dismissed L-1A Case: Safe Sales

U.S. Citizenship 
and Immigration 
Services 
MATTER OF QNNS- (USA) INC. 
Non-Precedent Decision of the 
Administrative Appeals Office 
DATE: DEC. 12,2017 
APPEAL OF CALIFORNIA SERVICE CENTER DECISION 
PETITION: FORM I-129, PETITION FOR A NONIMMIGRANT WORKER 
The Petitioner, which sells safes, seeks to extend the Beneficiary's temporary employment as its 
president and chief executive officer (CEO) under the L-1 A nonimmigrant classification for 
intracompany transferees. See Immigration and Nationality Act (the Act) section 101(a)(15)(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 California Service Center denied the petition, concluding that the record did not 
establish, as required, that the Petitioner will employ the Beneficiary in the United States in a 
managerial or executive capacity. 
The matter is now before us on appeal. In its appeal, the Petitioner submits additional evidence and 
asserts that the Director erred because the evidence supports a finding of eligibility. 
Upon de novo review, we will dismiss the appeal. 
I. LEGAL FRAMEWORK 
To establish eligibility for the L-1 A 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 10l(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. !d. 
II. U.S. EMPLOYMENT IN A MANAGERIAL OR EXECUTIVE CAPACITY 
The Director found that the Petitioner did not establish that it will employ the Beneficiary in a 
managerial or executive capacity. 
A managerial capacity is an assignment within an organization in which the employee primarily 
manages the organization, or a department, subdivision, function, or component of the organization, 
Matter of QNNS- (USA) Inc. 
and exercises discretion over the day-to-day operations of the activity or function for which the 
employee has authority. The statutory definition of "'managerial capacity" allows for both 
"personnel managers" and "function managers." See sections 101(a)(44)(A)(i) and (ii) of the Act. 
Personnel managers are required to primarily supervise and control the work of other supervisory. 
professional, or managerial employees. A personnel manager supervises and controls the work of 
other supervisory, professional, or managerial employees; the duties of a first-line supervisor are not 
considered managerial unless the employees supervised are professional. A personnel manager must 
also have the authority to execute or recommend personnel actions such as hiring, firing, and 
promotions. A function manager need not directly supervise other employees, but must manage an 
essential function within the organization, or a department or subdivision of the organization, and 
function at a senior level within the organizational hierarchy or with respect to the function 
managed. Section 101(a)(44)(A) ofthe Act. 
An executive capacity is 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) ofthe Act. 
If staffing levels are used as a factor in determining whether an individual is acting in a managerial 
or executive capacity, U.S. Citizenship and Immigration Services (USCIS) must 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) ofthe Act. 
A. Duties 
When examining the managerial or executive capacity of the Beneficiary, we will review the 
Petitioner's description of the Beneficiary's 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 a managerial or executive capacity. See 8 C.F.R. § 214.2(1)(3)(ii). 
The definitions of managerial and executive capacity each have two parts. First, the Petitioner must 
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 managerial or 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. 
As examples of the company's achievements under the Beneficiary"s leadership, the Petitioner stated 
that the company purchased a financially troubled client company, 
1 
and "has been in the process of 
1 
At the time of filing, the Petitioner owned a controlling interest in the subsidiary. It later became full owner. 
2 
Matter of QNNS- (USA) Inc. 
transferring [the foreign parent company's] key, large customers in the US" to the petitioning entity. 
The Petitioner later stated: 
[The Beneficiary] hired appropriate stafi at the managerial level ... and continues to 
oversee the performance of these managers and to evaluate their reports. . . . [The 
Beneficiary] set out the goals for each of the departments .... 
. . . [H]e has instituted its policies, goals, and objectives. He sets the company 
budget, as well as the budgets for each department. He reviews reports, 
representations, financial statements and creates next year work plans .... 
[The Beneficiary] also looks for opportunities to extend the company's footprint in 
world markets. Under his leadership, [the Petitioner] has established international 
business connections through international industry shows and [the] parent 
company' [ s] clientele. 
The general manager of the Petitioner's newly acquired subsidiary stated: 
[The Beneficiary] establishes the goals and policies for our company, and exercises 
wide latitude in discretionary decision making. His directions are mainly on the 
following: 
1. Review and approve major development and strategy objectives .... 
2. Set guidelines on major business transactions and objectives .... 
3. Approve organizational structure and management policies .... 
4. [The Beneficiary] oversees the operation of [the subsidiary company]. He sets the 
guidelines on overall financial policies, and oversees and monitors our company's 
financial status. We report our operation status to [the Beneficiary] on a monthly 
basis. 
Asked for more details, the Petitioner provided "[a] detailed description of the job duties and the 
percentage of time spent on each duty": 
1. Establish the organizational structure of the company, recruit managers and 
oversee their performance; and make decisions on the hiring, firing, and 
promoting of each manager; 20% 
2. Establish the company's policies, goals, and objectives; implement the strategic 
plans and policies, give direction and leadership toward the company's successful 
achievement; actively seek out opportunities for investment and further 
Matter of QNNS- (USA) Inc. 
development; review, evaluate and approve potential investment and business 
development projects; organize meetings with managers; 30% 
3. Exercise discretionary decision power on business strategies and overall direction 
of the company; review reports, representation, and financial statements from 
each manager to determine the progress and status in attaining objectives; oversee 
performance of each department; revise the company's objectives and plans in 
accordance with current conditions; coordinate business activities to achieve the 
company's goals and objectives; 20% 
4. Oversee budgets, investment, and operations of the company; recommend yearly 
budget for board approval; develop the company's overall financial policies and 
management systems; 15% 
5. Negotiate on behalf of the company; represent the company at industry 
conferences and other events; approve major investment and business contracts; 
maintain good relationship with key customers, governments, and commercial 
banks; maintain positive image to the public. 15% 
The Director denied the petition, stating that the "description of the beneficiary's duties is too broad 
and general to credibly demonstrate that the proposed position will be in a primarily managerial or 
executive capacity," and "too vague to convey any understanding of exactly what the beneficiary 
will do." The Director concluded that "the beneficiary's work will include substantial sales, 
marketing, and customer service duties." 
On appeal, the Petitioner submits copies of sales reports, correspondence, invoices, and other 
documents that demonstrate that the Petitioner is an active business. The submitted materials focus 
heavily on the two overseas employees of the Petitioner's parent company who report to the 
Beneficiary, as well as on sales activity by the Petitioner's subsidiary. The Director did not question 
that the Petitioner does business or that the Beneficiary has authority over the subsidiary company. 
Upon review, we find that the submitted materials do not establish that the Beneficiary's role in the 
United States has been primarily managerial or executive. Reciting the Beneficiary's vague job 
responsibilities or broadly-cast business objectives is not sufficient; the regulations require a detailed 
description of the Beneficiary's daily job duties. The Petitioner has not provided sufficient details 
regarding the Beneficiary's activities in the course of his daily routine. The actual duties themselves 
will reveal the true nature of the employment. Fedin Bros. Co .. Ltd. v. Sava, 724 F. Supp. 1103, 
1108 (E.D.N. Y. 1989), a.ff'd, 905 F.2d 41 (2d. Cir. 1990). Specific details are 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. I d. 
In this instance, the job description provides a list of general responsibilities that does not provide 
much information about the specific tasks that the Beneficiary would perform in order to achieve 
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Matter of QNNS- (U.SA) Inc. 
those responsibilities. Examples include coordinating activities, implementing policies, and 
maintaining good relations and a positive image. These statements attest to the level of the 
Beneficiary's authority rather than explain how he exercises that authority. Furthermore, as we will 
address below, the description of the Beneficiary's general responsibilities appear to presume the 
availability of subordinates that the Petitioner does not actually employ. 
The Petitioner's appellate brief focuses primarily on the company's staffing, discussed below. 
B. Staffing 
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 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. 
At the time of filing, the Petitioner had five employees of its own, and its newly acquired subsidiary 
employed four more. The Petitioner stated that, in addition to its own employees, its foreign parent 
company "has designated two employees ... to support the [Petitioner's] sales and marketing 
activities," with "a further 6 employees available ... if the need arises.'' The Petitioner stated that 
the foreign company's overseas purchasing manager reports to the Beneficiary. 
The Petitioner stated: 
As the President/CEO, [the Beneficiary] directs the management of the whole 
organization, including the newly acquired [subsidiary]. The managers - Sales 
Manager, Overseas Purchasing Manager, and [the subsidiary's] management, are 
under [the Beneficiary's] direction .... 
