sustained EB-1C Case: Spirits Import/Export
Decision Summary
The appeal was sustained because the AAO found that the petitioner successfully demonstrated it had been 'doing business' for the required one-year period prior to filing the petition. The director had initially concluded the petitioner was merely an agent, but on appeal, the petitioner provided sufficient evidence of its marketing, sales, and operational activities, which convinced the AAO to withdraw the director's decision on this issue.
Criteria Discussed
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U.S. Department of Homeland Security
U. S. Citizenship and Immigration Services
O!ce ofAdmlnzstratzve Appeals MS 2090
Washington, DC 20529-2090
icvasiDn of Ccs~:~i ;: ri-:acY
U. S. Citizenship
pm~Hc copy and Immigration
File: Office: NEBRASKA SERVICE CENTER Date:
LIN 07 162 51756
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. fj 1 153(b)(l)(C)
IN BEHALF OF 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.
Acting Chief, Administrative Appeals Office
Page 2
DISCUSSION:
The employment-based immigrant visa petition was denied by the Nebraska
Service Center. The matter is now before the Administrative Appeals Office (AAO) on appeal.
The appeal will be sustained. The AAO will withdraw the decision of the director and approve
the petition.
The petitioner was formed in the State of Delaware in 2005l and claims to be engaged in the
manufacture and import of premium Russian vodka and spirits. It seeks to employ the
beneficiary as its vice president of marketing pursuant to section 203(b)(l)(C) of the
Immigration and Nationality Act (the Act), 8 U.S.C. 5 1153(b)(l)(C), as a multinational
executive or manager. The petitioner claims to be the affiliate of SV Company, Ltd., located in
Kiev, Ukraine.
The director denied the petition, determining that (1) the petitioner had not been doing business
for the previous year as required; (2) the beneficiary was not employed abroad in a primarily
managerial or executive capacity; and (3) the beneficiary will not be employed in a primarily
managerial or executive capacity in the United States.
On appeal, counsel for the petitioner submits a brief and additional evidence.
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 a firm, corporation or other legal entity, or an affiliate
The AAO notes that the petitioner was originally formed under the name "Medoff Company
(USA), LLC, on July 13, 2005. On February 28, 2006, the petitioner filed a Certificate of
Amendment to the Certificate of Formation, which changed the company's name to that
currently used by the petitioner.
or subsidiary of that entity, and who are coming to the United States to work for the same entity,
or its affiliate or subsidiary.
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 which 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.
The first issue in this matter is whether the petitioner has been doing business as required by the
regulations for the previous year. The regulation at 8 C.F.R. tj 204.5(j)(2) defines the term
"doing business" as "the regular, systematic, and continuous provision of goods and/or services by
a firm, corporation, or other entity and does not include the mere presence of an agent or office."
Moreover, the regulation at 8 C.F.R. tj 204.5(j)(3)(i)(D) provides that a petition should include
evidence that:
The prospective employer in the United States has been doing business for at least
one year.
In this matter, the petitioner claims that it is engaged in the manufacture and import of premium
Russian vodka and spirits. The director denied the petition, finding that the petitioner had failed
to satisfy the regulatory requirements for doing business. Specifically, the director concluded
that based on the evidence submitted, the petitioner was merely an agent.
The petitioner in this matter was filed on May 16,2007. Therefore, according to the regulations,
the petitioner was required to submit evidence that it had been doing business as contemplated
by the regulations from May 16,2006 to May 16,2007.
In a letter of support dated May 10, 2007, the petitioner indicated that it was in the process of
securing all necessary U.S. federal and individual state regulatory licenses to import vodka into
the United States. The petitioner claimed that this was a "lengthy process," and until such
licenses were obtained, it had designated a company called MHW, Ltd. ("MHW"), based in
Manhasset, New York, to perform the duties of an importer of SV Supreme vodka ("SV
Supreme"). The petitioner claimed that this was a common practice for most foreign importers
and exporters of spirits, and claimed that it had imported over 50,000 bottles of SV Supreme into
the United States via MHW. The petitioner submitted two invoices from MHW, dated August 4,
2006, September 29, 2006, and February 5, 2007, billing the petitioner for services such as
freight and storage charges, as well as additional importer shipping documents, listing MHW as
the ultimate consignee, from August to November 2006. A letter from the petitioner dated
February 6, 2007 to the Federal and State Beverage Alcohol Regulators of the United States of
America, claiming that MHW is authorized to use the petitioner's trade name and import SV
Supreme into the United States until the necessary licenses are obtained by the petitioner, was
also submitted.
In a request for evidence dated July 3, 2007, the director requested evidence from the petitioner
to show that it met the regulatory requirements for doing business, and was not merely acting as
an agent. In addition, it specifically requested a copy of the petitioner's signed 2005 federal tax
return, as well as a copy of the 2006 return, if available. In a response dated September 10,
2007, counsel for the petitioner claimed that the petitioner and its nine employees and twenty
outside contractors are currently engaged in market research and analysis in order to ensure that
its products are strategically placed in U.S. markets. In support of the contention that the
petitioner is doing business, counsel submits copies of various invoices for sales and marketing
activities, including press releases, and examples of the petitioner's marketing, advertising, and
press release efforts. Moreover, it includes a copy of its importer permit issued by the Alcohol
and Tobacco Tax and Trade Bureau on July 27, 2007, and claims that as a result of its
procurement of this license, the petitioner is now able to legally import alcoholic beverages
without the need for MHW as an intermediary. Finally, counsel contended that the petitioner's
signed tax returns were not yet available.
The director denied the petition on February 6, 2008, finding that the petitioner had failed to
satisfy the regulatory requirements for doing business. Specifically, the director concluded that
based on the evidence submitted, the petitioner was merely an agent.
On appeal, counsel contends that the director failed to properly analyze the evidence, and
contends that as a result, the director reached an erroneous conclusion. Specifically, counsel
contends that the petitioner provided ample evidence that it was doing business during the
required period, such as copies of wire transfers evidencing the transfer of funds from the parent
company to the petitioner, and a lease agreement showing the acquisition of a business premises.
Further, counsel contends that the evidence of the petitioner's sales and marketing activities, as
well as evidence that it was in the process of producing necessary licenses, was sufficient to
establish the petitioner was doing business as required.
On review of the evidence submitted and counsel's assertions on appeal, the AAO finds that the
petitioner demonstrated that it had been doing business for the year prior to the filing of the
petition. Accordingly, the director's decision with regard to this issue will be withdrawn.
In the course of examining whether a petitioning company has been doing business as an import
and export firm, it is reasonable to request that the company produce copies of documents that
are required in the daily operation of the enterprise due to routine regulatory oversight. Upon the
importation of goods into the United States, the Customs Form 7501, Entry Summary, serves to
classify the goods under the Harmonized Tariff Schedules of the United States and to ascertain
customs duties and taxes. The Customs Form 301, Customs Bond, serves to secure the payment
of import duties and taxes upon entry of the goods into the United States. According to 19
C.F.R. 4 144.12, the Customs Form 7501 shall show the value, classification, and rate of duty for
the imported goods as approved by the port director at the time the entry summary is filed. The
Page 5
regulation at 19 C.F.R. 5 144.13 states that the Customs Form 301 will be filed in the amount
required by the port director to support the entry documentation. Although customs brokers or
agents are frequently utilized in the import process, the ultimate consignee should have access to
these forms since they are liable for all import duties and taxes. Any company that is doing
business through the regular, systematic, and continuous provision of goods through importation
may reasonably be expected to submit copies of these forms to show that they are doing business
as an import firm.
In this matter, however, the petitioner explicitly claims in its initial letter of support that it was in
the process of securing all necessary U.S. federal and individual state regulatory licenses to
import vodka into the United States, and further stated that it had designated MHW to perform
the duties of an importer of SV Supreme until its licenses were obtained. As discussed above,
the petitioner has submitted no documentation to demonstrate that it has been conducting import
services, although it does provide copies of some invoices from MHW.
On appeal, counsel contends that ample documentation was submitted to demonstrate the
petitioner was doing business, such as invoices for its sales and marketing research. Upon
review of this extensive documentation, the AAO concurs with counsel's contentions. These
documents establish that in the previous year, the petitioner has expended millions of dollars in
sales and marketing in order to launch its target brand in U.S. markets. While the AAO
recognizes that these actions do not coincide with their claimed title of "importer," the promotion
of a product through sales and marketing on such a large scale negates the director's finding that
the petitioner is merely an agent or a shell company. Based on the nature of the expenditures of
the petitioner during the previous year, along with evidence that the necessary licenses have
since been obtained, the AAO is satisfied that the petitioner has been doing business as
contemplated by the regulations. Accordingly, the director's decision with regard to this issue
will be withdrawn.
The second and third issues in this matter; namely, whether the petitioner has established that the
beneficiary was employed abroad and will be employed in a managerial or executive capacity for
the United States entity, are closely related in terms of analysis.
Section 101 (a)(44)(A) of the Act, 8 U.S.C. 5 1 10 1 (a)(44)(A), provides: The term "managerial
capacity" means an assignment within an organization in which the employee primarily
(i)
manages the organization, or a department, subdivision, function,
or component of the organization;
(ii) supervises and controls the work of other supervisory,
professional, or managerial employees, or manages an essential
function within the organization, or a department or subdivision of
the organization;
(iii)
if another employee or other employees are directly supervised,
has the authority to hire and fire or recommend those as well as
other personnel actions (such as promotion and leave
authorization), or if no other employee is directly supervised,
functions at a senior level within the organizational hierarchy or
with respect to the hnction managed; and
(iv)
exercises discretion over the day-to-day operations of the activity
or function for which the employee has authority. A first-line
supervisor is not considered to be acting in a managerial capacity
merely by virtue of the supervisor's supervisory duties unless the
employees supervised are professionai.
Section 101(a)(44)(B) of the Act, 8 U.S.C. fj 1 101(a)(44)(B), provides:
The term "executive capacity" means an assignment within an organization in
which the employee primarily
(i)
directs the management of the organization or a major component
or function of the organization;
(ii)
establishes the goals and policies of the organization, component,
or function;
(iii)
exercises wide latitude in discretionary decision-making; and
(iv)
receives only general supervision or direction from higher level
executives, the board of directors, or stockholders of the
organization.
The AAO will first address the beneficiary's employment abroad.
In a letter of support dated May 10, 2007, the petitioner claimed that the beneficiary was
employed by Soyuz Victan Company Limited from January 2004 to April 2007 in the position of
Export Marketing Director.
The petitioner stated that the beneficiary's duties included the following:
Defined strategy for and developed, executed and managed
comprehensive marketing plans for the export activities of the company
encompassing integrated marketing initiatives designed to penetrate and
grow more than 20 targeted export vodka markets.
Directed all activities with agencies, importers, distributors, management,
internal departments, and vendors to execute overall export marketing
efforts in accordance with corporate goals.
Created, planned and carried out international market research and
analysis.
Directed all product development activities[.]
Organized, led and directed forward-thinking marketing team[.]
Prepared, managed and directed $14M marketing budget for markets:
USA, Israel, Germany, UK and China.
The petitioner claimed that the beneficiary's marketing strategy drove up export sales of the
petitioner's product by 150%, and that he increased the number of export markets from seven to
twelve in one year.
The petitioner also provided an organizational chart for the foreign entity, which indicated that
the beneficiary, as head of the Export Marketing Department, directly oversaw two marketing
managers and one PR and exhibitions manager. The chart indicates that the beneficiary reported
to the foreign entity's vice president.
In the request for evidence dated July 3, 2007, the director requested additional information
pertaining to the beneficiary's duties abroad, as well as the percentage of time he devoted to
these duties. Additionally, the director specifically requested a more detailed organizational
chart clarifying the beneficiary's position in the organizational hierarchy and briefly explaining
the duties of all employees.
In a response dated September 10,2007, counsel for the petitioner provided a brief description of
the beneficiary's three subordinate em loyees in the export marketing department, namely,
, and h. Counsel also provided a breakdown of the
percentage of time the beneficiary devoted to each task area. Specifically, counsel broke down
the beneficiary's duties as they pertained to the foreign employer's business cycle, and indicated
that the periods from September to December and May to August typically required the most
effort with regard to marketing. In relevant part, the petitioner claimed that the beneficiary's
duties were as follows:
SEPTEMBER - DECEMBER:
Direct the planning, preparation, and implementation of marketing strategies for export
markets of [the foreign employer].
Travel to the most important markets (Kazakhstan, Azerbajan, Moldovia, Israel,
Germany, Lativia) to understand current situation about the SV brands positioning
there; (20%)
Order the research information about the export markets from different
organizations (Euromonitor International, ES WR, etc); (1 5%)
Analyze the market information and the field information from the market; (20%)
Review and supervise the marketing plans drafted [by] subordinates. . . . (10%)
Prepare the marketing plans involved in communicating with advertising agencies
at all target markets, as well as retail chains, distributors, who as a rule, were at
the same time the company's importers and partners. (10%)
Every new year market plan included adapting existing [the foreign entity's][
product portfolio to export needs, including translating labels, adapting brand
names and sizes, and very often, developing new products for export basing on
the existing internal product portfolio. . . . (1 5%)
At the same time the execution of the current year's plan never stops: new
advertisements are being adapted to local languages [to] be shown in local media,
in-store promotions are being monitored and controlled, POS-material allocated,
etc. (10%)
JANUARY - FEBRUARY:
Direct, oversee and manage the planning and implementation for executing local events
in target markets: for example, sponsoring football tournament in Israel, involving major
Ukranian and Russian teams, coverage on national TV, etc.
JANUARY - MARCH:
Coordinate, monitor and manage all preparations for the international trade shows
(Dusseldorf, London, Moscow, Hong-Kong, etc[.]).
MARCH - MAY:
Execute the first seasonal wave of media and promo activity (spring wave) at most
markets.
MAY - AUGUST:
Analyze the first year half results, correcting marketing plans for the second half,
strategically repositioning marketing goals and objectives. Then, in September, the
planning cycle begins again.
Direct the updating and revision of the portfolio of brands for each market; (1 0%)
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Controlling the price structure for each market, updating and regulating FOB
prices; (1 0%)
Adapting designs of advertisements for local markets; (1 0%)
Approving the design, including POS designs and PR-articles with the lawyers
both inside the company and at the target export market; (1 0%)
Overseeing the follow-up regarding insertion orders, invoices and the payments
for marketing activities in all export markets; (10%)
Harmonizing media-calendars for leveraging cross-market synergies (for
example, sponsoring sport events in Israel was covered by media in CIS
markets)[;] (1 0%)
Approving designs of exhibition booths for international trade shows. (1 0%)
Approving PR and other copy materials for foreign trade press; (1 0%)
Supplying internal (Ukranian and Russian) PR-services with the information
about company's export activities; (1 0%)
Miscellaneous managerial tasks related to export marketing. (1 0%)
On February 6, 2008, the director denied the petition. The director noted that it did not appear
that the beneficiary had been engaged primarily in managerial or executive tasks, and instead
appeared to have been engaged in performing the marketing functions of the company. The
director also noted that the claimed organizational hierarchy of the petitioner, with only three
subordinates, did not support a finding that the beneficiary would be employed in a primarily
managerial or executive capacity.
On appeal, counsel for the petitioner refers to the statements set forth in the initial letter of
support and in response to the request for evidence, and highlights the fact that the beneficiary
had been "instrumental in developing the firm's marketing strategy" and "oversaw product
development."
Upon review of the petition and the evidence of record, the petitioner has established that the
beneficiary was employed in a managerial capacity abroad. Accordingly, the director's decision
with regard to this issue will be withdrawn.
When examining the executive or managerial capacity of the beneficiary, the AAO will look first
to the petitioner's description of the job duties. See 8 C.F.R. 5 204.5(')(5). The petitioner must
clearly describe the duties to be performed by the beneficiary and indicate whether such duties
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are either in an executive or managerial capacity pursuant to the definitions at section 10 1 (a)(44)
of the Act. At a minimum, the petitioner must establish that the beneficiary's responsibilities
will meet the requirements of one of the statutory definitions.
The term "function manager" applies generally when a beneficiary does not supervise or control
the work of a subordinate staff but instead is primarily responsible for managing an "essential
function" within the organization. See section 10 1 (a)(44)(A)(ii) of the Act, 8 U.S.C.
5 1 101(a)(44)(A)(ii). The term "essential function" is not defined by statute or regulation. The
term "essential" is commonly defined as "inherent" or "indispensable." Webster S II New
College Dictionary 384 2001. Accordingly, based on the plain meaning of the word "essential,"
the petitioner must establish that the function managed by the beneficiary is inherent and
indispensable to the petitioner's operations rather than a non-essential or superfluous task.
Based on the statutory definition of managerial capacity, a petitioner must prove the following
elements to establish that a beneficiary is primarily serving as a function manager within an
organization:
First, the beneficiary must manage an "essential function'' within the organization,
or a department or subdivision of the organization;
Second, the beneficiary must function at a "senior level" within the organizational
hierarchy or with respect to the function managed; and
Third, the beneficiary must control and "exercise discretion" over the day-to-day
operations of the function.
See sections 10 1 (a)(44)(A)(ii), (iii), and (iv) of the Act.
When examining the executive or managerial capacity of the beneficiary, USCIS will first look
to the petitioner's description of the job duties. See 8 C.F.R. 5 204.5(j)(5). If a petitioner claims
that the beneficiary is primarily managing an essential function, the petitioner must furnish a
written job offer that clearly describes the duties to be performed in that capacity, i.e. identify the
function with specificity, articulate the essential nature of the function, and establish the
proportion of the beneficiary's daily duties attributed to managing the essential function. Id If a
petitioner fails to document what portion of the beneficiary's duties would be managerial
functions and what proportion would be non-managerial, the AAO cannot determine whether the
beneficiary is primarily performing the duties of a function manager. See IKEA US, Inc. v. US.
Dept. of Justice, 48 F. Supp. 2d 22, 24 (D.D.C. 1999). In addition, the petitioner's description of
the beneficiary's daily duties must demonstrate that the beneficiary manages the function rather
than performs the duties related to the function. An employee who primarily performs the tasks
necessary to produce a product or to provide services is not considered to be employed in a
managerial or executive capacity. Matter of Church Scientology International, 19 I&N Dec.
593, 604 (Comm. 1988); see also Republic of Transkei v. INS, 923 F.2d 175, 177 (D.C. Cir.
1991); Boyang, Ltd. v. I.N.S., 67 F.3d 305 (Table), 1995 WL 576839 at "5 (9th Cir,
Page 11
1995)(unpublished)(citing to Matter of Church Scientology Int '1 and finding an employee who
primarily performs operational tasks is not a managerial or executive employee.
