DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-57,867

CAPITAL CITY PRESS, INC.
PUBLICATION SERVICES DIVISION
BARRE, VERMONT

Notice of Revised Determination
On Remand

On April 11, 2006, the United States Court of International
Trade (USCIT) granted a consent motion for voluntary remand in
Former Employees of Capital City Press, Inc. v. U.S. Secretary of
Labor, Court No. 06-00081.
On August 31, 2005, a company official filed a petition for
Trade Adjustment Assistance (TAA) and Alternative Trade
Adjustment Assistance (ATAA) with the U.S. Department of Labor
(Department) on behalf of workers at Capital City Press, Inc.,
Publication Services Division, Barre, Vermont (subject firm).
The company official stated that the subject firm was shifting
production of scientific journals and books to the Philippines
and India and importing those products from those countries.
The initial investigation revealed that the workers created
documents electronically and that the subject firm imported the
publications in an electronic format. The Department determined
that the workers did not produce an article within the meaning of
Section 222 of the Trade Act. The determination was issued on
October 21, 2005. On November 9, 2005, the Department’s Notice
of negative determination was published in the Federal Register
(70 FR 68099).
By letters dating November 22, 2005 and December 5, 2005,
the subject firm and Local One-L, Graphic Communications
Conference, International Brotherhood of Teamsters, (Union),
respectively, requested administrative reconsideration of the
Department's negative determination regarding eligibility for the
subject workers to apply for TAA and ATAA.
The Department’s Notice of Dismissal of Application for
Reconsideration was issued on January 10, 2006, and published in
the Federal Register on January 17, 2006 (71 FR 2566). The
Department determined that the electronic nature of the
publications created by the workers and brought into the United
States by the subject firm barred the subject workers for
consideration as production workers.
Since the publication of the Notice of Dismissal of
Application for Reconsideration applicable to workers and
former workers of the subject firm, the Department has
revised its policy to acknowledge that there are tangible and
intangible articles and to clarify that the production of
intangible articles can be distinguished from the provision
of services. Intangible goods that would have been considered
articles, for the purposes of the Trade Act, if embodied in a
physical medium are now considered to be articles regardless
of their method of transfer.
The Department stresses that it will continue to implement
the longstanding precedent that firms must produce an article to
be certified under the Trade Act. This determination is not
altered by the fact the provision of a service may result in the
incidental creation of an article. Because the revised policy
may have implications beyond this case of which the Department is
not fully cognizant, it will be further developed in rulemaking.
Therefore, due to the Department’s policy change, the
Department requested the voluntary remand to conduct an
investigation to determine whether the subject workers are
eligible to apply for TAA and ATAA.
Reviewing previously-submitted information through the
lens of the revised policy, the Department has determined
that, for purposes of the Trade Act, the subject workers are
engaged in activity related to the production of an article
(scientific journals and books). The Department has also
determined that during the relevant period, a significant
portion of workers was separated from the subject facility,
production shifted abroad, and the subject firm increased
its imports of publications following the shift abroad.
In accordance with Section 246 the Trade Act of 1974
(26 USC 2813), as amended, the Department herein presents the
results of its investigation regarding certification of
eligibility to apply for ATAA for older workers. In order for
the Department to issue a certification of eligibility to apply
for ATAA, the group eligibility requirements of Section 246 of
the Trade Act must be met. The Department has determined in this
case that the requirements of Section 246 have been met.
A significant number of workers at the firm are age 50 or over
and possess skills that are not easily transferable. Competitive
conditions within the industry are adverse.
Conclusion
After careful review of the facts generated through the
second remand investigation, I determine that a shift in
production abroad of publications like or directly competitive to
that produced at the subject facilities followed by increased
imports contributed to the total or partial separation of a
significant number or proportion of workers at the subject
facilities. In accordance with the provisions of the Act, I make
the following certification:
"All workers of Capital City Press, Inc., Publication
Services Division, Barre, Vermont, who became totally or
partially separated from employment on or after August 31,
2004, through two years from the issuance of this revised
determination, are eligible to apply for Trade Adjustment
Assistance under Section 223 of the Trade Act of 1974, and
are eligible to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974, as
amended."
Signed at Washington, D.C. this 12th day of May 2006.

/s/ Elliott S. Kushner
_______________________________
ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-57,867

CAPITAL CITY PRESS, INC
PUBLICATION SERVICES DIVISION
BARRE, VERMONT

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance and
Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (19 USC 2273), the Department of Labor herein presents the
results of an investigation regarding certification of eligibility
to apply for worker adjustment assistance. The group eligibility
requirements for directly-impacted (primary) workers under Section
222(a) the Trade Act of 1974, as amended, can be satisfied in
either of two ways:
I. Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers’ separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or

II. Section (a)(2)(B) both of the following must be satisfied:

A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the
firm, have become totally or partially separated, or are
threatened to become totally or partially separated;
B. there has been a shift in production by such workers’ firm
or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by
such firm or subdivision; and

C. One of the following must be satisfied:
1. the country to which the workers’ firm has shifted
production of the articles is a party to a free trade
agreement with the United States;
2. the country to which the workers’ firm has shifted
production of the articles is a beneficiary country
under the Andean Trade Preference Act, African Growth
and Opportunity Act, or the Caribbean Basin Economic
Recovery Act; or
3. there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

The investigation was initiated on August 31, 2005, in
response to a petition filed by a company official on behalf of
workers of Capital City Press, Inc., Publication Services Division,
Barre, Vermont, providing composition and related services for
electronic publishing or the printing of scientific journals or
books, including typesetting, proofreading, and digital imaging.
The investigation revealed that criteria (a)(2)(A)(I.C.) and
(a)(2)(B)(II.B.) are not met.
The investigation revealed that workers described above create
an electronic file to be used in the firm’s printing process at an
affiliated facility. The investigation determined that the firm is
outsourcing composition and graphics work to foreign sources. This
work will return to the United States in an electronic file format.
Although the composition and related services performed by
workers of the Publication Services Division is in part electronic
publication, since the workers are also in support of the firm’s
production of printed scientific journals and books, the Department
conducted an investigation to determine if the workers producing
the finished product, printed scientific journals and books, were
certifiable for adjustment assistance.
Sales and production of journals and books by Capital City
Press, Inc. declined in January through August 2005 when compared
to the same time period of 2004.
Capitol City Press, Inc. did not import scientific journals or
books in 2003, 2004 or January through August 2005.
Capitol City Press did not shift the printing of scientific
journals or books to a foreign country during the relevant period.
The Department conducted a survey of the subject firm’s major
declining customers regarding their purchases of journal and book
printing in 2003, 2004, and January through August 2005. The
survey revealed that customers had negligible import purchases of
printed journals and books and increased purchases from other
domestic sources.
In addition, in accordance with Section 246 the Trade Act of
1974 (26 USC 2813), as amended, the Department of Labor herein
presents the results of its investigation regarding certification
of eligibility to apply for alternative trade adjustment assis-
tance (ATAA) for older workers.
In order for the Department to issue a certification of
eligibility to apply for ATAA, the worker group must be certified
eligible to apply for trade adjustment assistance (TAA). Since
the workers are denied eligibility to apply for TAA, the workers
cannot be certified eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Capital City
Press, Inc., Publication Services Division, Barre, Vermont, are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, and are also denied
eligibility to apply for alternative trade adjustment assistance
under Section 246 of the Trade Act of 1974.
Signed in Washington, D.C., this 21st day of October 2005

/s/ Linda G. Poole

______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance