dismissed
L-1A
dismissed L-1A Case: Manufacturing
Decision Summary
The appeal was dismissed because the petitioner failed to establish that the new office would support the beneficiary in a managerial capacity within one year of approval. The AAO agreed with the Director that the beneficiary's proposed job duties were overly vague and general, lacking the specifics to demonstrate that he would primarily perform qualifying managerial tasks.
Criteria Discussed
New Office Requirements Managerial Capacity Ability To Support Position Within One Year Sufficient Physical Premises Beneficiary'S Job Duties
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U.S. Citizenship
and Immigration
Services
MATTER OF 0-N-A- CORP.
APPEAL OF VERMONT SERVICE CENTER DECISION
Non-Precedent Decision of the
Administrative Appeals Office
DATE: JAN. 9, 2018
PETITION: FORM I-129. PETITION FOR A NONIMMIGRANT WORKER
The Petitioner, a designer and manufacturer of security doors, seeks to temporarily employ the
Beneficiary as "vice president of sales and export manager" in its new office
1
under the L-1 A
nonimmigrant classification for intracompany transferees. See Immigration and Nationality Act (the
Act) section 10l(a)(l5)(L), 8 U.S.C. § 110l(a)(l5)(L). The L-lA classification allows a corporation
or other legal entity (including its affiliate or subsidiary) to transfer a qualifying foreign employee to
the United States to work temporarily in a managerial or executive capacity.
The Director of the Vermont Service Center denied the petition, concluding that the Petitioner did
not establish that the new office would support the Beneficiary in a managerial or executive capacity
within one year of approval of the petition. The Director also concluded that the Petitioner did not
demonstrate that it had secured sufficient physical premises to house the new office.
On appeal, the Petitioner submits additional evidence relevant to the Beneficiary's proposed U.S.
employment, asserting that he will oversee a recently hired subordinate and other independent
contractors. Further, the Petitioner submits a new commercial lease on appeal and contends that this
evidence establishes sufficient premises for its first year of operation.
Upon de novo review, we will dismiss the appeal.
I. LEGAL FRAMEWORK
To establish eligibility for the L- I A nonimmigrant visa classification for a new office, a qualifying
organization must have employed the beneficiary in a managerial or executive capacity for one
continuous year within three years preceding the beneficiary's application for admission into the
United States. 8 C.F.R. § 214.2(1)(3)(v)(B). 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. Section I 01 (a)(IS)(L) of the
1
The term "'new office" refers to an organization which has been doing business in the United States for less than one
year. 8 C.F.R. § 214.2(1)(1 )(ii)(F). The regulation at 8 C.F.R. § 214.2(1)(3)(v)(C) allows a ·•new office" operation no
more than one year within the date of approval of the petition to support an executive or managerial position.
Matter of 0-N-A- Corp.
Act. The petitioner must also establish that the beneficiary" s prior education, training, and
employment qualifies him or her to perform the intended services in the United States. 8 C.F.R.
§ 214.2(1)(3).
The petitioner must submit evidence to demonstrate that the new otfice will be able to support a
managerial or executive position within one year. This evidence must establish that the petitioner
secured sufficient physical premises to house its operation and disclose the proposed nature and
scope of the entity, its organizational structure, its financial goals, and the size of the U.S.
investment. See generally, 8 C.F.R. § 214.2(1)(3 )(v).
II. NEW OFFICE
We will first determine whether the Petitioner has established that the Beneficiary will act in a
managerial or executive capacity in the United States within one year. The Petitioner does not claim
that the Beneficiary would be employed in an executive capacity. Therefore, we restrict our analysis
to whether the Beneficiary would be employed in a managerial capacity within one year.
"Managerial capacity" means an assignment within an organization in which the employee primarily
manages the organization, or a department. subdivision, function, or component of the organization:
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; has authority over personnel actions or functions at a senior level within the
organizational hierarchy or with respect to the function managed: and exercises discretion over the
day-to-day operations of the activity or function for which the employee has authority. Section
10l(a)(44)(A) of the Act.
