Federal Register, Volume 78 Issue 59 (Wednesday, March 27, 2013)


[Federal Register Volume 78, Number 59 (Wednesday, March 27, 2013)]
[Rules and Regulations]
[Pages 18457-18473]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-06974]



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Rules and Regulations
Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 78, No. 59 / Wednesday, March 27, 2013 /
Rules and Regulations

[[Page 18457]]



DEPARTMENT OF HOMELAND SECURITY

8 CFR Parts 1, 210, 212, 214, 215, 231, 235, 245, 245a, 247, 253,
264, 274a, and 286

[USCBP-2013-0011; CBP Dec. No. 13-06]
RIN 1651-AA96


Definition of Form I-94 To Include Electronic Format

AGENCY: U.S. Customs and Border Protection, DHS.

ACTION: Interim final rule.

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SUMMARY: The Form I-94 is issued by the Department of Homeland Security
(DHS) to certain aliens and is used for various purposes such as
documenting status in the United States, the approved length of stay,
and departure. DHS generally issues the Form I-94 to aliens at the time
they lawfully enter the United States. This rule adds a new definition
of the term ``Form I-94'' that includes the collection of arrival/
departure and admission or parole information by DHS, whether in paper
or electronic format. The definition also clarifies various terms that
are associated with the use of the Form I-94 to accommodate an
electronic version of the Form I-94. This rule also adds a valid,
unexpired nonimmigrant DHS admission or parole stamp in a foreign
passport to the list of documents designated as evidence of alien
registration. These revisions to the regulations will enable DHS to
transition to an automated process whereby DHS will create a Form I-94
in an electronic format based on passenger, passport and visa
information DHS currently obtains electronically from air and sea
carriers and the Department of State as well as through the inspection
process.

DATES: Effective date: This interim rule is effective April 26, 2013.
In the event that CBP receives public comment that identifies a
credible basis for the Agency to conclude that automation of the form
I-94 should be delayed, CBP retains discretion to extend implementation
for an additional thirty days. If CBP concludes that such extension is
appropriate, the Agency will post the new implementation date on its
Web site, www.cbp.gov, no later than April 29, 2013.
Comment date: Written comments must be submitted on or before April
26, 2013.

ADDRESSES: You may submit comments identified by docket number, by one
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via docket number.
Mail: Regulations and Rulings, Office of International
Trade, U.S. Customs and Border Protection, Attention: Border Security
Regulations Branch, 90 K Street NE., 10th Floor, Washington, DC 20229.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on this rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read comments received, go to
http://www.regulations.gov. Submitted comments may also be inspected on
regular business days between the hours of 9 a.m. and 4:30 p.m. at
Regulations and Rulings, Office of International Trade, U.S. Customs
and Border Protection, 90 K Street NE., 10th Floor, Washington, DC.
Arrangements to inspect submitted comments should be made in advance by
calling Mr. Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Suzanne Shepherd, CBP Office of Field
Operations by telephone (202) 344-2073 or by email,
Suzanne.M.Shepherd@dhs.gov.

SUPPLEMENTARY INFORMATION:

Public Participation

Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
interim final rule. U.S. Customs and Border Protection (CBP) also
invites comments that relate to the economic, environmental, or
federalism effects that might result from this regulatory change.
Comments that will provide the most assistance to CBP will reference a
specific portion of the rule, explain the reason for any recommended
change, and include data, information or authority that support such
recommended change. Written comments must be submitted on or before
April 26, 2013. CBP will consider those comments and make any changes
appropriate after consideration of those comments. CBP expects to
publish a final rule, which will respond to comments received, 18
months from the close of the comment period.

Executive Summary

The Form I-94 is issued by DHS to certain aliens upon arrival in
the United States or when changing status in the United States. The
Form I-94 is used to document arrival and departure and provides
evidence of the terms of admission or parole. U.S. Customs and Border
Protection (CBP), a component of DHS, generally issues the Form I-94 to
aliens at the time they lawfully enter the United States. Aliens use
the Form I-94 for various purposes such as completing employment
eligibility verification (the Form I-9), applying for immigration
benefits, or to present to a university to verify eligibility for
enrollment. Information gathered on the Form I-94 is also used for
statistical purposes.

Transition to an Automated Form I-94

The Form I-94 is currently a paper form. For aliens arriving by air
or sea, the carrier distributes the Forms I-94 to the aliens required
to complete the form while en route to the United States. The alien
presents the completed form to the CBP Officer at primary inspection.
The officer stamps the Form I-94 and the alien's passport, detaches the
bottom portion of the form, which is the departure portion, and returns
it to the alien along with the alien's passport. The admission stamp
contains the port of arrival and date of arrival and is annotated with
the class of admission

[[Page 18458]]

and admitted-to date. The top portion of the form--the arrival
portion--is sent to a data entry facility where the information on the
form is entered into CBP's computer systems. The departure portion of
the Form I-94 retained by the alien may be shown to government or other
stakeholders when required. The alien turns in the departure portion of
the Form I-94 upon departure, generally to the carrier; the carrier
returns the forms to CBP.
With the implementation of the Advance Passenger Information System
(APIS \1\) following 9/11, CBP now collects information on aliens
traveling by air or sea to the United States electronically from
carriers in advance of arrival. As outlined in Table 1 below, nearly
all the information collected on the Form I-94 is collected
electronically via APIS. CBP also now uses the Arrival and Departure
Information System (ADIS), which draws information from APIS, to
electronically document an alien's arrival and departure. Thus, for
aliens arriving in the United States by air or sea, CBP obtains almost
all of the information contained on the paper Form I-94 electronically
and in advance. The few fields on the Form I-94 that are not collected
via APIS are either already collected by the Department of State and
transmitted to CBP or will be collected by the CBP Officer from the
individual at the time of inspection. Thus, the same data elements
found on the paper Form I-94 will be collected and maintained in the
electronic Form I-94. This means that CBP no longer needs to collect
Form I-94 information as a matter of course directly from aliens
traveling to the United States by air or sea.
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\1\ For more information, please see: http://www.cbp.gov/xp/cgov/travel/inspections_carriers_facilities/apis/.
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Therefore, CBP is transitioning to an automated process whereby CBP
will create an electronic Form I-94 based on the information in its
databases. This rule makes the necessary changes to the regulations to
enable CBP to transition to an automated process. At this time, the
automated process will apply only to aliens arriving at air and sea
ports of entry.\2\ In order to make this a seamless transition, CBP is
making the electronic Form I-94 available to aliens through a Web
site.\3\ To access the Form I-94 through the Web site the traveler will
need to input information from his/her passport; thus, a third party
without access to the traveler's passport will not be able to access
the Form I-94 from the Web site. If needed, aliens may print out a copy
of the Form I-94 from the Web site and present it to third parties in
lieu of the departure portion of the paper form. CBP intends to
continue to provide a paper Form I-94 to certain classes of aliens,
such as certain refugees, asylees, and parolees, and others as
requested or whenever CBP determines the issuance of a paper form is
appropriate.
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\2\ Because CBP does not currently collect advance travel
information from aliens arriving by land, this automation will not
apply to land ports of entry at this time.
\3\ DHS intends to publish a privacy impact assessment and make
it available at http://www.dhs.gov/privacy-documents-us-customs-and-border-protection. For more information on the privacy implications
please see the Privacy section of this document.
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Though in some cases CBP collects APIS information for travelers
arriving in the United States via methods of transportation other than
commercial air and sea, CBP does not consistently receive APIS
information for these other methods or in some instances is unable to
consistently access the information at the time the traveler presents
him or herself for inspection. Thus, at this time, CBP will still need
to collect Form I-94 information directly from travelers arriving by
other methods of transportation. CBP anticipates expanding the
automation of the Form I-94 to other methods of transportation in the
future.
Because the regulations that address the Form I-94 and its uses
were written at a time when a paper form was the only option to collect
arrival and departure information, many of these regulations
contemplate only the use of the paper form. In order to enable CBP to
transition from a paper Form I-94 to a CBP-created electronic Form I-
94, CBP is adding a definition of ``Form I-94'' in 8 CFR part 1 that
allows for the collection of Form I-94 information in either paper or
electronic format. The definition also clarifies various terms in 8 CFR
that are associated with the use of the Form I-94 to include the
electronic version of the Form I-94.
The automation provides immediate and substantial benefits to the
traveling public, to carriers, to CBP and other stakeholders. This
automation will eliminate most of the duplicative paper Form I-94
process and reduce wait times at passenger processing, which will
facilitate entry of all travelers. The automation will eliminate the
paper Form I-94 for most air and sea travelers and, with it, the 8-
minute time burden; this would result in an estimated total reduction
of 9.6 million Forms I-94 completed by paper, and an estimated
reduction of 1,276,800 paperwork burden hours. For more information on
the reduction in the paperwork burden, see the Paperwork Reduction Act
section below. The automation will also save the time and expense
associated with lost Forms I-94, as travelers will simply be able to
print out a new copy from the Web site if needed rather than file an I-
102, as currently required, which has a fee of $330 and a time burden
of 25 minutes. CBP estimates that the time to access the Web site and
print the electronic Form I-94 to be 4 minutes.
Additionally, carriers will no longer have to print, store, and
distribute the forms, and CBP will not have to process them. This will
result in significant cost savings (benefits) for foreign travelers,
carriers, and CBP. Guidance from the Office of Management and Budget
(OMB) states regulatory analyses should focus on benefits and costs
that accrue to citizens and residents of the United States.\4\ In order
to make this distinction clear, CBP provides costs and benefits of this
rule to foreign travelers as well as to U.S. entities. CBP anticipates
the total net benefits to both domestic and foreign entities in 2013
range from $76.5 million to $115.5 million. Separately, CBP anticipates
a net benefit in 2013 of between $59.7 million and $98.7 million for
foreign travelers, $1.3 million for carriers, and $15.5 million for
CBP. Net benefits to U.S. entities (carriers and CBP) in 2013 total
$16.8 million. CBP seeks comment on the potential benefits or costs of
this rule for foreign travelers.
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\4\ See OMB Circular A-4, page 15 (http://www.whitehouse.gov/sites/default/files/omb/assets/regulatory_matters_pdf/a-4.pdf).
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Background

The Form I-94

The DHS Form I-94 is generally issued to aliens at the time they
lawfully enter the United States other than aliens traveling to the
United States under the Visa Waiver Program,\5\ or aliens who are
otherwise exempt. See 8 CFR 235.1(h). The Form I-94 is also issued when
an alien changes immigration status within the United States. The Form
I-94 is used to document status in the United States, the authorized
length of stay, and departure. Biographical information, visa and
passport information, and the address and phone number where the alien
can be reached while in the United States are also collected on the
Form I-94. When an alien is admitted to the United States, the Form I-
94 becomes the evidence of the terms of the admission. For aliens
paroled into the

[[Page 18459]]

United States, the Form I-94 reflects the duration and classification
of parole.
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\5\ The Form I-94 is not required for aliens seeking admission
into the United States under the Visa Waiver Program (VWP). The Form
I-94W is the form required for aliens seeking admission into the
United States under the VWP. In 2009, the ESTA program automated the
Form I-94W in the air and sea environments.
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The Form I-94 has been used for approximately 50 years by DHS, its
predecessor agencies, and external stakeholders for a variety of
purposes. CBP and U.S. Immigration and Customs Enforcement (ICE),
components of DHS, use the form to document arrival and departure, as
well as class of admission or duration of parole. U.S. Citizenship and
Immigration Services (USCIS), also a component of DHS, issues Forms I-
94 to aliens extending their authorized length of stay or changing
their immigration status while in the United States. USCIS also uses
Form I-94 information to verify lawful admission or parole when
adjudicating immigration benefit requests, confirming employment
authorization for employers participating in USCIS's E-Verify program,
or verifying immigration status for benefit granting state and federal
government agencies participating in USCIS's Systematic Alien
Verification for Entitlements (SAVE) program. The Form I-94 is also
used by the Social Security Administration (SSA), state agencies, such
as Departments of Motor Vehicles (DMV), and public assistance agencies
and organizations, to verify eligibility for benefits. The form is used
by certain aliens for evidence of lawful admission or parole, as well
as, where applicable, employment eligibility and eligibility for public
benefits. Information collected by the Form I-94 is also provided to
the Department of Commerce (DOC) for statistical purposes, including
use by the DOC Office of Travel and Tourism Industries to collect
monthly visitation data and for reporting of travel by country of
residence to comply with the United Nations World Tourism Organization
recommendation for reporting arrivals to all countries.