Beyond the required description of the job duties, USCIS reviews the totality of the record when
examining the claimed managerial or executive capacity of a beneficiary, including the
petitioner's organizational structure, the duties of the beneficiary's subordinate employees, the
presence of other employees to relieve beneficiary from performing operational duties, the nature
of the petitioner's business, and any other factors that will contribute to a complete
understanding of a beneficiary's actual duties and role in a business. In the case of a function
manager, when no subordinates are directly supervised, these other factors may include the
beneficiary's position within the organizational hierarchy, the depth of the petitioner's
organizational structure, the scope of the beneficiary's authority and its impact on the petitioner's
operation, the indirect supervision of employees within the scope of the hnction managed, and
the value of the budgets, products, or services that the beneficiary manages.
In this matter, upon review of the totality of the record, the petitioner has established that the
beneficiary was primarily serving as a function manager abroad. First, the AAO is satisfied that
the beneficiary's role within the foreign organizations was that of a senior-level manager
responsible for the management of an "essential function," specifically, the marketing, sales, and
brand management of a product line that produces millions of dollars of revenue for the
petitioner annually. The petitioner in this case derives its income from the production,
marketing, sales and distribution of premium Russian vodka and spirits. Moreover, the petitioner
is the second largest vodka company in the world. Within the scope of the petitioner's business,
it is clear that the function of managing the sales, marketing, and brand image of one or more of
its brands is an "inherent" or "indispensable" function, and therefore, an "essential" function as
required by the plain language of the statute.
Second, the petitioner has established that the beneficiary functioned at a senior level within the
organizational hierarchy abroad and with respect to the function managed. In performing his
daily activities, the beneficiary has been working closely with other employees primarily at the
executive and managerial level. In a company with a multi-layered managerial structure, his
position can clearly be considered senior within the company's complex organizational
management hierarchy. Further, the petitioner has established that the beneficiary occupies the
senior position with respect to the updating and revision of the portfolio of brands for each
market, with accountability for overseeing marketing programs, controlling costs, and
monitoring production and sales performance for several of the petitioner's key product lines.
Third, the petitioner has established that the beneficiary "exercised discretion" over the
day-to-day operations of the function in that he controls a broad range of activities associated
with management of his assigned product lines. Beyond sales and marketing activities, the
beneficiary's authority includes the allocation and control of a significant budget and authority to
influence decisions made by the management of the various brands of vodka and spirit which he
oversees.
Page 12
Finally, although the director concluded that the beneficiary had been engaged primarily in
performing the marketing functions of the company, the petitioner has submitted sufficient
evidence to establish that it maintains a staff of subordinate marketing personnel who would
perform the routine duties associated with marketing, advertising and selling the brands managed
by the beneficiary, leaving the beneficiary free to primarily engage in developing policies and
goals and overseeing execution of long-term strategies. Specifically, the organizational chart
indicated that the beneficiary indirectly oversees three subordinate employees with managerial
titles, and claimed that the beneficiary monitors and oversees the marketing plans drafted by his
subordinates. The AAO is satisfied that the beneficiary primarily manages, rather than performs,
the function.
Based on the foregoing discussion, the petitioner has established that the beneficiary was
employed abroad in a primarily managerial or executive capacity.
The last issue on appeal is whether the beneficiary will be employed in the United States in a
primarily managerial or executive capacity. In the letter of support dated May 10,' 2007, the
petitioner claimed that the beneficiary would be employed in the United States as its vice
president of marketing. The petitioner provided the following overview of the beneficiary's
duties in this capacity:
Define strategy for and develop, execute and manage comprehensive
marketing plans for the launch of our premier vodka brand, SV Supreme
and our other brands in the US.
Direct all activities with advertising agencies, importers, distributors,
management, internal sales and marketing departments, and vendors to
execute overall export marketing efforts in accordance with corporate
goals.
Create, plan and carry out domestic US market research and analyses.
โข
Direct all product development activities for emerging US market.
Organize, lead and directed forward-thinking marketing team[.]
Prepare, manage and direct $1 OM marketing budget for US markets.
