Vol. 148, No. 4 — February 12, 2014

Registration

SOR/2014-19 January 29, 2014

IMMIGRATION AND REFUGEE PROTECTION ACT

Regulations Amending the Immigration and Refugee Protection Regulations

P.C. 2014-49 January 28, 2014

His Excellency the Governor General in Council, on the recommendation of the Minister of Citizenship and Immigration, pursuant to subsections 5(1) and 89(1) (see footnote a) of the Immigration and Refugee Protection Act (see footnote b), makes the annexed Regulations Amending the Immigration and Refugee Protection Regulations.

REGULATIONS AMENDING THE IMMIGRATION AND REFUGEE PROTECTION REGULATIONS

AMENDMENTS

1. Paragraph 294(a) of the Immigration and Refugee Protection Regulations (see footnote 1) is replaced by the following:

• (a) a fee payable under this Part is payable not per application but for each person in respect of whom an application is made;

2. (1) Subsection 296(1) of the Regulations is replaced by the following:

Single or multiple entry — $100

296. (1) A fee of $100 is payable for processing an application for a temporary resident visa to enter Canada one or more times.

(2) Subsection 296(2) of the Regulations is amended by striking out “and” at the end of paragraph (g), by adding “and” at the end of paragraph (f) and by repealing paragraph (h).

(3) Subsection 296(3) of the Regulations is replaced by the following:

Maximum fee

(3) The total amount of fees payable under subsection (1) by an applicant and their family members who apply at the same time and place shall not exceed $500.

3. Section 297 of the Regulations is repealed.

4. (1) Subsection 299(1) of the Regulations is replaced by the following:

Fee — $155

299. (1) A fee of $155 is payable for processing an application for a work permit.

(2) Subsection 299(3) of the Regulations is replaced by the following:

Maximum fee

(3) The total amount of fees payable under subsection (1) by a group of three or more persons, consisting of performing artists and their staff, who apply at the same time and place for a work permit is $465.

5. Subsection 300(1) of the Regulations is replaced by the following:

Fee — $150

300. (1) A fee of $150 is payable for processing an application for a study permit.

6. Subsection 305(1) of the Regulations is replaced by the following:

Fee — $100

305. (1) A fee of $100 is payable for processing an application under subsection 181(1).

COMING INTO FORCE

7. These Regulations come into force on the day on which subsection 162(2) of the Economic Action Plan 2013 Act, No. 1, chapter 33 of the Statutes of Canada, 2013, comes into force.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

Temporary residents contribute to Canada’s economic development by filling gaps in the labour market, enhancing trade, purchasing goods and services, and increasing cultural and people-to-people links. CIC facilitates the temporary entry of foreign workers needed to address labour market shortages and to provide other economic opportunities for Canadians, such as job creation and the transfer of new skills and knowledge. International students bring with them new ideas and cultures that enrich the learning environment within Canadian educational institutions. International students who enter Canada on TRVs are also candidates to easily integrate as immigrants after several years in Canadian schools since they are well prepared for the Canadian labour market. Tourists contribute to the economy by creating a demand for services in the hospitality sector, and business visitors allow Canadian businesses to benefit from their specialized expertise and international links.

The user fees that are the subject of these regulatory amendments are currently collected at a fee level that only recovers a portion of the cost to administer the relevant TR services provided by CIC and its partners. This cost includes direct, indirect and overhead costs as well as costs from key federal partners such as Public Works and Government Services Canada (PWGSC), Treasury Board Secretariat (TBS), the Canada Border Services Agency (CBSA), the Canadian Security and Intelligence Service (CSIS), the Royal Canadian Mounted Police (RCMP), the Department of Foreign Affairs, Trade and Development (DFATD), Employment and Social Development Canada (ESDC) and the Department of Justice (DOJ). These federal departments and agencies play key roles in the administration and delivery of CIC’s TR program. Public Works and Government Services Canada is responsible for providing accommodations for CIC while TBS is involved with administering the employer’s share of employees’ benefits. The responsibility for the administration of the Immigration and Refugee Protection Act, (IRPA) is shared with the CBSA, including enforcement provisions and processing at ports of entry. Departments such as CSIS and the RCMP are integral to managing the security of Canada and screening of applicants seeking to enter or remain in Canada. In Canada and overseas, DFATD is responsible for locally engaged staff as well as providing the infrastructure and common support for our offices overseas, while ESDC is involved with the Temporary Foreign Worker Program and on issues relating to the labour market. Finally, the DOJ provides advisory and litigation services relating to legal challenges to decisions rendered on TR applications and the applicable legislation.

What is not recovered by fees is supported by public sources of funding (i.e. Canadian taxpayers). Despite inflation, increased security measures post-9/11, and the need to keep pace with technological advancements and remain competitive with other countries to continue attracting TRs, application processing fees for extensions, TRVs and WPs have not increased since 1997, and the SP application fee has not increased since 1994.

Issues

Taxpayers have been subsidizing the costs to administer the TR program for many years. Over the past five years, on average, taxpayers subsidized $46.9M (29% of the costs) to process visitor applications (SEVs, MEVs and extensions), $16.3M (38% of the costs) to process SP applications, and $57.5M (41% of the costs) to process WP applications. It should also be noted that as of July 2013 the costs related to assessing Labour Market Opinions (LMOs), a step in the process to obtain some WPs, are no longer included in calculating total WP costs. These costs are recovered by a separate user fee payable to ESDC. (see footnote 2) As a result, when the costs associated with assessing an LMO request are removed from the total WP costs, the taxpayer subsidization of the cost to process a WP application, based on the current fee of $150, is estimated to be less than 5%.

Additionally, over the past four years, there has been an increase in the total number of TRV applications, which could partially be attributed to the issuance of more “serial SEVs.” Serial SEVs are those SEVs that are issued to repeat applicants frequently, at a fee of $75 for each application. Approximately 40% of the total TRV applications received by CIC request multiple entry authorization. Although they may be eligible for a MEV, which currently has a fee of $150, there are likely many SEV applicants in the remaining 60% who do not apply for a MEV for a variety of reasons. This has likely resulted in unnecessarily higher application volumes — i.e. applicants who end up applying for serial SEVs (more applications to process).

Objectives

The objective of this regulatory amendment is to move towards full cost recovery and reduce the subsidization, by the taxpayer, of the cost to process four types of TR applications (extensions, TRVs, SPs and WPs), effective February 2014. Shifting the majority of the cost to the user, through an increase in fees, means the subsidization by taxpayers is significantly reduced. Recognizing that the costs to process these applications may fluctuate in the future, CIC will monitor these costs to ensure that costs are as close to being fully recovered as possible while still respecting the principle reflected in the Financial Administration Act (FAA) that the amount of a service fee cannot exceed the costs to the Government of providing the service.

An additional objective of this amendment is to improve processing efficiencies by creating a single fee for the processing of a TRV application whereby the TRV applicant is permitted to request either a SEV or MEV authorization. Visa officers may issue a MEV where applicable, thereby reducing the need to process serial SEVs. The amalgamation of the two TRV application fees will facilitate access to Canada on more than one occasion, for more eligible applicants on one visa for one fee. Furthermore, from an operational perspective, this change will simplify CIC’s fee structure and associated administrative procedures surrounding cost recovery.

Description

The objectives described above are achieved through the following amendments to the IRPR:

1. Create a single fee of $100 for processing an application for a TRV, where the current fee is $75 for processing an application for a SEV and $150 for processing an application for a MEV. Retain the current fee exceptions listed under the Regulations for single entry TRV;
2. Increase the maximum fee charged to families for processing TRV applications from $400 to $500;
3. Increase the fee for processing an application for extension of authorization to remain in Canada as a TR from $75 to $100;
4. Increase the fee for processing an application for a study permit from $125 to $150; and
5. Increase the fee for processing an application for a work permit from $150 to $155 and increase the maximum work permit fee for a group of three or more performing artists and their staff from $450 to $465.

Regulatory and non-regulatory options considered

These Regulations are necessary in order for the Government of Canada to amend user fees that are charged for processing applications from those seeking an extension, TRV, WP and/or SP. The fees reflect a greater balance between the cost of providing the service and the fee that is charged to the user. Reducing taxpayer subsidization cannot be achieved through the current fee levels and if status quo levels had been maintained, higher levels of subsidization would have continued.

Other approaches, such as a phased increase, were not considered because the increase for these lines of business is not significant. The new fee levels respect the principle reflected in the FAA that the fee charged may not exceed the cost of providing the service.

Listing the fees and the fee exceptions in the Regulations is consistent with the current approach whereby all other fees related to applications made under IRPA are set out in the Regulations.

Benefits and costs

The table below provides an overview of the cost-benefit analysis (CBA) study results. The analysis period is 10 years starting in 2014 and ending in 2023. All costs and benefits are forecasted over that period and are expressed in 2013 constant dollars. Present values (PVs) were calculated using a discount rate of 7%.

Based on the analysis of incremental impacts, the total estimated cost of a TRV, WP and SP fee increase is approximately $63.8 million (PV). The total monetized benefits are estimated at $347.5 million, resulting in a net benefit of $283.7 million, or an annualized average of $40.4M in net present value benefits per year.

The analysis includes the incremental costs for the Government of Canada to implement a fee change. These costs include updates to bulletins and forms, IT and Web updates as well as communication costs to advise foreign nationals of the fee change. It also accounts for the impact of a fee increase on international students and temporary foreign workers who reside in Canada and who may require a single entry TRV to leave and return to Canada as well as subsequent study or work permits to remain in Canada. It is acknowledged that the fees for foreign nationals applying overseas for Canadian TRV, SP or WP and those seeking extensions to their temporary residence status in Canada will increase; however, these applicants are outside the scope of the CBA, which focuses on the regulatory impact on Canadians. Therefore, the impact of a fee increase on these foreign nationals is not included in the above analysis.

The analysis monetizes the benefits to all Canadians as a result of the reduction in the subsidy currently provided to SEV, SP and WP applicants from both within and outside Canada. Furthermore, under the amended Regulations, international students and temporary foreign workers residing in Canada who receive an MEV pay $50 less. The benefits of this impact have also been monetized.

It is assumed that, compared to the overall cost and resulting benefit of an international trip to study in, work in or visit Canada, an increase to the application fee for a TRV, SP and WP is relatively small. Thus, the increased fee will not impact demand to visit, study in or work in Canada.

Furthermore, the fee changes to the four TR applications in this package do not affect the number of permanent residents admitted.

CIC is anticipating that creating a single application fee for either a single or multiple entry visa will generate efficiency gains. Because the number of MEVs issued could increase, the number of applications that are submitted and require assessment could be reduced. It should be noted, however, that the impact analysis assumes that processing times do not change in any of the immigration streams as efficiencies gained are outweighed by projected increases in volumes. These projections are based on historical trends as well as assumptions in the political, tourism and labour environments which result in forecasted increases in application volumes.  Detailed impacts by stakeholder may be found in the table below.

Cost-benefit accounting statement — Temporary resident visas, work permit fees and study permit fee increase

Costs, benefits and distribution		2014	2018	2023	Total Present Value	Annualized Average
A. Quantified impacts in PV dollars
Benefits
Less burden on Canadian taxpayers / Better cost recovery	Canadians	29.7M	31.2M	29.2M	306.5M	43.6M
Lower fees for MEVs	Students and workers in Canada who apply for an MEV	4.9M	4.2M	3.2M	41.0M	5.8M
Total benefits (in PV)		34.6M	35.4M	32.4M	347.5M	49.4M
Costs
Transition costs	CIC	0.03M	0.0M	0.0M	0.05M	0.01M
Increased fees for SEVs	Students and workers in Canada who apply for an SEV	4.2M	3.6M	2.7M	35.4M	5.0M
Increased fees for SPs	Students in Canada who apply for an SP	2.1M	1.8M	1.3M	17.7M	2.5M
Increased fee for WPs	Workers in Canada who apply for a WP	1.3M	1.1M	0.8 M	10.7M	1.5M
Total costs (in PV)		7.6M	6.5M	4.8M	63.8M	9.1M
Net benefits					283.7M	40.4M
Qualitative impacts It is acknowledged that the fees will increase for foreign nationals applying overseas for Canadian temporary resident visas and study or work permits and those visitors seeking to extend their temporary residence status in Canada; however, these applicants are outside the scope of the CBA. The impact of a fee increase on these foreign nationals is not included in the above analysis.

