DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-41,497
AND
NAFTA-06126

FURNIMEX PRODUCTS USA INC.
CHARM HOUSE MANUFACTURING
SUMTER, SOUTH CAROLINA

Notice of Negative Determination
Regarding Application for Reconsideration

By application of September 11, 2002, the petitioners
requested administrative reconsideration of the Department's
negative determination regarding eligibility for workers and
former workers of the subject firm to apply for Trade Adjustment
Assistance (TAA) under petition TA-W-41,497 and North American
Free Trade Agreement-Transitional Adjustment Assistance (NAFTA-
TAA) under petition NAFTA-06126. The TAA denial notice
applicable to workers of Furnimex Products USA Inc., Charm House
Manufacturing, Sumter, South Carolina was signed on August 6,
2002 and published in the Federal Register on August 20, 2002 (67
FR 53971). The NAFTA-TAA denial notice was signed on June 21,
2002 and will soon be published in the Federal Register.
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 TAA petition, filed on behalf of workers at Furnimex
Products USA Inc., Charm House Manufacturing, Sumter, South
Carolina, 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 the workers'
firm's customers. The major customer of the subject firm went
out of business and the loss of that customer was the major
contributing factor leading to the closure of the plant. The
workers produced bed linens and blankets.
The NAFTA-TAA petition for the same worker group was denied
because criteria (3) and (4) of the group eligibility
requirements in paragraph (a)(1) of Section 250 of the Trade Act,
as amended, were not met. There was no shift in production from
the workers' firm to Mexico or Canada during the relevant period.
Imports from Canada or Mexico did not contribute importantly to
worker separations. The investigation also revealed that a major
customer of the subject firm went out of business and the loss of
this customer was the major contributing factor to the closure of
the Sumter plant.


The petitioner appears to be indicating that plant
production was shifted to Mexico after the plant closed down.
An examination of the initial decision and further contact
with the company show that the closure of the subject plant is
due to a major customer going out of business. That customer
accounted for a major portion of the subject plant's sales and
thus impacted the subject plant.
Further contact with the company also shows that the company
was a Limited Liability Partnership (LLC) between the owner of
Charm House Manufacturing and Furnimex Products USA Incorporated.
The company indicated that no plant production was shifted to
Mexico. Furnimex Products USA Incorporated indicated that an
extremely small portion of subject plant production was
outsourced to an unaffiliated plant located in Mexico, after the
subject plant closed down, only as a customer courtesy. The
amount outsourced and imported back from Mexico was not
significant.
Conclusion
After review of the application and investigative findings,
I conclude that there has been no misinterpretation of the law or
of the facts which would justify reconsideration of the
Department of labor's prior decisions. Accordingly, the
application is denied.

Signed at Washington, D.C., this 3rd day of February, 2003.

/s/ Edward A. Tomchick
_______________________
EDWARD A. TOMCHICK
Director, Division of
Trade Adjustment Assistance