DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-58,037

CABOT CORPORATION
SUPERMETALS DIVISION
BOYERTOWN, PENNSYLVANIA


Notice of Negative Determination
on Remand

The United States Court of International Trade (USCIT)
granted the Secretary of Labor's motion for a voluntary remand
for further investigation in Former Employees of Cabot
Corporation, Supermetals Division, Boyertown, Pennsylvania v.
Elaine Chao, U.S. Secretary of Labor, No. 05-00674.
The Department's initial denial for the workers of Cabot
Corporation, Supermetals Division, Boyertown, Pennsylvania
(hereafter “Cabot”), issued on November 14, 2005 and published
in the Federal Register on December 6, 2005 (70 FR 72655), was
based on the finding that “contributed importantly” group
eligibility requirement of Section 222 of the Trade Act of 1974,
as amended, was not met, nor was there a shift in production
from that firm to a foreign country. The “contributed
importantly” test is generally demonstrated through a survey of
the workers’ firm’s customers. The survey revealed no imports
of tantalum powder during the relevant period. The subject firm
did not import tantalum powder nor did it shift production to a
foreign country during the relevant period.
On December 8, 2005, the petitioner requested
administrative reconsideration, asserting that the decline in
tantalum powder production at the subject firm was a result of
the subject company purchasing the “same items from European
companies”, subject firm’s “take or pay” contracts, and foreign
competition.
On January 5, 2006, the Department issued a Dismissal of
Application for Reconsideration, published in the Federal
Register on January 17, 2006 (71 FR 2566), stating that the
application did not contain new information supporting a
conclusion that the determination was erroneous, and also did
not provide a justification for reconsideration of the
determination that was based on either mistaken facts or a
misinterpretation of facts or of the law.


After the petitioner sought review by the USCIT, the
Department requested a voluntary remand since the petitioner
requested that the Department conduct a further investigation of
whether there was an increase of imports of tantalum powder
during the relevant time period. The review of the initial
investigation revealed that the confidential data request
received from the subject firm during the initial investigation
refers to “tantalum” as a product manufactured by the subject
firm during the relevant time period. The Department contacted
the subject company official to verify the exact products
manufactured by the subject firm during the relevant time
period. The company official reported that “tantalum powder and
tantalum wire” were products manufactured by the subject firm
during the relevant time period. Consequently, the Department
conducted an investigation to determine if the workers were
impacted by imports of “tantalum powder and tantalum wire” or a
shift in production abroad occurred during the relevant period.
The investigation revealed that the subject firm did not import
“tantalum powder and tantalum wire”, nor did it shift production
of “tantalum powder and tantalum wire” to a foreign country.
The investigation further revealed that all declines in sales
and production of tantalum powder and tantalum wire at the
subject firm are attributed to a loss in foreign market sales.
The subject firm provided two major declining customers,
one a foreign company and another which appeared to be a
domestic company. The Department conducted a customer survey
with the major declining customer. The investigation revealed
that the domestic customer purchases of tantalum powder and
tantalum wire from the subject firm was for the purpose of
exporting these products to its foreign manufacturing
facilities. This customer does not import tantalum powder and
tantalum wire into the United States and it uses all of tantalum
products in production abroad.
Conclusion
After reconsideration on remand, I affirm the original
notice of negative determination of eligibility to apply for
adjustment assistance for workers and former workers of Cabot
Corporation, Supermetals Division, Boyertown, Pennsylvania.
Signed at Washington, D.C. this 21st day of April 2006.

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