The petitioner also provided an organizational chart for the U.S. entity, which indicated that the
two subordinate employees: -
In the request for evidence dated July 3, 2007, the director requested additional information
pertaining to the beneficiary's duties abroad, as well as the percentage of time he devoted to
these duties. Additionally, the director specifically requested a more detailed organizational
chart clarifying the beneficiary's position in the organizational hierarchy and briefly explaining
the duties of all employees.
In a response dated September 10,2007, counsel for the petitioner claimed that the beneficiary is
responsible "for all facets of marketing strategy development and implementation." In addition,
counsel indicated that the beneficiary directly oversees one sales analyst, but claimed that the
beneficiary additionally supervised other subordinates who are outside contractors and who
worked directly on marketing, promotional, and press efforts.
The petitioner provided an updated and more detailed overview of the beneficiary's duties in the
U.S. In relevant part, the petitioner claimed that the beneficiary's duties were as follows:
Development and [I of the marketing strategy and policy (10%)
Market research (1 0%)
Present the marketing strategies and plans (10%)
Control of the new sizes design and production schedules (10%)
Create and develop the advertising campaign (1 0%)
Designing and producing the pos and other advertising material (10%)
Media planning and media buying (1 0%)
Negotiating with magazines about added value events (1 0%)
Managing the public relations side of marketing + event management (1 0%)
Additional responsibilities (1 0%)
On February 6, 2008, the director denied the petition. The director noted that, similarly to the
position abroad, the beneficiary would be not be engaged primarily in managerial or executive
tasks, and instead would be engaged in performing the marketing functions of the company. The
director also noted that the claimed organizational hierarchy of the petitioner, with only one
identified subordinate and an organizational chart indicating numerous co-workers of the
beneficiary with executive titles, did not support a finding that the beneficiary would be
employed in a primarily managerial or executive capacity.
On appeal, counsel for the petitioner again emphasizes that the beneficiary is involved in all
facets of the petitioner's marketing strategy development.
Upon review of the petition and the evidence of record, the petitioner has established that the
beneficiary was employed in a managerial capacity abroad. Based on a review of the evidence,
the AAO again concludes that the beneficiary will be employed as a function manager in the
United States. Accordingly, the director's decision with regard to this issue will be withdrawn.
Page 14
As previously discussed, the AAO will look first to the petitioner's description of the job duties
when examining the executive or managerial capacity of the beneficiary. See 8 C.F.R. 5
204.5(j)(5). The petitioner must clearly describe the duties to be performed by the beneficiary
and indicate whether such duties are either in an executive or managerial capacity pursuant to the
definitions at section 101 (a)(44) of the Act. At a minimum, the petitioner must establish that the
beneficiary's responsibilities will meet the requirements of one of the statutory definitions.
The current organizational hierarchy of the petitioner, with a sales analyst and a claim that the
beneficiary oversees external contractors, renders it reasonable to determine that the beneficiary
can refrain from performing non-qualifying duties. A critical analysis of the nature of the
petitioner's business supports the petitioner's assertions that subordinate employees andlor
contractors relieve the beneficiary from performing non-qualifying duties. For example, the
petitioner explained in detail in the organizational chart and the response to the request for
evidence the manner in which the beneficiary accomplishes his external responsibilities through
the use of external entities. Specifically, the petitioner claims that it uses Brand Action Team
(BAT) Agency for design services, and the record contains evidence that BAT writes press
releases and follows up on media stories and delivery of product samples for approximately
$24,000 per month.
Additionally, the petitioner claims that "marketing and brand development efforts are core
business activities of this company and the U.S. office was launched with the expectation that it
would oversee, direct, and develop all marketing efforts on behalf of the Silk Vodka."
(Emphasis in original). The record contains evidence that the petitioner has utilized the services
of Luxe Marketing LLC (Luxe), who provided the services of eighteen marketing managers.
