BAL Corporate Immigration - Berry Appleman & Leiden LLP

Immigration News Update
February 1-28, 2010

U.S. IMMIGRATION NEWS:

Strategic Planning for the H-1B Cap - Are you maximizing the opportunity?

Department of Homeland Security Takes Aim at H-1B Visa Program

Updated Euro Visa Application Fee at United States Consulates

Travel Advisory Regarding Enhanced Screening at Ports of Entry

USCIS Policy Regarding Attorney Signatures on Applications and Petitions

GLOBAL MIGRATION NEWS:

RUSSIA - 2010 Foreign Labor Quotas Announced/Reminder Regarding Compliance

AUSTRALIA - Major Changes to the Australian General Skilled Migration Program

SINGAPORE - Government Considering Imposing Quota System for Low Skilled Workers

JAPAN - Insurance Requirement Eliminated

MEXICO - Canadian and U.S. Citizens and Permanent Residents Require Valid Passports for Entry

MEXICO - New Manual of Criteria and Migration Procedures

ISRAEL - Ministry of Interior Announces Reforms Aimed at Reducing Illegal Immigration

CHINA - Shanghai’s Foreign Affairs Bureau Announces New Five-Year Residence License

This newsletter is a compilation of Client Alerts sent between February 1 and February 28, 2010 as well as additional articles posted during this period on the Berry Appleman & Leiden LLP website.

Strategic Planning for the H-1B Cap - Are you maximizing the opportunity?

February 25, 2010 - The first available date for filing H-1B cap-subject petitions for upcoming fiscal year 2011 (FY2011) is quickly approaching. The H-1B visa category is available to foreign national professionals who have been offered temporary employment in specialty occupations by U.S. companies, but new visas are currently limited to a total of 85,000 per fiscal year.1 Petitions for the new fiscal year may be mailed to United States Citizenship and Immigration Services (USCIS) on March 31 for receipt on April 1 and, when approved, will have start dates of October 1, which is the beginning of the new fiscal year. In the past several years prior to last year, the quota was reached immediately after the first day USCIS began accepting H-1B filings, resulting in USCIS’ use of a lottery system. Last year, with the economic downturn, the H-1B quota was available for more than 8 months before being exhausted. This year, with hiring still not back at its previous pace in the U.S., it is expected that the H-1B quota will again last several, or perhaps more, months. Since there is no way to predict how long the quota will last, however, it is advisable for employers to prepare their petitions for mailing on March 31. The following strategies should be kept in mind when planning for this year’s H-1B filings.

Prepare to mail your new H-1B applications on March 31. With no certainty as to when the quota will be reached, including whether the quota will be reached on the first day, employers should prepare their petitions for mailing on March 31 (for an April 1 receipt date by USCIS) in order to maximize the opportunity.

Conclude hiring decisions as soon as possible. Company recruiters and managers should be finalizing employment offers as soon as possible to individuals who need a first H-1B petition, and providing such data to the company’s immigration program administrator for action. Specifically, it is important to identify university students who will be graduating this summer as well as new college graduates presently working for the company in F-1 status under their one year of optional practical training (OPT) work authorizations. We recommend that employers encourage their recruiters and managers to identify situations where a hiring decision can be accelerated in order to determine requirements and make offers for H-1B employment before March 31.

Accelerate conversion of employees in other nonimmigrant categories to H-1B status. Current employees in other nonimmigrant visa categories for whom you are pursuing or considering pursuing permanent residence may be eligible for a longer period of stay if H-1B status can be attained. Specifically, employers are encouraged to accelerate the conversion of current L-1B employees, who have a maximum stay of 5 years, as well as employees in categories which require an intention to return overseas, such as the TN, E-1/E-2, E-3, and free trade H-1B1. For example, BAL has often recommended conversion from L-1B to H-1B in the fourth year, but based on the anticipated availability of H-1Bs this April 1, employers should consider converting such employees to H-1B status as soon as the employer identifies a need for the L-1B employee to remain in the U.S. beyond the five-year maximum.

Recruit and retain workers currently in H-1B status. The cap does not generally limit transfers of existing H-1Bs from one employer to another. Regardless of when the cap is depleted, employers will still be allowed to hire H-1B professionals who are currently lawfully working under H-1B status for other cap-subject employers. (In addition, extensions for existing H-1B employees with the same employer are not impacted by the cap.2) Note, however, that since the H-1B cap generally does not apply to non-profit educational institutions and affiliated research institutions, employees of such institutions are subject to the cap when they move to a private sector employer.