When examining the managerial 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. See 8 C.F.R. § 214.2(l)(3)(ii). In the case of a new ot1ice
petition, we also review the petitioner's business and hiring plans and evidence that the business will
grow sutliciently to support a beneficiary in the intended managerial or executive capacity.
Accordingly, the totality of the evidence must be considered in analyzing whether the proposed
managerial or executive position is plausible considering a petitioner's anticipated staffing levels and
stage of development within a one-year period. See 8 C.F.R. § 214.2(1)(3)(v)(C).
A. Duties
The Petitioner indicated that the Beneficiary's foreign employer is a designer and manufacturer of
high performance safety doors in Italy. The Petitioner stated that the Beneficiary will be transferred
to the United States due to "the increasing request of its products in the U.S." and "to develop a
commercial structure able to attend to the U.S. market." The Petitioner explained that the
Beneficiary would develop new positions in the United States and train new employees. including
employees devoted to ·'accounting, sales, marketing and office support."
2
Matter of O-N-A- Corp.
In a supporting letter, the Petitioner provided the following proposed duties for the Beneficiary:
• Promoting the Company's products through dealers and assist them on their sales
• Selecting dealers for the Company
• Selecting technical partners for installations
• Instructing new hire [sic] on proper sales and post-sales techniques
• Training and supervising local personnel
• Providing detailed and accurate sales forecasting
• Compiling information and data related to customers
• Developing plans and strategies for developing business and achieving the
company's sales goals
• Managing customer expectations and contribute to a high level of customer
satisfaction
• Monitoring customer, market and competitor activity and provide feedback to [the
foreign employer] leadership team and other company functions
• Managing key customer relationships and participate in closing strategic
opportunities
• Traveling for in-person meetings with customers and partners to develop key
relationships
In response to the Director's request for evidence (RFE), the Petitioner further stated that the
Beneficiary would be responsible for promoting the company's products and developing key
relationships with "customers and partners.'' The Petitioner indicated that the Beneficiary would
"promptly start interviewing local U.S. consultants to provide accounting, legal and fiscal services
... within due time.'' The Petitioner explained that the Beneficiary would guide the "U.S.
consultants'' and make sure that they are aware of the "Company's procedures, results or any other
necessary information."
The Petitioner also submitted a letter from the chief executive officer (CEO) of the foreign employer
explaining the Beneficiary's proposed role in the United States. He stated that the Beneficiary
would "coordinate with the consultants, the freelancers and the agents that will be necessary to use
but that will not be employees but just service providers." The CEO also indicated in another
support letter that the Beneficiary would be responsible for the "selection of new Dealers and the
conclusion of supply contracts" and that he would be tasked with assuring ''the distribution and the
performance of the guarantees, to give Dealers the commercial and technical assistance, and the
training to their employees."
In denying the petition, the Director concluded that the Beneficiary's proposed U.S. duty description
was overly vague and did not convey his actual day-to-day tasks. We agree with the Director that
the Beneficiary's duty description is too general to establish that he would devote his time primarily
to managerial duties within one year. To the extent the Beneficiary's duty description discusses
qualifying managerial tasks they are very general and could apply to any manager acting in any
business or industry and they do not provide insight into the actual nature of his role. For example,
3
Matter (?[0-N-A- Corp.
the Petitioner stated that the Beneficiary would "develop a commercial structure:· "select dealers:·
"hire consultants,'' develop "plans and strategies,'' manage "key customer relationships."' and
"participate in closing strategic opportunities."
The Petitioner provided little explanation of how the Beneficiary will develop the business during
the first year, such as "commercial structures" he will establish. dealers he will work with.
consultants he will hire, plans and strategies he will implement. key customer relationships he will
manage, and strategic opportunities he will pursue. The Petitioner has provided few specifics related
to how the Beneficiary's day-to-day duties fit specifically within the company's first year business
plans; for instance, what specific actions he will take during the first year to assure that the business
develops as necessary to support him in a managerial capacity within one year. 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 (E.D.N.Y. 1989). afrd. 905 F.2d 41 (2d. Cir.
1990).
In contrast, the Petitioner submits several specific examples of non-qualifying operational tasks he
will perform during the first year, including assisting dealers in selling and promoting the company's
products, selecting technical contractors for installations, training personnel on sales techniques.
providing sales forecasting, and compiling customer information. In fact, the foreign employer's
CEO indicated that the Beneficiary would be used to "assure distribution and the performance of the
guarantees," "give to Dealers the commercial and technical assistance," and train dealer employees.
As such. it appears that the Beneficiary will act as a sales and service agent for the foreign employer
and his duties will consist largely of non-qualifying operational duties. Although we acknowledge
that in launching a new office the Beneficiary would likely be involved in non-qualifying tasks
during the first year, the Petitioner must also establish that he will move away from these tasks and
be primarily devoted to managerial level tasks within the first year. However. the Petitioner has not
provided sufficient detail as to the Beneficiary's managerial tasks within the first year and how he
will be relieved from performing the non-qualifying operational tasks detailed on the record.
The fact that the Beneficiary manages a business does not necessarily establish eligibility for
classification as an intracompany transferee in a managerial capacity within the meaning of section
I 0 I (a)( 44) of the Act. By statute, eligibility for this classification requires that the duties of a
position be "primarily" managerial in nature. Section IOI(A)(44)(A) of the Act. While the
Beneficiary would likely exercise discretion over the Petitioner's day-to-day operations and possess
the requisite level of authority with respect to discretionary decision-making. the position
descriptions alone are insufficient to establish that his actual duties would be primarily managerial in
nature within one year.
B. Business Plan and Staffing
As stated, the Petitioner indicated in support of the petition that the Beneficiary would hire a "U.S.
team," including staff devoted to "accounting. sales. marketing and office support." The Petitioner
4
Matter of O-N-A- Corp.
further clarified that accounting, legal, and fiscal matters would be "guaranteed through U.S.
consultants" during the first year, noting that ''in due time" it would hire and train its own "local and
in house specialized staff." A "financial plan" included in the Petitioner's business plan indicates
that it would spend $70,000 on salaries and wages and $25,000 on ''consulting costs'' during the first
year. This financial plan further reflected that the Petitioner would spend $100,000 on salaries and
wages and $30,000 on consulting costs during the second year. In a support letter, the foreign
employer CEO clarified that the Beneficiary would "coordinate the consultants, freelancers and the
agents ... that will not be employees but just service providers."
In denying the petition, the Director pointed to the Petitioner's lack of timelines for hiring stafT and
its vague references to unidentified consultants. The Director determined that the Petitioner had not
provided a sufficiently specific and determinative business plan for its first year of operation. The
Director concluded that the Petitioner did not establish that the Beneficiary would be relieved from
primarily performing non-qualifying operational tasks within one year. On appeal, the Petitioner
again notes the Beneficiary's supervision of independent contractors and asserts that the company
has hired a vice president of logistics subordinate to the Beneficiary.
The new office regulations recognize that a designated manager responsible for setting up operations
will be engaged in a variety of low-level activities not normally performed by employees at the
managerial level and that often the full range of managerial responsibility cannot be performed in
that first year. However, a petitioner's evidence in support of a new office petition should
demonstrate a realistic expectation that the enterprise is prepared to commence business operations
and rapidly expand as it moves away from the developmental stage to full operations, where there
would be an actual need for a manager who will primarily perform qualifying duties.
The Petitioner has not submitted sufficient detail regarding its first year hiring and business plans.
For instance, the Petitioner regularly refers to consultants the Beneficiary will engage to perform
various operational roles such as accounting, legal, marketing, or financial functions. However. the
Petitioner does provide specific details regarding these contractors, what positions they will tilL their
duties, how much they will be paid, or how regularly they will be engaged. We acknowledge that
the Petitioner provides some evidence on appeal indicating that it is in the initial stages of engaging
a payroll contractor and an accountant. However, the submitted evidence does not establish that
these proposed U.S. contractors could be considered subordinates of the Beneficiary or that they
would significantly relieve him from non-qualifying operational tasks within the first year.
