DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,958

PHILIP MORRIS PRODUCTS INTERNATIONAL, LLC
MCKENNEY, VIRGINIA

Notice of Negative Determination
Regarding Application for Reconsideration

By application postmarked October 10, 2007, the Bakery,
Confectionery, Tobacco Workers and Grain Millers International
Union, Local No. 358 requested administrative reconsideration of
the Department's negative determination regarding eligibility to
apply for Trade Adjustment Assistance (TAA), applicable to workers
and former workers of the subject firm. The denial notice was
signed on August 27, 2007 and published in the Federal Register on
September 11, 2007 (72 FR 51845).
Pursuant to 29 CFR 90.18(c) reconsideration may be granted
under the following circumstances:
(1) If it appears on the basis of facts not previously
considered that the determination complained of
was erroneous;
(2) if it appears that the determination complained of
was based on a mistake in the determination of facts
not previously considered; or
(3) if in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified
reconsideration of the decision.


The petition for the workers of Philip Morris Products
International, LLC, McKenney, Virginia engaged in production of
partially stemmed tobacco was denied because the “contributed
importantly” group eligibility requirement of Section 222 of the
Trade Act of 1974, as amended, was not met. The “contributed
importantly” test is generally demonstrated through a survey of
the workers’ firm’s declining customers. The investigation
revealed that all partially stemmed tobacco produced by the
subject firm was exported to other countries and the subject firm
had no domestic customers. The investigation further revealed
that there was no shift in production from that firm to a foreign
country which is a party to a Free Trade Agreement with the
United States or a beneficiary country, nor did the subject firm
import partially stemmed tobacco in 2005, 2006 and January
through July 2007.
The petitioner stated that even though the workers of the
subject firm produced partially stemmed tobacco, Phillips Morris
also produces cigarettes and workers of the subject firm should
be considered as workers supporting production of cigarettes.
The petitioner further stated that the parent company of the
subject firm closed cigarette production facilities in Cabarras,
North Carolina, which would result in increased imports of
cigarettes into the United States. The petitioner alleges that
because of these imports of cigarettes, the workers of the
subject firm who produce partially stemmed tobacco should be
certified eligible for TAA.
The Department contacted the company official for further
clarification. The company official stated that Philip Morris
Products International, LLC, McKenney, Virginia is an Export
Processing Facility, which exclusively produces partially stemmed
tobacco for export. The company official also confirmed that
none of the partial stemmed tobacco from the subject firm was
sold to any U.S. facilities in 2005, 2006 or 2007. The company
official further stated that the employees of the subject firm
did not support production at any domestic facility, including
the domestic production facility in Cabarrus, North Carolina.
The official further stated that the production from the subject
facility is being shifted to Italy, Portugal, Malaysia, Russia,
Greece and the Ukraine, countries which are not parties to a free
trade agreement with the United States or beneficiary countries.
The subject firm is not increasing imports of partially stemmed
tobacco after the shift.
In order to establish import impact, the Department must
consider imports that are like or directly competitive with those
produced at the subject firm. Imports of cigarettes cannot be
considered like or directly competitive with partially stemmed
tobacco produced by Philip Morris Products International, LLC,
McKenney, Virginia and imports of cigarettes are not relevant in
this investigation.
The subject firm reported no imports of partially stemmed
tobacco and there are no domestic customers who purchase
partially stemmed tobacco from the subject firm and who might
have increased imports of partially stemmed tobacco during the
relevant time period.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no error or misinterpretation of
the law or of the facts which would justify reconsideration of
the Department of Labor's prior decision. Accordingly, the
application is denied.

Signed in Washington, D.C., this 25th day of October, 2007.


/s/ Elliott S. Kushner

ELLIOTT S. KUSHNER
Certifying Officer, Division of
Trade Adjustment Assistance

4510-FN-P


DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-61,958

PHILIP MORRIS PRODUCTS INTERNATIONAL, LLC
MCKENNEY, VIRGINIA

Negative Determinations 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 9, 2007, in response
to a petition filed by the Bakery, Confectionery, Tobacco Workers
and Grain Millers International Union, Local 358 on behalf of the
workers of Philip Morris Products International, LLC, McKenney,
Virginia. The workers are engaged in the production of partially
stemmed tobacco.
The investigation determined that criteria (a)(2)(A)(I.C.) and
(a)(2)(B)(II.C.) have not been met for workers of the subject firm.
The investigation revealed that the partially stemmed tobacco
processed at Philip Morris in McKenney, Virginia is exported to an
affiliate overseas. The subject firm does not import partially
stemmed tobacco.
The investigation further revealed that the subject firm is
shifting the production of partially stemmed tobacco abroad.
Furthermore, it is not likely that there will be an increase in
imports of partially stemmed tobacco.
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 assistance (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, I determine that workers of Philip
Morris Products International, LLC, McKenney, Virginia, 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 27th day of August, 2007.


/s/Linda G. Poole
______________________________
LINDA G. POOLE
Certifying Officer, Division of
Trade Adjustment Assistance








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