Current Paper Form I-94 Process at Airports and Seaports

The paper Form I-94 consists of two parts, the arrival portion and
the departure portion. Air and sea carriers print and store the Form I-
94 and provide each alien passenger with a blank paper Form I-94.\6\
Each alien arriving by air or sea for whom a Form I-94 is required
completes both the arrival and departure portions of the form either en
route or upon arrival in the United States. Each carrier is responsible
for presenting a completed Form I-94 for each arriving alien to a CBP
Officer. See 8 CFR 231.1. In practice, the carrier accomplishes this by
ensuring that each passenger presents him/herself to a CBP Officer for
inspection at a U.S. port-of-entry, generally with the aid of security
protocols. The Form I-94 is then presented to the CBP Officer at
primary inspection, along with the alien's passport and any other
applicable documents and information. After the successful completion
of the inspection process, a CBP Officer stamps the alien's Form I-94
and passport. The DHS admission stamp contains the port of arrival and
date of arrival, and is annotated with the class of admission and the
authorized length of stay. The parole stamp contains the port of
arrival and date of arrival, and is annotated with the duration of
parole and parole classification. The CBP Officer retains the arrival
portion of the Form I-94 and returns the departure portion and the
passport to the alien. The departure portion of the form is provided to
the alien to retain in his or her possession for the duration of his or
her stay and to surrender upon departure. In some circumstances, an
alien is required to have the Form I-94 in his or her possession at all
times while in the United States. Air and sea carriers are responsible
for presenting a completed Form I-94 for each departing alien passenger
to a CBP Officer. See 8 CFR 231.2(b). If the alien is departing by
commercial air or sea carrier, he or she turns in the departure portion
to the airline or shipping line prior to departure. The carrier then
returns the form to CBP.
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\6\ CBP also prints Form I-94s, which are available at ports of
entry for travelers who may need an additional blank form.
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The information requested on the upper portion of the I-94, the
arrival portion, includes:
Family name
First (Given) Name
Birth Date
Country of Citizenship
Sex (Male or Female)
Passport Issuance Date \7\
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\7\ Passport issuance date, passport expiration date, telephone
number, and email address are newer fields not found on all forms
currently in circulation.
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Passport Expiration Date
Passport Number
Airline and Flight number (if applicable)
Country Where You Live
Country Where You Boarded
City Where Visa Was issued
Date Issued
Address While in the United States (number, street, city,
and state)
Telephone Number in the United States Where You Can be
Reached
Email Address
The following information currently is requested on the lower
portion of the Form I-94, the departure portion:
Family Name
First (Given) Name
Birth Date
Country of Citizenship
Once an alien is admitted to the United States, the Form I-94 is
evidence of the terms of the admission. For aliens paroled into the
United States, the Form I-94 includes the terms of parole. CBP collects
the arrival portions of the Forms I-94 daily at each port of entry and
boxes and mails them to a centralized data processing center for
logging/processing/scanning, and data capture. The data is then
uploaded to a CBP database. DHS components have access to the database
that contains the Form I-94 information, and can use this database to
verify an alien's admission or parole information and immigration
status. Entities outside DHS, such as SSA or state DMVs, can verify
information by querying a DHS system or contacting DHS.

Automation of the Form I-94 at Airports and Seaports

The Form I-94 was established prior to advances in technology and
the implementation of security measures that enable CBP to collect
advance arrival and departure information about passengers
electronically. For aliens arriving in or departing from the United
States by air or sea, the data elements collected on the paper Form I-
94 duplicate the information that CBP collects through other
mechanisms. As explained in this section (including Table 1), CBP
collects this information from APIS, visa information and information
provided to CBP at the time of inspection.
As a result of enhanced security measures implemented by CBP
subsequent to the September 11, 2001 terrorist attacks, CBP regulations
require commercial vessel carriers and commercial and private air
carriers to electronically transmit advance manifest information
regarding their passengers, crew members, and non-crew members (cargo
flights only) arriving in and departing from the United States.
Passengers, crew members, and non-crew members are required to submit
certain biographical information to the carriers, which the carriers
then collect and submit to CBP prior to the alien's arrival in or
departure from the United States. The information is transmitted to CBP
through APIS (including eAPIS,\8\ as

[[Page 18460]]

applicable). See 19 CFR 4.7b, 4.64, 122.22, 122.49a-122.49c, 122.75a,
and 122.75b.
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\8\ eAPIS is a CBP web-based application that provides for the
collection of electronic traveler manifest information for
international travel both in to and out of the United States. eAPIS
collects and passes electronic manifests to APIS.
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The information transmitted to CBP by carriers using APIS consists
of information that appears on the biographical data page of travel
documents, such as passports issued by governments worldwide, as well
as carrier information. For passengers, APIS data consists of certain
biographical information and conveyance details collected via the
passenger reservation and check-in processes. The information submitted
for each individual onboard the aircraft or vessel includes:
Full name (last, first, and, if available, middle)
Date of birth
Gender (F = female; M = male)
Citizenship
Country of residence
Status on board the aircraft/vessel
Travel document type (e.g., P = passport, A = alien
registration)
Passport number, if a passport is required, or DHS-
Approved travel document number, as applicable
Passport country of issuance, if a passport is required,
or DHS-Approved travel document country of issuance, as applicable
Passport expiration date, if a passport is required, or
DHS-Approved travel document expiration date, as applicable
Alien registration number, where applicable
Address while in the United States
In addition to the manifest information for each individual, the
air or sea carrier also must provide information about the flight or
voyage. The flight or voyage information the air or sea carrier must
provide that is relevant to the Form I-94 is the airline and flight
number and the place of departure.
Visa information is made available to CBP by the Department of
State via the Consular Consolidated Database (CCD). At the time of
inspection and admission or parole, the CBP Officer is able to collect
additional data, such as email address, phone number, and updated
address while in the United States. Table 1 below lists the source of
each data element for the electronic Form I-94.

Table 1-- Sources of Data for Electronic Form I-94
------------------------------------------------------------------------
Source for electronic Form
Data element I-94
------------------------------------------------------------------------
Arrival Portion:
Family name............................ APIS
First (given) name..................... APIS
Birth date............................. APIS
Country of citizenship................. APIS
Sex (male or female)................... APIS
Passport issuance date................. APIS
Passport expiration date............... APIS
Passport number........................ APIS
Airline and Flight number (if APIS
applicable).
Country where you live................. APIS
Country where you boarded.............. APIS
City where visa was issued............. State Department via CCD.
Date visa was issued................... State Department via CCD.
Address while in the United States..... APIS, and may be updated at
time of inspection.
Telephone number while in the United Officer at time of
States. inspection.
Email address.......................... Officer at time of
inspection.
Departure Portion:
Family name............................ APIS
First (given) name..................... APIS
Birth date............................. APIS
Country of citizenship................. APIS
------------------------------------------------------------------------

Thus, for aliens arriving in the United States by air or sea, CBP
obtains almost all of the information contained on the paper Form I-94
electronically from the carriers and the Department of State and is
able to collect any additional fields from the individual at the time
of inspection. This means that CBP no longer needs to collect Form I-94
information from these travelers as a matter of course. Therefore, CBP
is transitioning to an automated process whereby CBP will create an
electronic Form I-94 based on the information in its databases, which
CBP will make available to the alien through the Web site: www.cbp.gov/I94. At this time, the automated process will apply only to aliens
arriving at air and sea ports of entry. This is because the electronic
record draws largely from APIS information submitted by air and sea
carriers. CBP will continue to provide a paper Form I-94 to those who
request such form, as well as to certain classes of aliens, such as
certain refugees, asylees, and parolees, and whenever CBP determines
the issuance of a paper form is appropriate. For these individuals
arriving by air and sea carriers, an electronic Form I-94 will also be
created.
The electronic Form I-94 will be created during the inspection
process at the time of admission or parole when the CBP Officer pulls
information from the traveler's APIS record and any CCD record, and
enters any additional data obtained during the inspection process. The
same data elements found on the paper Form I-94 will be collected and
maintained in the electronic Form I-94. Any information the officer
would have written or stamped on the paper form at the time of
admission or parole can be entered into the electronic form. The
departure record is created from APIS using the Arrival and Departure
Information System (ADIS) to match the departure to the correct arrival
record.
Alien travelers will be able to access and print their electronic
Form I-94 via the Web site CBP has established for this purpose:
www.cbp.gov/I94. Travelers to whom an electronic Form I-94 has been
issued will be able to log on to the Web site using identifying
information and print a copy of the electronic Form I-94. In order to
access the Form I-94 from the Web site, the traveler will be required
to enter information from his or her passport; thus, a third party
without access to the traveler's passport will not be able to access
the Form I-94 from the Web site. The printout from the Web site will be
the functional equivalent of the departure portion of the paper form
and will contain the same information as the departure portion of the
paper form. CBP will continue to stamp the traveler's passport at the
time of inspection and any admission or parole and will annotate the
stamp with the class of admission or parole and duration of admission
or parole. CBP will distribute a tear sheet to each alien who is issued
an electronic Form I-94 at the time of inspection with information
about the Web site and procedures for obtaining a printout to the alien
upon arrival in the United States.
Aliens who may be required to present the Form I-94 to a third
party for some purpose, such as employment or benefit eligibility, may
present the printout from the Web site. For example, nonimmigrants who
are employment authorized incident to status (see, e.g., nonimmigrants
listed at 8 CFR 274a.12(b)) may print a copy of their electronic Form
I-94 for evidence of employment authorization. The printout is the
equivalent of the paper Form I-94 acceptable to present to

[[Page 18461]]

employers to comply with the Employment Eligibility Verification form
(Form I-9) requirements. As discussed in detail in the 12866 section
below, because so many parties at various levels of government and
outside of the government use the Form I-94, we cannot estimate the
number of aliens who use the Form I-94 for these purposes. For the
12866 analysis, we assume that all non-B-1/B-2 travelers (about 26
percent of the total) will need to use the Form I-94 for some purpose.
See INA section 274A(a)(1)(B), 8 U.S.C. 1324a(a)(1)(B); 8 CFR
274a.2(b)(1)(v)(A)(5) and (b)(1)(v)(C)(8).
As described more fully in the section entitled ``Executive Order
12866 (Regulatory Planning and Review) and Executive Order 13563
(Improving Regulation and Regulatory Review),'' the elimination of the
paper Form I-94 in the air and sea environments has many benefits.
Carriers will no longer have to print, store, and distribute the paper
form to its alien passengers or collect the form when the alien
departs. These aliens will not have to complete the form when arriving
in the United States or turn in the form when they depart the United
States. Additionally, an alien will have the convenience of being able
to access his or her form electronically, and will be able to print a
new copy if one is lost, or to print multiple copies if needed. CBP
will not have to collect the forms, stamp them, return the departure
portion to the alien and manually enter the Form I-94 information into
its database. This streamlines CBP's inspection process. The effect
will be the elimination of most of the duplicative paper Form I-94
process and the reduction of wait times at passenger processing, which
will facilitate entry of all travelers.
Because the Form I-94 is used for various purposes, CBP has been
working closely with other DHS components and other government
stakeholders to ensure that the transition to the automated Form I-94
is as smooth as possible and done in a manner that addresses the needs
of these stakeholders. For the past year, CBP has been meeting
regularly with stakeholders, including U.S. Government agencies, DMVs,
and universities, on all aspects of automating the Form I-94 to ensure
that stakeholders are prepared for the additional acceptance of the
electronic Form I-94. For stakeholders that rely on the Form I-94 for
immigration status verification or other purposes, a benefit of
automation is that the electronic version of the Form I-94 is
immediately available to them through their connections to CBP's
database. By contrast, with the paper form, there is typically a lag
time of approximately five business days or longer between arrival,
data entry, and the availability of the records on the CBP database.
CBP anticipates that most stakeholders will not require a change to
their operations as a result of this automation. Government
stakeholders will continue to access an alien's Form I-94 information
in the same way that they currently do: Through their connection to
CBP's database. For stakeholders who now access the Form I-94
information when the alien presents his or her form, the process will
also not meaningfully change; the alien will now simply present a
printout from the Web site rather than the departure portion of a paper
Form I-94. CBP seeks comments from these stakeholders on the above
assumptions.

Regulatory Change: New Form I-94 Definition

Many provisions in 8 CFR refer to the Form I-94 and its use.
However, because these regulations were written at a time when a paper
form was the only option to collect arrival and departure information,
many of these regulations contemplate only the use of the paper form.
In order to enable CBP to transition from a paper Form I-94 to a CBP-
created electronic Form I-94, CBP is adding a definition of ``Form I-
94'' in 8 CFR part 1 that allows for the collection of Form I-94
information in either paper or electronic format. It provides that
``[t]he term Form I-94'' ``includes the collection of arrival/departure
and admission or parole information by DHS, whether in paper or
electronic format, which is made available to the person about whom the
information has been collected, as may be prescribed by DHS.'' 8 CFR
1.4.
As discussed earlier, CBP, USCIS, ICE, and other government
agencies use the Form I-94 in a variety of ways, many of which are
specified in 8 CFR. For example, the form is included in the list of
acceptable documentation that may be presented to employers to
demonstrate employment authorization during the employment eligibility
verification process (Form I-9). The Form I-94 is also necessary for
completing USCIS forms requesting immigration benefits, such as the
Application to Register Permanent Residence or Adjust Status (Form I-
485), or when seeking the admission of an alien for the duration of an
unexpired period of a previous admission.\9\ Therefore, the definition
of ``Form I-94'' also clarifies the various terms in 8 CFR that are
associated with the use of the Form I-94 to include the electronic
version of the Form I-94. For example, the definition specifies that
``presentation'' of the Form I-94 includes providing a printout of the
electronic record. ``Issuance'' of the Form I-94 includes the creation
of the electronic Form I-94 for a traveler. To comply with regulations
requiring the alien to turn in the departure portion of the Form I-94
at the time of departure, the definition provides that in the case of
an alien with an electronic Form I-94, he or she must comply with any
DHS departure controls. The carrier providing departure conveyance must
submit departure information to CBP for each departing alien.
---------------------------------------------------------------------------

\9\ Seeking admission for the duration of an unexpired period of
a previous admission is referred to as automatic revalidation.
Pursuant to 8 CFR 214.1 and 22 CFR 41.112, automatic revalidation
applies to unexpired nonimmigrant visas of aliens who have been out
of the United States for thirty days or less in a contiguous
territory.
---------------------------------------------------------------------------

As described in the section entitled ``Current paper Form I-94
process at airports and seaports,'' sections 231.1 and 231.2 of the DHS
regulations require air and sea carriers to submit a completed Form I-
94 for each arriving alien and to submit the departure portion of this
Form I-94 for each departing alien. Because these sections concern the
carriers rather than the nonimmigrant aliens directly, the terms
``present,'' ``submit,'' and ``submission'' used elsewhere in the DHS
regulations pertaining to the Form I-94 are employed somewhat
differently in sections 231.1 and 231.2. Thus, the definitions of these
terms for the purposes of sections 231.1 and 231.2 are tailored to this
unique situation. For purposes of section 231.1, the terms ``present''
or ``submission'' of the Form I-94 includes ensuring that each
passenger presents him/herself to a CBP Officer for inspection at a
U.S. port-of-entry. This definition reflects the carriers' current
practice for arriving passengers, as also discussed in the section on
``Current paper Form I-94 process at airports and seaports.'' For the
purposes of section 231.2, the terms ``present,'' ``submit,'' or
``submission'' of the Form I-94 include ensuring that each passenger is
available for inspection by a CBP Officer upon request.
CBP is also amending section 264.1(b) to add to the list of
documents that constitute evidence of registration of a valid,
unexpired nonimmigrant DHS admission or parole stamp in a foreign
passport. Additionally, for clarity, CBP is amending provisions
throughout 8 CFR to include a reference to the new definition
immediately following the

[[Page 18462]]

first use of the term ``Form I-94'' in a section. This is to ensure
that those reading these provisions are aware that the new definition
exists.

Statutory and Regulatory Requirements

Executive Order 12866 (Regulatory Planning and Review) and Executive
Order 13563 (Improving Regulation and Regulatory Review)

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 a ``significant regulatory action,'' under
section 3(f) of Executive Order 12866. Accordingly, the Office of
Management and Budget has reviewed this regulation.
This rule results in substantial cost savings (benefits) for
travelers, carriers, and CBP. CBP anticipates the total net benefits to
both domestic and foreign entities in 2013 range from $76.4 million to
$115.5 million.\10\ Separately, CBP anticipates a net benefit in 2013
of between $59.7 million and $98.7 million for foreign travelers, $1.3
million for carriers, and $15.5 million for CBP. Net benefits to U.S.
entities (carriers and CBP) in 2013 total $16.8 million. The following
discussion provides an assessment of costs, benefits, and net impacts
of the rule.
---------------------------------------------------------------------------

\10\ OMB Circular A-4 states regulatory analyses should focus on
benefits and costs that accrue to citizens and residents of the
United States (http://www.whitehouse.gov/sites/default/files/omb/assets/regulatory_matters_pdf/a-4.pdf; see ``Scope of Analysis''
section on page 15). In order to make this distinction clear, CBP
has shown the costs and benefits to foreign travelers as well as
impacts to U.S. entities.
---------------------------------------------------------------------------

1. Baseline Condition
A Form I-94 is generally provided during the inspection process at
the time of admission or parole for any alien who is not arriving in
the United States under the Visa Waiver Program, unless otherwise
exempt. When arriving by air and sea, the carrier provides the form to
the alien while en route to the United States. The alien typically
completes the form while en route to the United States. The Form I-94
takes the alien approximately 8 minutes to fill out, according to CBP's
Paperwork Reduction Act time burden estimate. Upon arrival at the
airport or seaport, the alien presents the completed Form I-94 to the
CBP Officer for inspection. The officer tears the form at the
perforation, stamps the lower portion, and returns it to the alien. The
officer sends the top portion of the form to a centralized facility
where all Forms I-94 are entered into CBP's systems. The alien later
returns the lower portion of the Form I-94 to the carrier when
departing the United States, who in turn returns it to CBP.
A third party, such as a university or a local or state government
benefit-granting agency, may require an alien to present evidence of
admission or parole to the United States. In these cases, the alien may
present the bottom portion of the Form I-94, which was returned to them
when they were admitted, paroled, or granted their immigration status.
Aliens may also choose to present Form I-94 to establish employment
eligibility and identity or eligibility for certain public benefits.
If an alien loses the bottom portion of the Form I-94, he or she
may file Form I-102, Application for Replacement/Initial Nonimmigrant
Arrival-Departure Document, with USCIS to request a replacement. The
form has a Paperwork Reduction Act burden of 25 minutes and a fee of
$330. According to the USCIS, 17,700 Forms I-102 are filed each year.
CIS expects this to decrease to 8,804 in fiscal year 2013 and 5,771 in
subsequent years. \11\ The 2013 numbers are higher because the
projection is done on a fiscal year basis and includes several months
before this rule is in effect. For the purpose of this analysis, we
assume that rule will result in only 5,771 Forms I-102, which is a
reduction of 11,929 from the current estimate.
---------------------------------------------------------------------------

\11\ Source: Communication with USCIS on February 8, 2013.
---------------------------------------------------------------------------

According to the Office of Immigration Statistics (OIS),\12\ about
46.4 million aliens entered the United States using a Form I-94 or
equivalent in 2010. Of these, about 18.2 million entered under the Visa
Waiver Program (VWP). These aliens do not use a Form I-94 and are
therefore unaffected by this rule,\13\ so we exclude them from this
analysis. Additionally, OIS figures include all modes of
transportation. This rule affects only aliens arriving by air and sea,
so we must exclude those arriving by land. We therefore subtract the
number of aliens entering the U.S. at land border ports using a Form I-
94 in 2010. According to CBP's Office of Field Operations, about 11.5
million aliens arriving from Mexico and 1.3 million arriving from
Canada entered the United States at the land border using a Form I-94
in 2010. We subtract these from the total, leaving 15,360,126 non-VWP
aliens who arrived in the U.S. by air or sea using a Form I-94 in 2010.
---------------------------------------------------------------------------

\12\ Source: 2010 Yearbook of Immigration Statistics. Table 28.
http://www.dhs.gov/files/statistics/publications/yearbook.shtm
\13\ In addition to automating the I-94, this rule adds a valid,
unexpired nonimmigrant DHS admission or parole stamp to the list of
documents that constitute evidence of registration. Thus, upon
implementation of this rule, such a stamp could serve as evidence of
registration for Visa Waiver Program travelers and for travelers
arriving by land who would otherwise be required to comply with any
registration requirement under the INA. However, the addition of the
passport stamp to the list of documents that constitute evidence of
registration does not have an economic impact on travelers.
Therefore, this analysis focuses on the changes to the I-94.
---------------------------------------------------------------------------

We next estimate the number of I-94 travelers in future years. To
do this, we use the traveler projections developed by the Office of
Travel and Tourism Industries (OTTI) within the U.S. Department of
Commerce. The OTTI forecasts travel for most countries through 2016.
The vast majority of travelers from most countries arrive by air and
sea, so we assume that air traveler growth rates are the same as those
for the total traveler population. For Mexico and Canada, we subtract
the number of I-94 travelers arriving by land in 2010 before applying
the projected growth rates.\14\ We apply the OTTI projected growth
rates to the number of Forms I-94 by country we obtained from OIS. We
present the total number of projected Forms I-94 for each year from
2010-2016 in Exhibit 1 below.
---------------------------------------------------------------------------

\14\ For the purposes of these projections, we assume that
aliens arriving from Mexico and Canada at land borders are Mexican
and Canadian citizens. There are a small number of citizens of other
countries who enter the U.S. at land borders. Because the number for
each country is small, the effect on the projections is minimal.