This lack of detail and evidence is particularly notable since the Beneficiary's duty description
appears to indicate that he will be substantially involved in operational tasks during the first year.
likely acting as a sales and installation agent for the foreign employer in the United States.
However, the Petitioner does not articulate plans to hire any stafT during the first year to relieve the
Beneficiary from performing these non-qualifying tasks; in fact, its projected organizational chart
indicates that it has no hiring plans during the first year. Further, the Petitioner provides no
indication when it plans on hiring the projected "in-house" employees, including the accountant and
tax specialist, marketing consultant, administrative assistant, and marketing consultant, stating only
5
Matter of O-N-A- Corp.
that these positions would be filled "after the expansion." The Petitioner also provides no detail on
the proposed duties or requirements for these positions or how they will relieve the Beneficiary from
performing non-qualifying tasks within the first year.
The Petitioner's first year financial projections indicate that it anticipates spending $70,000 on salary
and wage expenses, a sum equivalent to the Beneficiary's offered salary. Although this same
projection indicates that the Petitioner will also spend $25,000 on "consultants," it does not detail
these consultants, their duties, or articulate how they will relieve the Beneficiary from primarily
performing non-qualifying operational tasks during the first year. We further note that the Petitioner
projects only modest increases in salary and consulting expenses during the second year. indicating
that its potential hiring will take several years to develop. Indeed, the Petitioner states throughout
the record that it will hire staff subordinate to the Beneficiary '"in due time," a vague statement that
provides little confidence he will be relieved from non-qualifying duties during the first year. The
Petitioner also stated in support of the petition that the Beneficiary's original assignment would be
for two years, corroborating the Petitioner's extended hiring timeline.
On appeal, the Petitioner states that it has hired a vice president of logistics. However. it does not
describe this employee's duties or educational qualifications, nor does it explain how this claimed
employee will relieve the Beneficiary from performing the non-qualifying operational duties
prominently referenced on the record. The Petitioner also does not provide sut1icient evidence to
substantiate this individual's employment, providing only one internal paystub document indicating
the payment of one bi-weekly pay check in June 2017. Further. there was no vice president of
logistics position included on the Petitioner's projected organizational chart and it has not explained
why this was the first position filled. Likewise. the Petitioner does not properly describe and
document the regular engagement of independent contractors and consultants or articulate how they
will relieve the Beneficiary from performing non-qualifying tasks during the first year.
Moreover, the Petitioner submits little detail regarding its tirst year business plans to substantiate
that it will develop sufficiently during the first year to support the Beneficiary in a qualifying
managerial capacity. The Petitioner does not articulate specific actions it will take during the first
year or provide a timeline of these plans to substantiate that it will more likely than not develop
sufficiently to support a managerial employee. For instance. the foreign employer states that it
"could open an Office and a Warehouse for goods and a Show Room," but provides no definitive
commitment to these plans, explain how this would be accomplished, or provide a timetable on
when it would likely happen. In sum, the Petitioner has not sut1iciently described and documented
its first year busin~ss plans and corroborated that it is likely to commence business operations
immediately and rapidly expand as it moves away from the developmental stage to full operations,
where there would be an actual need for a manager who would primarily perform qualifying duties.
Lastly, the Petitioner indicates several times on the record that the Beneficiary will manage an
essential function of the organization. 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
Matter of O-N-A- Corp.
101(a)(44)(A)(ii) of the Act. If a petitioner claims that a beneficiary will manage an essential
function, it must clearly describe the duties to be performed in managing the essential function. In
addition, the petitioner must demonstrate that "( 1) the function is a clearly defined activity: (2) the
function is 'essential,' i.e., core to the organization: (3) the beneficiary will primarily manage. as
opposed to per{(Jrm, the function; ( 4) the beneficiary will act at a senior level within the
organizational hierarchy or with respect to the function managed: and (5) the beneficiary will
exercise discretion over the function's day-to-day operations:· Matter olG- Inc .. Adopted Decision
2017-05 (AAO Nov. 8, 2017).
Based on our previous discussion of the evidence, the Petitioner has not demonstrated that the
Beneficiary will act as a function manager within one year. As we have noted, the Beneficiary's
duty descriptions and the other supporting evidence indicate that he will perform substantial non
managerial tasks, including coordinating the foreign employer's door installations, servicing doors
installed in the United States, training distributors of the foreign entity's products, amongst other
non-qualifying duties. However, the Petitioner has not demonstrated how the Beneficiary will be
relieved from performing these duties during the first year. only vaguely indicating that he will add
staff in "due time'' and rely on unidentified "U.S. consultants." Otherwise, the Petitioner has not
clearly detailed the qualifying managerial tasks the Beneficiary will perform within the year.
Further, it has not properly supported its business plans and investment to substantiate that it is likely
to support the Beneficiary as a function manager within one year.
The record does not include sufficient probative evidence establishing that the Beneficiary will be
relieved from performing non-qualifying duties within one year of approval of the petition. The
Petitioner has not fully developed the record so that we may analyze the viability of its plans to open
and operate a new office in the United States.
Ill. SUFFICIENT PHYSICAL PREMISES
The Director also denied the petition concluding that the Petitioner did not establish that it had
secured sufficient physical premises to house its new office during the first year. See 8 C.F.R.
~ 214.2(1)(3)(v)(A). In the denial decision, the Director pointed to a lease submitted by the
Petitioner and noted that it was a residential lease that specifically prohibited its use for commercial
purposes.
At the time of filing, the Petitioner submitted a residential lease indicating that the leased premises
were to be used "for only residential, non-business, private housing purposes.'' On the Form 1-129.
the Petitioner indicated that the residential location would serve as the Beneficiary's worksite.
On appeal, the Petitioner submits another lease for 460 square feet of "office-warehouse" space in
Florida, valid until May 31, 2018. and asserts that this new evidence demonstrates that it has secured
sufficient premises to house the new office.
The regulations do not specify the type of premises that must be secured by a petitioner seeking to
establish a new office. The phrase "sufficient physical premises" is broad and somewhat subjective.
Matter of O-N-A- Corp.
leaving U.S. Citizenship and Immigration Services great flexibility in adjudicating this legal
requirement. There may be cases in which a residential premises or home office would satisfy the
regulatory requirements. However, a petitioner bears the burden of establishing that its physical
premises should be considered "sufficient'" as required by the regulations. See 8 C.F.R.
§ 214.2(1)(3)(v)(A). To do so, it must clearly identity the nature of its business, the specific amount
and type of space required to operate the business, and its proposed staffing levels, and document
that the space can accommodate a petitioner" s growth during the first year of operations.
We note that the Petitioner does not dispute the Director's previous conclusion that the residential
lease previously provided was inadequate to establish that it had secured sufficient premises to
launch the business during the first year. Indeed, we concur with the Director's conclusion. as this
lease explicitly prohibits the use of these premises for commercial purposes. The Petitioner does not
address this issue on appeal, but submits a new lease.
However, discrepancies in this newly-provided lease leave question as to whether the Petitioner has
obtained sufficient premises as asserted. First, the lease is dated January 12, 2016, significantly
predating the filing ofthe petition in February 2017. Therefore, it is questionable that the Petitioner
only now submits this commercial lease in support of the appeal. Further, the lease names the law
firm of the Petitioner· s counsel as the tenant, despite the agreement being signed by the Beneficiary
on behalf of the Petitioner. These inconsistencies are not resolved by the Petitioner on appeal. The
Petitioner must resolve inconsistencies 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).
Therefore, the Petitioner has not submitted sufficient evidence to establish that it secured sufficient
premises to house its new office during the first year.
IV. EMPLOYMENT ABROAD IN A MANAGERIAL OR EXECUTIVE CAPACITY
Though not addressed by the Director, we also conclude that the Petitioner has not demonstrated that
the Beneficiary has been employed abroad in a managerial or executive capacity.
