries. The Department and DHS 

have determined that eliminating this 

visa exemption furthers the national 

security interests of the United States. 

How will the amended rule affect the 

Department’s visa issuance process? 

The application of the general visa 

requirement to the class of Caribbean 

agricultural workers described above 

will ensure that these applicants for 

admission, like other H–2A agricultural 

workers, are properly screened through 

the Department’s visa issuance process 

prior to arrival in the United States. 

This will lessen the possibility that 

persons who pose security risks to the 

United States and other potential 

immigration violators may improperly 

gain admission to the United States. 

Moreover, extending the visa 

requirement to these Caribbean H–2A 

agricultural workers will better ensure 

that such workers are protected from 

certain employment and recruitmentbased abuses. It also will ensure that 

agricultural workers have been 

informed, and are aware of, their rights 

and responsibilities before departing 

from their home countries to engage in 

H–2A agricultural work. 

What other changes is the Department 

making in this rule? 

Redesignated paragraph (e)(2)(iv) is 

being amended to reflect that The Royal 

Virgin Islands Police Department has 

been renamed the Royal Virgin Islands 

Police Force. 

Will DHS be publishing a parallel 

amendment? 

DHS is publishing a parallel 

amendment to 8 CFR 212.1(b). 

Regulatory Findings 

Administrative Procedure Act 

The publication of this rule as an 

interim final rule, with provisions for 

post-promulgation public comments, is 

based on the good cause exception 

found in section 553 of the 

Administrative Procedure Act (APA) (5 

U.S.C. 553(b)(B)). There is reasonable 

concern that publication of the rule as 

a proposed rule, which would permit 

continuation of the current visa 

exemption, could lead to an increase in 

applications for admission in bad faith 

by persons who would otherwise have 

been denied visas and are seeking to 

avoid the visa requirement and consular 

screening process during the period 

between the publication of a proposed 

and a final rule. Accordingly, the 

Department finds that it is impracticable 

and contrary to the public interest to 

publish this rule with prior notice and 

comment period. Under the good cause 

exception, this rule is exempt from the 

notice and comment and delayed 

effective date requirements of the APA. 

In addition, the Department is of the 

opinion that eliminating the visa 

exemption and requiring a visa for 

Caribbean H–2A agricultural workers, 

and the spouses or children 

accompanying or following these 

workers, is a foreign affairs function of 

the U.S. government. As this rule 

implements this function, the 

Department is of the opinion that, 

pursuant to 5 U.S.C. 553(a)(1), this rule 

is exempt from the requirements of 5 

U.S.C. 553, including the notice and 

comment and 30-day delayed effective 

date requirements. The Department is 

nevertheless providing the opportunity 

for the public to provide comments for 

60 days. 

Regulatory Flexibility Act/Executive 

Order 13272: Small Business 

Because this interim final rule is 

exempt from notice and comment 

rulemaking under 5 U.S.C. 553, it is 

exempt from the regulatory flexibility 

analysis requirements set forth at 

sections 603 and 604 of the Regulatory 

Flexibility Act (5 U.S.C. 603 and 604). 

Nonetheless, consistent with section 

605(b) of the Regulatory Flexibility Act 

(5 U.S.C. 605(b)), the Department 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

This rulemaking regulates individual 

aliens who seek consideration for 

nonimmigrant visas and does not affect 

any small entities, as defined in 5 U.S.C. 

601(6). 

The Unfunded Mandates Reform Act of 

1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995, Public 

Law 104–4, 109 Stat. 48, 2 U.S.C. 1532, 

generally requires agencies to prepare a 

statement before proposing any rule that 

may result in an annual expenditure of 

$100 million or more by state, local, or 

tribal governments, or by the private 

sector. This rule will not result in any 

such expenditure, nor will it 

significantly or uniquely affect small 

governments. 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

This rule is not a major rule as 

defined by 5 U.S.C. 804, for purposes of 

congressional review of agency 

rulemaking under the Small Business 

Regulatory Enforcement Fairness Act of 

1996, Public Law 104–121. 