Exhibit 1--Projected I-94 Air and Sea Travelers
------------------------------------------------------------------------

------------------------------------------------------------------------
2010....................................................... 15,360,126
2011....................................................... 16,586,753
2012....................................................... 17,868,246
2013....................................................... 19,339,773
2014....................................................... 20,875,058
2015....................................................... 22,672,552
2016....................................................... 24,495,264
------------------------------------------------------------------------

We next estimate the costs and benefits of this rule for all
affected parties. For the purposes of this analysis only, we assume the
rule went into effect on January 1, 2013. To the extent the rule goes
into effect after this date, costs and benefits will be lower. The
period of analysis for this rule is 2012 to 2016, the last year for
which OTTI has projected annual U.S. visitor growth rates.

[[Page 18463]]

2. Costs
We now examine the costs of this rule to CBP. CBP seeks comments on
the assumptions discussed below. If implemented, the costs of this rule
will be borne by both CBP and aliens traveling to the United States.
This rule would automate the paper Form I-94 in the air and sea
environments.\15\ Almost all of the traveler information collected on
the Form I-94 is redundant because CBP already obtains the same
information electronically from other sources. In advance of the
implementation of this rule, CBP has linked its data systems to use the
information from these alternate sources to create an electronic Form
I-94 during the admissions process. CBP will create the electronic Form
I-94 by pulling information from the traveler's APIS record and any CCD
record and by entering any additional data obtained during the
inspection process. This electronic process will also allow
stakeholders that currently have access to CBP's databases to continue
to have access to traveler information electronically. CBP estimates
the cost to link data systems and to fully automate the Form I-94 to be
about $1 million in calendar year 2012. In addition, it estimates the
cost to develop the secure Web site to be about $321,000 in 2012. CBP
anticipates spending $92,000 per year in operations and maintenance
costs for these systems. In total, CBP anticipates this rule will cost
the agency $1,321,000 in 2012 and $92,000 in following years.
---------------------------------------------------------------------------

\15\ A small number of Forms I-94 will still be used for certain
aliens such as refugees, applicants for asylum, parolees, and those
who request a paper Form I-94.
---------------------------------------------------------------------------

We next examine the costs of this rule that will be borne by
travelers to the United States. While most travelers do not use the
Form I-94 for any reason once they are admitted or paroled to the
United States, others do make use of the form to demonstrate lawful
admission or parole to the United States to universities, DMVs, or some
other party. Aliens may also choose to present a Form I-94 to establish
employment eligibility and identity, or eligibility for certain public
benefits. To accommodate this need for a Form I-94, CBP will make an
electronic Form I-94 available to aliens on a secure Web site.
Travelers will receive written information on how to access the Web
site upon their arrival to the United States. Aliens may log into the
Web site using 7 pieces of basic identifying information that is either
known to the traveler (their first name, last name and date of birth)
or readily available on their passport (passport number, country of
issuance, date of entry, and class of admission). CBP estimates that it
will take the traveler 4 minutes to log into the Web site using
identifying information and print the electronic form. This is less
time than the paper Form I-94's 8 minute time burden for entering the
17 data elements. This 4 minute estimate does not include the time it
takes to travel to a location with computer and Internet access; that
cost is treated separately later in this section. In addition, CBP will
continue to make the paper Form I-94 available at ports of entry to
certain classes of aliens and upon request, though CBP does not
anticipate that many travelers will request the paper form.
To estimate the costs to travelers to access their Form I-94
electronically, we must first determine the number of aliens who will
access the Web site, the number who do not have ready access to the
Internet, the distance they would have to travel to access the
Internet, and the average wage rate for all aliens entering the United
States by air or sea. First, we assess the number of aliens who will
access the Web site. Exhibit 2 shows the number of travelers who
entered the United States by air or sea in 2010 sorted by various
categories of admission.\16\ The majority of Form I-94 visitors to the
United States--about 74 percent--are tourists and business travelers
entering on B-1/B-2 visas. These visitors do not have a need for their
Form I-94 now that the passport stamp will serve as evidence of alien
registration. While in the U.S., these B-1/B-2 visa travelers may use
their foreign driver's license, so there is no need for them to apply
for a U.S. driver's license. They are ineligible for employment or
enrollment in a university while traveling on a B-1/B-2 visa. They are
generally not eligible for public benefits without a change in status.
If B-1/B-2 travelers change their status with USCIS, they will receive
a paper Form I-94. Therefore, for the purposes of this analysis, we
assume that no B-1/B-2 travelers will need to access the Web site.
---------------------------------------------------------------------------

\16\ Source: CBP analysis of data from 2010 Yearbook of
Immigration Statistics. Table 28.http://www.dhs.gov/files/statistics/publications/yearbook.shtm

Exhibit 2--2010 Air and Sea I-94s by Class of Admission
------------------------------------------------------------------------
Number Percentage
------------------------------------------------------------------------
Tourists and Business Travelers (B-1/B-2)..... 11,352,569 73.9
Students...................................... 1,526,786 9.9
Temporary workers............................. 1,523,039 9.9
Other/Unknown................................. 624,181 4.1
Diplomats..................................... 333,550 2.2
-------------------------
Total..................................... 15,360,126 ...........
------------------------------------------------------------------------

Because so many parties at various levels of government and outside
of the government use the Form I-94, CBP cannot estimate how many
aliens who are not B-1/B-2 travelers will access the Web site. As noted
above, CBP will continue to make the paper Form I-94 available at ports
of entry upon request. Those with a need for a Form I-94 and who face
obstacles to electronic access of their Form I-94 may request a paper
I-94 upon arrival at the port of entry. Because we do not know how many
people need a physical copy of their Form I-94 or how many face
obstacles to accessing their electronic I-94, for the purposes of this
analysis, we assume that every traveler, other than B-1/B-2 travelers,
who currently receives a paper Form I-94 will log into the Web site to
print off their electronic Form I-94. In 2010, we estimate this to be
4,007,557 travelers. To the extent that some of these aliens do not
access the Web site, costs will be lower.
We next estimate the number of aliens who do not have ready access
to the Internet while in the United States and would need to travel to
access their electronic Form I-94. We assume that students and
diplomats have ready access to the Internet at their schools or places
of business, respectively. Also, as noted above, CBP will continue to
make the paper Form I-94 available at ports of entry upon request.
Those with a need for a Form I-94 and who face obstacles to accessing
their electronic Form I-94 may request a paper I-94 upon arrival at the
port of entry.
Temporary workers come to the United States for varying lengths of
time to fill positions where there is a shortage of labor in the United
States. These positions can be in very highly technical occupations,
such as computer programming, but can also be in less technical
occupations, such as agricultural labor. Because this category of
admission includes such a wide range of workers, we cannot say with
certainty that all temporary workers have ready access to the Internet
while in the United States. Similarly, we do not know how accessible
the Internet is for those in the ``Other/Unknown''

[[Page 18464]]

category. The aliens least likely to have Internet access are those
working as temporary agricultural laborers. According to the U.S.
Department of Agriculture (USDA), approximately 62 percent of farms
have Internet access.\17\ The primary use for the electronic Form I-94
for these workers is to demonstrate employment eligibility to their
employers. Until the workers present a copy of their electronic Form I-
94 to their employer, they are not able to work. The employers have
spent a considerable amount of money bringing the employee to the
country to work. Allowing the employee to use the Internet to access
their electronic Form I-94 will allow the employee to begin working
sooner. Because this incremental use of the Internet is virtually
costless to the employer and the employer would benefit from their
employee's prompt access to their electronic Form I-94, we assume that
employers with Internet access will allow their employees to use their
Internet connection to access their electronic Forms I-94.\18\ As
stated previously, 62 percent of farms have Internet access. For the
purposes of this analysis, we assume that 38 percent (100 percent minus
62 percent) of travelers in the ``Temporary Workers'' and ``Other/
Unknown'' categories (815,944 travelers in 2010) would need to travel
to access their electronic Form I-94. CBP seeks comment on these
assumptions. Once again, we note that CBP will continue to make the
paper Form I-94 available at ports of entry upon request. CBP intends
to have a considerable outreach effort in place by the time that this
rule is effective including outreach to airlines and travelers to
communicate that requesting a paper Form I-94 continues to be an
option. Those with a need for a Form I-94 and who face obstacles to
electronic access of their Form I-94 may request a paper I-94 upon
arrival at the port of entry. To the extent that they request paper I-
94s, the number of aliens who will need to travel to a place where they
can access the Internet will be lower.
---------------------------------------------------------------------------

\17\ Source: ``Farm Computer Usage and Ownership, ``United
States Department of Agriculture National Agricultural Statistics.
August 2011. Available at: http://usda01.library.cornell.edu/usda/current/FarmComp/FarmComp-08-12-2011.pdf.
\18\ It is also possible that some employers without Internet
access will help transport their employees to a location with
Internet access. Employers have expended considerable effort to
sponsor temporary workers and they may view this as part of the cost
of using foreign temporary workers. However, as the burden of
demonstrating employment eligibility is on the worker, we assume
that the worker must bear any travel costs to obtain their
electronic Form I-94. To the extent that the employer is able to
provide more efficient access to the Internet, costs will be lower.
---------------------------------------------------------------------------

Now that we have estimated the number of aliens who do not have
ready access to the Internet, we need to develop an assumption for how
long it takes to travel to a location where they can access the
Internet. Based on our online review of Internet services provided by
public libraries, we found public libraries provide public access to
computers and the Internet, though many charge a nominal fee for
printing. There are 16,698 public libraries in the United States.\19\
According to the Department of Education, 94 percent of households live
within 10 miles of a public library and 83 percent live within 5 miles
of one.\20\ Because of the large number of locations nationwide that
provide access to the Internet and the fact that CBP will continue to
make the paper Form I-94 available at ports upon request, we believe
most aliens will have to travel only a short distance to access the
Internet. We estimate that round-trip travel to a public library to
access a computer terminal will be 20 miles and will take 60 minutes of
an alien's time, which includes the time to enter the library and
locate an available computer and any wait time to access a computer. In
this analysis, we assume that users pay $0.25 to print their electronic
Form I-94 based on a review of available online printing fees charged
at public libraries.
---------------------------------------------------------------------------

\19\ Source: American Library Association. http://www.ala.org/tools/libfactsheets/alalibraryfactsheet01 Accessed May 7, 2012.
\20\ Source: Department of Education: Households' Use of Public
and Other Types of Libraries: 2002. Derived from Table 19. Available
at http://harvester.census.gov/imls/pubs/Publications/2007327.pdf.
---------------------------------------------------------------------------

We next estimate the value of time for those travelers affected by
this rule. Federal agencies typically estimate a monetary value of time
used or saved as a result of their regulatory actions. This allows
agencies to estimate the additional costs and benefits of their
regulatory actions on affected parties. The U.S. Department of
Transportation (DOT) provides guidance on the value of time to use for
economic analysis.\21\ This guidance provides point estimates as well
as ranges for values of time for travelers based on average wage rate
analysis for different categories of travel. According to DOT
estimates, the value of travel time is more than twice as high for air
travelers than for those traveling by surface modes, which can be
explained by the relatively high cost of air travel. We note that these
DOT estimates are intended to be used to analyze actions that will
reduce the time spent traveling. A person's value of time while
traveling may differ from their value of reducing travel time. In most
instances, this rule will not reduce the time spent traveling because
the Form I-94 is typically completed while en route to the United
States, but rather reduces the time spent on paperwork while traveling.
The traveler will now be able to spend this time on leisure or business
activities such as reading or drafting documents. CBP believes that
using the DOT values of travel time in this situation is the most
appropriate estimate because it reflects the higher values of time for
air travelers. Further, we note that to the extent a person's value of
time while traveling is different than their value of reducing travel
time, this difference is likely encompassed in the DOT plausible range
for the value of travel time. We request comments on the value of time
used in this analysis.
---------------------------------------------------------------------------

\21\ Source: U.S. Department of Transportation: ``Revised
Departmental Guidance on Valuation of Travel Time in Economic
Analysis.'' September 28, 2011. Table 5. Available at http://ostpxweb.dot.gov/policy/reports.htm.
---------------------------------------------------------------------------

As a primary estimate, we use the DOT's point estimate for the
value of time for all-purpose air travel, which includes both personal
and business travel. This point estimate is $42.10. We also use the
DOT's range for all-purpose travel to show a range of low and high
estimates. This range is from $34.80 to $52.20. We apply these values
of time to the travelers in our analysis.\22\
---------------------------------------------------------------------------

\22\ We use this travel value of time framework to estimate the
costs and savings of this rule, since affected aliens previously
completed the paper form I-94 while travelling.
---------------------------------------------------------------------------

However, we recognize that those who must travel to access the
internet are a special case of travelers and probably have different
values of time than the average air traveler. As previously discussed,
the aliens least likely to have internet access are those working as
temporary agricultural laborers. To estimate the value of time for
these aliens, we use the wage rate for H-2A temporary workers. H-2A
workers are seasonal agricultural workers. According to the Department
of Labor, H-2A workers have an average wage rate of $9.50 per hour.\23\
We recognize that there are other classes of temporary workers, notably
H-1B visa holders, who likely have higher wage rates. However, these
workers are predominantly in specialized occupations such as medicine
and computer programming and are likely to have ready access to the
internet.
---------------------------------------------------------------------------

\23\ Source: Calculated from Department of Labor data: available
at http://www.foreignlaborcert.doleta.gov/quarterlydata.cfm.
Accessed on May 8, 2012.
---------------------------------------------------------------------------

Now that we have estimated the number of aliens who will log into

[[Page 18465]]

CBP's Web site to print their electronic Form I-94, the time it takes
to access that Web site, the number of people who will need to travel
to access the internet, the time it will take to travel to and from an
internet access site, and the values of time for these groups, we can
calculate this rule's cost to these travelers. We first address the
cost to log into CBP's electronic Form I-94 Web site. Once again, CBP
estimates that it will take travelers 4 minutes to access and print
their electronic Form I-94, and that it costs them $0.25 per page to
print their electronic Form I-94. Exhibit 3 shows the 2013-2016
travelers' costs for accessing and printing their electronic Forms I-
94. The findings in Exhibit 3 assume that all travelers, except B-1/B-2
travelers, will access and print their electronic Forms I-94.\24\ As
shown, in 2013, traveler costs of time to access electronic I-94s and
their cost to print it would range from $13.0 million to $18.8 million,
with a primary estimate of $15.4 million.
---------------------------------------------------------------------------

\24\ The annual estimates of I-94s in Exhibit 3 are based on
projections for all travelers, except B-1/B-2 travelers, developed
by the Office of Travel and Tourism Industries within the U.S.
Department of Commerce.

Exhibit 3--Traveler Costs of Time to Access and Cost to Print Electronic I-94 \*\
----------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
I-94s........................................... 5,047,681 5,448,390 5,917,536 6,393,264
DOT--Low ($).................................... 34.80 34.80 34.80 34.80
DOT--Primary ($)................................ 42.10 42.10 42.10 42.10
DOT--High ($)................................... 52.20 52.20 52.20 52.20
Time Cost--Low ($).............................. 11,710,620 12,640,265 13,728,684 14,832,372
Time Cost--Primary ($).......................... 14,167,158 15,291,815 16,608,551 17,943,761
Time Cost--High ($)............................. 17,565,929 18,960,397 20,593,026 22,248,559
Printing Cost ($)............................... 1,261,920 1,362,098 1,479,384 1,598,316
---------------------------------------------------------------
Total Cost--Low ($)......................... 12,972,540 14,002,362 15,208,068 16,430,688
Total Cost--Primary ($)..................... 15,429,078 16,653,912 18,087,935 19,542,077
Total Cost--High ($)........................ 18,827,850 20,322,495 22,072,410 23,846,875
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

We next address the travel cost for those aliens who do not have
ready access to the internet. Once again, we assume that 38 percent of
travelers in the ``Temporary Workers'' and ``Other/Unknown'' categories
(see exhibit 2) would need to travel 20 miles and 60 minutes to access
their electronic Form I-94, that their values of time are best
characterized by the average H2A wage rate. For the cost of travel, we
use the IRS standard mileage rate for business travel of 55.5 cents per
mile.\25\ Exhibit 4 shows the 2013-2016 aliens' travel costs to access
the internet. As shown, in 2013, total travel costs would be $21.2
million.
---------------------------------------------------------------------------

\25\ Source: Internal Revenue Service. IR-2011-116, December 9,
2011. Available at http://www.irs.gov/newsroom/article/0,,id=250882,00.html.

Exhibit 4--Travel Costs\*\
----------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
Affected Aliens................................. 1,028,876 1,110,553 1,206,180 1,303,148
H2A Wage Rate ($)............................... 9.50 9.50 9.50 9.50
Time Cost ($)................................... 9,774,321 10,550,254 11,458,708 12,379,907
Mileage Cost ($)................................ 11,420,523 12,327,139 13,388,595 14,464,944
Total Travel Cost ($)....................... 21,194,844 22,877,393 24,847,303 26,844,850
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

To summarize, both CBP and aliens would bear costs as a result of
this rule. CBP would bear costs to link its data systems and to build a
Web site so aliens can access their electronic Forms I-94. Aliens
arriving as diplomats and students would bear costs when logging into
the Web site and printing electronic I-94s. Using the primary estimate
for a traveler's value of time, these costs average $3.06 per diplomat
and student traveler in 2013. The temporary workers and aliens in the
``Other/Unknown'' category (see Exhibit 2) bear costs when logging into
the Web site, traveling to a location with public internet access, and
printing a paper copy of their electronic Form I-94. These costs
average $23.66 per traveler in 2013 for the temporary worker and
``Other/Unknown'' category of travelers. Exhibit 5 summarizes the 2012-
2016 costs of this rule. As shown, costs for this rule for 2013 would
range from $34.2 million to $40.1 million. In our primary estimate,
costs for this rule are $36.7 million in 2013. Less than one percent of
these costs are incurred by the U.S. entities. These are CBP's costs
for automating the electronic Form I-94 and developing the Web site
travelers will use to access their electronic Form I-94. In 2013, CBP's
costs are $92,000. CBP seeks comment on these costs and their
underlying assumptions.

Exhibit 5--Cost Summary ($)\*\
----------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CBP Costs....................... 1,321,000 92,000 92,000 92,000 92,000
Traveler Costs:

[[Page 18466]]


Website Access Costs--Low... 0 11,710,620 12,640,265 13,728,684 14,832,372
Website Access Costs-- 0 14,167,158 15,291,815 16,608,551 17,943,761
Primary....................
Website Access Costs--High.. 0 17,565,929 18,960,397 20,593,026 22,248,559
Printing Costs.............. 0 1,261,920 1,362,098 1,479,384 1,598,316
Travel Time Costs........... 0 9,774,321 10,550,254 11,458,708 12,379,907
Mileage Costs............... 0 11,420,523 12,327,139 13,388,595 14,464,944
Total Traveler Costs--Low....... 0 34,167,384 36,879,756 40,055,371 43,275,539
Total Traveler Costs--Primary... 0 36,623,922 39,531,305 42,935,239 46,386,927
Total Traveler Costs--High...... 0 40,022,694 43,199,888 46,919,713 50,691,725
Grand Total Costs--Low.......... 1,321,000 34,259,384 36,971,756 40,147,371 43,367,539
Grand Total Costs--Primary...... 1,321,000 36,715,922 39,623,305 43,027,239 46,478,927
Grand Total Costs--High......... 1,321,000 40,114,694 43,291,888 47,011,713 50,783,725
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

3. Benefits
If implemented, this rule would have benefits for CBP, carriers,
and travelers to the United States. We first examine the benefits of
this rule for CBP. Currently, CBP returns the bottom portion of the
Form I-94 to the traveler and retains the top portion of the form. The
information on the top portion of the form is entered into CBP systems
for use by CBP and other agencies. CBP also gets this information
electronically from other sources. CBP has linked its data systems so
that CBP can create an electronic Form I-94. Therefore, there is no
longer any need to continue entering the data from the paper Form I-94
for air and sea travelers into CBP systems. CBP spends approximately
$17.8 million per year on contract support for this task. CBP will
still need to spend approximately $2.4 million to enter data from the
paper Forms I-94 collected at the land border and the few that will
continue to be collected at airports and seaports. We therefore
estimate that this rule would save CBP $15.4 million a year in contract
costs.
CBP processing would also become more efficient as a result of this
rule. Currently, when the traveler gives the completed Form I-94 to the
CBP Officer at inspection, the officer reviews the form for errors and
makes corrections as needed. The officer then stamps the top and bottom
portions of the form with an admission or parole stamp, writes the
classification and duration of admission or parole and staples it to
the traveler's passport. This rule would eliminate this process for
most travelers. To the extent that eliminating the paper Form I-94 will
reduce processing times, CBP will be able to focus its resources on
other areas, improving security and expediting the processing of
passengers. CBP will monitor the processing times as a result of this
rule to ensure that resources are allocated efficiently. CBP's final
rule will include information regarding current processing times that
reflect the use of the automated I-94.
We next examine the printing savings this rule will generate for
CBP and carriers. Currently, both CBP and carriers print and store
Forms I-94. CBP prints forms for use in primary and secondary passenger
inspections when the traveler has not filled out a form in advance or
when the traveler has made an error in filling out the form. In FY
2011, CBP spent $153,306 printing the Form I-94 for air and sea
travelers. If this rule is implemented, CBP would no longer need to
print the Form I-94 for most of these travelers,\26\ which would
eliminate this expense.
---------------------------------------------------------------------------

\26\ CBP will still print a small number of forms for use at
airports and seaports for certain aliens such as refugees, asylees,
parolees, and those who request a paper Form I-94.
---------------------------------------------------------------------------

Carriers print the forms for their passengers to complete before
their arrival in the United States. To estimate printing costs for
carriers, CBP obtained an estimate of total Form I-94 printing and
storage costs from a major airline. We increased this cost
proportionally based on annual international inbound passenger volumes
to estimate the entire industry cost. Based on this methodology, CBP
estimates that carriers spend $1,344,450 annually to print and store
the Form I-94. If this rule is implemented, carriers would no longer
need to print and store the Form I-94, which would eliminate this
expense.
We next estimate the value of air and sea travelers' time savings
resulting from the elimination of the paper Form I-94. Currently,
travelers spend 8 minutes filling out the Form I-94 while in transit to
the United States. If implemented, this rule would eliminate the paper
Form I-94 for air and sea travelers and, with it, their 8-minute time
burden.\27\ We again apply the DOT range of plausible values of time
for air travelers, as well as their point estimate for this value, to
these aliens. Exhibit 7 shows the 2013-2016 travelers' reduction in
time burden resulting from no longer needing to fill out the paper Form
I-94. As shown, in 2013, the value of the reduction in time burden
would range from $89.7 million to $134.6 million. In our primary
estimate, the reduction in time burden would be $108.6 million in 2013.
---------------------------------------------------------------------------

\27\ For those with a need to access their electronic Form I-94,
this burden relief is partially offset by the 4 minute time burden
to access the Web site. The costs for this access are discussed in
the costs section above.

Exhibit 7--Reduction in Time Burden\*\
----------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
I-94s........................................... 19,339,773 20,875,058 22,672,552 24,495,264
DOT--Low ($).................................... 34.80 34.80 34.80 34.80
DOT--Primary ($)................................ 42.10 42.10 42.10 42.10
DOT--High ($)................................... 52.20 52.20 52.20 52.20
Benefit--Low ($)................................ 89,736,549 96,860,267 105,200,642 113,658,027
Benefit--Primary ($)............................ 108,560,595 117,178,657 127,268,592 137,500,084

[[Page 18467]]


Benefit--High ($)............................... 134,604,823 145,290,401 157,800,962 170,487,040
----------------------------------------------------------------------------------------------------------------
\*\Estimates may not total due to rounding.

We next examine the savings to aliens who need a replacement Form
I-94. If aliens lose the bottom portion of their Form I-94, they may
file Form I-102, Application for Replacement/Initial Nonimmigrant
Arrival-Departure Document, with USCIS to request a replacement. The
form has a Paperwork Reduction Act burden of 25 minutes and a fee of
$330. As stated earlier, currently 17,700 Forms I-102 or filed annually
and this rule would reduce that amount by 11,929. If this rule is
implemented, these travelers would be able to access their electronic
Form I-94, which would save these individuals 25 minutes and $330.\28\
We calculate the value of this time savings using USCIS's hourly wage
estimate for Form I-102 filers of $30.44.\29\ Exhibit 8 shows the time
and fee cost savings for those who would have otherwise needed to file
an I-102 from 2012 to 2016. As shown, in 2013 the value of this time
and fee savings would be $4.2 million. CBP seeks comment on these
assumptions.
---------------------------------------------------------------------------

\28\ As discussed in the costs section, we estimate a 4 minute
time burden for travelers who need to access their electronic Form
I-94. See the cost section for a complete discussion of the costs of
accessing the Web site as well as the cost to travel to a location
where they can access the Web site, where necessary.
\29\ USCIS estimates are based on BLS data for occupational
employment statistics. The latest supporting statement for the I-102
is available at: http://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201206-1615-003. This supporting statement
uses an older wage estimate of $30.74. USCIS has since updated the
wage rates used in their supporting statements to $30.44 based on
more recent BLS statistics. These estimates will be used in the next
renewal of the I-102 information collection report.

Exhibit 8--I-102 Cost Savings\*\
----------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
I-102 Reduction................................. 11,929 11,929 11,929 11,929
Time Burden..................................... 25 25 25 25
USCIS hourly wage ($)........................... 30.44 30.44 30.44 30.44
Time Savings ($)................................ 151,299 151,299 151,299 151,299
Fee Savings ($)................................. 3,936,570 3,936,570 3,936,570 3,936,570
---------------------------------------------------------------
Total Savings ($)........................... 4,087,869 4,087,869 4,087,869 4,087,869
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

In summary, CBP, carriers, and aliens would accrue benefits as a
result of this rule. CBP would save contract and printing costs.
Carriers would save printing costs. All aliens would save the 8-minute
time burden for filling out the paper Form I-94 and certain aliens who
lose the Form I-94 would save the $330 fee and 25 minute time burden
for filling out the Form I-102. Because we do not expect B-1/B-2
travelers to use the Web site to access their electronic Form I-94, the
benefits associated with the Form I-102 accrue only to non-B-1/B-2
travelers. Using the primary estimate for a traveler's value of time,
the time burden savings for all travelers is $5.61 per traveler. In
addition, those non-B-1/B-2 travelers who no longer need to use a Form
I-102 would achieve an additional time and fee savings of $342.68 per
traveler. Exhibit 9 summarizes the benefits of this rule to each party.
As shown, benefits for this rule for 2013 would range from $110.7
million to $155.6 million. In our primary estimate, the benefits of
this rule would be $129.5 million in 2013. CBP seeks comment on these
benefits and their underlying assumptions.

Exhibit 9--Benefit Summary ($)\*\
----------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CBP Benefits:
CBP Contract Savings........................ 15,400,000 15,400,000 15,400,000 15,400,000
CBP Printing Savings........................ 153,360 153,360 153,360 153,360
Total CBP Benefits.............................. 15,553,360 15,553,360 15,553,360 15,553,360
Carrier Printing Savings........................ 1,344,450 1,344,450 1,344,450 1,344,450
Traveler Benefits:
I-94 Time Savings--Low...................... 89,736,549 96,860,267 105,200,642 113,658,027
I-94 Time Savings--Primary.................. 108,560,595 117,178,657 127,268,592 137,500,084
I-94 Time Savings--High..................... 134,604,823 145,290,401 157,800,962 170,487,040
I-102 Time Savings.......................... 151,299 215,863 215,863 215,863
I-102 Fee Savings........................... 3,936,570 3,936,570 3,936,570 3,936,570
Total Traveler Benefits--Low............ 93,824,418 100,948,137 109,288,511 117,745,896
Total Traveler Benefits--Primary........ 112,648,464 121,266,526 131,356,462 141,587,954
Total Traveler Benefits--High........... 138,692,692 149,378,271 161,888,832 174,574,910
Grand Total Benefits--Low............... 110,722,228 117,845,947 126,186,321 134,643,706
Grand Total Benefits--Primary........... 129,546,274 138,164,336 148,254,272 158,485,764

[[Page 18468]]


Grand Total Benefits--High.............. 155,590,502 166,276,081 178,786,642 191,472,720
----------------------------------------------------------------------------------------------------------------
\*\ Estimates may not total due to rounding.

4. Net Benefits
Exhibit 10 compares the costs of this rule to the benefits, both in
total and for each party affected. As shown, in 2013, CBP has a net
benefit of $15.5 million, carriers have a net benefit of $1.3 million,
and travelers have a net benefit of between $59.7 million and $98.7
million. In our primary analysis, the net benefit to travelers is $76.0
million in 2013. Total 2013 net benefits range from $76.5 million to
$115.5 million. In our primary analysis, the total net benefits are
$92.8 million in 2013.

Exhibit 10--Net Benefits*
----------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CBP............................. -1,321,000 15,461,360 15,461,360 15,461,360 15,461,360
Carriers........................ 0 1,344,450 1,344,450 1,344,450 1,344,450
Travelers--Low.................. 0 59,657,034 64,068,381 69,233,140 74,470,358
Travelers--Primary.............. 0 76,024,542 81,735,221 88,421,223 95,201,026
Travelers--High................. 0 98,669,998 106,178,383 114,969,119 123,883,185
Grand Total--Low................ -1,321,000 76,462,844 80,874,191 86,038,950 91,276,168
Grand Total--Primary............ -1,321,000 92,830,352 98,541,031 105,227,033 112,006,836
Grand Total--High............... -1,321,000 115,475,808 122,984,193 131,774,929 140,688,995
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.

Exhibits 11 and 12 present the net benefits of this rule,
discounted at the 3 and 7 percent discount rates. Exhibit 13 presents
annualized net benefits at the 3 and 7 percent discount rates.
Annualized net benefits range from $65.6 million to $101.7 million. In
the primary analysis, annualized net benefits range from $79.8 million
to $81.6 million, depending on the discount rate used.

Exhibit 11--Net Benefits Discounted at a 3 Percent Rate
[2012 Dollars]*
----------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CBP............................. -1,321,000 15,011,029 14,573,815 14,149,335 13,737,218
Carriers........................ .............. 1,305,291 1,267,273 1,230,362 1,194,526
Travelers--Low.................. .............. 57,919,450 60,390,594 63,358,131 66,165,948
Travelers--Primary.............. .............. 73,810,235 77,043,285 80,917,945 84,584,879
Travelers--High................. .............. 95,796,115 100,083,309 105,213,030 110,068,605
Grand Total--Low................ -1,321,000 74,235,771 76,231,682 78,737,828 81,097,693
Grand Total--Primary............ -1,321,000 90,126,555 92,884,373 96,297,642 99,516,623
Grand Total--High............... -1,321,000 112,112,435 115,924,397 120,592,727 125,000,350
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.


Exhibit 12--Net Benefits Discounted at a 7 Percent Rate
[2012 Dollars]*
----------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016
----------------------------------------------------------------------------------------------------------------
CBP............................. -1,321,000 14,449,869 13,504,551 12,621,075 11,795,398
Carriers........................ .............. 1,256,495 1,174,295 1,097,472 1,025,674
Travelers--Low.................. .............. 55,754,237 55,959,805 56,514,865 56,813,079
Travelers--Primary.............. .............. 71,050,974 71,390,707 72,178,057 72,628,407
Travelers--High................. .............. 92,214,952 92,740,311 93,849,048 94,509,889
Grand Total--Low................ -1,321,000 71,460,602 70,638,651 70,233,412 69,634,151
Grand Total--Primary............ -1,321,000 86,757,338 86,069,553 85,896,604 85,449,479
Grand Total--High............... -1,321,000 107,921,316 107,419,157 107,567,595 107,330,961
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.


Exhibit 13--Annualized Net Benefits Discounted at 3 Percent and 7
percent*
------------------------------------------------------------------------
3 Percent 7 Percent
------------------------------------------------------------------------
CBP..................................... 11,903,588 11,636,069
Carriers................................ 1,059,434 1,038,002
Travelers--Low.......................... 52,539,528 51,294,997

[[Page 18469]]


Travelers--Primary...................... 67,065,877 65,473,972
Travelers--High......................... 87,163,978 85,091,457
Grand Total--Low........................ 65,502,550 63,969,068
Grand Total--Primary.................... 80,028,899 78,148,043
Grand Total--High....................... 100,126,999 97,765,529
------------------------------------------------------------------------
*Estimates may not total due to rounding.

While this is a large net benefit to travelers as a whole, it is
important to note that the net benefits do not accrue uniformly across
all travelers. We next examine the effect of this rule on each type of
traveler. Exhibit 14 summarizes the costs and benefits per traveler for
each class of alien discussed in this analysis. B-1/B-2 travelers will
no longer need to fill out the paper Form I-94, saving them 8 minutes.
As discussed earlier, we assume that no B-1/B2 travelers will need to
access their electronic Form I-94 via the Web site. Because we assume
they do not use the Form I-94, B-1/B-2 travelers also do not file Form
I-102 to replace their lost Form I-94. Therefore they will not accrue
benefits from no longer needing to file Forms I-102. The net effect of
this rule to each B-1/B-2 traveler is a benefit of $5.61 per traveler.
Travelers who are students and diplomats would no longer need to
fill out a paper Form I-94. They would need to access the Web site and
print their Form I-94, but would not need to travel to a location with
internet access. The net effect of this rule to travelers who are
students and diplomats is a benefit of $2.56 per traveler. In addition,
those students and diplomats who would otherwise need to file a Form I-
102 and pay the $330 fee to obtain a replacement Form I-94 would
receive an additional benefit of $342.68 as a result of this rule.
Temporary workers and aliens in the ``Other/Unknown'' category
would no longer need to fill out a paper Form I-94. They would need to
access the Web site and print their Form I-94, and some would need to
travel 20 miles and 30 minutes round-trip to reach a location with
internet access. The net effect of this rule to temporary workers and
aliens in the ``Other/Unknown'' category is a cost of $18.04 per
traveler. We reiterate that those with obstacles to accessing their
electronic I-94s may request a paper I-94 at the airport or seaport
upon arrival in the United States. In addition, those temporary workers
and aliens in the ``Other/Unknown'' category who would otherwise need
to file a Form I-102 and pay the $330 fee to obtain a replacement Form
I-94 would receive an additional benefit of $342.68 as a result of this
rule.\30\
---------------------------------------------------------------------------

\30\ CBP intends to have a considerable outreach effort in place
by the time that this rule is effective including outreach to
airlines and travelers to communicate that requesting a paper Form
I-94 continues to be an option.

Exhibit 14--Annual Effect of Rule by Class of Alien ($) *
----------------------------------------------------------------------------------------------------------------
Cost of time
Percentage of to access &
total number 8 minute time cost to print Travel costs Net impact **
of aliens cost savings electronic
form I-94
----------------------------------------------------------------------------------------------------------------
Tourists and Business Travelers 73.9 5.61 0 0 5.61
(B-1/B-2)......................
Students........................ 9.9 5.61 -3.06 0 2.56
Temporary workers............... 9.9 5.61 -3.06 -20.60 -18.04
Other/Unknown................... 4.1 5.61 -3.06 -20.60 -18.04
Diplomats....................... 2.2 5.61 -3.06 0 2.56
----------------------------------------------------------------------------------------------------------------
*Estimates may not total due to rounding.
** In addition to this net impact, a small number of non-B-1/B-2 travelers will experience savings resulting
from no longer needing to file a Form I-102. The primary estimate of Form I-102 cost savings to non-B-1/B-2
travelers is $342.81 per traveler. We do not include the Form I-102 cost savings in the net impact column of
Exhibit 14 because few non-B-1/B-2 travelers will benefit from this compared to the overall population of non-
B-1/B-2 travelers impacted by the rule. Based on data from USCIS, we estimate that 16,853 Form I-102s per year
will no longer need to be filed as a result of this rule. This is less than one percent of the annual
population of non-B-1/B-2 travelers affected by the rule (16,853 Form I-102s / 5,047,681 non-B-1/B-2 travelers
in 2013 < 1%).

Annualized costs and benefits to U.S. entities are presented in the
following accounting statement, as required by OMB Circular A-4.

Accounting Statement: Classification of Expenditures, 2012-2016
[$2012]
----------------------------------------------------------------------------------------------------------------
3% Discount rate 7% Discount rate
----------------------------------------------------------------------------------------------------------------
U.S. Costs:
Annualized monetized costs......... $0.352 million............ $0.372 million.
Annualized quantified, but non- None...................... None.
monetized costs.
Qualitative (non-quantified) costs. None...................... None.
U.S. Benefits:
Annualized monetized benefits...... $13.7 million............. $14.0 million.

[[Page 18470]]


Annualized quantified, but non- None...................... None.
monetized benefits.
Qualitative (non-quantified) benefits.. Reduced primary inspection Reduced primary inspection processing
processing times. times.
----------------------------------------------------------------------------------------------------------------

We estimate annualized costs to U.S. entities as a result of this
rule to be $0.352 million to $0.372 million. These are CBP's costs for
automating the electronic Form I-94 and developing the Web site
travelers will use to access their electronic Form I-94. Monetized
benefits of this rule of $13.7 million to $14.0 million to U.S.
entities (CBP and carriers) represent reduced Form I-94 printing and
storage costs and reduced data entry contract costs. Non-quantified
benefits of this rule include the reduced processing time that could
result as a result of the automation of the Form I-94. This rule also
imposes monetized costs and benefits for travelers. However, because
these are attributable solely to foreign individuals, we do not include
them in the accounting statement.
5. Regulatory Alternatives
We consider two alternatives to this rule: eliminating the paper
Form I-94 in the air and sea environments entirely and providing the
paper Form I-94 to all travelers who are not B-1/B-2 travelers. If CBP
were to eliminate the paper Form I-94 entirely in the air and sea
environment, there are certain classes of vulnerable aliens who would
be harmed. Under the rule, refugees, applicants for asylum, and
parolees will be provided a paper Form I-94. These aliens have an
immediate need for the Form I-94 and cannot wait to access their
electronic Form I-94 from the Web site. These aliens represent a very
small portion of overall international travel and providing them with a
paper Form I-94 and entering the information into CBP data systems is
not a significant cost to CBP. In addition, under this rule, CBP will
continue to provide a paper Form I-94 to those travelers who request
it. CBP is providing this flexibility as a way to minimize the effect
on those who face obstacles to accessing their electronic Form I-94. As
CBP does not expect many aliens to request a paper Form I-94, the cost
to CBP for printing and data entry is minimal. Eliminating the paper
Form I-94 option for refugees, applicants for asylum, parolees, and
those travelers who request one would not result in a significant cost
savings to CBP and would harm travelers who have an immediate need for
an electronic Form I-94 or who face obstacles to accessing their
electronic Form I-94.
A second alternative to the rule is to provide a paper Form I-94 to
any travelers who are not B-1/B-2 travelers. Under this alternative,
travelers would receive and complete the paper Form I-94 during their
inspection when they arrive in the United States. The electronic Form
I-94 would still be automatically created during the inspection, but
the CBP Officer would need to verify that the information appearing on
the form matches the information in CBP's systems. In addition, CBP
would need to write the Form I-94 number on each paper Form I-94 so
that their paper form matches the electronic record. As noted earlier,
25.1 percent of aliens are non-B-1/B-2 travelers. Filling out and
processing this many paper Forms I-94 at airports and seaports would
increase processing times considerably. At the same time, it would only
provide a small savings to the individual traveler. As noted in the Net
Benefits section, the net cost of this rule to temporary workers and to
those in the ``Other/Unknown'' category of aliens is only $18.04 per
traveler and the rule has a net benefit to those arriving as students
or diplomats.

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 and 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).
This rule primarily regulates individuals and individuals are not
considered small entities. In addition, the individual travelers may
obtain a paper Form I-94 upon request, which would eliminate the
impacts of this rule for those travelers. Employers who have internet
access may choose to allow their employees to use their internet
connection to access the employee's electronic Form I-94, but they are
not required to do so and are therefore not directly regulated by this
rule. To the extent an employer chooses to assist an employee with
accessing the internet and printing an I-94, this impact would not rise
to being an economically significant impact under the RFA. This rule
also regulates air and sea carriers by eliminating the need for them to
provide the paper Form I-94 to their passengers. This rule would impact
all small carriers that transport passengers to the United States. We
therefore conclude that this rule will have an impact on a substantial
number of small entities. As stated in the economic impact analysis
above, we estimate that carriers spend $1.3 million a year printing and
storing forms for their passengers, based on 2011 passenger volumes. In
2011, 16,586,753 Forms I-94 provided by carriers were filed at airports
and seaports. Dividing these figures, we estimate that carriers spent 8
cents per form in printing and storage costs. Under this rule, carriers
would no longer need to print and store the Forms I-94, thus
eliminating these costs. According to a 2008 study by the Department of
Commerce's Office of Travel and Tourism Industries,\31\ the average
ticket price for an international traveler traveling to the United
States is $1,484. The cost to the carrier of printing a Form I-94 is
less than one hundredth of one percent of the revenue a carrier
receives from the average passenger. We therefore do not believe that
this rule will have a significant economic impact on small entities. We
also note that any impact to small carriers would be purely beneficial.
CBP certifies that this rule will not have a significant economic
impact on a substantial number of small entities. CBP welcomes comments
on this conclusion.
---------------------------------------------------------------------------

\31\ U.S. Office of Travel and Tourism Industries. 2008.
``Overseas Travelers to the United States.'' Table 26.
---------------------------------------------------------------------------

Administrative Procedure Act

The Administrative Procedure Act (APA) generally requires agencies
to publish a notice of proposed rulemaking in the Federal Register (5
U.S.C. 553(b))

[[Page 18471]]

and provide interested persons the opportunity to submit comments (5
U.S.C. 553(c)). However, the APA provides an exception to this prior
notice and comment requirement for ``rules of agency organization,
procedure, or practice'' 5 U.S.C. 553(b)(A).
This interim final rule is a procedural rule promulgated for
``agency housekeeping'' and efficiency purposes. CBP believes that will
not affect the substantive rights or interests of the public.
Once effective, the rule will change ``the manner'' in which
arriving aliens present information to CBP, but will not ``alter the
rights or interests'' of those aliens as they seek admission to the
United States. Such arriving aliens will no longer be required to
complete and submit the paper Form I-94. Instead, the information
previously collected by the paper I-94 will now be automatically
populated into a new electronic format, which will be printable from
CBP's Web site: www.cbp.gov/i94.
The rule neither affects the substantive criteria by which CBP
officers inspect aliens upon arrival nor the nature of the information
at CBP's disposal.

Privacy

CBP will ensure that all Privacy Act requirements and policies are
adhered to in the implementation of this rule, and will be issuing a
Privacy Impact Assessment (PIA), which will fully outline how CBP will
ensure compliance with Privacy Act protections. The PIA will examine
the privacy impact of the Form I-94 automation process as it relates to
DHS's Fair Information Practice Principles (FIPPs). The FIPPs account
for the nature and purpose of the information being collected in
relation to DHS's mission to preserve, protect, and secure. The PIA
will address such issues as the security, integrity, and sharing of
data, use limitation, and transparency. The PIA will be made available
at: http://www.dhs.gov/privacy-documents-us-customs-and-border-protection.

Paperwork Reduction Act

The collection of information regarding the CBP Form I-94 (Arrival/
Departure Record) was previously reviewed and approved by OMB in
accordance with the requirements of the Paperwork Reduction Act of 1995
(44 U.S.C. 3507) under OMB Control Number 1651-0111. This OMB Control
Number also includes the Electronic System for Travel Authorization
(ESTA), ESTA fee, and Form I-94W, all of which are unaffected by this
rule. In addition, information for the electronic Form I-94 will be
comprised of information already collected for APIS under approval
1651-0088. An agency may not conduct, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number assigned by OMB.
The automation of the paper Form I-94 for commercial aircraft and
vessel passengers in accordance with this Interim Final Rule would
result in an estimated reduction of 9.6 million Forms I-94 completed by
paper, and an estimated reduction of 1,276,800 burden hours. The
remaining estimated burden associated with the Form I-94, which would
be for aliens arriving at the land border, is as follows:
Estimated Number of Respondents: 4,400,000.
Estimated Number of Total Annual Responses: 4,400,000.
Estimated Time per Response: 8 minutes.
Estimated Total Annual Burden Hours: 585,200.
CBP will make the electronic Form I-94 available to aliens on a
secure Web site. Passengers may log into the Web site using 7 pieces of
basic identifying information that is either known to the traveler
(their first name, last name and date of birth) or readily available on
their passport (passport number, country of issuance, date of entry,
and class of admission). This information will be used only to grant
the passenger access to the Web site. CBP estimates that it will take
the traveler 4 minutes to log into the Web site using identifying
information and print the electronic form. Because so many parties at
various levels of government and outside of the government use the Form
I-94, CBP cannot estimate how many aliens who are not B-1/B-2 travelers
will access the Web site. Because we do not know how many people need a
physical copy of their Form I-94 or how many face obstacles to
accessing their electronic I-94, for the purposes of this analysis, we
assume that every traveler, other than B-1/B-2 travelers, who currently
receives a paper Form I-94 will log into the Web site to print off
their electronic Form I-94. In 2013, we estimate this to be 5,047,681
travelers. We request comments on the number of travelers that will
access the Web site and will amend this number accordingly in the final
rule. The estimated burden associated with the Web site, is as follows:
Estimated Number of Respondents: 5,047,681.
Estimated Number of Total Annual Responses: 5,047,681.
Estimated Time per Response: 4 minutes.
Estimated Total Annual Burden Hours: 336,512
The automation of the paper Form I-94 for commercial aircraft and
vessel passengers in accordance with this Interim Final Rule would
result in an estimated reduction of 10,918 million Forms I-102 filed,
and an estimated reduction of 4,541.89 burden hours. The collection of
information regarding the Form I-102 was previously reviewed and
approved by OMB in accordance with the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507) under OMB Control Number 1615-
0079. The remaining estimated burden associated with the Form I-102,
which would be for aliens arriving at the land border, is as follows:
Estimated Number of Respondents: 6,782.\32\
---------------------------------------------------------------------------

\32\ As discussed earlier, CBP uses a slightly different figure
in its regulatory analysis because the analysis is based on a
calendar year basis which USCIS's estimates are on a fiscal year
basis.
---------------------------------------------------------------------------

Estimated Number of Total Annual Responses: 6,782.
Estimated Time per Response: 25 minutes.
Estimated Total Annual Burden Hours: 2,821.31.
The Exhibit 15 summarizes the difference in the burden for the
current process and the future process. As OMB Control Number 1651-0111
includes ESTA and I-94W, we include those burden hours for
informational purposes. We note that these burden hours are unaffected
by this rule.

Exhibit 15 PRA--Burden Effects of the Rule
----------------------------------------------------------------------------------------------------------------
Collection Respondents Burden hours
----------------------------------------------------------------------------------------------------------------
Pre-IFR.................................... I-94............................... 14,000,000 1,862,000
Website............................ 0 0
I-102.............................. 17,700 7,363

[[Page 18472]]


ESTA............................... 19,140,000 4,785,000
I-94W.............................. 100,000 333,147
IFR........................................ I-94............................... 4,400,000 586,667
Website............................ 5,047,681 336,512
I-102.............................. 6,782 2,821
ESTA............................... 19,140,000 4,785,000
I-94W.............................. 100,000 13,333
Difference................................. I-94............................... -9,600,000 -1,275,333
Website............................ 5,047,681 336,512
I-102.............................. -10,918 -4,542
ESTA............................... 0 0
I-94W.............................. 0 0
----------------------------------------------------------------------------------------------------------------

Comments concerning the accuracy of this cost estimate and
suggestions for reducing this burden should be directed to the Office
of Management and Budget, Attention: Desk Officer for the Department of
Homeland Security, Office of Information and Regulatory Affairs,
Washington, DC 20503. A copy should also be sent to Regulations and
Rulings, Office of International Trade, U.S. Customs and Border
Protection, Attention: Border Security Regulations Branch, 90 K Street
NE., 10th Floor, Washington, DC 20229.
CBP has included a copy of the current paper Form I-94 on the
docket for this rulemaking in the supporting documents section. CBP
seeks comments on whether the instructions included on the form are
sufficient or whether they should be revised for clarity in light of
the automation. Comments on the instructions should be submitted to CBP
as described in the ADDRESSES portion of this rule above.

List of Subjects

8 CFR Part 1

Administrative practice and procedure, Immigration.

8 CFR Part 264

Aliens, Reporting and recordkeeping requirements.

Amendments to the Regulations

For the reasons discussed in the preamble and under the authority
of 8 U.S.C. 1103, CBP amends 8 CFR chapter 1 as set forth below.

PART 1--DEFINTIONS

0
1. The general authority for part 1 continues to read as follows:

Authority: 8 U.S.C. 1101; 8 U.S.C. 1103; 5 U.S.C. 301; Pub. L.
107-296, 116 Stat. 2135; 6 U.S.C. 1 et seq.


0
2. Add Sec. 1.4 to part 1 to read as follows:


Sec. 1.4 Definition of Form I-94

The term Form I-94, as used in this chapter I, includes the
collection of arrival/departure and admission or parole information by
DHS, whether in paper or electronic format, which is made available to
the person about whom the information has been collected, as may be
prescribed by DHS. The following terms, when used in the context of the
Form I-94, are clarified as to their meaning to accommodate the
collection of such information in an electronic format.
(a) The terms ``annotate,'' ``note,'' ``indicate on,'' ``stamp,''
and ``endorse,'' unless used in part 231 of this chapter, include, but
are not limited, to DHS amending, including or completing information
in its electronic record of admission, or arrival/departure. For
purposes of part 231, the term ``endorse'' includes but is not limited
to the submission of electronic departure data to CBP.
(b) The terms ``completed,'' ``completely executed'' and
``completed and signed'' include, but are not limited to, DHS
completing its collection of information into its electronic record of
admission, or arrival/departure.
(c) The terms ``issuance'' and ``given'' include, but are not
limited to, the creation of an electronic record of admission, or
arrival/departure by DHS following an inspection performed by an
immigration officer.
(d) The term ``original I-94'' includes, but is not limited to, any
printout or electronic transmission of information from DHS systems
containing the electronic record of admission or arrival/departure.
(e) The terms ``present,'' ``presentation,'' or ``submission'' of a
Form I-94, unless they are used in Sec. 231.1 or Sec. 231.2 of this
chapter, include, but are not limited to, providing a printout of
information from DHS systems containing an electronic record of
admission or arrival/departure. For purposes of Sec. 231.1 of this
chapter, the terms ``present'' or ``submission'' of the Form I-94
includes ensuring that each passenger presents him/herself to a CBP
Officer for inspection at a U.S. port-of-entry. For the purposes of
Sec. 231.2 of this chapter, the terms ``present,'' ``submit,'' or
``submission'' of the Form I-94 includes ensuring that each passenger
is available for inspection by a CBP Officer upon request.
(f) The term ``possession'' with respect to a Form I-94 includes,
but is not limited to, obtaining a copy or printout of the record of an
electronic evidence of admission or arrival/departure from the
appropriate CBP systems.
(g) The terms ``surrendering,'' ``turning in a Form I-94,'' and
``departure I-94'' includes, but is not limited to, complying with any
departure controls under 8 CFR part 215 that may be prescribed by CBP
in addition to the submission of electronic departure data to CBP by a
carrier.
* * * * *

PART 264--REGISTRATION AND FINGERPRINTING OF ALIENS IN THE UNITED
STATES

0
3. The general authority for part 264 continues to read as follows:

Authority: 8 U.S.C. 1103, 1201, 1303--1305; 8 CFR part 2.
* * * * *


Sec. Sec. 210.4, 212.1, 212.4, 212.6, 214.1, 214.2, 214.6, 214.7,
214.14, 215.8, 231.1, 231.2, 235.1, 245.15, 245.21, 245.23, 245.24,
245a.1, 245a.2, 245a.4, 245a.15, 247.12, 253.1, 274a.2, and
286.9 [Amended]

0
4. In the following locations, add ``(see Sec. 1.4)'' after the first
mention of the term ``I-94'':
0
a. Sec. 210.4(d)(3);
0
b. Sec. 212.1(q)(1)(vi);
0
c. Sec. 212.4(g);
0
d. Sec. 212.6(b)(2)(iii);
0
e. Sec. 214.1(b)(1)(iv);
0
f. Sec. 214.2(b)(2);

[[Page 18473]]

0
g. Sec. 214.6(g)(1);
0
h. Sec. 214.7(c)(2)(i);
0
i. Sec. 214.14(c)(5)(i)(A);
0
j. Sec. 215.8(a)(1);
0
k. Sec. 231.1(b)(1);
0
l. Sec. 231.2(b)(1);
0
m. Sec. 235.1(f)(1)(ii);
0
n. Sec. 245.15(h)(4);
0
o. Sec. 245.21(g)(3);
0
p. Sec. 245.23(e)(1)(vi);
0
q. Sec. 245.24(d)(6);
0
r. Sec. 245a.1(d)(2);
0
s. Sec. 245a.2(b)(8);
0
t. Sec. 245a.4(b)(2)(i)(F);
0
u. Sec. 245a.15(b)(2)(i);
0
v. Sec. 247.12(a);
0
w. Sec. 253.1(a);
0
x. Sec. 274a.2(b)(1)(v)(A)(5); and
0
y. Sec. 286.9(b)(1).

0
5. In Sec. 264.1, add a note to the end of paragraph (b) to read as
follows:


Sec. 264.1 Registration and fingerprinting.

* * * * *
(b) * * *

Note to paragraph (b): In addition to the forms noted in this
paragraph (b), a valid, unexpired nonimmigrant DHS admission or
parole stamp in a foreign passport constitutes evidence of
registration.


Janet Napolitano,
Secretary.
[FR Doc. 2013-06974 Filed 3-26-13; 8:45 am]
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