dismissed
EB-1C
dismissed EB-1C Case: Telecommunications And Information Technology
Decision Summary
The appeal was dismissed because the petitioner failed to establish a qualifying corporate relationship between the U.S. company and the beneficiary's foreign employer. The director initially determined the evidence was insufficient to link the two entities, and despite the petitioner's submission of a corporate timeline on appeal, the AAO upheld the denial.
Criteria Discussed
Qualifying Relationship Affiliate Subsidiary Managerial Or Executive Capacity
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U.S. Department of Homeland Security
20 Mass. Ave., N.W., Rm. A3042
Washington, DC 20529
U. S. Citizenship
and Immigration
Services
FILE: LIN 04 020 51050" Office: NEBRASKA SERVICE CENTER Date:
T 99 328 899 wesms
PETITION: Immigrant Petition for Alien Worker as a Multinational Executive or Manager Pursuant to
Section 203(b)(l)(C) of the Immigration and Nationality Act, 8 U.S.C. 9 1153(b)(l)(C)
ON BEHALWF PETITIONER:
,.+ '
INSTRUCTIONS:
This is the decision of the Administrative Appeals Office in your case. All documents have been returned to
' the office that originally decided your case. Any further inquiry must be made to that office.
J
) dobert P. Wiemann, Director
kdministrative Appeals Office
LIN 04 020 5 1050
Page 2
DISCUSSION: The Director, Nebraska Service Center, denied the employment-based petition. The matter is
now before the AAO on appeal. The appeal will be dismissed.'
The petitioner is a company organized in the State of Delaware in March 1990. It provides
telecommunications and information technology services. It seeks to employ the beneficiary as its operations
program manager. Accordingly, the petitioner endeavors to classify the beneficiary as an employment-based
immigrant pursuant to section 203(b)(l)(C) of the Immigration and Nationality Act (the Act), 8 U.S.C.
fj 1 153(b)(l)(C), as a multinational executive or manager.
The director determined that the petitioner had not established a qualifying relationship with the beneficiary's
foreign employer.
On appeal, counsel for the petitioner submits documentation and a brief.
Section 203(b) of the Act states in pertinent part:
(1) Priority Workers. -- Visas shall first be made available . . . to qualified immigrants who
are aliens described in any of the following subparagraphs (A) through (C):
(C) Certain Multinational Executives and Managers. -- An alien is
described in this subparagraph if the alien, in the 3 years preceding
the time of the alien's application for classification and admission
into the United States under this subparagraph, has been employed
for at least 1 year by a firm or corporation or other legal entity or an
affiliate or subsidiary thereof and who seeks to enter the United
States in order to continue to render services to the same employer or
to a subsidiary or affiliate thereof in a capacity that is managerial or
executive.
The language of the statute is specific in limiting this provision to only those executives and managers who
have previously worked for the firm, corporation or other legal entity, or an affiliate or subsidiary of that
entity, and are coming to the United States to work for the same entity, or its affiliate or subsidiary.
' It is noted that the petitioner filed a second 1-140 (LIN 06 016 51285) for the beneficiary on October 21,
2005, after the director denied this petition. The second 1-140 petition was approved on November 30, 2005.
If the second petition was based on the same facts and evidence as the present petition, the approval of the
second petition may be subject to revocation pursuant to section 205 of the Act, 8 U.S.C. fj 1155.
Accordingly, the director shall review the second petition to determine whether the petitioner disclosed the
first denial in Part 4 of the Form 1-140 and to determine whether a notice of intent to revoke should be issued.
This decision will be included in the beneficiary's A-file -
LlN 04 020 5 1050
Page 3
A United States employer may file a petition on Form 1-140 for classification of an alien under section
203(b)(l)(C) of the Act as a multinational executive or manager. No labor certification is required for this
classification. The prospective employer in the United States must furnish a job offer in the form of a
statement that indicates that the alien is to be employed in the United States in a managerial or executive
capacity. Such a statement must clearly describe the duties to be performed by the alien. See 8 C.F.R.
0 204.5(j)(5).
The exceptionally complex issue to be resolved in this proceeding is whether the petitioner has established
that a qualifying relationship exists between itself and the foreign entity. In order to qualify for this visa
classification, the petitioner must establish that a qualifying relationship exists between the United States
petitioner, , and the beneficiary's foreign employer,-~td.
