dismissed
L-1A
dismissed L-1A Case: Import And Trading
Decision Summary
The appeal was dismissed because the petitioner failed to establish that the beneficiary would be employed in a qualifying executive capacity. The Director found, and the AAO agreed, that the description of the beneficiary's proposed duties was overly broad and insufficient to demonstrate that she would primarily perform high-level executive tasks rather than the day-to-day operational activities of the business.
Criteria Discussed
Executive Capacity Managerial Capacity
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U.S. Citizenship and Immigration Services In Re: 5847111 Appeal of California Service Center Decision Form I-129, Petition for Nonimmigrant Worker (L-lA) Non-Precedent Decision of the Administrative Appeals Office Date: DEC. 19, 2019 The Petitioner, describing itself as an import and trading business specializing in PVC piping, seeks to continue to temporarily employ the Beneficiary in the United States as its president and chief executive officer under the L-lA nonimrnigrant classification for intracompany transferees. Immigration and Nationality Act (the Act) section 101(a)(15)(L), 8 U.S.C. § 1101(a)(15)(L). The Director of the California Service Center denied the petition, concluding that the record did not establish, as required, that the Beneficiary was employed in a managerial or executive capacity in his former capacity abroad. The Director further determined that the Petitioner did not demonstrate that the Beneficiary would be employed in a managerial or executive capacity in the United States. On appeal, the Petitioner asserts that the Director abused her discretion by concluding that the Beneficiary's U.S. and foreign duties were not sufficiently detailed. The Petitioner contends the regulations do not require that it submit a detailed duty description, nor do they indicate what represents a sufficient description. The Petitioner states that the Beneficiary's duties are sufficiently specific and that she would be primarily relieved from perfonning non-qualifying operational duties. The Petitioner contends that the Beneficiary would qualify as an executive in the United States. In these proceedings , it is the Petitioner's burden to establish eligibility for the requested benefit. Section 291 of the Act, 8 U.S.C. § 1361. Upon de nova review, we will dismiss the appeal. I. LEGAL FRAMEWORK To establish eligibility for the L-lA nonimmigrant visa classification , a qualifying organization must have employed the beneficiary "in a capacity that is managerial , executive, or involves specialized knowledge," for one continuous year within three years preceding the beneficiary's application for admission into the United States. Section 101(a)(l5)(L) of the Act. In addition, the beneficiary must seek to enter the United States temporarily to continue rendering his or her services to the same employer or a subsidiary or affiliate thereof in a managerial or executive capacity. Id. The petitioner must also establish that the beneficiary's prior education, training, and employment qualify him or her to perform the intended services in the United States. 8 C.F.R. § 214.2(1)(3). II. U.S. EMPLOYMENT IN AN EXECUTIVE CAPACITY The first issue we will address is whether the Petitioner established that the Beneficiary would be employed in a managerial or executive capacity in the United States. The Petitioner does not claim that the Beneficiary was employed abroad in a managerial capacity. Therefore, we restrict our analysis to whether the Beneficiary would be employed in an executive capacity. "Executive capacity" means an assignment within an organization in which the employee primarily directs the management of the organization or a major component or function of the organization; establishes the goals and policies of the organization, component, or function; exercises wide latitude in discretionary decision-making; and receives only general supervision or direction from higher-level executives, the board of directors, or stockholders of the organization. Section 101 (a)( 44 )(B) of the Act. The Petitioner asserts on appeal that the regulations do not require it to submit a detailed job duty description and contends that the regulations do not define such a description. Although we acknowledge that the regulations do not specifically codify a detailed duty description, if this is possible given the variety of beneficiaries and industries that may apply for the L-lA nonimmigrant benefit, United States Citizenship and Immigration Service (USCIS) has long assessed the credibility of a beneficiary's duties to assess their eligibility. When examining the executive capacity of a given beneficiary, we will review the petitioner's description of the job duties. The petitioner's description of the job duties must clearly describe the duties to be performed by the beneficiary and indicate whether such duties are in an executive capacity. See 8 C.F.R. § 214.2(1)(3)(ii). Beyond the required description of the job duties, we examine the company's organizational structure, the duties of a beneficiary's subordinate employees, the presence of other employees to relieve a beneficiary from performing operational duties, the nature of the business, and any other factors that will contribute to understanding