Forex Articles

There should be an uptick in demand for passports this year, according to the U.S. Department of State. That's because the millions of passports issued nearly 10 years ago, when the Western Hemisphere Travel Initiative (WHTI) – which requires passports for all travelers, including U.S. citizens, returning to the U.S. by air from Canada, Mexico, Bermuda and the Caribbean – went into effect, are set to expire, triggering what should be a flood of renewals.

The Intelligence Reform and Terrorism Prevention Act of 2004 required the U.S. Department of Homeland Security and Department of State to develop and implement a plan to require all travelers, U.S. citizens and foreign nationals alike, to present a passport or other document, or a combination of documents, that denote identity and citizenship when entering the United States. According to the U.S. Department of State, the goal of the WHTI is to strengthen border security and facilitate entry into the United States for U.S. citizens and legitimate foreign visitors by providing standardized, secure and reliable documentation which will allow the Department of Homeland Security to quickly, reliably and accurately identify a traveler.

The result is that all citizens of the U.S., Canada, Mexico and Bermuda must have a valid passport (or other accepted document) to enter or depart the United States from within the Western Hemisphere. The initiative was implemented in two phases: Air travel requirements went into effect on Jan. 23, 2007, while land and sea requirements began June 1, 2009.

In the years before WHTI went into effect relatively few Americans had applied for passports, partly because up to that point they could travel within the Western Hemisphere with either no or very minimal identification. As the new requirements went into effect, the numbers skyrocketed: In 2007 18,382,798 passports were issued – approximately 6.3 million more than the previous year.

That increased demand 10 years ago created a serious backlog in the passport application process, and it took 10 weeks instead of the usual six to process routine passport applications. It's happening again now: The State Department expects to issue more than 17 million new passports and renewals this year alone – about 1.5 million more than last year.

While the State Department would like to avoid a repeat of the backlog a decade ago, the sheer demand for passports this year will make it hard to dodge. The processing time is already longer than usual. Right now, it will take roughly six weeks for a passport renewal, which is two weeks longer than the process took last year, Beth Finan, a press officer with the Bureau of Consular Affairs, told USA Today.

Adding to passport demand is the implementation of the REAL ID Act for air travel. Beginning Jan. 22, 2018, air passengers with a driver's license issued by a state that is not in compliance with the REAL ID Act (and that does not have an extension) will need to show an alternative form of acceptable identification, such as a passport – even for domestic travel (check the status of your state here). Travelers with a driver's license issued by a compliant state will still be able to use their driver's license to board.

If your passport is set to expire soon, the State Department advises that you renew it now to avoid potential disruptions to your travel plans that could be caused by processing delays. Another reason to renew soon: Many countries require that U.S. passports be valid for at least three to six months from either the date of entry or exit, depending on the country. The 26 European countries that are part of the Schengen Agreement (see a list of countries here), for example, require three months' validity beyond the intended date of departure. While these requirements aren't necessarily new, they are now being more strictly enforced in some countries. What it means is that you can be denied entry into a country even if your passport is still valid. Note that passports for minors expire sooner, after five years (instead of the 10 years for adults).

You must submit an application in person at a designated Passport Acceptance Facility, such as a post office, clerk of court, or other state, county, township and municipal office (find a facility in your area here) in order to:

• Apply for a first-time passport
• Renew a passport that is not eligible to renew by mail
• Apply for a passport for a child under age 16
• Apply for a passport for an adolescent who is 16 or 17 years old

You may submit an application by mail in order to:

• Renew a passport (must be eligible*)
• Change or correct a passport
• Replace a limited passport, such as one issued for minors (must be eligible)

*To be eligible to renew a passport by mail your most recent U.S. passport must be undamaged and submitted with your application, and the passport must have been issued when you were at least 16, issued within the last 15 years, and issued in your current name (or with evidence of a legal name change, such as an original or certified copy of your marriage certificate).

For more information, visit the State Department's U.S. Passports and International Travel website.

It costs $110 to renew or apply for a first-time passport (passports for minors are $80), and the processing time is currently about six weeks. First-timers also have to pay an execution fee of $25, which is nonrefundable if you don't end up getting a passport. If you need a passport sooner, you can pay an additional fee ($60 plus $20.66 for overnight delivery) for expedited service. Expedited service takes about three weeks – even quicker if you can show an urgent need. The State Department warns that customers who use passport expeditor/courier companies will not receive their passports any faster than those applying directly at a passport agency, but they will pay additional fees.

If you're going to need a passport this year, plan on processing delays. The best strategy is to submit your application now, so you can avoid potential disruptions of your travel plans later. Also, be aware that many countries require your passport to be valid for several months beyond your intended visit. In general, plan on renewing your passport now if it will have less than six months' validity while you are traveling.