BAL Comment: Advanced planning and preparation of petitions in the next few weeks will be even more important this year as the Department of Labor (DOL) has converted to a new system for Labor Condition Application (LCA) processing. As a result of the conversion to the new system, it takes up to 7 business days for LCA certifications to be issued, which are required prior to every H-1B filing with USCIS. Initiating the LCA certification request early will help ensure that the H-1B petitions are timely filed on the day USCIS begins accepting petitions.

- Berry Appleman & Leiden LLP

1 The annual visa cap includes 65,000 new H-1B applicants, plus 20,000 visas reserved for applicants holding advanced degrees from U.S. institutions. Certain educational institutions and nonprofit or government research organizations are exempt from the cap. Special cap number allocations are also available to H-1B nonimmigrants who are nationals of Chile or Singapore pursuant to special Free Trade Agreements, although the H-1B duration is limited to eighteen months (renewable).

2 Other immigration statuses are not impacted by the H-1B cap. These include intracompany transfers of company personnel from worldwide operations under the L-1 visa category. The E-3 status applicable to Australian citizens and the TN status applicable to Canadian and Mexican citizens are also not subject to the cap.

Department of Homeland Security Takes Aim at H-1B Visa Program

In the February 22, 2010 issue of Texas Lawyer, BAL partners Lynden Melmed and Paige Taylor describe how the Department of Homeland Security Takes Aim at the H-1B Visa Program.

The new memo issued by USCIS limits the ability for many staffing companies to hire or to extend the status of H-1B workers.
Many companies that supplement their headcounts in the down economy by using contractors may also be affected by the new policy.
Companies that use contractors in H-1B status should work with their vendors to determine how their supplemental workforces will be impacted.

Please click on the link above to view the article in its entirety.

Updated Euro Visa Application Fee at United States Consulates

February 24, 2010 - In recent months, the value of the U.S. dollar has strengthened. Therefore, as of March 1, 2010, the official dollar-euro exchange rate will be $1 = €0.75. As a result, U.S. consulates located in European countries using the euro are increasing the visa application fee (MRV fee) from €91.70 to €98.25. At these consulates, the MRV fee may only be paid in euros. The exchange rate is centrally determined at the American Embassy in Paris for all countries using euros.

BAL Comment: Foreign national travelers should plan to use the new fee if they will be making visa application appointments after March 1, 2010 at U.S. consulates in countries using the euro. BAL is prepared to assist foreign national travelers with visa application filings and regularly counsels international travelers on visa application procedures and processes.

- Berry Appleman & Leiden LLP

Travel Advisory Regarding Enhanced Screening at Ports of Entry

February 22, 2010 - Recent reports have emerged of enhanced screening at United States Ports of Entry (POEs) of foreign national travelers holding employment-based visas. Foreign nationals planning international travel should take every possible measure to gather all essential documentation establishing the validity of their employment-authorizing status in the United States prior to departure from or entry into the United States. The documents must include the original approval notice verifying the employment-authorizing status, a copy of the petition filed with the United States Citizenship and Immigration Services (USCIS) verifying the employment relationship, any recent pay stubs, and a recently issued employment confirmation letter from the employer. Employers must also be prepared to provide this documentation for foreign national employees traveling abroad.

The enhanced screening may involve additional questioning by Customs and Board Protection (CBP) officers at the POE, and enhanced scrutiny of supporting documentation carried by the foreign national. The questions will focus on the foreign national’s employer, how and by whom the foreign national is paid, the specific job duties for the position, and the salary. As part of the inspection, employers should be prepared for a telephonic inquiry by CBP to clarify any questions about the employment relationship and to confirm assertions made by the foreign national employee. Additionally, employers should take action to update company information available to the public through the internet as CBP will use company websites and other publicly available electronic media to confirm information in the petition. In the event that CBP is not satisfied with the outcome of the inspection, the foreign national may be asked to withdraw his or her application for admission, and may even be entered into expedited removal proceedings with a cancellation of the visa.

Statements issued by CBP Headquarters (HQ) indicate that the enhanced inspections have involved specific companies that are under investigation for suspicion of fraud. However, limited information has been provided by CBP as to which companies are being investigated and the extent of the implementation of these practices. What is clear is that all employment-based visa holders will be screened to determine admissibility and, according to CBP, at least one POE has implemented random checks for returning H-1B, L-1, and other employment-based visa holders. These random checks regularly involve secondary inspection.

CBP HQ has stated that the enhanced inspection practices are not limited to foreign nationals holding temporary employment-based visas. In fact, Lawful Permanent Residents (LPRs) returning to the United States who have post-1998 criminal convictions may be detained for as long as 24 hours while CBP seeks a copy of the conviction record, with special exceptions only available for cases that involve extenuating humanitarian circumstances. Additionally, Conditional Permanent Residents (CPRs) who have filed I-751 petitions with the government for removal of the conditions from their permanent resident status must carry with them a copy of the I-751 filing receipt, and will be detained for secondary inspection to investigate the validity of the I-751 petition.

BAL Comment: BAL encourages employers and foreign national employees to plan ahead when the foreign national employee will be traveling abroad. The foreign national must be proactive in gathering all the essential documentation needed to verify the lawful employment relationship and the validity of his or her status. Employers and employees should also anticipate possible secondary inspection procedures and travel delays. BAL is prepared to assist and counsel employers and foreign national employees on POE inspections and United States immigration policy. We can also identify the necessary documentation that the foreign national employee will need to carry while traveling so that he or she can be prepared beforehand.

- Berry Appleman & Leiden LLP

USCIS Policy Regarding Attorney Signatures on Applications and Petitions

February 19, 2010 - On February 17, U.S. Citizenship and Immigration Services (USCIS) held a teleconference with stakeholders to discuss its policy with respect to whether an outside attorney may sign petitions and applications on behalf of a client, such as through the use of a power of attorney. The agency made conflicting statements regarding who is authorized to sign petitions and applications filed with the agency, and intends to issue new guidance within the next few weeks. The uncertainty regarding the agency’s position on this issue means that companies should not file any petition or application signed by outside counsel without first considering the recent developments and their potential ramifications.

For years, USCIS has routinely accepted and approved petitions and applications where the petitioner or beneficiary had granted legal authorization to outside counsel to sign the required documents. On multiple occasions, USCIS issued guidance to the public recognizing the practice, and many companies and individuals relied upon the agency’s policy statements. Several weeks ago, however, USCIS published on its website a signed memorandum that stated that USCIS policy “continues to be that the individual applicant or petitioner must personally sign the application or petition.” The memorandum went on to state that an application or petition signed by counsel “does not” meet the regulatory requirements and will be rejected or denied - even when the outside lawyer had legal authority to sign the documents. Within a few days, USCIS pulled the memorandum from its website. The agency explained during the February 17th teleconference that the signed memorandum was removed so that further input could be obtained from the public regarding the policy.

During the teleconference, USCIS said that the released memorandum - which prohibits attorneys from signing forms except in very limited circumstances - does not represent a change in policy. However, the agency went on to say it will issue a “new policy” that will not become effective until after the FY2011 H-1B filing season begins (April 1, 2010), thereby allowing petitioners and applicants time to adapt to new requirements.

BAL Comment: BAL and the Global Personnel Alliance continue to engage with USCIS concerning the agency’s policy regarding the use of powers of attorney. Pending further guidance from USCIS, BAL recommends that petitioners and beneficiaries refrain from using a power of attorney without first speaking with counsel. If you would like to provide input to the agency regarding this issue and how it will affect your company, we encourage you to contact Christiana Kern at ckern@balglobal.com or by phone at (202) 682-6128.

- Berry Appleman & Leiden LLP

RUSSIA - 2010 Foreign Labor Quotas Announced/Reminder Regarding Compliance

February 25, 2010 - This is a follow up to BAL’s January 25 client alert (please click here). On February 5, the Russian Federal Service of Employment (FSE) released the new foreign labor quotas (i.e., a Russian company’s Employment Permits) available for 2010. These quotas are granted to Russian companies that are registered with the Federal Migration Service (FMS) and that submitted company foreign labor forecasts prior to May 1, 2009.

The FSE establishes the national quota numbers which are then divided by the FSE’s Territorial Department at the municipal and provincial levels. The Employment Permit forecast covers foreign workers who will renew existing work permits as well as new foreign workers. Forecasts are generally based on nationality, profession, and academic qualification requirements. While quotas have been determined for 2010, a Russian company can still submit, under certain circumstances, a labor forecast for 2010 by providing additional documents and information confirming its reasons for needing foreign workers.

In connection with the new work permit quotas, the Russian Health and Social Development Ministry has advised that high domestic unemployment is a pressing concern for the Russian Government. The total number of personal work permits available to foreign nationals cannot exceed a Russian company’s total number of Employment Permits. The FMS and FSE are reminding Russian companies that collaborative efforts continue between these two agencies to share foreign worker information, to forecast the foreign labor quotas more accurately, and to ensure company/foreign worker compliance.

BAL Comment: Determinations by the FMS regarding national quotas and a particular company’s Employment Permit quota sometimes seem arbitrary. The FMS, with little or no advance public notice, can, in its discretion, reduce quotas at any time or cease issuing work permits. Given the unique nature of submitting foreign labor forecasts, companies that are considering renewing work permits and hiring new assignees should carefully assess the Russian company’s staffing needs.

Under current regulations, all registered Russian company sponsors are required to submit their 2011 foreign labor forecasts to their local FSEs no later than May 1, 2010. Companies with first quarter 2011 assignment start dates should review the appropriate steps to plan work permit availability between the 2010-2011 calendar years.

This information has been provided by the BAL Global Practice group and our network provider located in Russia. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

AUSTRALIA - Major Changes to the Australian General Skilled Migration Program

February 23, 2010 - Effective February 8, the Australian Minister for Immigration and Citizenship announced significant changes to the General Skilled Migration (GSM) program that will immediately impact unsponsored GSM applications filed on or after February 8, 2010. These changes do not affect the traditional employer-nominated scheme (ENS) visa categories [e.g., the Subclass 457 visas].

The GSM category is for people who are applying under their own merits and who are not sponsored under an ENS scheme. The GSM category covers numerous subclass visa subcategories, which are for individuals with expertise in an occupation on the Skilled Occupation List (SOL). In general, applicants must be between the ages of 18 and 45; possess fluency in English; and have recent, skilled work experience in a SOL occupation or be eligible under another qualified status [e.g., applicants who already hold a Skilled-Graduate (Subclass 485) visa].

GSM applicants have previously been able to apply under the Migration Occupation in Demand List (MODL) to meet Australia’s medium to long-term future skill needs. However, after an assessment conducted due to concerns that the MODL is not supporting the GSM program’s directive, the Ministry has decided to abolish the MODL. Effective February 8, 2010, GSM visa applicants may no longer obtain additional points on the GSM points test for working in a MODL position. Applicants who lodged a GSM application prior to February 8, 2010 will not be affected by the revocation of the MODL.

Other new measures are also being considered by Australia’s Department of Immigration and Citizenship (DIAC) to tighten Australia’s immigration rules. To ensure skilled migration outcomes are truly being driven by the demands of the Australian labor market, a new SOL, together with details of a new points-based test, will likely be released by April 2010 that will abolish the MODL, remove some occupations no longer in demand in Australia, place a higher emphasis on visa applicants obtaining ENS by an employer or State/Territory Government, and replace the current Critical Skills List (an interim administrative measure adopted while the MODL review was being undertaken). The current SOL is expected to remain in force until July 1, 2010, at which time the new SOL will be implemented.

The immigration authorities have recently also made changes to the permanent residency priority schedule. Foreign nationals with pending permanent residence permit applications filed prior to February 8, 2010, or foreign nationals considering applying for permanent residence under the GSM category, should consult with counsel to confirm status and options. Under the new priority schedule, foreign workers sponsored under the ENS will be assigned highest priority to apply for permanent residence. In order to qualify under ENS, an applicant must possess a guaranteed job offer in Australia. For further review of priority processes, see this link: http://www.immi.gov.au/skilled/general-skilled-migration/pdf/priority-processing.pdf.

BAL Comment: Companies should anticipate measures by the DIAC to promote employer-nominated sponsorship over those for unsponsored workers. In addition, the DIAC may introduce visa quotas granted according to ENS occupations. Shortage or critical demand occupations will more than likely have higher quotas. Also, the anticipated release of the new points-based system (PBS) may prove to be more restrictive for some GSM applicants.

In addition, Australia’s DIAC will place a higher emphasis on foreign workers who obtain direct sponsorship by an Australian host company, have the requisite professional/academic credentials, and meet English proficiency requirements. Companies considering future employee assignments to Australia should review whether the host entity is qualified by the DIAC to host foreign workers and ensure that all applicants possess the requisite academic, professional and English language qualifications relevant to the appropriate category of employment authorization.