One invoice contained in the record indicates that Luxe billed the petitioner $300,000 for
marketing services for the month of October 2007 alone, thereby creating a presumption that
contrary to the director's conclusions, the marketing tasks are outsourced as claimed by the
petitioner to an independent agency.
Finally, the record indicates that the petitioner also retains McCaffery, Gottlieb Lane LLC
(MGL), an advertising agency which places high profile advertisements for the petitioner's
products, costing $60,000 - $80,000 on average, in magazines such as Vanity Fair. The record
indicates that the beneficiary has the authority to approve these large-scale advertisements,
thereby further supporting a finding that the beneficiary is employed in a qualifying capacity.
As previously stated, a petitioner must prove the following elements to establish that a
beneficiary is primarily serving as a function manager within an organization: (1) the beneficiary
must manage an "essential function" within the organization, or a department or subdivision of
the organization; (2) the beneficiary must function at a "senior level" within the organizational
hierarchy or with respect to the function managed; and (3) the beneficiary must control and
"exercise discretion" over the day-to-day operations of the function. See sections
10 1 (a)(44)(A)(ii), (iii), and (iv) of the Act.
Based on the totality of the record, the petitioner has established that the beneficiary will
primarily serve as a function manager in the United States. First, the AAO is satisfied that the
beneficiary's role within the petitioning organization will be that of a senior-level manager
responsible for the management of an "essential function," specifically, the marketing, sales, and
brand management of a product line that produces millions of dollars of revenue for the
petitioner annually. The petitioner in this case derives its income from the production,
marketing, sales, and distribution of premium Russian vodka and spirits, and the beneficiary will
be responsible for the marketing and brand launch of Silk Vodka, among other products. Within
the scope of the petitioner's business, it is clear that the function of managing the sales,
marketing, and brand image of one or more of its brands is an "inherent" or "indispensable"
function, and therefore, an "essential" function as required by the plain language of the statute.
Second, the petitioner has established that the beneficiary will function at a senior level within
the organizational hierarchy and with respect to the function managed. In performing his daily
activities, the beneficiary has been working closely with outside contractors, such as advertising
and marketing agencies, who perform services primarily at the executive and managerial level.
The beneficiary's position can clearly be considered senior within the company's complex
organizational management hierarchy. Further, the petitioner has established that the beneficiary
occupies the senior position with respect to the updating and revision of the portfolio of brands
for each market, with accountability for overseeing marketing programs, controlling costs, and
monitoring production and sales performance for several of the petitioner's key product lines.
Third, the petitioner has established that the beneficiary "exercised discretion" over the
day-to-day operations of the function in that he controls a broad range of activities associated
with management of his assigned product lines. Beyond sales and marketing activities, the
beneficiary's authority includes the allocation and control of a significant budget and authority to
influence decisions made by the management of the various brands of vodka and spirit which he
oversees. As stated above, the beneficiary has the authority to approve expensive advertising
campaigns and oversees the marketing efforts of Luxe as it pertains to Silk Vodka.
Finally, although the director concluded that the beneficiary will be engaged primarily in
performing the marketing functions of the company, the petitioner has submitted sufficient
evidence to establish that it maintains a sufficient staff of external entities who perform the
routine duties associated with marketing, advertising and selling the brands managed by the
beneficiary, leaving the beneficiary free to primarily engage in developing policies and goals and
overseeing execution of long-term strategies. Specifically, the record contains evidence of
substantial services rendered to the petitioner by marketing, advertising and design agencies.
The AAO, therefore, is satisfied that the beneficiary will primarily manage, rather than perform,
the function.
Based on the foregoing discussion, the petitioner has established that the beneficiary will be
employed in a primarily managerial capacity in the United States.
Page 16
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. ยง 1361. Here, the petitioner has
sustained that burden. For the foregoing reasons, the decision of the director will be withdrawn
and the petition will be approved.
ORDER: The appeal is sustained. Use this winning precedent in your petition
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