Is this effectively a fee for having a US embassy process paperwork on your behalf, or are they actually trying to charge a fee for individuals to renounce thei

Is this effectively a fee for having a US embassy process paperwork on your behalf, or are they actually trying to charge a fee for individuals to renounce their citizenship? It seems to me that the whole idea of renouncing one's citizenship is to sever all ties previously held to the country and assume the status of a foreigner in the eyes of that country. How they would collect that $450 if that is the case is beyond me.