[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Rules and Regulations]
[Pages 5087-5090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1343]
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DEPARTMENT OF STATE
22 CFR Part 22
[Public Notice: 6082]
RIN 1400-AC41
Schedule of Fees for Consular Services, Department of State and
Overseas Embassies and Consulates
AGENCY: Department of State.
ACTION: Interim final rule.
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SUMMARY: The Department of State is revising the Schedule of Fees for
Consular Services to reflect an increase in the surcharge related to
consular services in support of enhanced border security and a
reduction in the execution fee for the passport book. The Secretary of
State is authorized to collect the border security surcharge by the
Consolidated Appropriations Act, 2005 (Pub. L. 108-447). In 2007,
Congress authorized the Secretary of State to administratively amend
the surcharge amount in the Department of State Authorities Act of 2006
(Pub. L. 109-472). The Secretary is also authorized to set and collect
a fee for executing passport applications by 22 U.S.C. 214.
DATES: Effective date: This interim final rule is effective February 1,
2008.
Comment date: The Department of State will accept written comments
from interested persons up to March 31, 2008. Comments received before
the end of the comment period will be addressed in a final rule.
ADDRESSES: Interested parties may submit comments by any of the
following methods. All comments must include the Regulatory
Identification Number (RIN) that appears in the heading of this
document.
E-mail: [email protected]. You must include the
Regulatory Identification Number (RIN) in the subject line of your
message.
Mail: (paper, disk, or CD-ROM submissions): An original
and three copies of comments should be sent to: Christine L. Grauer,
Office of Passport Services, Legal Affairs Division, Planning and
Advisory Services, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington,
DC 20037.
Fax: 202-663-2499. You must include the Regulatory
Identification Number (RIN) in the subject line of your message.
Persons with access to the internet may also view this notice and
provide comments by going to the regulations.gov Web site at: http://www.regulations.gov/index.cfm.
FOR FURTHER INFORMATION CONTACT: For passport issuance policy: Susan
Bozinko, Division Chief, Office of Passport Services, Legal Affairs
Division, 2100 Pennsylvania Ave., NW., 3rd Floor, Washington, DC 20037.
Telephone (202) 663-2491. E-mail: [email protected]. For consular
fee setting policy: Tracy Henderson, Director of the Budget, Bureau of
Consular Affairs, U.S. Department of State, Suite H1004, 2401 E St.,
NW., Washington, DC 20520, telephone (202) 663-2525 or by e-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
Amendment to the Schedule of Fees for Consular Services
As discussed below, this change in the schedule of fees will
reflect the proposed passport book surcharge increase, as well as a
reduction in the execution fee for the passport book.
Amendment to Passport Book Fees
Border Security Surcharge
Due to increased security concerns following the events of
September 11th, the Department of State has focused upon improved
security, particularly in relation to our nation's borders. In 2004,
Congress authorized the Secretary of State to collect a surcharge
related to consular services in support of enhanced border security.
(Pub. L. 108-447, Div. B, Title IV, 118 Stat. 2896 (2004), 8 U.S.C.
1714). The law set the initial border security surcharge at $12.00
because that was the estimated cost of providing consular services in
support of enhanced border security at that time.
In 2007, Congress provided the Secretary of State with the
authority to administratively amend the border security surcharge.
Department of State Authorities Act of 2006, Public Law 109-472,
section 6, 120 Stat. 3554 (2007) (codified at 8 U.S.C. 1714 note).
Congress included four requirements for such amendments:
(1) The amounts of the surcharges shall be reasonably related to
the costs of providing services in connection with the activity or
item for which the surcharges are charged.
(2) The aggregate amount of surcharges collected may not exceed
the aggregate amount obligated and expended for the costs related to
consular services in support of enhanced border security incurred in
connection with the activity or item for which the surcharges are
charged.
(3) A surcharge may not be collected except to the extent the
surcharge will be obligated and expended to pay the costs related to
consular services in support of enhanced border security incurred in
connection with the activity or item for which the surcharge is
charged.
(4) A surcharge shall be available for obligation and
expenditure only to pay the costs related to consular services in
support of enhanced border security incurred in providing services
in connection with the activity or item for which the surcharge is
charged.
The proposed $8.00 increase in the surcharge falls within the above
parameters set by Congress.