(formerljLtd.), in that the petitioning company is the same employer or an'affiliate or
subsidiary of the foreign entity.
The regulation at 8 C.F.R. 0 204.56)(2) states in pertinent part:
Afiliate means:
(A) One of two subsidiaries both of which are owned and controlled by the same parent or
individual;
(B) One of two legal entities owned and controlled by the same group of individuals, each
individual owning and controlling approximately the same share or proportion of each
entity.
Multinational means that the qualifying entity, or its affiliate, or subsidiary, conducts business in
-, two or more countries, one of which is the United States.
Subsidiary means a firm, corporation, or other legal entity of which a parent owns, directly or
indirectly, more than half of the entity and controls the entity; or owns, directly or indirectly, half
of the entity and controls the entity; or owns, directly or indirectly, 50 percent of a 50-50 joint
venture and has equal control and veto power over the entity; or owns, directly or indirectly, less
than half of the entity, but in fact controls the entity.
The 1-140 petition was filed on October 29, 2003. The etitioner submitted a chart labeled "relevant
corporate relationship" depicting the petitioner, America, Inc. and a United Kingdom
company as wholly-owned subsidiaries of Internationa f Germany,
which in turn is wholly-owned traded German corporation. The
America, Inc. was created as the result of a merger
between and provided incorporation documents and evidence of
LIN 04 020 5 1050
Page 4
The petitioner indicated that it currently employed the beneficiary in L-1A status and provided copies of his
current and previous Form 1-797 Approval Notices for all periods of L-1A classification, including an
approval notice for the Blanket L petition Corporation, and a copy of the Form I-129S,
Nonimmigrant Petition Based on Blanket L Petition, submitted by the beneficiary to the U.S. Embassy in
London on January 23,2001. The information provided on the Form 1-129s indicates that the beneficiary was
employed by DaimlerChrysler UK Limited from April 1998 until January 2001, at which time he was
transferred to the United States in L-1A status to work for Corporation's Warrenville
Support Center in Lisle, Illinois. The beneficiary's subsequent L-1A employers, as shown on the submitted
Forms I-797A, were T-Systems Inc. and T-Systems USA, Inc.
On June 25,2004, the director requested additional evidence to establish that there is a qualifying relationship
between the petitioner and the beneficiary's foreign employer. Specifically, the director observed:
The evidence does not sufficiently establish a qualifying relationship between the United
States and foreign entities. The Form 1-129s submitted indicates that th eficiary was
employed abroad be UK Limited. The petitioning entity *North
America, Inc. You submitted no evidence to establish a relationship between the two entities.
Specifically, the documentation regarding the petitioning entity indicates that it is a wholly-
owned subsidiary of to the foreign entity, you
submitted a copy of Corporation which lists the
foreign entity under its claimed prior name, Mercedes Benz (United Kingdom) Ltd. The - -
blanket petition does no the petitioning entity
are also affiliated with
entity and its parent c
Limited.
Therefore, please explain the alleged relationship between the two entities and submit
documentary evidence to establish the qualifying corporate interrelationship between the
United States business entity and the foreign business entity which employs or employed the
alien. Such evidence must establish common ownership and/or control between the foreign
entity and the United States entity. Evidence of a qualifying relationship may include, but is
not limited to, annual reports, articles of incorporation, financial statements, andlor evidence
of ownership of all outstanding stock for both entities.
(Emphasis in original.)
In a response dated September 15, 2004, counsel for the petitioner submitted a "corporate relationship"
timeline which provided the following information:
LIN 04 020 51050 t
Page 5
ficiary] was employed was called-K later
1) January 2001n th
[Tlhe parent corporation stockholders ar
beneficiarvl was transferred to debis IT
in every
4) December 3,2001: debis
No visa amendment for this name change.
announce that -
will buy all o and conclude the sale by March
2002.
6) February 15, 2002 Visa amendment petition filed with Nebraska Service Center for
to reflect that the company's ownership has
r be involved. L-1 relationship is preserved
because the new owner of the company was an original joint venture partner and now
[hlas taken over all assets to create a wholly owned subsidiary including all assets
abroad.
7) August 12, 2003 Visa amendment petition filed for [the beneficiary] to reflect
migration ~OUSA in the merger. L-1 relationship is preserved because the
parent company remains the same[.] [Clorporate relationship is maintained.
8) October 200-Inc. mergers SA another wholly owned
subsidiary of L-l relationship preserved because of the common
parent company. Name change also takes effect.
(Emphasis in original.)
In support of this statement, the petitioner submitted press releases confirming that (1)
a joint venture between - formed in October 2000, with the latter
referred to as owning a 50.1 percent "majority stake" in the company; (2)- was re-
named in February 2001; and, (3) DaimlerChrysler subsequently sold its 49.9
percent interest 002. The petitioner also submitted its
certificate of inc ~orth America, Inc. to
-
The petitioner provided a corporate organizational chart that purports to show the ownership of the petitioner
and the beneficiary's foreign employer. The petitioner is depicted as being an indirect, wholly-owned
hrough its subridiarie lnternaiional
which is shown as the petitioner's direct
LIN 04 020 51050
Page 6
shows-~td., the beneficiary's foreign em lo er, is now known as-
and is majority owned (50.1 percent) by the same company The chart also reflects
once held a 49.9 percent interest - now known i
not currently own any interest in the company.
129 Petition ~re~ared in Februarv 2002. which identifies the beneficiarv's foreign em~lover as
The director denied the petition on December 6, 2004, determining that the submitted evidence did not
establish that debis Systemhaus owned the beneficiary's foreign employer, that the beneficiary's foreign
employer was included in the "rebranding or that it was included whensold
its shares to w he director specifically noted that the evidence did not indicate that the United
States petitioner was affiliated with so that it was unclear why lanket
petition would have been used as evidence of a qualifying relationship. The director concluded that the record
did not contain evidence regarding the actual, current ownership of the beneficiary's forei em loyer or
evidence that a qualifying relationship exists between UK Limited an- North
America, Inc.
On appeal, counsel for the petitioner contends that the beneficiary was eligible initial
L-1A blanket petition because "[alt the time of the Beneficiary's transfer the Petiti~ner was a joint venture
between " Counsel claims that the L-IA relationship was preserved
even though eventually held no interest in the joint venture. Counsel asserts that since a
qualifying cornpanyo petitioned for the beneficiary's transfer and that an original party to the joint
venture purchased the qualifying companies both in the U.S. and abroad, the qualifying relationship is
preserved, "even if the beneficiary's originalemployer was not purchased in the buy-out
event."
On appeal, the petitioner submits evidence to show that the company currently known as 'v, Ltd."
(UK) Ltd.," not was previously known as "YIY%IIIILpes UK Ltd. as indicated on the
petitioner's corporate organizational chart. The petitioner is obligated to clarify the inconsistent and
conflicting testimony by independent and objective evidence. Matter of Ho, 19 I&N Dec. 582, 591-92 (BIA
1988).
LIN 04 020 5 1050
Page 7
Counsel's assertions are not persuasive. The petitioner has not established that the U.S. company and the
beneficiary's foreign employer enjoyed a qualifying relationship at the time of filing this petition.2 The
regulation and case law confirm that ownership and control are the factors that must be examined in
determining whether a qualifying relationship exists between United States and foreign entities for purposes
of this visa classification. Matter of Church Scientology International, 19 I&N Dec. 593 (BIA 1988); see also
Matter of Siemens Medical Systems, Inc., 19 I&N Dec. 362 (BIA 1986); Matter of Hughes, 18 I&N Dec. 289
(Comm. 1982). In the context of this visa petition, ownership refers to the direct or indirect legal right of
possession of the assets of an entity with full power and authority to control; control means the direct or
indirect legal right and authority to direct the establishment, management, and operations of an entity. Matter
of Church Scientology International, 19 I&N Dec. at 595.
The evidence in the record does not establish that the beneficiary's foreign employe
Limited, its parent comp tered into a qualifying joint
ultimate parent company or any of its subsidiaries. Although the regulations
contemplate a qualifying subsidiary relationship wherein an entity owns, directly or indirectly, 50 percent of a
50-50 joint venture and has equal control and veto power over the entity, the record in this matter does not
demonstrate that the beneficiary's foreign employer and the petitioner's ultimate owner ever had a 50-50 joint
venture relationship. See 8 C.F.R. ยง 204.5(i)(2).