In its initial support letter, the Petitioner stated that the Beneficiary acted as its general export
manager since 2010, noting that his duties included "creating sales strategies, developing and
deepening existing business, providing high quality information on the local market [and]
supervising personnel in day-to-day export activities and assignments." The Petitioner noted that the
Beneficiary had "supervised'' projects all over the world and that he held invaluable knowledge of
the company's "products, operations, procedures, and marketing strategies." Further, the Petitioner
listed the following duties for the Beneficiary:
a) Approximately 30% of his time was spent directly managing, rev1ewmg and
evaluating the work product of employees under his supervision;
8
MallerofO-N-A- Corp.
b) Approximately 20% of his time was spent creating sales strategies by analyzing
the market and recognizing sales opportunities;
c) Approximately 15% of his time was spent developing and deepening ex1stmg
business relations by maintaining regular contact with clients and participating in
meetings;
d) Approximately 15% of his time was spent with visits with local projects to
provide technical support to the clients;
e) Approximately I 0% of his time was spent training other employees and interns;
f) Approximately 5% of his time was spent researching about the local market
trends and preparing accurate sales forecasting;
g) Approximately 5% of his time was spent working with the marketing team to
further publicize the company and achieve sales goals.
In response to the RFE, the Petitioner submitted a support letter from the foreign employer's CEO
detailing the Beneficiary's activities abroad, indicating that he had been responsible for contacting
customers, taking measurements at "various sites," selecting products, concluding sales, supervising
the assembly of doors, providing technical training to customer personnel, selecting products for
display, and promoting foreign employer products at industry events. Further, the Petitioner's RFE
response letter stated that the Beneficiary "took care of the final supervision of each product
installation and prepared a yearly detailed evaluation report about their performance and future
potential."
The Petitioner appears to have submitted conflicting duty descriptions for the Beneficiary's foreign
position. For instance, the former description emphasizes qualifying managerial or executive level
tasks such as supervising subordinates and creating sales strategies. while the latter descriptions
provided in response to the RFE detail his substantial involvement with non-qualifying operational
tasks, including contacting customers, taking measurements at ·'various sites,'' selecting products,
concluding sales, supervising the assembly of doors, providing technical training, selecting products
for display, and promoting company products at industry events. In fact. the foreign employer's
CEO appears to indicate that the Beneficiary took part in each product installation and stresses his
"technical" role. This evidence indicates that the Beneficiary is primarily engaged in the
performance of non-qualifying operational tasks rather than managerial or executive tasks abroad.
Further, with respect to the Beneficiary's asserted qualifying tasks, the Petitioner has submitted
vague descriptions that do not convey his actual day-to-day qualifying tasks or establish that he
devotes his time primarily to managerial or executive duties. The Beneficiary's duty description
includes several general duties that could apply to any executive or manager acting in any business
or industry and they do not provide insight into the actual nature of his role. The Petitioner provided
9
Matter of O-N-A- Corp.
few examples and little supporting documentation to demonstrate the Beneficiary's performance of
qualifying duties, such as sales strategies he created, business relationships he maintained, training
he provided to subordinates, research on market trends he conducted. or marketing initiatives he
undertook. This lack of detail is especially noteworthy since the Petitioner states that the
Beneficiary has been acting in his role as export manager since 2010.
Similar to the Beneficiary's asserted foreign duties, there is other little other evidence establishing
his placement within the foreign entity's hierarchy. For instance, the Petitioner submitted two
foreign organizational charts in support of the petition, neither detailing the Beneficiary's place
therein, despite elsewhere referring to him as a member of the "management team." In fact the
foreign employer's CEO refers to the Beneficiary as a "member of our technical stati" The
Petitioner has not provided a complete, consistent description of the Beneficiary's role with the
foreign entity.
For these reasons, the Petitioner has not established that the Beneficiary has been employed abroad
in a managerial or executive capacity.
V. CONCLUSION
The appeal will be dismissed because Petitioner did not establish that it would be able to support the
Beneficiary in a managerial or executive capacity within a one-year period, that it has secured
sufficient physical premises to house the new office, and that the Beneficiary has been employed
abroad in a managerial or executive capacity.
ORDER: The appeal is dismissed.
Cite as Matter of'O-N-A- Corp., ID# 906714 (AAO Jan. 9. 2018)
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