CBA methodology information is available upon request.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this regulatory amendment. There are no anticipated administrative burden impacts on business.

Small business lens

The small business lens does not apply to this regulatory amendment. There are no anticipated administrative burden or compliance costs imposed on business.

Consultation

The ability for fees to be set in a timely and efficient manner was introduced through Budget 2013 (see footnote 3) and will be brought into force on February 6, 2014, via order in council, meaning that the four temporary resident fees identified in this package will be exempt from the application of the User Fees Act. There has been minimal reaction in the media. (see footnote 4) No formal consultation has taken place with non-governmental organizations, agencies, individuals or other stakeholders.

Rationale

Currently, the user fees charged by CIC for processing applications for an extension, TRVs, WPs and SPs only cover a portion of the costs of providing these services. The balance of these costs is subsidized by Canadian taxpayers. Unlike most other Government of Canada departments and agencies, the majority of users of CIC’s services are foreign nationals who permanently reside outside of Canada. In the case of applicants seeking temporary residence, all users are foreign nationals.

The amended Regulations increase the application fees for extensions, TRVs, WPs and SPs to a level that reflects the processing costs and more closely aligns with the Government’s policy of charging the user or the direct beneficiary and not the general public. The fee increases follow an enhanced emphasis on the user pay philosophy, thereby reducing the current taxpayer subsidy that is provided to foreign nationals seeking to work in, study in or visit Canada. CIC followed the Treasury Board of Canada Secretariat’s Guide to Establishing the Level of a Cost-Based User Fee or Regulatory Charge and Guide to Costing when devising fee levels.

Additionally, by creating a single TRV fee for TRV applications, visa officers can decide to issue an MEV as part of processing that application, which creates processing efficiencies through the reduction of the number of serial SEVs issued. In turn, this will increase accessibility to Canada more frequently to more, eligible visitors on one visa and simplifies CIC’s fee structure, which will also streamline cost recovery procedures.

Changes to the current fee levels for temporary resident applications

Fee	Current Fee	Amended Fee	% Difference
Temporary resident visa — single entry	$75	$100	33%
Temporary resident visa — multiple entry	$150	$100	-33%
Temporary resident visa — maximum fee (family)	$400	$500	25%
Extensions to visitor status	$75	$100	33%
Study permit	$125	$150	20%
Work permit	$150	$155	3%
Work permit — maximum fee (performing artists and their staff)	$450	$465	3%

The new fees will remain the lowest amongst competitor countries, such as the United States of America (USA), the United Kingdom (UK), New Zealand (NZ) and Australia.

Temporary resident fee comparison among Five Country Conference members (see note 1)

Application Processing Fee	Canada (amended)	USA (see note 2)	UK	AUS	NZ
TRV — single or multiple entry	$100	$169 + issuance fee	$137	$125	$142
Study permit	$150	$169 + issuance fee + SEVP fee (see note 3)	$245	$516	$232
Work permit	$155	$200 + issuance fee "L blanket" fee (see note 4)	$342	$347	$232 paper or $198 online
All fees shown in equivalent Canadian dollars as of November 22, 2013. (Note 1) This comparison table outlines, to the best of our knowledge, the processing fee by category for the members of the Five Country Conference. Each country has its own fee structure with products that can vary from what is offered in Canada. In this table, the fees that most closely resemble the requirements for Canada were used for the comparison. (Note 2) USA visa issuance fees: In addition to a visa application fee, the USA may charge an additional fee to an applicant if they are from a country that charges a higher fee to USA nationals. The visa issuance fee is based on reciprocity. (Note 3) USA Student and Exchange Visitor Program (SEVP) fees: The USA charges students up to an additional US$200 to maintain the Student and Exchange Visitor Information System, an Internet-based system that maintains accurate and current information on non-immigrant students, exchange visitors, and their dependants for the Department of Homeland Security. (Note 4) Other USA fees for "L blanket" applicants: The "L blanket" allows large multinational companies to receive approval to transfer their employees (intra-company transferees). To these applicants (the employees), the USA charges a fraud detection and prevention fee (US$500), and, in some cases, a Border Security Act fee (US$2,250).

Implementation, enforcement and service standards

These amending Regulations come into force simultaneously with amendments to the Immigration and Refugee Protection Act that will be brought into force on February 6, 2014, via order in council. Applications for an extension, a TRV, an SP or a WP that do not include the correct processing fee will be returned to the applicant unprocessed. Evidence of the correct fee payment must accompany any of these applications before they can be processed.

Notification of the changes to the fee schedule is being made public through changes on CIC’s Web site, application kits/guides and other CIC documents.

CIC is a service delivery department which is subject to the Government of Canada’s policy on service standards for external fees.  Currently, fees paid by users are not fully cost recovered. Only a portion of the cost to provide the service is paid by the users. The balance of these costs is funded by all Canadian taxpayers. Unlike other Government of Canada departments and agencies, many of the users of CIC’s services are foreign nationals who permanently reside outside of Canada.

The service standard for the applications subject to the amended fee regulations will remain at 120 days for an extension of authorization to remain in Canada as a temporary resident, 14 days for temporary resident visas and 60 days for study and work permits. CIC will continue to report on these service standards in the User Fees Section of the annual Departmental Performance Report (DPR). Both the service standards and the DPR are available on CIC’s Web site at www.cic.gc.ca.

Performance measurement and evaluation

CIC will undertake a review of its fees every five years or less as outlined in the Department’s commitment in the Management Accountability Framework (MAF). As CIC must conform to the principles of the FAA, and considering the potential for processing efficiencies realized through modernization initiatives, CIC will monitor the fees environment closely in order to adjust any fees, as necessary, in response to fluctuations in program costs. This will ensure the fee level is kept as close to full cost recovery as possible, which will keep the taxpayer subsidization to a minimum.

In order to measure performance of the amended Regulations, CIC will use relevant existing performance indicators and data sources for this initiative, and undertake ongoing monitoring of the Regulations described in the amendments. The data for the key indicators to measure the impact of these changes are currently collected and reported by CIC. The key indicators for temporary residents, such as application intake, inventories, and others to be developed align with the indicators and targets in the broader Departmental Performance Measurement Framework and will be reported through the Departmental Performance Report (DPR).

CIC has identified two outcomes from this regulatory amendment. First, that the taxpayer subsidy is reduced, and second, that operational efficiencies (reducing the number of serial SEVs) will be gained as a result of creating one TRV fee — specifically, by examining the volume of MEV issuance, noting that some of these efficiencies may take a few years to be realized.

The assessment of efficiencies gained from an increase in the volume of MEVs will be incorporated into the planned evaluations of CIC’s various TR programs, and will be considered as part of the annual departmental evaluation planning process. Several temporary resident programs are scheduled for evaluation within the next few years, including the Temporary Foreign Worker Program, planned to begin in fiscal year 2016–17. CIC also monitors its program activity through a formal quarterly reporting system. The results will be reported through the DPR and include details on costs, revenues and performance. The DPR from 2012–13 can be found at www.cic.gc.ca/english/resources/publications/dpr/2013/dpr.asp.

Contact

Karine Paré, CPA, CMA
Director
Cost Management Division
Financial Management Branch
Citizenship and Immigration Canada
Email: Karine.Pare@cic.gc.ca

• Footnote a
  S.C. 2012, c. 31, s. 312
• Footnote b
  S.C. 2001, c. 27
• Footnote 1
  SOR/2002-227
• Footnote 2
  http://gazette.gc.ca/rp-pr/p2/2013/2013-07-31/pdf/g2-14716.pdf, p. 2030
• Footnote 3
  www.budget.gc.ca/2013/doc/plan/chap3-1-eng.html
• Footnote 4
  http://o.canada.com/2013/03/21/users-fees-on-the-rise-for-citizenship-temporaryresident-visas-budget/; www.cicsnews.com/?tag=temporary-resident-visaapplication-fee; www.cicsimmigration.com/canadian-immigration-application-fees-increase/; www.huffingtonpost.ca/2013/03/21/immigration-citizenship-canada-budget-2013_n_2926521.html