U.S. Nonimmigrant Visa Ban Expires

Presidential Proclamation (PP)  10052  suspending entry to the U.S. of certain nonimmigrants in  J, H and L status  expired March 31, 2021. The Biden Administration has declined to  extend the ban.

PP 10052 was initially implemented  by the Trump Administration in June 2020 with the stated rationale of protecting U.S. workers from the economic downtown stemming from the pandemic. The ban was later successfully challenged  by the U.S. Chambers of Commerce and other associations,  with a federal court invalidating significant portions of the ban, but limiting  the ruling to members of the plaintiff organizations.

What to Expect

Expiration of  PP 10052 is welcome news to U.S. companies, hospitals, universities and small businesses seeking to employ high-skilled and temporary workers, as well as multinational corporations seeking  to leverage the expertise of employees from overseas affiliate offices. Nevertheless, significant challenges remain in bringing nonimmigrants to the U.S.

  • The regional COVID-related travel bans stemming from PP 10143 remain in place for the Schengen Area, the United Kingdom, Ireland, South Africa, Brazil, Iran and China. With limited exceptions, foreign nationals who have been physically present in these regions at any point during the 14-day period prior to arrival in the U.S. are prohibited from entering the U.S.
  • The Department of State may issue National Interest Exemptions (NIEs) for certain individuals traveling to the U.S. from the Schengen Area, the United Kingdom and Ireland, but qualifying for an exemption is very restrictive.  Exemptions are limited to individuals seeking to enter the U.S.  to provide vital support for critical infrastructure, the public heath response, national security or other humanitarian considerations.
  • With the termination of the nonimmigrant visa ban, which also had associated guidance for exemptions, it is not clear how travelers from Brazil, China, Iran and South Africa may qualify for an NIE. Gibney is monitoring Department of State guidance on this matter.
  • Visa appointments at U.S. consular posts are likely to remain difficult to obtain  for the foreseeable future.  Consular posts worldwide continue to be impacted by the pandemic with many local health-related restrictions still in place. This continues to limit the ability of consular posts to process  cases for qualifying individuals.  Additionally, consular posts are prioritizing immigrant visa appointments pursuant to the revocation of the immigrant visa ban (PP 10014). Finally, after a year of suspended and limited consular operations,  significant backlogs exist for scheduling nonimmigrant and immigrant visa appointments.
  • As a reminder, pursuant to CDC guidance, all international travelers to the U.S. age  2 years and older, including U.S. citizens and permanent residents, are required to present proof of a negative COVID-19 test result or documentation of recovery from COVID-19.  At this time, proof of COVID-19 vaccination does not exempt international travelers from the testing requirement.

Looking Ahead

As the U.S. and the rest of the world begin to loosen pandemic-related restrictions, opportunities for international travel and mobility  will increase. However,  considerable patience will be required as consular posts continue to grapple with appointment  backlogs, local health mandates and restrictions, and limited resources.   The lifting of the visa category ban will not mean that previously impacted individuals will be able to secure visas to travel to the U.S. immediately, and the COVID-related regional travel restrictions will continue to limit admission the U.S. until affirmatively lifted.  It is very important to confer with legal counsel prior to making international travel plans.  For additional information, please contact your designated Gibney representative or email info@gibney.com.

H-1B Initial Electronic Registration Selection Process Completed

Today USCIS announced that it has received enough electronic registrations during the initial registration period to reach the fiscal year (FY) 2022 H-1B cap. A random selection (lottery) was conducted from the registrations properly submitted from March 9, 2021 through March 25, 2021. H-1B petitions may be filed for selected registrations starting April 1, 2021.

WHAT EMPLOYERS CAN EXPECT

USCIS has notified all prospective petitioners with selected registrations that they are eligible to file an H-1B cap-subject petition for the beneficiary named in the selected registration. Registrants’ online accounts will now be updated to show one of the following statuses for each beneficiary registered:

  • Submitted: A registration status may continue to show “Submitted” after the initial selection process. These registrations will remain in consideration for selection until the end of the fiscal year, at which point all registration statuses will either be Selected, Not Selected, or Denied. If petitions are not filed for selected beneficiaries with the designated 90-day filing window, USCIS may conduct another lottery from the reserve “submitted’ registrations until the FY 2022 cap is reached. This was the case last year, when numerous “submitted” registrations were later selected for a second round of filings, after the initial 90-day filing period concluded.
  • Selected: Indicates that the employer may file an FY 2022 H-1B cap-subject petition for the beneficiary in the designated 90-day filing period.
  • Denied: A duplicate registration was submitted by the same registrant for the same beneficiary; all registrations submitted for this beneficiary for FY 2022 are invalid.
  • Invalidated-Failed Payment: A registration payment method was declined and not reconciled, invalidating the registration.

Only petitioners with selected registrations may file H-1B cap-subject petitions for FY 2022 and only for the beneficiary in the applicable selected registration notice. Employers have a 90-day window during which to file the complete H-1B petition, commencing April 1, 2021.

Gibney will continue to monitor the FY 2022 H-1B cap process and provide updates, and will work with employers to file H-1B petitions for selected beneficiaries during the designated filing window. For additional information, please contact your Gibney representative or email info@gibney.com.

INFORM Consumers Act Introduced to Target Online Counterfeiters

The INFORM (Integrity, Notification, and Fairness in Online Retail Marketplaces) Consumers Act was introduced on the Senate floor on March 23, 2021.

This bill would require greater accountability and transparency from the e-commerce marketplaces that act as intermediaries between buyers and sellers.

The legislation requires online marketplaces to disclose to consumers basic information about high-volume third-party sellers, including the seller’s name and address, email address, telephone number. Violators would be subject to civil penalties.

High-volume third-party sellers are defined in the Act as vendors who have made at least 200 sales totaling at least $5,000 over a 1-year period.

In addition, the proposed legislation requires online marketplaces to provide customers with a hotline to report spurious activity i.e.: the sale of counterfeit, stolen or otherwise dangerous merchandise.

The Federal Trade Commission is charged with implementing the requirements of the legislation.

The Act is supported by the brand-owner community and viewed as a positive step in the fight against counterfeiting.

What’s On the Horizon for Brand Owners

The INFORM Act is the latest in a series of efforts to combat online counterfeiting. Bipartisan bills have been introduced in both the House and the Senate. As we previously reported, the SHOP SAFE Act of 2020 also incentivizes e-commerce platforms to adopt best practices to reduce the presence of counterfeit products on their sites. E-commerce sites that fail to adhere to the steps would be held liable.

As more brands increasingly transition from traditional brick and mortar to online retail, we will continue to see an increase in the sale of counterfeits goods online. Combating counterfeit sales is timely and costly for brand owners. While e-commerce platforms have started to implement policies to manage counterfeit sales, contributory liability puts the burden of responsibility on the both the counterfeit seller and the platform. These practices will begin to create incentives for online retailers to be more diligent and proactive.

Gibney will continue to monitor developments on this legislation. For questions, email info@gibney.com.

New York State Extends Tax Filing Deadline to May 17, 2021

New York State has extended the due date for personal income tax returns and related payments originally due on April 15, 2021 to May 17, 2021.

This follows the federal tax deadline which was also extended from April 15, 2021 to May 17, 2021. These extensions are due to the continued impact of COVID-19.

What this Means for New York State Individual Tax Filers

  • 2020 personal income tax returns originally due on April 15, 2021, and related tax payments, will not be subject to any failure to file, failure to pay, late payment, or underpayment penalties, or interest if filed and paid by May 17, 2021.
  • Interest, penalties, and additions to tax with respect to such extended tax filings and payments will begin to accrue on May 18, 2021.
  • Taxpayers do not need to file any additional forms or call the Tax Department to request or apply for relief.
  • Taxpayers unable to file by May 17, 2021, can request an automatic extension to file your return which will be due on October 15, 2021, if the extension request is filed by May 17, 2021, and any 2020 tax liability is properly estimated and paid with the extension request.
  • Direct debit payments schedules cannot be changed. To do so, you must cancel your current payment and schedule a new one.

What is Not Covered by this Extension

  • The deadlines for the payment or deposit of any other type of state tax, or for the filing of any state information return, remain unchanged.
  • This relief does not apply to estimated tax payments for the 2021 tax year that are due on April 15, 2021. These payments are still due on April 15, 2021.
  • Remittance of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made on time.

For questions, please contact:

Meredith Mazzola
Partner, Tax
mmazzola@gibney.com

Federal Tax Deadline for Individuals Extended to May 17

The Treasury Department and Internal Revenue Service has announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. The IRS will providing more formal guidance. Estimated federal tax payments and state tax filings are not extended and are still due by April 15, 2021.

Federal Income Tax Payments

  • Individual taxpayers may also postpone federal income tax payments for the 2020 tax year due on April 15, 2021 to May 17, 2021, without penalties and interest, regardless of the amount owed.
  • This applies to individual taxpayers, including individuals who pay self-employment tax. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17, 2021.
  • Penalties, interest and tax additions will accrue on any remaining unpaid balances as of May 17.

Guidelines for Individual Tax Payers

  • There is no need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
  • Those who need additional time to file beyond May 17 can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due.
  • Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

Exceptions

The extension does not apply to estimated tax payments that are due on April 15, 2021. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. If you generally pay estimated taxes, your 2021 first quarter estimated tax payment is still due April 15, 2021.

State Tax Returns

The new federal tax filing deadline of May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax returns or payments.. Taxpayers will need to timely file and pay income tax returns in 42 states plus the District of Columbia according to each state’s applicable due date. State filing and payment deadlines vary and are not always the same as the federal filing deadline. Check with your state tax agencies for those details.

For more information, contact:
Meredith Mazzola
Tax Partner
mmazzola@gibney.com

USCIS Public Charge Rule Eliminated

The Trump Administration’s draconian  2019 Public Charge Final Rule  is no longer in effect.  U.S. Citizenship and Immigration Services (USCIS) announced it will revert to utilizing the public charge guidance that was in effect prior to implementation of the 2019 rule. With elimination of the rule,  Form I-944,  Declaration of Self Sufficiency, is no longer required in connection with adjustment of status (“green card”) applications and individuals  no longer have to respond to questions regarding the receipt of public benefits on the current version of Forms I-485, I-129 and I-539.

Background
The Trump Administration advanced the 2019 Public Charge Final Rule to impose a “wealth test” on intending immigrants and nonimmigrants.  The rule was almost immediately challenged as unlawful.  Several federal courts issued decisions invalidating or blocking enforcement of the rule, but the prior administration appealed the decisions at both the federal circuit court and U.S. Supreme Court level.    Upon taking office, the Biden Administration directed the Department of Homeland Security (DHS) to review the  2019 Public Charge Final  Rule and the ongoing federal court litigation.  DHS subsequently announced that it would not continue to appeal  judicial decisions invaliding the rule.  With dismissal of the appeals,  on March 9, 2021,  an earlier federal court decision from Illinois invaliding the rule took effect nationwide.  On March 15, 2021, the Department of Homeland Security published a final rule, effective March 9, 2021, removing the 2019 Public Charge Final Rule from the immigration regulations, and restoring the pre-2019 public charge guidance.

What This Means for Foreign Nationals
The 2019 Public Charge Rule, now vacated, had expanded the definition of public charge, potentially disqualifying large numbers of green card applicants, while also significantly increasing the burden of proof and evidence of income required for others.  Elimination of the rule is a significant step toward ending the chaos stemming from  publication of the rule in 2019 and restoring predictability to adjudication of adjustment of status applications.

  • Elimination of rule will help to protect adjustment of status eligibility for many individuals, and will streamline the adjustment of status process, as submission  of the Form I-944, Declaration of Self Sufficiency, together with extensive supporting documentation,  is no longer required.
  • If an adjustment of status applicant previously submitted Form I-944, the documentation will not be considered if the case is adjudicated after March 9, 2021.
  • Applicants and petitioners seeking to  extend  or change of nonimmigrant status do not need to provide information related to the receipt of public benefits on Form I-129, Form I-129CW, Form I-539, and Form I-539A.
  • USCIS is not considering an applicant’s receipt of Medicaid (except for long-term institutionalization at the government’s expense), public housing, or Supplemental Nutrition Assistance Program (SNAP) benefits as part of the public charge inadmissibility determination.
  • If USCIS issues a request for public charge evidence on a case filed before the rule was vacated, please contact your designated Gibney representative to evaluate the appropriate response.

For additional information, please contact your designated Gibney representative or email info@gibney.com.

 

 

U.S. Department of State Restricts Eligibility for National Interest Exemptions

On March 2, 2021, the U.S. Department of State issued revised guidance  further limiting eligibility for National Interest Exemptions (NIEs) for  travelers from the Schengen Area, the United Kingdom and Ireland whose admission to the U.S. is restricted by  Presidential Proclamation (PP) 10143.  PP 10143 restricts the  entry of travelers to the U.S. who were present within the Schengen Area, the United Kingdom, the Republic of Ireland, Brazil and South Africa during the 14-day period preceding attempted entry to the U.S.  With limited exceptions, nonimmigrants traveling to the U.S. from these regions must obtain an NIE from the Department of State in order to enter the U.S.

In publishing its revised  guidance, the Department of State rescinded its prior national interest guidance and has narrowed eligibility for NIEs for travelers from the Schengen Area, the UK and Ireland.  Individuals traveling from these regions may request an NIE to enter the U.S. if providing vital support for critical infrastructure or if entering for purposes related to humanitarian considerations, the  public health response or national security.   As previously reported,  under the Department of State’s prior NIE guidance, certain technical experts, senior-level managers and executives, treaty-traders and investors, and professional athletes traveling to the U.S. from the restricted regions were generally eligible for  NIEs to gain admission to the U.S.    This will no longer be the case in all instances. Visas and NIEs issued pursuant to the previous guidance will not be revoked and remain valid. However, if a new visa or NIE is required, it may not be issued while PP 10143 remains in effect unless the request falls within the new eligibility criteria outlined above.

Notably, students with valid F-1 and M-1 visas traveling to the U.S.  from the Schengen  Area, the UK and Ireland do not require NIEs for admission (and students requiring an F-1 or M-1 visa to travel may apply for such visa pursuant to availability of visa services at the nearest embassy or consulate).

Due to rapidly evolving travel requirements and restrictions, individuals intending to apply for visas abroad or planning to travel to the U.S. should consult with immigration counsel prior to making any arrangements. For additional information, please contact your designated Gibney representative or email info@gibney.com.

USCIS Expands Premium Processing to E-3 Visas

On February 24, 2021, USCIS expanded its premium processing service to Petitioners requesting a change of status or extension of status in the E-3 Specialty Occupation Workers from Australia nonimmigrant visa classification.

Petitioners may now request premium processing service for all pending and newly filed E-3 petitions by filing Form I-907, Request for Premium Processing Service and paying an additional fee.

USCIS will then adjudicate the petition within 15 business days.

For additional information, please contact your designated Gibney representative or email info@gibney.com.

Immigration Update: Biden Lifts Immigrant Visa Ban

On February 24, 2021, President Biden issued a Proclamation revoking the Trump era immigrant visa ban, which suspended the entry of certain immigrants seeking to apply for U.S. permanent residence from abroad.

Specifically, Biden revoked Proclamation 10014 issued in April 2020 and the subsequent extensions of this immigrant visa ban (section 1 of Proclamation 10052 and section 1 of Proclamation 10131).  Biden also directs relevant agencies to review and revise any agency rules or policies impacted by the revocation.  The Biden Administration explained that denying entry to these immigrants “does not advance the interests of the United States” and harms citizens and residents by keeping families apart.

For additional information, please contact your designated Gibney representative or email info@gibney.com.

What Will Post Pandemic IP Enforcement Look Like?

As we are on the cusp of gaining some control over the pandemic and regaining a focus on the new normal, it seems to be an opportune time to think about what the post-pandemic world of IP enforcement will look like. While admittedly focusing only on the world of counterfeiters, this brief overview offers some food for thought into other aspects of intellectual property matters.

Unfortunately, we can all agree that the counterfeiters were out of the gate immediately when it came to taking advantage of the pandemic. Not only did they have their trade routes established, they were able to pivot into new areas of ‘expertise’ before legitimate manufacturers could ramp up production. The scope of the counterfeiters abilities are still being seen today with almost daily seizures of bogus PPE at the border by CBP. Add to those factors the cuts in enforcement budgets and staffing to create the perfect storm.

Now brand enforcement personnel have to pick up the pieces and address new issues and developing problems. The profound, and some say permanent, change to online shopping is only part of what needs to be addressed. Let’s take a brief look at some of the issues.

Data is king. But the key remains knowing what to hone in on and harnessing it to address the counterfeiting issues. Something as simple as tracking, and possibly taking action on, Customs seizures offer a low cost way to address bulk importations. Maintaining databases and availing oneself of information is a way to spot trends and develop ways to address them. Talk to other brands about ways to implement strategies using readily available data. Everyone does it differently and it pays to be open to new ideas. There are a lot of metrics available; be judicious in selecting and using them.

The pandemic had an adverse economic impact on many brands. Income went down and, in turn, enforcement budgets were cut or whole brand protection departments eliminated. It will take time to reach a point where enforcement staffing is commensurate with pre-2020 levels. This then raises the question of how best to address emerging online threats. Do you make do and cover what you can with limited personnel? Do you look at bringing in outside vendors to provide previous in-house functions even if only for a limited time? With brand protection often viewed as an expense that fails to add to the bottom line, the trick is to utilize limited resources in the most effective way possible.

How do you address the brick and mortar aspects of the trade in counterfeit goods? If you ignore it, it will continue to flourish. Enforcement has to be seen as a 360 degree effort of multiple types of enforcement that are in a constant state of re-calibration. How do you justify allocating resources and to what extent given online issues? It is not an easy call, but one way may be to make better use of resources for training and engaging law enforcement so they may look at the most egregious sellers and enter into investigations where costs may be shared among brands. The adaptation to the use of technology used on LiveStorm or Webex and others is a way to take training programs where they have not gone before. Certainly it is hard to replicate the connection made at in person trainings, however, remote trainings allow knowledge to be shared in a low cost and effective manner for the time being.

It goes without saying that social media has become a double-edged sword. It is a way for a brand to promote itself and its values across multiple platforms to a full range of current and potential customers. However, sometimes influencers do run amok as evidenced recently on platforms where the influencers suggested buys were actually disguised counterfeit goods from which they profited. Sadly, counterfeiters have always been better at monetizing new technology/platforms faster than the developers. Here the challenge is to maintain vigilance, not just on well-known platforms, but also being on the look-out for any new platforms (and scams) that emerge to push the sale of counterfeits.

If the only constant is change, brand owners have to be ready to anticipate, adapt and aggressively address issues before they mutate into serious problems and become harder to eradicate. Enforcement in a post pandemic world has to be viewed as an opportunity to take a broad look at all enforcement efforts and further fine tune them based on experience, budgetary limits and a wary eye on the variables of the future.