The $8.00 increase is reasonably related to the costs of providing
consular services in support of enhanced border security because it
represents the cost of providing passport books with upgraded security
features resulting from the State Department's enhanced border security
programs implemented since 2005. New passport book security measures,
including the introduction of an electronic passport and the use of
traceable priority mail delivery to applicants to prevent passport loss
or theft, have increased the
[[Page 5088]]
security-related passport costs and $12.00 is no longer sufficient to
cover such costs.
First, due to these new security measures, the passport book and
mailing now costs the Department $19.40. Each passport book costs
$14.80, nearly triple the previous cost, and priority mail costs $4.60
as opposed to the original 60-cent standard first-class mail rate, for
a total cost of $19.40. In order to avoid a loss, the Department is
rounding up the security surcharge to $20. Thus, the Department is
raising the security surcharge by a total of $8.00 at the present time.
Even taking this rounding into account, the total amount of the
surcharge collected will not exceed the aggregate amount obligated and
expended for costs related to consular services in support of enhanced
border security incurred in connection with passport services, nor will
it exceed the total amount obligated and expended for passport books
and mailing. When the Department initially began collecting the
security surcharge in March 2005, the amounts collected were more than
sufficient to fund costs. Nevertheless, each fiscal year, the
Department expended the majority of its passport book security
surcharge collections, leaving only a minimal amount to carry over into
the new fiscal year for operating expenses on October 1.\1\ Because of
the substantial increase in costs caused by the introduction of the
electronic passport book and the use of priority mailing, these costs
now significantly exceed the amounts collected through the security
surcharge. Thus, the amounts now collected through the security
surcharge do not fully cover the costs for passport books and secure
mail and other consular fees are used to fund the full cost of the
passport book and priority mailing. This demonstrates the necessity of
raising the passport book security surcharge at this time.
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\1\ Since these funds are designated as no-year funds which do
not expire at the end of a fiscal year, they may be used in the
following year, but only to the extent that they are expended to
cover enhanced border security costs.
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Third, the surcharge is only collected to the extent that it is
obligated and expended to pay the costs associated with enhanced border
security. These funds are maintained in a separate account--``Passport
Security Surcharge''--and are used only for consular functions
supporting enhanced border security.
Fourth, all of the surcharge funds are obligated and expended only
to pay costs related to consular services in support of enhanced border
security. As stated above, the Department has established a separate
account for monies collected through the border security surcharge and
ensures, and will continue to ensure, that such monies are expended
only to pay the related border security enhancement costs. The
financial plan for the Border Security Program exclusively uses the
revenue received through the passport book security surcharge to pay
for the production and mailing costs of the new electronic passport
books. The passport book security surcharge is not used to support any
other activities.
It is important that the Department of State increase the security
surcharge by $8.00 to $20.00. The Department of State considers the
enactment of this rule a matter of the utmost importance to ensure the
availability of funds necessary to support consular services related to
enhanced border security throughout our nation.
Execution Fee
The Department is also reducing the execution fee for the passport
book from $30.00 to $25.00, as proposed in its Notice of Proposed
Rulemaking (NPRM) published on October 17, 2006 at 71 FR 60928. As the
Department explained in the NPRM, the $25.00 execution fee for passport
applications is based on an internal review of the Department's cost of
service, along with information from the United States Postal Service.
The $25.00 execution fee has already been implemented for the passport
card through the Passport Card Rule published on December 31, 2007.
This rule completes the transition to the $25.00 execution fee for
passport card and passport book applications by applying the lower fee
for the passport book.
The passport book security surcharge and reduction of the execution
fee will take effect at the same time the new passport card fees become
effective so that the Department can administratively implement all
passport fee changes at the same time.
The new fees for the passport book are as follows:
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Current fees New fees
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Passport Book Services:
(a) Application fee for applicants $55 $55
age 16 or over (including renewals)
[Adult Passport Book]..............
(b) Application fee for applicants 40 40
under age 16 [Minor Passport Book].
(c) Passport Book execution fee 30 25
(required for first time applicants
and others who must apply in
person)............................
(d) Passport Book Security Surcharge 12 20
(enhanced border security fee).....
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Total First Time--Adult......... 97 100
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Total ``Renewal''--Adult........ 67 75
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Total Child..................... 82 85
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Regulatory Findings
Administrative Procedure Act
The Department is publishing this rule as an interim final rule,
with a 60-day provision for post-promulgation comments and with an
effective date less than 30 days from the date of publication, based on
the ``good cause'' exceptions set forth at 5 U.S.C. 553(b)(3)(B) and
553(d)(3). Delaying implementation of this rule would be contrary to
the public interest because the rule is necessary in order to continue
to fund consular services in support of enhanced border security. This
rule constitutes an integral component of several changes to the
Department's regulations taking place between January 1 and February 1,
2008 as part of the Department's plans to increase border security in
several key areas. Failure to increase the border security surcharge on
February 1 would jeopardize the Department's ability to fund consular
services in support of enhanced border security, and would undermine
the integrated implementation of other security-related initiatives
designed to go into effect during the same time period. Moreover,
[[Page 5089]]
delaying implementation of the $25.00 execution fee for the passport
book until after February 1 would create a disparity between the fee
charged for the same service for the passport book and the passport
card.
Regulatory Flexibility Act/Executive Order 13272: Small Business
The Department of State, in accordance with the Regulatory
Flexibility Act (Pub. L. 96-354, 5 U.S.C. 601-612) and Executive Order
13272, section 3(b), has evaluated the effects of this proposed action
on small entities. The Department has determined and hereby certifies
that this rule would not have a significant impact on a substantial
number of small entities.
The Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (UFMA),
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 does
not result in any expenditure by State, local or tribal governments,
nor will it significantly or uniquely affect small governments. The
effects on the private sector are discussed below in connection with
the economic analysis required under Executive Order 12866.
The Small Business Regulatory Enforcement Fairness Act of 1996
This rule is 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. A copy
of the rule, along with a concise general statement relating to the
rule and its effective date, are being provided to each House of
Congress and the Comptroller General as required by 5 U.S.C. 801.
Pursuant to 5 U.S.C. 808, this interim final rule will take effect on
February 1, 2008.
Executive Order 12866: Regulatory Review
This rule is considered by the Department of State to be an
economically significant regulatory action under Executive Order 12866,
section 3(f), Regulatory Planning and Review. The surcharge increase is
based on the Department's costs and projected volumes that were
available at the time this rule was drafted, and the rule has been
reviewed by the Office of Management and Budget.
The implementation of this rule will result in a net increase of
$3.00 per application in the cost of a passport book when execution of
the passport book application is required. For those renewal
applications that do not require execution it will result in an $8
increase. Although the economic impact of the rule on any given
individual will be relatively minor, it will provide the Department
with an additional $232 million in FY 2008 in annual fee revenue, based
on a projected annual volume of 29 million applications for passport
books, over the fee revenue that would be collected through the current
security surcharge. This increase in revenue will be used to fund
consular services in support of enhanced border security, as required
by 8 U.S.C. 1714 note. The increased revenue will be used for the
purchase of blank passport books and priority mailing for completed
passport books. If the Department does not adjust the security
surcharge to recover the cost of the books and priority mailing, its
ability to fund these and other consular services in support of
enhanced border security will be compromised, and the Department will
be forced to continue to divert funds from other consular fees in order
to meet the shortfall. This diversion, in turn, will undermine the
Department's ability to deliver the high-quality consular services the
public has come to rely on from it.
The Department is concerned with the impact on individual
applicants of any rise in the overall cost of the passport book, and
carefully analyzed whether it would be possible to keep the security
surcharge below the Department's actual cost for passport book
purchasing and mailing. It determined, however, that a fee amount that
did not meet these costs was not possible given the amount of funding
required for the Department's consular services in support of enhanced
border security. Although this rule will cause a modest increase in the
total cost of a passport book for the individual applicant, the
increased cost of the passport book over its 10-year lifetime will be
minimal. An increase of $3.00 or, for renewals, $8.00, in the cost of a
passport book with a validity period of 10 years corresponds to an
increased cost of either thirty cents or eighty cents per year for the
life of the passport book. The Department does not anticipate that this
de minimis increase in the lifetime cost of a passport book will impose
an undue burden on individual passport book applicants, or that it will
have an impact on application volumes or any other public behavior.
Public demand for the passport book has been rising over the past
several years and is expected to continue to rise as individuals
increasingly come to regard the passport book as a valuable identity
document.
This rule will also provide distinct benefits that cannot be
quantified monetarily. As OMB Circular A-4 states, ``It will not always
be possible to express in monetary units all of the important benefits
and costs'' of a rule. A vital, non-quantifiable benefit of this
interim final rule is that it will enable the Department to advance its
goal of enhancing border security while simultaneously investing in
infrastructure and other developments needed to meet projected levels
of passport book demand in FY 2008 and beyond. By supplying the funds
to purchase passport books and priority mailing, the security surcharge
will significantly enhance the nation's border security.
The passport book costs three times the previous passport book for
a reason. It is one the world's most secure travel documents. It
contains an embedded chip with coding that will prevent digital data
from being altered or removed, as well as a unique ID number for the
chip. In addition, the electronic passport book uses a form of Public
Key Infrastructure (PKI) that will permit digital signatures, thus
protecting the data from tampering. These features make it much more
difficult for individuals to engage in the fraudulent use of an
electronic passport book. Likewise, the use of priority mail makes it
possible for both the Department and the legitimate recipient to track
the electronic passport book through the mailing process, making it
easier to prevent and detect any loss or theft of the book.
At the same time, because it will fully fund the cost of blank
passport books and priority mailing, the increased surcharge will
permit the Department to maximize the efficiency of its operations. As
OMB Circular A-4 explains, ``[a] regulation may be appropriate when you
have a clearly identified measure that can make government operate more
efficiently.'' By ensuring that the base cost of each passport book and
priority mailing is funded through the surcharge, the rule allows the
Department to more effectively plan for what is projected to be a
record level of passport book demand, and to determine in advance how
to best allocate the Department's other available resources so as to
provide efficient and high-quality consular services to the American
public. Specifically, the rule will permit the Department to use other
funds to
[[Page 5090]]
provide the infrastructure and staffing needed to meet the projected
demand for passport books over the next fiscal year and beyond. This
will enable both the Department and the public to avoid the inefficient
use of resources that arises when infrastructure and staffing are
insufficient to meet demand. This, along with enhanced border security
through the use of the passport book and priority mailing, is a
tangible and noticeable benefit. Thus, the benefits of this rule exceed
its costs.
Executive Order 13132: Federalism
This regulation would 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, and Executive Order No. 13132 is
therefore not applicable.
Executive Order 12988: Civil Justice Reform
The Department has reviewed this regulation in light of sections
3(a) and 3(b)(2) of Executive Order No. 12988 to eliminate ambiguity,
minimize litigation, establish clear legal standards, and to reduce
burden.
National Environmental Policy Act
The Department has analyzed this regulation for the purpose of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347) and has
determined that it would not have any effect on the quality of the
environment.
The Paperwork Reduction Act of 1995
This proposed rule would not impose any new reporting or
recordkeeping requirements subject to the Paperwork Reduction Act, 44
U.S.C. Chapter 35.
List of Subjects in 22 CFR Part 22
Passports and visas.
0
Accordingly, for the reasons set forth above, 22 CFR part 22 is amended
as follows:
PART 22--SCHEDULE OF FEES FOR CONSULAR SERVICES--DEPARTMENT OF
STATE AND FOREIGN SERVICE
0
1. The authority citation for part 22 is revised to read as follows:
Authority: 8 U.S.C. 1153 note, 1351, 1351 note; 10 U.S.C.
2602(c); 22 U.S.C. 214, 2504(a), 4201, 4206, 4215, 4219; 31 U.S.C.
9701; Pub. L. 105-277, 112 Stat. 2681 et seq.; Pub. L. No. 108-447,
118 Stat. 2809 et seq.; E.O. 10718, 22 FR 4632, 3 CFR, 1954-1958
Comp., p. 382; E.O. 11295, 31 FR 10603, 3 CFR, 1966-1970 Comp., p.
570, Pub. L. 109-167, January 10, 2006, 119 Stat. 3578; Pub. L. 109-
472, section 6, 120 Stat. 3554 (2007).
0
2. Section 22.1 is amended in the table by revising entries 1 and 2
under the heading ``Passport and Citizenship Services'' to read as
follows:
Sec. 22.1 Schedule of fees.
The following table sets forth the U.S. Department of State's
Schedule of Fees for Consular Services:
Schedule of Fees for Consular Services
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Item No. Fee
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Passport and Citizenship Services
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1. Passport Book Execution: Required for first- $25.
time applicants and others who must apply in
person [01--Passport Book Execution].
2. Passport Book Application Services for:
(a) Applicants age 16 or over (including $55.
renewals) [02--Adult Passport Book].
(b) Applicants under age 16 [03--Minor $40.
Passport Book].
(c) Passport Book amendments (extension of No fee.
validity, name change, etc.) 04--Amendment].
(d) Passport Book security surcharge $20.
(enhanced border security fee) [05--Security
Surcharge].
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* * * * *
Dated: January 22, 2008.
Maura Harty,
Assistant Secretary of State for Consular Affairs, Department of State.
[FR Doc. E8-1343 Filed 1-28-08; 8:45 am]
BILLING CODE 4710-06-P