On appeal, the petitioner submits an excerpt fro- Form 20-F filed with the Securities
and Exchange Commission on Februarv 20. 2003. Pane eleven of this document ~rovides the following v ~0
information: "In October 2000, ~ervicescombined its information
technology activities with those of venture. As part of the transaction,
contributed subsidiary -
controlling interest in that company." (~m~hasis added.) While -
may have regarded their ownership ("joint venture," the U.S.
company at the time of the beneficiary's transfer qualified only as a subsidiary of its maiority owner,
in the comuanv and thus did not establish the necessarv elements of ownershio and control. Accordinnlv. the
V 4'
etitioner then known as Services North America) did not meet the definition of a subsidiary of the
-Group pursuant to 8 C.F.R. 5 214.2jl)(ii)(K) or 8 C.F.R. 204.56)(2) at the time of the
beneficiary's transfer to the United States unde-orporations' blanket L petition. The
evidence in the record does not support counsel's assertion that the petitioner had a qualifying relationship
with the beneficiary's foreign employer at the time of his transfer to the United States as a nonimmigrant.
Nevertheless, counsel relies heavily on the fact that the beneficiary was transferred to the United States in L-
1A status under corporation's 1998 lanki it L petition as evidence of the qualifying
relationship between the petitioner and the foreign entity at the time the petition was filed. Counsel's reliance
* The AAO notes for the record that the submitted evidence does not demonstrate that the petitioner and the
beneficiary's foreign employer had a qualifying relationship at the time the beneficiary was transferred to the - -
United ~tateslanket L petition in january 2001.
LIN 04 020 5 1050
Page 8
is misplaced, as the L-1 visa appears to have been granted in error, and it is unclear whether the petitioner
provided the U.S. Embassy in London with sufficient documentation to make an informed decision regarding
the petitioner's and beneficiary's eligibility. As noted by the director, the U.S. company then known as
was not listed on the Blanket L Petition (although its indirect parent
is on the list of qualifying offices), and it is not clear that the petitioner
Inc. as the beneficiary's intended U.S. employer at the time of the
January 12, 2001 letter submitted to the U.S. Embassy in London
indicated that the beneficiary would work for the Blanket L pethione Corporation. On
appeal, counsel explains: "The blanket petition and visa refer to the company by generic names. The offer
letter and subsequent 1-9 caption the legal entity name." The petitioner submits a copy of a January 12, 2001
offer letter North America, Inc. letterhead, signed by the beneficiary in February 2001,
after his visa was issued. Based on the date of this letter, it appears that it was not submitted to the U.S.
Embassy in London with the beneficiary's Blanket L-1A visa application, and thus the consular officer would . .
have reawnably assumed that the beneficiary would be working for Corporation, a
qualifying affiliate of his foreign employer, in the United ~tates.~
Moreover, even if the petitioner did properly identify the beneficiary's actual intended U.S. employer at the
time he submitted his initial Blanket L-1 visa application, as discussed above, and
its subsidiaries were no longer qualifying organizations in January 2001 because did not
hold a majority or 50 percent interest in these "joint venture" companies after October 2000. Accordingly, - -
while may have been a qualifying subsidiary in December 1998 when the Blanket L
petition was filed, the petitioner was required to amend its Blanket L petition after selling a majority interest
in the company toin October 2000. See 8 C.F.R. 3 214.2(1)(7)(i)(C)(requiring a Blanket L
petitioner to file an amended petition to reflect changes in approved relationships).
Counsel also relies on CIS'S previous approval of an amended L-1A visa petition filed subsequent to the
transfer of 9.9 percent interest in the petitioner to in January 2002 as
does not affect the qualifying relationship for L-1 purposes or for
purposes of qualifying for this visa classification. Again, counsel's reliance on this approved amendment of
the beneficiary's L-1 status is misplaced. The AAO notes that the petitioner submitted misleading information
I in support of the beneficiary's subsequent 1-129 petition. Specifically, on the L Classification Supplement to
Form 1-129, the petitioner identified the beneficiary's foreign employer as - UK Limited,
now' and stated in its February 14, 2002 letter "the employer abroad was also purchased by
- The record also chart reflecting the same name
change K Limited
the existence of a United Kingdom " it is clearly not the same company as
the beneficiary's foreign a name change
and continues to exist as a 100 percent owned subsidiary On appeal, counsel
submitted evidence that the company currently known as '
fh
Ltd." was previously known as -
(UK) Limited." Doubt cast on any aspect o t e petitioner's proof may, of course, lead to a
At his discretion, the director may request that the U.S. Embassy review the original visa application to
d,etermine whether the beneficiary misrepresented his intended U.S. employer.
