Until most recently, Canadians working and living in the U.S. as L-1 intracompany transferees have been able to file a subsequent application for admission in L-1 status relatively easily, applying in the same manner by which they applied for their initial L entry with U.S. Customs and Border Protection (CBP).  However, a new interpretation of the applicable regulations now adopted by CBP at all ports of entry and preclearance locations in Canada has abruptly ended the status-quo. Employers of Canadians in the U.S. in L-1 status need to be aware of this and plan accordingly.

Based on the North American Free Trade Agreement (NAFTA) which became effective in 1994, Canadians seeking L-1 status sponsored by a qualifying multinational company in the U.S. can petition for this nonimmigrant classification in-person with CBP in Canada at a port of entry or at an airport with Pre-Flight Inspection at the same time they file an application for admission. CBP adjudicates these L-1 petitions and applications for admission same-day, efficiently facilitating the transfer of an employee found to be critical to the sponsoring company’s U.S. operations. This quick and straightforward processing is in line with the objective of NAFTA, to lessen the barriers between the U.S. and Canada to better enable and advance economic activity. Further, NAFTA’s aim to reduce restrictions has further been fulfilled by the United States’ elimination of the visa requirement for Canadian L-1 employees and their dependents in L-2 status to enter the country.

For years Canadians have routinely submitted subsequent L-1 petitions to CBP seeking time in the U.S. beyond the initially granted three-year period. Previously, Canadians had been able to leave the U.S. and submit “new” L-1 petitions to CBP.[1]  CBP has the authority to both adjudicate their L-1 petitions, and to admit them into the country in L-1 status.  Now, CBP is refusing to process any petition for someone who has been in the U.S. in L-1 status within the most recent year [2], referring to nuances within the controlling regulations that could apply in such instances.

While there are legal arguments and sound logic supporting CBP’s authority to adjudicate subsequent L-1 petitions for Canadians, the regulations do not grant CBP this power prima facially; conversely, it is explicitly granted to USCIS. Canadians in the U.S. in L-1 status must petition USCIS to both adjudicate their underlying application for an extension of their L-1 status, and to grant them personally an extension of their stay in the country. This is specifically applicable to in-country petitions where the L-1 employee does not leave the United States.

At first, only some ports of entry and preclearance locations had adopted this narrow interpretation of CBP’s authority early this year. Now it has been reported to be in place throughout all of Canada. There has not been an official policy announcement by CBP regarding this drastic departure from how they operated regarding this issue for years.

This is a major change for companies with Canadians working in the U.S. in L-1 status.  Instead of sending employees on a quick trip to the border and back for subsequent L-1 petition adjudication, employers must now anticipate the more lengthy and involved process for petition extensions/renewals submitted to USCIS. Normal adjudication times are between 1.5 to 4.5 months according to USCIS’s current estimates. Employers can expedite this by electing for Premium Processing for an additional fee of $1,410 that guarantees adjudication in 15 calendar days. However, this faster method may increase the chance of a Request for Evidence (RFE) being issued for the case.

Although an employee will remain in lawful status to live and work in the U.S. as long as an extension petition has been submitted to USCIS by the status expiration date, employees can face several problems. The validity of critical documents such as drivers’ licenses are often limited to the status expiration date and may not be able to be renewed until approval of the status extension has been granted.  Further, employees may not be able to travel abroad and re-enter with L-1 status if the extension has not been granted.

Finally, this new practice by CBP may be more difficult to navigate for multinational companies that frequently transfer employees to the U.S. based on their Blanket L Approval. A petition under the company’s Blanket L is one that an employee submits to a consular post abroad for adjudication by a Consular Officer who will also conduct an interview with the employee. The employee needs to wait only a few days before travel to the U.S. to allow the consular post a time to issue a visa in the employee’s passport. This process is favored by companies with a Blanket L Approval since it is more simple and efficient than first submitting a petition to USCIS. However, this is not a straightforward option for Canadians. Consular posts in Canada can be hesitant to adjudicate petitions for Canadian citizens submitted under a Blanket L given that: (1) they are unfamiliar with doing so, since these petitions have almost always been submitted to CBP; (2) petitions submitted under a Blanket are always considered “new” petitions, even if a person is renewing his/her previously held L-status; and (3) Canadians normally do not require visas to enter the U.S. in L status, and this is a primary function of the consular post.

Greenberg Traurig will continue to monitor this changing situation and provide updates as information becomes available.

1 The petition would list the employee’s subsequent time in the United States in L-1 status, but would be characterized as a new petition with the fees required to accompany only an initial petition being paid.

2 Time spent in the U.S. within the past year in L-1 status is not the de-facto controlling rule CBP is applying uniformly. At some ports and preclearance locations, CBP is processing petitions for L-1 holders who intermittently work in the United States as long as they maintain a residence in Canada and spend less than 50% of their time in the United States.

For more on L-1 visas, click here.