Executive Order 12866: Regulatory 

Review 

The costs of this rulemaking are 

discussed in the companion DHS rule, 

RIN 1651–AB09, included elsewhere in 

this edition of the Federal Register. 

That discussion is incorporated by 

reference herein. The Department has 

reviewed the costs and benefits of this 

rule to ensure its consistency with the 

regulatory philosophy and principles set 

forth in Executive Order 12866 and has 

determined that the benefits of this 

interim final rule justify its costs. 

Executive Order 13563 

The Department has considered this 

rule in light of Executive Order 13563, 

dated January 18, 2011, and affirms that 

this regulation is consistent with the 

guidance therein. 

Executive Orders 12372 and 13132: 

Federalism 

This regulation will not have 

substantial direct effects on the states, 

on the relationship between the national 

government and the states, or the 

distribution of power and 

responsibilities among the various 

levels of government; nor will the rule 

have federalism implications warranting 

the application of Executive Orders 

12372 and 13132. 

Executive Order 13175 Consultation 

and Coordination With Indian Tribal 

Governments 

The Department has determined that 

this rulemaking will not have tribal 

implications, will not impose 

substantial direct compliance costs on 

Indian tribal governments, and will not 

pre-empt tribal law. Accordingly, the 

requirements of Executive Order 13175 

do not apply to this rulemaking. 

Executive Order 12988: Civil Justice 

Reform 

The Department has reviewed this 

interim final rule in light of Executive 

Order 12988 to eliminate ambiguity, 

minimize litigation, establish clear legal 

standards, and reduce burden. 


asabaliauskas on DSK5VPTVN1PROD with RULES
5908 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Rules and Regulations 

Paperwork Reduction Act 

This rule does not impose any new 

information collections subject to the 

Paperwork Reduction Act, 44 U.S.C., 

Chapter 35. The Department anticipates 

between 100 and 4,100 additional 

nonimmigrant visa applicants per year 

as a result of this rulemaking. The 

current burden for this information 

collection (OMB Control No. 1405– 

0182) is 13,875,345 hours, with 

11,100,276 respondents. The burden per 

response is 75 minutes. The top 

estimate for the number of additional 

respondents would add approximately 

5,000 hours to a burden that is almost 

14 million hours. Therefore, the 

addition of these respondents does not 

significantly increase the burden 

associated with this information 

collection. 

List of Subjects in 22 CFR Part 41 

Aliens, Foreign officials, Immigration, 

Nonimmigrants, Passports and visas. 

For the reasons stated in the 

preamble, the Department of State is 

amending 22 CFR part 41 to read as 

follows: 

PART 41—[AMENDED] 

■ 1. The authority citation for part 41 is 

revised to read as follows: 

Authority: 22 U.S.C. 2651a; 8 U.S.C. 1104; 

Pub. L. 105–277, 112 Stat. 2681–795 through 

2681–801; 8 U.S.C. 1185 note (section 7209 

of Pub. L. 108–458, as amended by section 

546 of Pub. L. 109–295). 

■ 2. Amend § 41.2 as follows: 

■ a. Remove paragraph (e). 

■ b. Redesignate paragraphs (f) through 

(m) as paragraphs (e) through (l). 

■ c. Revise redesignated paragraph 

(e)(2)(iv). 

The revisions read as follows: 

§ 41.2 Exemption or waiver by Secretary of 

State and Secretary of Homeland Security 

of passport and/or visa requirements for 

certain categories of nonimmigrants. 

* * * * * 

(e) * * * 

(2) * * * 

(iv) Presents a current certificate 

issued by the Royal Virgin Islands 

Police Force indicating that he or she 

has no criminal record. 

* * * * * 

Dated: January 22, 2016. 

David T. Donahue, 

Acting Assistant Secretary for Consular 

Affairs, Department of State. 

