DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,331

MUSIC GROUP SERVICES US
MARKETING DEPARTMENT
BOTHELL, WASHINGTON

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 May 22, 2014, resulted in
a negative determination, issued on June 11, 2014, that was based
on the workers’ firm not producing an article. The determination
was applicable to workers and former workers of Music Group
Services US, Marketing Department, Bothell, Washington.
The workers’ firm is engaged in activities related to the
supply of marketing services in support of the firm’s pro audio
business.
Based on information reviewed during the reconsideration
investigation, the Department of Labor 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 that imports did not increase of marketing
services. The firm did not import marketing services in 2012,
2013, or during January through April 2014.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
marketing services or a like or directly competitive service to a
foreign country or acquire marketing services or a like or
directly competitive service from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Music Group Services US, Marketing
Department is not a Supplier or acts as a 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 either 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 Music Group
Services US, Marketing Department, Bothell, Washington, who were
engaged in employment related to the supply of marketing services
to apply for adjustment assistance, in accordance with Section 223
of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 8th day of March, 2016

/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance





DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,331

MUSIC GROUP SERVICES US
MARKETING DEPARTMENT
BOTHELL, WASHINGTON

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 May 22, 2014 on behalf of workers of Music Group Services
US, Marketing Department, Bothell, Washington. The workers' firm
is engaged in activities related to the supply of marketing
services in support of the firm's pro audio business.
The petitioners alleged the following, "Marketing, content
management and media production services were moved to the
Philippines because the cost is substantially lower to pay the
employees."
Although the petition identified the firm location as Las
Vegas, Nevada, the investigation revealed that the marketing work
was supplied in Bothell, Washington. When the Bothell, Washington
location was dissolved the work was absorbed by the Las Vegas,
Nevada location.
The investigation revealed that Music Group Services US 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. Production of music
electronics has never taken place within the United States.
During the investigation, the Department of Labor obtained
information that revealed that the workers' firm did not produce an
article; rather, the workers' firm supplied services related to
marketing in support of offshore manufacturing.
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 Music Group
Services US, Marketing Department, Bothell, Washington engaged in
activities related to the supply of marketing services 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 11th day of June, 2014

/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance