The US Citizenship & Immigration Services (USCIS) has formally notified the increase in fees for certain categories of H-1B and L-1 visa that will remain effective till 2025, a move which will put enormous pressure on the operations of companies like TCS, Infosys and Wipro in that country.
A statement by USCIS said, “The Consolidated Appropriations Act, 2016 (Public Law 114-113), signed into law by President Obama on December 18, 2015, increases fees for certain H-1B and L-1 petitioners. 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.”
According to estimates, visa costs account for anywhere between 1-1.5% of an IT company’s revenue and any change in this ratio will have a direct bearing on the operating profit margins.
The additional fees will also 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) nonimmigrant status. This fee is in addition to the 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. Estimates are that this increase could result in H-1B visa fee rising to around $7500-8000 from the earlier level of around $4,500.
Nasscom, the Indian IT industry’s trade body, came out very strongly against this Bill by terming it irrational, discriminatory and shortsighted. “We are increasingly seeing a growing protectionist trend from developed countries like US ” Nasscom said.