The cost of tighter border controls and visa delays to US firms has been in the tens of billions of dollars according to recent research by leading business groups.  Business leaders have expressed concern that the present administration has cast its security net too wide at the expense of international commerce, resulting in increasing pressure for firms to outsource work or set up offices abroad.  Some of the nation's leading scientific and academic organizations have warned that if action is not taken quickly, U.S. academic institutions could lose millions of dollars in tuition and other revenues, in addition to losing much of the brainpower responsible for keeping the U.S. at the forefront of science and technology.

The study, conducted by the Santangelo Group and released June 2, 2004, is entitled “Do Visa Delays Hurt U.S. Business?”  Researchers surveyed 734 members of eight leading international trade associations.  According to released findings, U.S. companies suffered $30.7 billion ($25.35 billion in revenue losses, and $5.15 billion in indirect costs) in financial impact between July 2002 and March 2004 as a result of delays and denials in the processing of business visas.  Medium sized companies reported the greatest income loss.  Companies surveyed reported that the most severe processing issues were length and unpredictability of processing times, excessively long waiting times to receive an interview, and apparently arbitrary visa denials.  Visa applicants from China, India and Russia who were trying to conduct business in the U.S. were found to have the most difficulty obtaining visas. 

Many other findings were reported in the survey, which culminated in a list of suggestions for streamlining the visa processing system.  Specific suggestions outlined in the study were: 48-hour visa processing times, with a maximum of 30 days; Greater transparency of consular posts and more consistency in consular procedures; a "Gold Card" program for frequent users of immigration services to allow for more efficiency and communication; Integration of government databases; Increased availability of multiple-entry, longer duration visas; Internet interviews with consular posts; and Increased Congressional oversight of consular services.

Administration officials say that they are aware of the risk of increased costs to businesses with tighter security, and claim they are making efforts to address them.  Some of these efforts include an increase in number of consular offices and an investment in new computer systems and software.  According to one spokeswoman for the Bureau of Consular Affairs, more than 80% of visa applications requiring extra screening are now processed within three weeks.