Washington: The United States has introduced new rules requiring certain large employers to pay additional fees when seeking to extend the H-1B and L-1 visas of existing employees.
Under the new rules, employers will have to pay $4,000 for an H-1B visa extension and $4,500 for an L-1 visa extension. Previously, the additional charges applied mainly to new applications or certain employment changes.
The move could have a significant financial impact on Indian IT and consulting companies, many of which employ large numbers of workers in the US under H-1B and L-1 visa programmes.
Which companies will be affected?
According to the US Department of Homeland Security (DHS), the new 9/11 Response and Biometric Entry-Exit Fee will take effect from September 9.
The requirement will apply to companies that have 50 or more employees in the US, with more than 50% of their workforce holding H-1B or L-1 visas.
This could increase costs for technology companies, global consulting firms and IT service providers that rely heavily on these visa categories.
However, applications that do not seek an extension of an existing visa will be exempt from the additional fee, according to the department.
Additional revenue for biometric systems
The US government estimates that the measure could generate around $157.3 million annually. The funds are expected to support biometric systems operated by US Customs and Border Protection.
The fee was introduced by Congress in 2015 as part of measures aimed at strengthening national security.
For Indian technology companies with thousands of engineers working in the US, the additional charges could translate into a substantial increase in annual visa-related expenses.