This information has been provided by the BAL Global Practice group and our network partner located in Australia. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

SINGAPORE - Government Considering Imposing Quota System for Low Skilled Workers

February 23, 2010 - A committee comprised of finance, economic, immigration and leaders of prominent Singapore employers has made a recommendation to the government to impose a quota system on low skilled workers. The purpose of establishing limits to the numbers of foreign workers is to protect the working class in Singapore, but also to contain the overall number of foreign nationals to the current levels of 1/3 of the overall working population. These recommendations have been initially accepted by the government and will be debated in an upcoming meeting. The exact quota or limit to be imposed has yet to be defined.

BAL Comment: This proposal would only affect low-skilled workers in Singapore on a work permit or S pass. Professionals and highly skilled workers under P and Q passes will most likely not be affected. BAL will continue to monitor the situation and will send an update when any new legislation is officially introduced.

This alert has been provided by the BAL Global Practice group and our network providers located in Singapore. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

JAPAN - Insurance Requirement Eliminated

February 19, 2010 - This alert updates BAL’s prior posting on the new Japanese Immigration Act (please click here). By the end of March 2010, the Japan Immigration Bureau will delete the requirement for foreign nationals to enroll in the Social Insurance System when requesting a change or extension of visa status. This requirement has been eliminated in response to an outcry from foreign workers. Mandatory enrollment in the government’s insurance scheme was considered unfair by many applicants who wanted the choice of enrolling in a private insurance program instead.

BAL Comment: Although mandatory enrollment in the Social Insurance System will not be required as of April 1, 2010, the Japan Immigration Bureau is expected to provide literature on the Social Insurance System to visa applicants who are not already participating in the program. Lack of enrollment will not, however, have an effect on the outcome of a visa application.

This information has been provided by the BAL Global Practice group and our network providers located in Tokyo, Japan. For additional information please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

MEXICO - Canadian and U.S. Citizens and Permanent Residents Require Valid Passports for Entry

February 17, 2010 - On February 16, Mexico's national Immigration Office (Instituto Nacional de Migración, or INM) released an internal bulletin confirming formal adoption of the INM's deadline to implement changes to existing passport requirements for entry to Mexico. Effective March 1, 2010, all Canadian and U.S. citizens and all Canadian and U.S. permanent residents must present valid passports when entering Mexico via air, land or sea ports of entry.

Implementation of this new measure may not be enforced at all times at all Mexican ports of entry (e.g., popular cruise ship ports). Discretionary enforcement may occur for Canadian and U.S. citizens and permanent residents who are cross-border commuters along Mexico's traditional manufacturing border zone (approximately 26 kms or 16 miles into Mexico). However, to ensure complete compliance with these new regulations, cross-border commuters should carry appropriate documentation at all times. Travelers are also reminded that, under Western Hemisphere Travel Initiative (WHTI) guidelines, passengers transiting through the U.S. to Mexico or arriving into the U.S. must also present valid passports or other qualified, valid travel documents permitted under WHTI guidelines.

BAL Comment: Although official details have yet to be announced, all Canadian and U.S. citizens and permanent residents entering Mexico on or after March 1 must present passports that are valid for at least six months beyond the date of entry and that have at least two blank visa pages. Canadian and U.S. permanent residents must also present valid permanent residence documents in order to enter Mexico. BAL will provide updates as further clarification is provided regarding this new measure.

This information has been provided by the BAL Global Practice group and our network provider located in Mexico. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

MEXICO - New Manual of Criteria and Migration Procedures

February 8, 2010 - On January 29, 2010, Mexico’s National Migration Institute published its Manual of Criteria and Migration Procedures (“Manual de Criterios y Trámites Migratorios del Instituto Nacional de Migración” or “Manual”). The Manual will start to be enforced May 1, 2010 throughout the 32 delegations of the National Migration Institute across the country.

Some of the most relevant aspects of the Manual are the following:

All migratory forms for tourists, business visitors and technical visitors with lucrative activities, who intend to stay in Mexico for up to 180 days, will be replaced by a single “FMM” form (“Forma Migratoria Múltiple”). The FMM will serve as evidence of the foreign national’s immigration status while in Mexico;
The business visitor criteria are clearly defined;
The ABTC (Asia-Pacific Economic Cooperation business travel card) criteria are clearly defined;
In the following weeks, the National Migration Institute will publish the formats of the new migration cards that will replace the FM2 and FM3 booklets. Changes of activity, domicile, marital status, etc. will no longer have to be annotated on the migratory document, thereby allowing the foreign national the ability to travel in and out of the country while a change of status/conditions application is in process without having to request an exit and re-entry permit;
Consular Posts will no longer issue FM2 or FM3 booklets. Instead, the Consular Post will place a visa sticker on the foreign national’s passport, upon receipt of the petition’s approval from the National Migration institute. The sticker will allow entry into Mexico within 365 days of issuance. Upon entry, the foreign national must obtain the new FM2 or FM3 migration card within 30 days.

BAL Comment: The intention of the National Migration Institute is to clarify, streamline and simplify processing requirements for each immigration category. Applications currently being processed and those filed before May 1, 2010 will be analyzed and processed based on current policies, practices and procedures.

This information has been provided by the BAL Global Practice group and our network provider located in Mexico. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

ISRAEL - Ministry of Interior Announces Reforms Aimed at Reducing Illegal Immigration

February 5, 2010 - The Israeli Government is initiating sweeping reforms to the country's immigration laws regarding employment of foreign workers. This alert is issued as an update to BAL's January 4 client alert (please click here). The Ministry of Finance announced that the first measures of control will be aimed specifically at reducing the number of illegal workers employed as migrant laborers and lower-skilled service industry workers.

While the announcement is not aimed specifically at the B-1 professional and accompanying dependant B-2 categories, the government's decision does instruct the Ministry of Interior (MOI) to reduce incentives for employing foreign workers in Israel and to identify specific geographical areas where foreign workers are most needed. In addition, the legislation will be designed to provide greater powers of enforcement to the National Immigration Authority (NIA) and will enable severe repercussions for employing illegal workers.

Given increased compliance requirements, assignees in Israel should keep in mind that the MOI issues B-1/B-2 visas as two, separate visa endorsements. The MOI will endorse a B-1/B-2 Permit of Stay Visa valid for 12 months, together with a separate B-1/B-2 Entry Visa only valid for 11 months. Assignees and accompanying family members should not to depart Israel during this one-month gap (i.e., after the expiration of the Entry Visa) without obtaining a Special Re-Entry Permit prior to any overseas travel.

BAL Comment: It is expected that the government's announcement will have an effect on the B-1 professional worker category, although specific regulations have not yet been published. However, for the immediate term, the Israeli MOI will likely be taking measures to enforce regulations regarding increased worksite inspections and border control. Companies should be prepared for additional restrictions and/or requirements when obtaining B-1/B-2 visas in the professional category for assignees and should advise Israeli assignees to observe all immigration compliance requirements.

This information has been provided by the BAL Global Practice group and our network provider located in Israel. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

CHINA - Shanghai’s Foreign Affairs Bureau Announces New Five-Year Residence License

February 4, 2010 - After a six-month trial period in Shanghai’s Pudong New District, the Shanghai Foreign Affairs Bureau (FAB) released a new regulation on January 5 confirming the availability of a new, five-year residence license (i.e., a residence permit) for certain foreign professional worker categories or foreign nationals deemed to be of strategic importance by the Shanghai government.

Under the regulation, which is part of an attempt to bolster Shanghai’s economic growth, six categories of foreign nationals who will reside in the City of Shanghai are eligible to apply for residence permits valid from three to five years, instead of the usual 12-month permits. The six qualifying categories are scientific researchers; senior management positions (e.g., Director-General, Vice President, and CFO); private investors; foreign nationals with unusually highly-specialized skills; celebrities; and foreigners awarded special recognition for their contributions to China. Foreign nationals fitting one of these categories and presently residing in Shanghai should verify their eligibility to amend their residence permits with the FAB.

The FAB will probably limit initial applications to qualified, registered Chinese companies that evidence a registered capital of at least US$3 million and that are sponsoring qualified, senior foreign national workers. Once the FAB approves the Chinese company’s application, the employee may register for his/her residence permit with the Shanghai Public Security Bureau.

BAL Comment: Since the FAB only recently formalized this policy, the implementation and protocols are not yet finalized. In addition, depending on the type of Chinese sponsoring entity, the FAB may require the Chinese sponsor to undergo a possibly lengthy registration process with the Shanghai Foreign Economic Trade Administration (SFETA) prior to being registered by the FAB as a qualifying sponsor. Therefore, in addition to ensuring that the foreign national candidate qualifies, the sponsoring company should review its capital and the SFETA registration requirements, if any.

This information has been provided by the BAL Global Practice group and our network provider located in China. For additional information, please contact GlobalVisaGroup@balglobal.com.

- Berry Appleman & Leiden LLP

Disclaimer: This newsletter is intended as a report on legal developments. It is not intended as legal advice. Readers should not act upon the contained information without professional advice. No portion of this newsletter may be reproduced without express permission.