DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-40,492

COASTAL LUMBER COMPANY
SUFFOLK, VIRGINIA

Notice of Negative Determination
Regarding Application for Reconsideration

By application dated June 4, 2002, the company 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 May 6, 2002, and
published in the Federal Register on May 17, 2002 (67 FR 35340).
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 Coastal Lumber Company,
located in Suffolk, Virginia was denied because the "contributed
importantly" group eligibility requirement of Section 222(3) of
the Trade Act of 1974, as amended, was not met. The "contributed
importantly" test is generally demonstrated through a survey of
customers of the workers' firm. The survey revealed that none of
the respondents increased their imports of pine boards while
decreasing their purchases from the subject firm during the
relevant period.
The petitioner supplied statistics relating to softwood
lumber imports for selected countries. The petitioner believes
these countries are importing pine boards back to the United
States and that the declines in the price of softwood lumber
created a surge in imports of softwood lumber during the relevant
period, thus impacting the subject plant workers and the softwood
lumber industry.
A review of the data supplied by the petitioner depicts the
trend in softwood lumber imports for selected countries during
the relevant period. However, the softwood lumber statistics
supplied by the petitioner is a broad (basket) category and is
not specific enough with the products produced (pine board) by
the subject plant and therefore not relevant. The Department
conducted a survey, as already indicated, to examine the direct
impact of pine board imports on the subject firm worker's during
the relevant period. The survey revealed that customer imports
did not contribute importantly to the layoffs at the subject
plant during the relevant period.
Further, the price of imported softwood lumber is not a
relevant factor in meeting the "contributed importantly" group
eligibility requirement of Section 222(3) of the Trade Act of
1974, as amended.
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 at Washington, D.C. this 3rd day of July 2002.

/s/ Edward A. Tomchick


EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance