DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,027

CHF INDUSTRIES, INC.
LORIS, SOUTH CAROLINA

Notice of Revised Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of
the Trade Preferences Extension Act of 2015, Public Law No.
114-27, section 405(a)(1)(A), the investigation into this
petition was reopened for a reconsideration investigation to
apply the requirements for worker group eligibility under
chapter 2 of title II of the Trade Act of 1974, as amended
by the TAARA 2015, to the facts of this petition (statutory
reconsideration).

The initial investigation, initiated January 22, 20
14, resulted in a negative determination, issued on
February 7, 2014 that was based on the findings that CHF
Industries, Inc., Loris, South Carolina (CHF) does not
produce an article within the meaning of Section 222(a)
or Section 222(b) of the Act. The determination was applicable
to workers and former workers of CHF Industries, Inc., Loris,
South Carolina. Based on information reviewed during the
reconsideration investigation, the Department of
Labor determines that the firm shifted to a foreign
country the supply of services like or directly competitive
with the services supplied by the workers which contributed
importantly to worker separations.

Section 222(a)(1) has been met because a significant number
or proportion of the workers in such workers’ firm have
become totally or partially separated, or are threatened
to become totally or partially separated.

Section 222(a)(2)(B) has been met because the workers’
firm has shifted to a foreign country services like or
directly competitive with the warehousing and distribution
services supplied by the workers which contributed
importantly to worker group separations at CHF.

Conclusion

After careful review, I determine that workers of CHF
Industries, Inc., Loris, South Carolina, who are engaged
in activities related to warehousing and distribution services
supplied, meet the worker group certification criteria under
Section 222(a) of the Act, 19 U.S.C. § 2272(a). In accordance
with Section 223 of the Act, 19 U.S.C. § 2273, I make the
following certification:


"All workers of CHF Industries, Inc., Loris, South
Carolina who became totally or partially separated from
employment on or after January 17, 2013, through two years
from the date of certification, and all workers in the group
threatened with total or partial separation from employment
on the date of certification through two years from the date
of certification, are eligible to apply for adjustment
assistance under Chapter 2 of Title II of the Trade Act of
1974, as amended.”

Signed in Washington, D.C., this 6th day of August, 2015

/s/Jessica R. Webster
______________________________
JESSICA R. WEBSTER
Certifying Officer, Office of
Trade Adjustment Assistance




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,027

CHF INDUSTRIES, INC.
LORIS, SOUTH CAROLINA

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 ("Act"), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b) of
Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department of issue a certification for workers under Section 222(a)
of the Act, 19 U.S.C. § 2272(a), the following criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the Act,
19 U.S.C. § 2272(a)(1)) requires that 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
(2) The second criterion (set forth in Section 222(a)(2) of the Act,
19 U.S.C. § 2272(a)(2)) may be satisfied in one of two ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or production of
such firm or subdivision.

(B) Shift in Production Path:
(i) 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
(ii)(I) 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;
(II)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
(III)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.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of a
Supplier or a Downstream Producer, the following criteria must be
met:
(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;
(2) the workers' firm is a Supplier or Downstream Producer to a
firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production is
related to the article that was the basis for such
certification; and
(3) either
(A) the workers' firm is a supplier and the component parts it
supplied to the firm described in paragraph (2) accounted
for at least 20 percent of the production or sales of the
workers' firm; or
(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to the
workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."
The investigation was initiated in response to a petition filed
on January 22, 2014 by a company official on behalf of workers of
CHF Industries, Inc., Loris, South Carolina (hereafter referred to
"CHF Industries" or "the subject firm"). The workers' firm is
engaged in activities related to the supply of warehousing and
distribution services. Specifically, the subject firm receives
imported goods, warehouses the goods, picks, packs, and ships the
goods to retailers within the United States. The worker group does
not include leased workers.
The petitioner alleges "We have transitioned from manufacturing
to 100% distribution. Production has been shifted to a foreign
country. In general, manufacturing of fashion bedding has been
replaced by finished imports."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that CHF Industries does not produce
an article within the meaning of Section 222(a) or Section 222(b) of
the Act. In order to be considered eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, the worker
group seeking certification (or on whose behalf certification is
being sought) must work for a "firm" or appropriate subdivision that
produces an article. The definition of a firm includes an individual
proprietorship, partnership, joint venture, association, corporation
(including a development corporation), business trust, cooperative,
trustee in bankruptcy, and receiver under decree of any court.
During the investigation, the Department obtained information
that revealed that the workers' firm did not produce an article;
rather, the workers' firm supplied services related to the supply of
warehousing and distribution services.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(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 CHF Industries, Inc., Loris, South
Carolina, 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 7th day of February, 2014


/s/Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance