UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,196

NIPPON CARBIDE INDUSTRIES

GREENVILLE, SOUTH CAROLINA

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 ("the Act"), 19 U.S.C. § 2273, the Department of Labor
("the Department") 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 Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment (ATAA) petition dated February 9, 2022 and filed on
February 10, 2022 by State Workforce Office, on behalf former
workers of Nippon Carbide Industries, Greenville, South Carolina
(hereafter referred to as the "group of workers"). In accordance
with 20 CFR 618.110 a group of workers is defined as, ""¦including
teleworkers and staffed workers."

The group of workers is engaged in activities related to the
production of resin powder. Toner manufacturers purchases resin
powder as a component to produce toner for copiers and printers
used in the production of ink.

The petitioner alleges that worker separations, or threats
thereof, were due to, "The facility lost their biggest customer to
a Chinese company providing the products at a much lower cost."

During the course of the investigation, the Department
collected information from the petitioner(s), the workers' firm,
and other relevant sources.

With respect to Section 222(a)(2)(A)(ii) and Section
222(a)(2)(A)(iii), the investigation revealed that increased
imports of articles like or directly competitive with the articles
produced by group of workers did not contribute importantly to
such workers' separation or threat of separation and to the decline
in sales or production at the workers' firm. The investigation
revealed that the workers' firm did not increase imports of resin
powder, or articles like or directly competitive, during the period
applicable to the investigation. The majority of the workers' firm
business was geared to the export market. Increased imports of
resin powder, or articles like or directly competitive, could not
have contributed importantly to workers' separation and sales or
production declines, if it occurred.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not production
of resin powder to a foreign country.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Nippon Carbide Industries, Greenville,
South Carolina is not a Supplier 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). The majority of
the workers' firm business was geared to the export market.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Nippon Carbide Industries, Greenville,
South Carolina does not act as a Downstream Producer to a firm (or
subdivision, whichever is applicable) 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), based on an increase in
imports from, or a shift in production to, Canada or Mexico. The
majority of the workers' firm business was geared to the export
market.

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
("ATAA"), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance ("TAA"). Because the group of
workers are denied eligibility to apply for TAA, the group of
workers cannot be certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of Nippon Carbide
Industries, Greenville, South Carolina engaged in activities
related to the production of resin powder are denied eligibility
to apply for adjustment assistance under Section 223 of the Trade
Act of 1974, as amended, and are also denied eligibility to apply
for alternative trade adjustment assistance under Section 246 of
the Trade Act of 1974, amended.

Signed in Washington, D.C. this 19th day of May, 2022



/s/ Hope D. Kinglock
_______________________
HOPE D. KINGLOCK

Certifying Officer, Office of

Trade Adjustment Assistance