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New U.S. Entry Fee Irks European Union

By Jay Boehmer / September 06, 2010 / Contact Reporter
Business Travel News on X

U.S. Customs And Border Protection on Sept. 8 will begin collecting through the new Electronic System for Travel Authorization a $14 fee once every two years from travelers entering the United States from visa-waiver countries. The fees will fund a federal tourism bureau established this year by the Travel Promotion Act.

That law called for a $10 fee to be collected through ESTA to fund 50 percent of the Corporation for Travel Promotion, whose mission is to promote the United States to "travelers, travel agents, tour operators, meeting planners, foreign governments, travel media and other international stakeholders" through advertising, outreach and education, with private industry funding the other half. CBP is adding a $4 administrative fee to cover administrative costs, bringing the total cost for authorizations to $14.

Use of ESTA to submit biographic data prior to entry, replacing paper forms, has been free since DHS early last year mandated the program.

Counting 23 of its member states among the 36 countries that participate in the visa-waiver program, the European Union was none too pleased with the new fee on its visitors to the United States, and it is investigating whether the application of the fee will render ESTA tantamount to a visa application process for visitors to the United States.

Although European commissioner for home affairs Cecilia Malmström said an EC assessment in December 2008 concluded ESTA was not tantamount to a visa application, "I regret very much the fee established by the interim rule," she said. "I remain convinced that these new requirements, applicable only to travelers under the Visa Waiver Program, are inconsistent with the commitment of the U.S. to facilitate transatlantic mobility and will be an additional onus for European citizens traveling to the U.S."

Even so, U.S. Travel Association president and CEO Roger Dow said that when it is operational in about two years, the CTP "will help to better explain America's travel and security policies and let the world know that America wants their business. The result will be billions of dollars in new visitor spending and thousands of new American jobs."

Amon Cohen contributed to this report.

This report originally appeared in the Sept. 6, 2010, issue of Business Travel News.

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