a beneficiary's actual duties and role in a business. Accordingly, we will discuss evidence regarding the Beneficiary's job duties along with evidence of the nature of the Petitioner's business, its staffing levels, and its organizational structure. A. Duties Based on the definition of executive capacity, the Petitioner must first show that the Beneficiary will perform certain high-level responsibilities. Champion World, Inc. v. INS, 940 F.2d 1533 (9th Cir. 1991) (unpublished table decision). Second, the Petitioner must prove that the Beneficiary will be primarily engaged in executive duties, as opposed to ordinary operational activities alongside the Petitioner's other employees. See Family Inc. v. USCIS, 469 F.3d 1313, 1316 (9th Cir. 2006); Champion World, 940 F.2d 1533. In a support letter, the Petitioner stated that it "offers a premier location for unparalleled logistical support and infrastructure" and that it had been "approved to transact business in Florida as part of a collaborative partnership with a local PVC manufacturer and supplier." The Director later issued a request for evidence (RFE) asking for a more detailed duty description for the Beneficiary; namely, one that described her day-to-day executive level duties. In response, the Petitioner indicated that the 2 Beneficiary was responsible for and performed the following tasks, which it organized into various categories: A. Setting goals, policies and priorities of the Petitioner's business development (30%) • Exercises leadership in setting goals, policies and priorities, • Sets vision and judgement to pace development, • Reviews petitions from subordinate managers on different products and new customers, • Makes executive decisions on new business development, • Grooms her potential successor to be able to see the big picture and have the capacity to make top level executive decisions, • Considers expanding the business by partnering with others, • Decides on timing of entering new fields and lines of business, • Sets policies on human resources, or more appropriately for the business, • Leads by motivating the managers, especially when sometimes she has to rebuff some of their proposals, B. Key personnel decisions and organizational development (30%) • Serves the Petitioner and its foreign affiliate as a whole when assessmg the Petitioner's operations, • Directs and evaluates managers and professional staff: • Push forward organizational development in line with business expansion, • Exercise complete discretion in personnel decisions such as hiring, firing and giving bonuses, C. Make decisions on resources allocation (30%) • • • • • • • Exercise executive duties in resources allocation, set priont1es of business development and the important aspect of resource allocation, Allocates resources to achieve the already decided business and organizational development objectives, Boldly decided to position warehousing resources in Florida increasing sales from $3.6 million in 2017 to $5.7 in 2018 by factoring in other positive factors, Decided to actively explore new products such as Acrylic sheeting, an executive decision that had direct and major impact on the Petitioner's bottom line, In the coming years, make similar executive decisions on allocating resources in support of business development, product development and organizational development, Take in advice, date and projection from managers and make final decisions and make changes along the way, Allocate budget and personnel to make the next phase of development a successful one, • Act like a general who takes in business intelligence reported by managers and professional staff and make decisions on critical resources allocation so the organization keeps moving in the right direction in terms of growing our business based and making our company stronger and more capable, 3 D. Improve the risk and regulatory compliance system and direct business manager to implement it (10%) • Establish a risk control and regulatory compliance system, and • Hire lawyers to create a management system in compliance with the federal and state employment and labor laws. In denying the petition, the Director concluded that the Beneficiary's U.S. duty description was insufficient and overly broad and that it did not sufficiently demonstrate what she would do on a day to-day basis. The Director indicated that although the Petitioner had provided some details and examples, it did not sufficiently establish how executive-level responsibilities primarily occupied the Beneficiary's time. Despite its contention on appeal that a detailed description of the Beneficiary's duties is not required by the regulations, the Petitioner provides an additional daily routine for the Beneficiary setting forth some of the following tasks: 9:30-10:00 am Attend to emails mostly from foreign entity deputy general manager reporting on prior day in China: work with foreign entity in servicing our clients in America, and rely on emails to have a firm grasp of activities and performance at the foreign entity. 10:00 am- 12 pm Ad hoc meetings on new business development which involved manager at the Petitioner and foreign entity, rely on market intelligence on company's capacity and her business vision and took initiative to explore launching a newline of business involving Acrylic product: understanding that entering into a new sector of Acrylic product required investment into a new supply chain, move ahead notwithstanding uncertainty of new clients and without limited expertise in this sector, successfully secured a position in the sector and now this represents roughly 25% of the our sales. 12:00-13 :30 Lunch meeting with visiting clients, local business leaders: learning about the US business environment, HR management practice, anti-discrimination concepts, develop new business relationships, and they are also critical sources of the Beneficiary's ideas for business development strategies and organizational development initiatives. Working lunches with local bankers. 13 :30-14:30 Attend briefings on sales and business development, briefed by subordinate managers on sales and client payment status of Florida branch: focused on directing efforts and allocating resources to overcome unanticipated bumps and challenges, instruct managers on quality and business development to investigate underlying cause, exercise executive leadership to coordinate multiple department managers in China and the States to rectify the late-payment or order decreasing. 14:30-16:00 Ad hoc meeting on a major challenge facing our business. For example, in 2018, the US government increased tariff of Acrylic product and PVC products by 10% 4 respectively: exercised her leadership in navigating this uncharted water, on the supplier side, China-based managers worked with factories to find ways to lower costs and reduce prices, managers and Beneficiary through effective communication strategies persuaded clients to share a portion of the cost increase. 16:00-16:30 One-on-one conversation with manager[ s] to review performance and provide feedbacks and instructions for improvement: the Beneficiary worked with all middle managers closely and therefore was in a position to give concrete assessment of their skills and work ethics and productive suggestions for improvement. Despite providing a lengthy list of duties for the Beneficiary on the record, these descriptions are substantially generic and it has submitted little documentation to substantiate her actual day-to-day qualifying executive-level tasks. The Beneficiary's duty descriptions include several duties that could apply to any executive acting in any industry and they provide little insight into her actual day-to-day executive tasks. For instance, the Petitioner did not sufficiently detail or document the goals, policies, and priorities the Beneficiary set, the vision she established for the company, human resources policies she put in place, or business development initiatives she ordered. Likewise, it did not articulate or document organizational development she "pushed forward," research and development, marketing, logistics, sales and sourcing "operational infrastructure" she built, investment plans she created, and alliances and partnerships she built with other businesses. In addition, the Petitioner did not detail or substantiate with supporting evidence recommendations the Beneficiary made to improve policies and procedures, resources she allocated in support of business, organizational development, budget and personnel decisions she made, or risk control and regulatory compliance systems she established. In sum, the Beneficiary's duty descriptions, despite their length, included few credible examples of her actual executive-level tasks. This lack of detail and documentation is particularly questionable since the Petitioner asserts that the Beneficiary has been acting in her capacity as president and chief executive officer for over three years since December 2015. 1 Specifics are clearly an important indication of whether a beneficiary's duties are primarily executive in nature, otherwise meeting the definitions would simply be a matter ofreiterating the regulations. Fedin Bros. Co., Ltd. v. Sava, 724 F. Supp. 1103, 1108 (E.D.N.Y. 1989), ajf'd, 905 F.2d41 (2d. Cir. 1990). We acknowledge that the Petitioner submitted other information and documentation specific to the Beneficiary's activities, but we did not find this evidence sufficiently credible to establish that she would devote a majority of her time to executive-level tasks in the United States. For example, the Petitioner emphasized the Beneficiary's decision to enter the acrylic products market; however, the record includes little supporting documentation of the company's business operations in this claimed new business sector and insufficient specifics as to this asserted decision. For instance, the Petitioner states on appeal the Beneficiary's decision led to 25% of its sales being in acrylic products, but it provides no documentation to substantiate this assertion. Likewise, this claim lacks credibility as it includes little reasonable detail, such as how the business accomplished entering this new market, what investment was implemented to do so, or what vendors it worked with to acquire these products in the United States. In fact, the only supporting document provided by the Petitioner to substantiate this 1 The petition was filed on August 30, 2018. 