[FR Doc. 2016–02191 Filed 2–3–16; 8:45 am] 

BILLING CODE 4710–06–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9748] 

RIN 1545–BM57 

Allocation of Creditable Foreign Taxes 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains 

temporary regulations that provide 

guidance relating to the allocation by a 

partnership of creditable foreign tax 

expenditures. These temporary 

regulations are necessary to improve the 

operation of an existing safe harbor rule 

that is used for determining whether 

allocations of creditable foreign tax 

expenditures are deemed to be in 

accordance with the partners’ interests 

in the partnership. The text of these 

temporary regulations also serves as the 

text of the proposed regulations set forth 

in the notice of proposed rulemaking 

(REG–100861–15) published in the 

Proposed Rules section in this issue of 

the Federal Register. These regulations 

affect partnerships that pay or accrue 

foreign income taxes, and their partners. 

DATES: Effective Date: These regulations 

are effective on February 4, 2016. 

Applicability Dates: For dates of 

applicability, see §§ 1.704– 

1T(b)(1)(ii)(b)(1) and (b)(1)(ii)(b)(3)(B). 

FOR FURTHER INFORMATION CONTACT: 

Suzanne M. Walsh, (202) 317–4908 (not 

a toll-free call). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Allocations of creditable foreign tax 

expenditures (‘‘CFTEs’’) do not have 

substantial economic effect, and 

accordingly a CFTE must be allocated in 

accordance with the partners’ interests 

in the partnership. See § 1.704– 

1(b)(4)(viii). Section 1.704–1(b)(4)(viii) 

provides a safe harbor under which 

CFTE allocations are deemed to be in 

accordance with the partners’ interests 

in the partnership. In general, the 

purpose of the safe harbor is to match 

allocations of CFTEs with the income to 

which the CFTEs relate. 

In order to apply the safe harbor, a 

partnership must (1) determine the 

partnership’s ‘‘CFTE categories,’’ (2) 

determine the partnership’s net income 

in each CFTE category, and (3) allocate 

the partnership’s CFTEs to each 

category. Section 1.704– 

1(b)(4)(viii)(c)(2) requires a partnership 

to assign its income to activities and 

provides for the grouping of a 

partnership’s activities into one or more 

CFTE categories based generally on 

whether net income from the activities 

is allocated to partners in the same 

sharing ratios. Section 1.704– 

1(b)(4)(viii)(c)(3) provides rules for 

determining the partnership’s net 

income (for U.S. federal income tax 

purposes) in a CFTE category, including 

rules for allocating and apportioning 

expenses, losses, and other deductions 

to gross income. Section 1.704– 

1(b)(4)(viii)(d) assigns CFTEs to the 

CFTE category that includes the related 

income under the principles of § 1.904– 

6, with certain modifications. In order to 

satisfy the safe harbor, partnership 

allocations of CFTEs in a CFTE category 

must be in proportion to the allocations 

of the partnership’s net income in the 

CFTE category. 

I. Effect of Section 743(b) Adjustments 

Section 1.704–1(b)(4)(viii)(c)(3)(i) of 

the current final regulations provides 

that a partnership determines its net 

income in a CFTE category by taking 

into account all partnership items 

attributable to the relevant activity or 

group of activities, including items of 

gross income, gain, loss, deduction, and 

expense, and items allocated pursuant 

to section 704(c). The current final 

regulations do not state whether an 

adjustment under section 743(b) is taken 

into account in computing the 

partnership’s net income in a CFTE 

category. 

In the case of a transfer of a 

partnership interest that results in an 

adjustment under section 743(b) 

(because the partnership has a section 

754 election in effect, or because there 

is a substantial built-in loss (as defined 

in section 743(d)) in the partnership), 

the partnership must adjust the basis of 

partnership property with respect to the 

transferee partner only (a section 743(b) 

adjustment). No adjustment is made to 

the common basis of partnership 

property, and the section 743(b) 

adjustment has no effect on the 

partnership’s computation of any item 

under section 703. § 1.743–1(j)(1). 

The Treasury Department and the IRS 

believe that a transferee partner’s 

section 743(b) adjustment with respect 

to its interest in a partnership should 

not be taken into account in computing 

such partnership’s net income in a 

CFTE category because the basis 

adjustment is unique to the transferee 

partner and because the basis 

adjustment ordinarily would not be 

taken into account by a foreign 

jurisdiction in computing its foreign 


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