LIN 04 020 51050
Page 9
reevaluation of the reliability and sufficiency of the remaining evidence offered in support of the visa petition.
Matter of Ho, 19 I&N Dec. 582, 591 (BIA 1988).
Further, it must be noted that many 1-140 immigrant petitions are denied after CIS approves prior
nonimmigrant 1-129 L-1 petitions. See, e.g., Q Data Consulting, Inc. v. INS, 293 F. Supp. 2d 25 (D.D.C.
2003); IKEA US v. US Dept. of Justice, 48 F. Supp. 2d 22 (D.D.C. 1999); Fedin Brothers Co. Ltd. v. Suva,
724 F. Supp. 1 103 (E.D.N.Y. 1989). Examining the consequences of an approved petition, there is a
significant difference between a nonimmigrant L-1A visa classification, which allows an alien to enter the
United States temporarily, and an immigrant E-13 visa petition, which permits an alien to apply for permanent
residence in the United States and, if granted, ultimately apply for naturalization as a United States citizen.
CJ: $5 204 and 214 of the Act, 8 U.S.C. $5 1154 and 1184; see also 5 316 of the Act, 8 U.S.C. 5 1427.
Because CIS spends less time reviewing 1-129 nonimmigrant petitions than 1-140 immigrant petitions, some
nonimmigrant L-1A petitions are simply approved in error. Q Data Consulting, Inc. v. INS, 293 F. Supp. 2d
at 29-30; see also 8 C.F.R. 5 214.2(1)(14)(i)(requiring no supporting documentation to file a petition to extend
an L-1A petition's validity); Texas A&M Univ. v. Upchurch, 99 Fed. Appx. 556, 2004 WL 1240482 (51h Cir.
2004) (finding that prior approvals do not preclude CIS from denying an extension of the original visa based
on a reassessment of petitioner's qualifications.)
Regardless, the present record contains portions of the records for two previous L-1A petitions filed on behalf
of the beneficiary. In the beneficiary's first two L-1A petitions, the petitioner either misrepresented that they
had complied with the qualifying relationship requirement, or the consular officer and director committed
gross error in approving the petitions without sufficient evidence of a qualifying relationship between the
beneficiary's foreign employer and the U.S. petitioner. Regardless, the approval of the previous petitions
may be subject to revocation based on the evidence submitted with this petition. See 8 C.F.R. 5
2 14.2(1)(9)(iii).
Based on the foregoing discussion, the petitioner has not provided documentary evidence demonstrating that
it and the beneficiary's foreign employer shared common and controlling ownership when the beneficiary was
transferred to the United States as an L-1 A nonimmigrant intracompany transferee in January 200 1. Rather,
the evidence in the record shows that beneficiary's transfer in January 2001 was not to a qualifying entity.
The petitioner has not demonstrated sufficient common ownership and control between the petitioner and the
beneficiary's foreign employer to establish that a qualifying relationship existed at the time of filing this
petition.
Even if the petitioner had established that the foreign entity had a qualifying relationship with the petitioner at
the time the beneficiary was transferred to the United States, counsel's arguments would not be persuasive.
Counsel argues: "When bou ht the entire .oint venture including the assets abroad, the L-
1A relationship remains preserved even though is no longer involved. The statute does not
require that the qualifying relationship between companies must remain the same throughout the entire course - -
of employment." This statement might be accurate if a - ited Kingdom
had employed the beneficiary. However, the beneficiary's foreign employer UK Ltd., was
not involved in the purchase "of assets abroad" and had no qualifying relationship a? all with the petitioner's
LIN 04 020 5 1050
Page 10
predecessor company following the sale of a majority interest in
October 2000.
