US notifies visa fee hike, Indian IT exports to face music

US notifies visa fee hike, Indian IT exports to face music

The additional fees will apply to petitioners who employ 50 or more employees in the United States, with more than 50% of those employees in H-1B or L (including L-1A and L-1B) having nonimmigrant status

The Dollar Business Bureau   

  The US government has finally issued a notification implementing an increase in the visa fee for certain categories of H-1B and L-1visa applicants. The move is likely to hit the Indian IT companies that send a large number of professionals to the US to work at their client’s locations. The revised fee will be implemented on applications sent on or after December 18, 2015. “These petitioners must submit an additional fee of $4,000 for certain H-1B petitions and $4,500 for certain L-1A and L-1B petitions postmarked on or after December 18, 2015,” the US Citizenship and Immigration Service (USCIS) said in a statement. As per the new norms, the additional fees will apply to petitioners who employ 50 or more employees in the United States, with more than 50% of those employees in H-1B or L (including L-1A and L-1B) having nonimmigrant status. This fee is in addition to the existing base processing fee, fraud prevention and detection fee, American Competitiveness and Workforce Improvement Act of 1998 fee (when required), as well as the premium processing fee, if applicable. “Fees will remain effective through September 30, 2025,” the USCIS said. The US immigration authority may begin rejecting petitions received on or after February 11, 2016 that do not complete the mandatory requirements. The USCIS said that it may issue a Request for Evidence (RFE) to determine whether the additional fee applies to the petition and submit the applicable fee when required. Experts say that the move will have adverse impact on Indian IT service providers as they have to send professionals in large number to the US—their top export destination. According to NASSCOM (National Association of Software and Service Companies), “As per initial estimates, the financial implication of this bill on the Indian technology sector will be of the magnitude of about $400 million annually and could adversely impact competitiveness of India’s tech sector.” The industry body also said that the H-1B and L-1 visa fee hike contradicts the US President Barack Obama’s views in favour of opening the US market for Indian service companies and vice versa.  

January 13, 2016 | 05:22pm IST

The Dollar Business Bureau - Jan 13, 2016 12:00 IST