5 critical decision on the part of the Beneficiary are meeting notes provided on appeal from December 2016. The Petitioner's submittal of this document is questionable, considering that in the duty description submitted in February 2019 it indicated that it had only 'just began" to "actively explore" such products. Similarly, these meetings minutes also lacked credible details as to the financial aspects of this decision or specific instructions provided by the Beneficiary to his managerial subordinates. For instance, the meeting minutes state that "the marketing team conducted full feasibility research for the supply chain of plastic products of mainland China, Taiwan, and other Asia area;" yet, these minutes did not indicate any of the results of these studies. The minutes only vaguely referenced a few vendors who sold these products, but there is no supporting evidence that the Petitioner has conducted business with them. The Petitioner also emphasized a decision on the part of the Beneficiary to establish "Florida warehousing" and noted that this led to a substantial increase in revenue. However, again, there is no supporting documentation on the record to corroborate that the Beneficiary actually made this executive level decision, the Petitioner has warehousing facilities in Florida, or this decision led to an asserted boost in revenue of approximately $2 million in 2018 as claimed. In fact, the Petitioner submitted evidence indicating that it only rented a small one room business suite for $500 per month, leaving further uncertainty as to its warehousing assertion. In addition, the Petitioner also points to the Beneficiary's executive decisions related to tariffs imposed by the United States on PVC and acrylic products. It also provided asserted meeting minutes from August 2018 it claims demonstrate the Beneficiary dealing with this crisis with her subordinate managers. However, the meeting minutes lacked credible detail, such as the actual financial impact to the business, specific clients this would impact, and who they would need to communicate with on this issue. Indeed, the Petitioner submitted a form letter dated in September 2018 generically addressed to "all extruded acrylic, cast acrylic and mirror acrylic customers" that includes no indication that it was signed or actually sent to clients. Again, as we have mentioned, it is also noteworthy that the Petitioner provided no evidence that it has been operating in the acrylic market as claimed. Lastly, the Petitioner also stated in the Beneficiary's claimed daily routine that they "rely on emails to have a firm grasp of activities and performance at the foreign entity." However, the Petitioner only submitted one asserted email from December 2016, three years prior to the date of the petition, from the Beneficiary to a claimed vendor. Otherwise, the record includes no supporting documentation to substantiate the Beneficiary's actual communication and delegation of duties to her claimed managerial subordinates, which it asserts takes place on a daily basis. In contrast, the Petitioner did submit several invoices reflecting the sale of PVC products to clients in the United States by the foreign entity in 2016. These invoices all included the Beneficiary's email address; however, none of the other submitted documentation on the record reflected her claimed subordinates performing these operational level tasks or her delegating these non-qualifying duties to her subordinates. Despite the Petitioner's assertions on appeal, a critical part of this adjudication is assessing the credibility of the Beneficiary's duties. In sum, although the Petitioner provided a few details regarding the Beneficiary executive-level decisions and duties, these specifics lacked credibility and were not supported with sufficient documentary evidence. 6 Even though the Beneficiary holds a senior position within the organization, the fact that they will manage or direct a business does not necessarily establish eligibility for classification as an intracompany transferee in an executive capacity within the meaning of section 10l(a)(44)(B) of the Act. By statute, eligibility for this classification requires that the duties of a position be "primarily" executive in nature. Id. The Beneficiary may exercise discretion over the Petitioner's day-to-day operations and possess the requisite level of authority with respect to discretionary decision-making; however, the position descriptions alone are insufficient to establish that his actual duties would be primarily executive in nature. B. Staffing If staffing levels are used as a factor in determining whether an individual is acting in an executive capacity, we take into account the reasonable needs of the organization, in light of the overall purpose and stage of development of the organization. See section 101 (a)( 44 )( C) of the Act. As noted, the Petitioner claims that the Beneficiary has, and would, act in an executive capacity in the United States. The statutory definition of the term "executive capacity" focuses on a person's elevated position within a complex organizational hierarchy, including major components or functions of the organization, and that person's authority to direct the organization. Section 10l(a)(44)(B) of the Act. Under the statute, a beneficiary must have the ability to "direct the management" and "establish the goals and policies" of that organization. Inherent to the definition, the beneficiary must primarily focus on the broad goals and policies of the organization rather than the day-to-day operations of the enterprise. An individual will not be deemed an executive under the statute simply because they have an executive title or because they "direct" the enterprise as the owner or sole managerial employee. A beneficiary must also exercise "wide latitude in discretionary decision making" and receive only "general supervision or direction from higher level executives, the board of directors, or stockholders of the organization." Id. The Petitioner submitted an organizational chart indicating that the Beneficiary oversaw a chief financial officer, a business manager, and a marketing director. Further, the chart reflected that the business manager supervised a product developer, a logistic specialist, and two "independent contractor" sales representatives. It also showed that the marketing director supervised a market developer. In addition, the chart reflected, and the Petitioner emphasized throughout the record, that it was supported by foreign entity employees, including a deputy general manager overseeing two overseas business department managers, two business specialists, and a "business documentary" employee. First, the Petitioner provides no supporting documentation to corroborate that foreign employer employees are regularly utilized by the company to support it operations. Therefore, it has not sufficiently substantiated that they are part of the Petitioner's organizational structure or that they support its operations. See Matter ofZ-A-, Inc., Adopted Decision 2016-02 at 6 (AAO Apr. 14, 2016). In addition, the Petitioner did not submit supporting documentation to corroborate the two claimed outside sales contractors and their level of engagement; or that they can be considered a part of its organizational structure. Without substantiation of these asserted operational level employees to support its operations, the supporting evidence only questionably reflects three managers within the 7 business, the Beneficiary, the business manager, and marketing director, but only two operational level employees; namely, the logistic specialist and the marketing developer. Further, similar to the Beneficiary's duty description, the Petitioner provided generic duty descriptions for her claimed subordinate managers that do not sufficiently substantiate that they act in their asserted roles. For instance, the Petitioner vaguely stated that the business manager would "implement the Beneficiary's vision to build a U.S.-based operational infrastructure supporting R&D, Marketing, Logistics, [and] Sales and Sourcing," build "strong contract R&D and manufacturing capacities in China and access to leading PVC technologies in the U.S.," "create investment plan[s] to promote further expansion," "build and maintain alliances and partnerships," "visit business customers," and analyze "work opportunities and weaknesses." First, the duties of the business manager largely overlap with the Beneficiary's claimed duties and it is questionable that the Petitioner would require two higher level managers performing the same duties given its apparent lack of operational level employees. Regardless, the asserted duties of the business manager were markedly non-specific and did not indicate the research and development, marketing, logistics, or sourcing infrastructure they built, the contracts in China they maintained, investment plans they implemented, alliances or partnerships they built, or opportunities or weaknesses they focused on. The Petitioner likewise provided generic duties for the claimed subordinate marketing director, vaguely indicating that he would be tasked with defining the "marketing strategy," identifying "customers and their current and future needs," identifying "short-term and long-range issues that must be addressed," recommending "options and courses of action," identifying U.S.-based industries where Petitioner products are needed, defining investment plans, and vetting business partners. However, yet again, this duty description lacks credible details such as the marketing strategies the marketing director defined, customers he identified, short and long term issues he addressed, courses of action he recommended, investment plans he defined, or business partners he vetted. Indeed, the duties of this claimed manager again appear rather similar to those of the Beneficiary. Therefore, in sum, the claimed duties of the Beneficiary's subordinate managers were not sufficiently detailed and credible to demonstrate their purported roles within the business. In light of this, the lack of evidence of supporting operational level employees, and the generic nature of the Beneficiary's duties, this leaves substantial uncertainty as to whether the Beneficiary has, and would, act within a complex organizational hierarchy and primarily focus on the broad goals and policies of the organization rather than its day-to-day operations. For the foregoing reasons, the Petitioner has not established that the Beneficiary would act in an executive capacity in the United States under an extended petition. III. FOREIGN EMPLOYMENT IN A MANAGERIAL OR EXECUTIVE CAP A CITY The next issue we will address is whether the Petitioner established that the Beneficiary was employed in a managerial or executive capacity abroad prior to his entry into the United States as a nonimmigrant in 2015. Because of the dispositive effect of the above finding of ineligibility; namely, our affirmation of the Director's conclusion with respect to the Beneficiary's asserted executive capacity in the United States, we will only briefly address the remaining issue pertaining to his former employment abroad. 8 The Petitioner indicated that the Beneficiary was the founder of the foreign employer in 2007 and it its general manager from that time to December 2015, stating that the company was "mainly engaged in international supply and distribution of PVC products, such as PVC foam board, PVC grain board, PVC moulding [sic]." However, similar to the Beneficiary's claimed U.S. duties, her claimed duties abroad were also generic and overly broad. For instance, they listed many overly vague tasks, indicating that the Beneficiary had been responsible for directing the company's operations, preparing strategic policies, incubating new business models, launching new PVC products to promote the foreign employer's brand, setting the right priorities, turning "crisis into opportunity," setting a "clear direction for the company," amongst other generic duties. The Petitioner submitted few details and no documentation to substantiate the Beneficiary's duties and activities abroad from 2007 to 2015, such as crises she faced, direction she set for the company, resources she allocated, territories she "sailed [the company] into," adjustments she made to the organization, or new quality protocols and standards she established. This lack of detail is notable considering the Petitioner asserts that the Beneficiary was the founder of the foreign employer and is claimed to have acted in her role as sole owner and general manager for approximately eight years. Again, specifics are clearly an important indication of whether a beneficiary's duties are primarily executive or managerial in nature, otherwise meeting the definitions would simply be a matter of reiterating the regulations. Fedin Bros. Co., Ltd. v. Sava, 724 F. Supp. 1103, 1108. With respect to the foreign employer organizational structure, the Petitioner provided a chart indicating that the Beneficiary oversaw an office manager, deputy general manager, and financial director, and that these subordinates supervised four subordinate supervisors responsible for a total of nine other operational level employees. However, the record includes little documentary evidence of the foreign employer's operations to substantiate that it supported this asserted organizational structure during the Beneficiary's claimed foreign employment. Likewise, there is no evidence of the Beneficiary performing her role abroad as general manager or her delegating duties to employees within its organizational structure. Lastly, in the RFE and in the denial decision, the Director emphasized that the Beneficiary reported in six Department of State Forms DS-160 from 2009 to 2015 that she worked forl I I lnot the foreign employer as claimed in the cu~tion. In response to the RFE, the Beneficiary submitted an affidavit stating that she had joinedl___Jin 1999, received a master's in business administration while employed there, and then was appointed as its general manager of international sales in 2004. The Beneficiary farther indicated that she later founded the foreign employer in 2007 and noted that I I owners and executives "folly supported my new venture by retaining [the foreign employer's] service for export agency and sales." She also explained that "there were occasions where I visited overseas customers or [we] attended international trade shows together, in which cases, when customers issued invitation letters, they understandably included me as I I personnel." In addition, the Beneficiary attested that "it was my oversight and innocent mistake to not take affirmative actions to correct travel agents using previously saved employer information in filling [out] DS 160 forms." In total, we did not find the affidavit sufficient to overcome the material discrepancies noted in the Director's RFE. As discussed in the RFE, the Beneficiary reported another foreign employer to the 9 Department of State on six separate occasions while supposedly employed with the foreign employer from 2007 to 2015. This, along with the lack of evidence of the Beneficiary's foreign employment abroad, leaves substantial uncertainty as to her claimed qualifying foreign employment in a managerial or executive capacity abroad. Further, the Petitioner and Beneficiary notably submitted no supporting documentation to substantiate any of the assertions made in her affidavit in response to the Director's RFE. The Petitioner must resolve inconsistencies and discrepancies in the record with independent, objective evidence pointing to where the truth lies. Matter of Ho, 19 I&N Dec. 582, 591-92 (BIA 1988). For the foregoing reasons, the Petitioner has not established that the Beneficiary acted in a managerial or executive capacity abroad. IV. CONCLUSION The appeal must be dismissed because the Petitioner has not established that the Beneficiary would be employed in an executive capacity in the United States or that she was employed abroad in a managerial or executive capacity. ORDER: The appeal is dismissed. 10
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