4 in
Furthermore, counsel's reliance on the beneficiary's continuous maintenance of L-1A status, and on the
regulations governing L-1 nonimmigrant intracompany transferees at 8 C.F.R. 5 214.2(1) is not persuasive in
the context of this immigrant visa petition. The AAO acknowledges that both the immigrant and
nonimmigrant visa classifications rely on the same definitions of "subsidiary" and "affiliate." See 8 C.F.R.
$5 214.2(1)(l)(ii)(K) and (L); 8 C.F.R. 5 204.56)(2). However, there are situations in which changes in
corporate relationships will render an L-1A nonimmigrant ineligible for classification as a multinational
manager or executive pursuant to section 203(b)(l)(C), even when such changes do not affect the
nonimmigrant alien's ability to maintain his or her L-1A status.
The L-1 nonimmigrant classification only requires that the petitioning organization continue to operate
outside the U.S. See 8 C.F.R. 5 214.2(l)(ii)(G)(2) (defining "qualifying organization" as a United States or
foreign firm, codoration, o.r other legal entity which is or will be doing business in at least one other country
for the duration of the alien's stay in the United States as an intracompany transferee.) While a qualifying
relationship with the beneficiary's foreign employer must exist at the time of the beneficiary's transfer to the
United States in L-1 status, a subsequent sale or dissolution of the foreign entity that employed the beneficiary
will not necessarily render the beneficiary ineligible to maintain L-1 status, so long as the petitioner continues
to do business in at least one other country through a qualifying branch, parent, affiliate or subsidiary. In such
an instance, the regulations require the petitioner to file an amended 1-129 petition so that CIS can determine
whether the petitioner is still a qualifying organization. See 8 C.F.R. 5 214.2(1)(7)(i)(C).
In contrast, in order to establish eligibility for classification as a multinational manager or executive for
immigrant visa purposes, the petitioner must establish that it maintains a qualifying relationship with the
beneficiary's foreign employer; the foreign corporation or other legal entity that employed the beneficiary
must continue to exist and have a qualifying relationship with the petitioner at the time the immigrant petition
is filed. 8 C.F.R. $204.5(j)(3)(i)(C). A multinational executive or manager is one who "seeks to enter the
United States in order to continue to render services to the same employer or to a subsidiary or affiliate
thereof in a capacity that is managerial or executive." Section 203(b)(l)(C) of the Act, 8 U.S.C.
5 1153(b)(l)(C).
Although the regulations at 8 C.F.R. 9 204.5(j)(3)(i)(B) reference beneficiaries who are already employed by
the petitioner as nonimmigrants, the fact that the beneficiary is currently in the United States in L-1A
classification does not exempt the petitioner from its burden to establish the existence of an ongoing
qualifying relationship with the beneficiary's previous foreign employer as of the date the petition is filed.
Rather, the regulation at 8 C.F.R. 3 204.56)(3)(i)(B) simply allows CIS to look beyond the three-year period
immediately preceding the filing of the 1-140 Petition in order to determine whether the beneficiary has the
requisite one year of qualifying employment abroad. To construe the regulation as creating an exception that
allows L-1 A beneficiaries to qualify as multinational managers without a qualifying relationship between the
U.S. and foreign entity would contravene the plain language of the statute. The petitioner must establish
eligibility at the time of filing the immigrant visa petition. Matter of Katigbak, 14 I&N Dec. 45, 49 (Comm.
1971).
LIN 04 020 5 1050
Page 11
In this case, the tenuous affiliate relationship between the petitioner and the beneficiary's foreign employer
was severed when sold all interest in -
The fact that the petitioner continues to be part of a multinational group is irrelevant in this proceeding, as this -
group does not include the foreign company that employed the beneficiary. The beneficiary's employment
abroad with- UK Limited is not considered employment with a qualifying entity for the
purposes of this immigrant visa classification, and it cannot be found that the beneficiary is seeking "to
continue to render services to the same employer or to a subsidiary or affiliate thereof."
The petitioner has not established that a qualifying relationship exists between the petitioner and the
beneficiary's foreign employer. For this reason, the appeal will be dismissed.
In visa petition proceedings, the burden of proving eligibility for the benefit sought remains entirely with the
petitioner. Section 291 of the Act, 8 U.S.C. 5 1361. Here, that burden has not been met.
ORDER: The appeal is dismissed. Avoid the mistakes that led to this denial
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