DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,115

HOAX FILMS, LLC
INCLUDING ON-SITE LEASED WORKERS FROM DIGITAL ARTIST AGENCY
LOS ANGELES, CALIFORIA

Notice of Negative 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 on March 5, 2014, resulted
in a negative determination, issued on May 23, 2014, that was based
on the Department’s finding that the subject firm not produce an
article. The determination was applicable to workers and former
workers of Hoax Films, LLC, including on-site leased workers from
Digital Artist Agency, Los Angeles, California (Hoax Films). The
workers’ firm is engaged in activities related to the supply of
digital elements (visual effects) services.
Based on information reviewed during the reconsideration
investigation, the Department determines that the requirements for
certification have not been met.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed no increased imports of services like or
directly competitive with the digital elements services supplied by
Hoax Films by the subject firm or its major declining customers
during the relevant period, per 29 CFR 90. Furthermore, aggregate
U.S. imports of services like or directly competitive with the
digital elements services supplied by Hoax Films have not increased
during the relevant period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that Hoax Films did not shift the supply of
digital elements services, or like or directly competitive
services, to a foreign country or acquire such services from a
foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Hoax Films is not 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).
Finally, the group eligibility requirements under Section 222(e)
of the Act, have not been satisfied because Criterion (1) has not
been met since the workers’ firm has not been publicly identified by
name by the International Trade Commission as a member of a domestic
industry in an investigation resulting in an affirmative finding of
serious injury, market disruption, or material injury, or threat
thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Hoax Films,
LLC, including workers from Digital Artist Agency, Los Angeles,
California, to apply for adjustment assistance, in accordance with
Section 223 of the Act, 19 U.S.C. § 2273.
Signed in Washington, D.C. this 29th day of March, 2016


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




DEPARTMENT OF LABOR
Employment and Training Administration
TA-W-85,115

HOAX FILMS, LLC
INCLUDING ON-SITE LEASED WORKERS FROM DIGITAL ARTIST AGENCY
LOS ANGELES, CALIFORIA

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 Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following three
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 March 5, 2014 by a State Workforce Agency on behalf of
workers of Hoax Films, LLC, Los Angeles, California (Hoax Films).
The workers' firm is engaged in activities related to the supply of
digital elements services, primarily used for television, film and
commercials ("visual effects" in the entertainment and
advertisement industry).
The petitioner alleged "Production has now shifted to Canada
causing the loss of manufacturing demand of visual effects and
motion graphics products."
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Hoax Films 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 digital
elements 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 Hoax Films, LLC,
including on-site leased workers from Digital Artist Agency, Los
Angeles, California, 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 23rd day of May, 2014


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