Corporate Immigration 2024

Last Updated June 25, 2024

USA - Michigan

Trends and Developments


Author



Butzel Long PC was founded in 1854 and the firm has played a prominent role in the development and growth of several major industries. Business leaders have turned to it for innovative, highly-effective legal counsel for over 170 years. It has a long and successful history of developing new capabilities and deepening its expertise for its clients’ benefit. It strives to be on the cutting edge of technology, manufacturing, e-commerce, biotechnology, intellectual property, and cross-border operations and transactions.

Corporate immigration plays a crucial role in the global movement of talent, particularly for international companies in the manufacturing sector. As a state historically and presently renowned for its robust manufacturing industry, Michigan has witnessed significant developments in corporate immigration in recent years.

The resurgence of global mobility and international business activities since the COVID-19 pandemic has underscored the importance of corporate immigration policies. With its dense concentration of international manufacturing companies, Michigan has been at the forefront of these changes. Its economy is deeply intertwined with the global automotive industry and other manufacturing sectors.

This article delves into the most recent developments in corporate immigration, focusing on B-1 commercial and industrial equipment installers and L-1 transferees. Both are pivotal categories for the manufacturing sector from my limited and likely biased observation.

B-1 Commercial or Industrial Equipment Installers

Corporate immigration has become a linchpin in the global mobility of specialised talent, particularly in sectors like manufacturing that require precise expertise not readily available locally. Michigan has been historically renowned in the manufacturing industry and still is today. This positions it as a critical hub for international corporate immigration, especially since China's reopening post COVID-19.

The resurgence of international business activities and global mobility in recent years underscores the essential role of sound corporate immigration policies. These policies facilitate the seamless integration of crucial technical skills into the local workforce, boosting technological advancements and local employment opportunities.

The B-1 visa category, tailored for commercial or industrial equipment installers, embodies these principles by providing a robust legal framework for the temporary entry of specialised workers necessary for the installation, service, or repair of sophisticated equipment crucial to Michigan's manufacturing landscape.

The B-1 visa category, under the US Department of State’s specifications of 9 FAM 402.2-5(E)(1), offers a vital legal framework for commercial or industrial workers entering the United States to install, service, or repair equipment or machinery. The US Department of Homeland Security, via US Custom and Border Protection, also acknowledges that this is one of the permissible activities under the B-1 visa programme.

This framework is particularly pertinent for manufacturers who are reliant on specialised equipment not available domestically in the USA. To qualify for a B-1 visa on this basis, the contract of sale must require the foreign seller to provide the relevant services and the B-1 installer must possess unique knowledge essential to the seller's contractual obligations. Both requirements underscore the visa's importance in fulfilling contractual duties and facilitating essential training of local American workers.

Securing a B-1 visa for commercial or industrial equipment installers, particularly through US embassies and consulates in China, had been an insurmountable challenge until recently. From late 2021, it seemed nearly impossible for installers to obtain this visa. For the lucky few who did obtain it, it was highly likely they would be questioned extensively or even refused entry when they arrived at the US border.

This created significant obstacles for the maintenance and operation of specialised international equipment within the US manufacturing and industrial sectors.

Fortunately, and potentially thanks to bilateral efforts from the US and Chinese governments in avoiding further “decoupling”, there has been a recent relaxation on visa issuance and admission of B-1 installers. To be successful at the overseas consulate and the border, installers had to convincingly demonstrate their specialised skills were essential for the equipment's installation, service, or repair, and that these skills were not readily available in the US labour market.

However, demonstrating the required expertise for equipment inherently lacks an objective methodology, making the process somewhat subjective and reliant on self-reported documentation, such as resumes and employment letters issued by their employers, who are the parties interested in dispatching them to the USA. These documents are designed to highlight the installers’ experience and proficiency with the specific equipment or machinery, which can be reasonably challenged for their authenticity.

However, the adjudicating officer lacks the industry-specific skills and knowledge to adequately and fairly evaluate installers’ self-claim expertise. This situation underscores the necessity for clear, official guidance from the US immigration authorities on what constitutes acceptable documentation for the equipment-related expertise. This guidance should aim to establish a more objective framework that can be used to an installer’s expertise being evaluated effectively, such as by providing specific criteria or a list of recognised certifications, trainings, or other forms of third-party verification. This will allow the authorities to help mitigate the existing challenges.

This would not only streamline the visa application process for B-1 installers but also enhance the transparency and fairness of the adjudication process.

Introducing a standardised approach to validate the specialised skills and knowledge of installers can streamline the visa process and border entries. It would also support bilateral efforts to maintain strong economic ties between the USA and China, ensuring that essential technical expertise is available in the USA to bolster the manufacturing and industrial sectors.

By establishing objective criteria, such as recognised certifications, trainings, or other third-party verifications, US immigration authorities can enhance the transparency and fairness of the adjudication process. This improvement is vital for navigating the complexities of the modern global workforce and protecting the interests of US industries and labour markets.

The dynamic nature of international corporate immigration, exemplified by recent relaxations in visa regulations for B-1 installers, highlights the ongoing need for adaptive policies that respond to the complex realities of global trade and talent movement. Michigan's strategic response to these changes, driven by its strong manufacturing base and international connections, particularly with China, reflects a proactive approach to sustaining its industrial competitiveness.

The evolving corporate immigration landscape not only facilitates the immediate needs of equipment installation and service but also enhances long-term industry sustainability by fostering a cross-cultural exchange of knowledge and skills. This approach not only supports Michigan's economic growth but also solidifies its position as a leader in integrating global talent into local industries.

L-1 Intracompany Transferees.

The L-1 visa programme plays a crucial role in reinforcing the backbone of multinational companies operating in the USA, especially those rooted in industries requiring intricate knowledge and managerial oversight. As part of Michigan's overarching strategy to enhance its economic landscape, the L-1 visa facilitates the strategic transfer of key personnel who play pivotal roles in operational continuity and knowledge transfer.

This programme is particularly valuable in a post-pandemic era where the need for seamless business operations and the integration of diverse managerial and technical skills are more pronounced than ever. The dual L-1 visa pathways, catering to both managerial and specialised knowledge roles, provide a structured yet flexible framework that aligns with the intricate needs of multinational corporations deeply embedded in Michigan's economic fabric.

For companies that require international talent on a regular basis, the L-1 visa programme is the backbone to this critical international workforce, both in the initial phase when multinational companies are entering the US market and once they are well-established. Under the regulations outlined in 8 CFR § 214.2(l), the L-1 programme facilitates the temporary transfer of foreign workers to the United States to occupy roles within a parent, branch, affiliate, or subsidiary of their employer in a capacity that is managerial, executive, or involves specialised knowledge.

There are two pathways under this programme. The L-1A classification is designed for managerial and executives roles that involve overseeing the organisation's operations or involve a significant component of doing so, making strategic decisions, and having substantial supervisory responsibility over professional or even other managerial employees. This category is aimed at those in managerial or leadership positions and ensure its successful operation within the US market.

The L-1B visa on the other hand targets employees with specialised knowledge, a designation for individuals who possess an advanced understanding or unique expertise in the company's products, services, research methods, or other operational processes. These employees are recognised for their irreplaceable knowledge of the company-specific crafts, making them the key to the organisation's competitive edge and operational efficiency.

Essentially, while the L-1A classification focuses on the transfer of leadership and managerial talent, the L-1B visa is designed to facilitate the movement of employees whose knowledge and skills are crucial and distinct to the company's operations.

Recent developments in the adjudication process for L-1s have highlighted significant challenges for companies seeking to transfer employees to the United States, particularly in demonstrating the “day-to-day activities” that qualify an employee for either managerial roles or specialised knowledge positions. The requirement to provide detailed documentation of an employee’s daily responsibilities poses a complex challenge, especially when it involves disclosing sensitive information that could potentially include trade secrets or client-confidential data.

For example, providing email correspondences or engineering drawings as evidence of an employee's role and expertise could inadvertently expose proprietary information to US immigration authorities, posing a significant risk to the company’s competitive position and client trust. This type of documentation requirement is further compounded for companies operating in a fast-paced environment or culture, where many daily activities may not be documented, or documented in a way that fits the adjudicating officer’s expectations.

The reliance on formal documentation to prove an employee's eligibility under the L-1 visa categories does not align well with the operational realities of these industries, where much of the knowledge and managerial oversight is demonstrated through on-the-job actions rather than through a paper trail.

A more flexible approach that recognises the diversity of corporate cultures and the sensitivity of the information involved is necessary. This could involve alternative methods, potentially moving away from the “day-to-day approach”, of demonstrating an employee's qualifications and roles that do not necessitate the disclosure of confidential information or rely heavily on documented communication. Such a revision would not only protect companies' proprietary and sensitive information but also make the process more accommodating to the various ways businesses operate, particularly in sectors less dependent on detailed documentary evidence of day-to-day activities.

Revisiting these requirements would be a step towards a more practical and secure process for both companies and the US immigration system.

As Michigan continues to carve out its niche in the global manufacturing sector, the nuanced application and adaptation of the L-1 visa programme underscores the state's commitment to fostering an environment conducive to international business and talent development. The ongoing challenges and refinements in the adjudication process for L-1 visas mirror the broader dialogue on how corporate immigration can be optimised to support the economic interests of the state and the operational needs of multinational corporations.

This alignment is crucial not only for maintaining the integrity and competitiveness of Michigan’s industries but also for ensuring that the state remains a welcoming and effective location for international business operations and talent mobility. The continuous improvement of immigration frameworks, such as those for the L-1 visa, will be key to enhancing Michigan's role as a pivotal player in the global economic arena, harnessing the full potential of international corporate synergies.

Conclusion

Corporate immigration significantly impacts the global talent landscape, particularly for international companies in the manufacturing sector. Michigan, with its thriving manufacturing industry, has experienced substantial developments in this area, especially following the reopening of China after the COVID-19 pandemic. The resurgence of global mobility and business activities has highlighted the importance of effective corporate immigration policies, with Michigan playing a pivotal role due to its concentration of international manufacturing companies.

The focus on B-1 commercial or industrial equipment installers and L-1 transferees is crucial for the sector, reflecting the nuanced challenges and opportunities within corporate immigration from a potentially limited and biased observation.

These reflections and calls for change are not just challenges but opportunities for growth and adaptation. They underscore the need for continuous dialogue and collaboration between businesses, immigration authorities, and policymakers to streamline the corporate immigration process. By doing so, we can ensure that it remains robust, fair, and responsive to the evolving needs of the global business landscape, thereby supporting the invaluable contribution of international talent to industries and economies worldwide, particularly in dynamic sectors like manufacturing in Michigan.

Butzel Long PC

2410 Woodlake Drive Ste 420
Okemos MI 48864
United States

517 372 4449

517 930 2072

xian@butzel.com www.butzel.com/professionals-he-xian
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Trends and Developments

Author



Butzel Long PC was founded in 1854 and the firm has played a prominent role in the development and growth of several major industries. Business leaders have turned to it for innovative, highly-effective legal counsel for over 170 years. It has a long and successful history of developing new capabilities and deepening its expertise for its clients’ benefit. It strives to be on the cutting edge of technology, manufacturing, e-commerce, biotechnology, intellectual property, and cross-border operations and transactions.

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