The L-1B non-immigrant classification has always been used as a helpful vehicle that enables a U.S. employer to transfer employees with specialized knowledge from one of its affiliated foreign offices to one of its offices in the United States. Specialized knowledge means special knowledge possessed by an individual of the petitioning organization’s product, service, research, equipment, techniques, management, or other interests and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures.

U.S. Citizenship and Immigration Services (USCIS) have become stricter and almost unpredictable in adjudicating L-1B petitions in recent years. As such, it has become extremely difficult and onerous for multinational corporations to transfer their foreign employees with specialized knowledge to their U.S. offices to meet the needs of the ever changing market with their foreign talents.

According to a recent report released by National Foundation for American Policy (NFAP, a non-profit, non-partisan research organization focused on immigration, international trade and other issues related to globalization and the economy), the L-1B denial rates have remained obstinately high in recent years. Furthermore, the denial rates for L-1B petitions filed on behalf of Indian nationals are even astoundingly higher. Here are some of the numbers from the report:

Fiscal Year (FY)	L-1B Denial Rate (%)
2014	35
2013	34
2012	30
2011	27
2010	22
2009	26
2008	22
2007	7
2006	6

 

Denial Rate (FY 2012~2014)
Employees transferred from India: 56%
Employees transferred from all other countries: 13%
 

Country of Origin	L-1B Denial Rate (%)
India	56
China	22
Mexico	21
France	19
Britain	16
Japan	15
Germany	15
Canada	4

USCIS has long been challenged by immigration attorneys and other stakeholders for its ambiguous interpretation of the rules and regulations on the L-1B petition. As a result, USCIS issued a much anticipated draft policy memorandum on March 24, 2015. This memorandum may clarify the process and supporting documents required for L-1B petitions to some extent, but it would not solve the mystery of the high denial rates, especially for Indian nationals.

Comments from Our Office
We published that USCIS has become stricter and stricter in processing L-1B petitions a few years ago. Please see USCIS answers Form I-129 and increase in L-1 RFE's. As nobody wishes to be on the denial list, we would like to urge employers who wish to file L-1B petition to file a well-documented case following the guidance in the USCIS policy memo with the assistance of an experienced immigration attorney.