. . . He is the only person in [the petitioning company] who makes wide-latitude, 
discretionary decisions and now does the same for [the subsidiary]. 
The Petitioner's organizational chart showed the following structure (including the two dedicated 
foreign employees) at the time of filing: 
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Matter of QNNS- (U)A) Inc. 
Board of Directors 
I 
President/CEO [the Beneficiary] 
Overseas Purchasing Manager Sales Manager Assistant Manager 
I I 
Overseas Purchasing Assistant I Payroll Clerk 
Sales Assistant 
(vacant) 
Warehouse Manager 
I 
Warehouse Assistant 
(temporary) 
The Petitioner's subsidiary had the following structure: 
Board of Directors 
I 
President/CEO [the Beneficiary] 
General Manager 
Chief Financial Officer Online Marketing Manager 
(vacant) 
ChiefTechnology Officer 
I 
Warehouse Assistant 
The Petitioner submitted capsule descriptions of the subordinate positions: 
Overseas Purchasing Manager: support all ... sales and marketing activities. 
Overseas Purchasing Assistant: assist manager in sales and marketing activities, 
process all the paperwork. 
Sales Manager: manage and coordinate marketing and sales activities, establish sales 
strategies, evaluate customer and market reports, and implement sales plan. 
Warehouse Manager: manage the warehouse, liaise with customers, suppliers and 
transportation companies, oversee delivery quality, assist the sales manager in sales 
activitgies, and act as sales manager when sales manager is absent 
Sales Assistant/E-Commerce Coordinator: conduct customer and market research, 
collect competitor data, conduct online transactions, and prepare reports. 
Assistant Manager: prepare and monitor budget, work with clients to resolve issues, 
and undertake human resource responsibilities. 
Matter of QNNS- (USA) Inc. 
Payroll Clerk: maintain payroll records, contribute to team effort by accomplishing 
other office work when needed. 
The Petitioner stated that "the duties of the vacant positions are covered by the remammg 
employees," but did not elaborate as to who performed which duties and how much time those duties 
consumed. The point is significant because, for instance, if the sales manager spends most of his 
time performing the duties of a sales associate, then the sales manager is performing rather than 
managing the sales function, in which case the Beneficiary would be, in effect the first-line 
supervisor of a sales associate. The organizational chart showed only one administrative staffer (the 
payroll clerk), which leaves open the question of who performed routine administrative and 
secretarial tasks for the company at the time of filing. 
Three months after tiling the petition, the Petitioner submitted supplemental documentation 
reflecting the company's recent growth and activities. The Petitioner later indicated that, after it 
obtained full ownership of its subsidiary, that company effectively became "a Sales Department.'' 
These later developments cannot establish that the Petitioner was eligible as of the petition's filing 
date, as required by the regulation at 8 C.F.R. § 103.2(b)(l). See also Matter of Izummi, 22 T&N 
Dec. 169, 176 (Assoc. Comm'r 1998); Matter of Michelin Tire Corp., 17 I&N Dec. 248, 249 (Reg'! 
Comm'r 1978). 
The Petitioner later submitted more detailed job descriptions for the Beneficiary's subordinates. The 
following descriptions pertain to the positions listed as reporting directly to the Beneficiary at the 
time of filing: 
Sales Manager: 
• In charge of sales of [identified merchandise] ... 
• Supervise the warehouse ... 
• Develop and follow up business leads 
• Cold call, direct email, and perform other lead generation activities 
• Manage team of sales staff 
• Advise the sales representatives on ways to improve their sales performance 
• Maintain contact with dealers and distributors 
• Analyze sales statistics gathered by their staffs to determine sales potential and 
inventory requirements and to monitor customer[ s]' preferences 
• Ensure customer satisfaction 
• Keeping up to date with products and competitors 
• Maintains sales volume, product mix, and selling price by keeping current with 
supply and demand, changing trends, economic indicators, and competitors 
• Completes national sales operational requirements by scheduling and assigning 
employees; following up on work results 
..., 
Matter of QNNS- (USA) Inc. 
• Maintains national sales staff job results by counseling and disciplining 
employees; planning, monitoring, and appraising job results 
• Contributes to team effort by accomplishing related results as needed 
Assistant Manager: 
• Prepares and monitors budget by gathering and organizing financial information; 
scheduling expenditures; analyzing variances; implementing corrective actions 
• Maintains records by defining procedures for retention, protection, retrievaL 
transfer and disposal of records 
• Accomplishes project results by communicating and coordinating requirements: 
expediting fulfillment; evaluating optional courses of action; changing 
assumptions and direction 
• Prepares reports by collecting, analyzing, and summarizing operational data and 
trends 
• Enhances department reputation by accepting ownership for accomplishing new 
and different requests; exploring opportunities to add value to job 
accomplishments 
• Working directly with clients to resolve issues 
• Training staff using company provided training materials and rev1ewmg 
performance of existing staff 
• Contributes to team effort by accomplishing related results as needed 
Overseas Purchasing and Sales Manager: 
• Forecasting levels of demand for services and products to meet the business needs 
and keeping a constant check on stock levels 
• Conducting research to ascertain the best products and suppliers in terms of best 
value, delivery schedules and quality 
• Liaising between suppliers, manufacturers, relevant internal departments and 
customers 
• Identifying potential suppliers, visiting existing suppliers, and building and 
maintaining good relationships with them 
• Negotiating and agreeing contracts and monitoring their progress, checking the 
quality of service provided 
• Processing payments and invoices 
• Keeping contract files and using them as reference for the future 
• Forecasting price trends and their impact on future activities 
• Attending meetings and trade conferences 
• Training and supervising the work of other members of staff 
• Contributes to team effort by accomplishing related results as needed 
Matter of QNNS- (USA) Inc. 
By the time the Petitioner submitted the longer job descriptions, the company had hired several more 
employees and created a new logistics department. The duties may have changed as the company 
hired additional lower-level workers. For instance, at the time of filing, the assistant manager's only 
subordinate was the payroll clerk. 
The Petitioner did not show how much time the subordinates devote to specific tasks. This is 
significant because of the presence of non-qualifying duties (such as cold calling potential clients). 
Furthermore, the job descriptions appear to be generic templates rather than specific to the individual 
positions. For example, the sales manager's job description refers to "national sales staff,'' whereas 
the Petitioner, which operates from a single location, is not a national organization. At the time of 
filing, the company had no sales stafT other than the sales manager. The assertion that the assistant 
manager prepares the budget appears to conflict with the claim that the Beneficiary himself sets the 
budget. The job descriptions refer to materials not documented in the record, such as "company 
provided training materials." The Petitioner has not established that the submitted job descriptions 
accurately reflect the activities at the company, at the time of filing or later. 
We note that a company's size alone, without taking into account the reasonable needs of the 
organization, may not be the determining factor in denying a visa petition for classification as a 
multinational manager or executive. See section 101(a)(44)(C) of the Act. However, it is 
appropriate for USCIS to consider the size of the petitioning company in conjunction with other 
relevant factors, such as the absence of employees who would perform the non-managerial or 
non-executive operations ofthe company. See, e.g., Family Inc., 469 F.3d 1313; Systronics Corp. v. 
INS, 153 F. Supp. 2d 7, 15 (D.D.C. 2001). In this case, the company's size at the time of filing 
raises legitimate and unanswered questions about the actual roles of its employees, including the 
Beneficiary. 
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 101(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 organization must have a 
subordinate level of managerial employees for a beneficiary to direct and a 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 an 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." !d. 
The Petitioner initially claimed that it would employ the Beneficiary as an executive. However, the 
Petitioner has not presented a coherent picture of the Beneficiary's claimed executive role, except to 
assert that the Beneficiary has authority over the entire company. On appeal, the Petitioner states 
that "the Beneficiary is performing in an Executive Management function," but the Petitioner's 
9 
Matter of QNNS- (USA) Inc. 
specific arguments on appeal relate to the role of a personnel manager rather than that of an 
executive. The Petitioner claimed that the Beneficiary supervised managers at the time of filing, but 
the Petitioner has not established that those employees served primarily in managerial capacities. 
In response to a request for evidence, the Petitioner asserted that the Beneficiary's position has the 
traits of a personnel manager. The Petitioner, on appeal, states that the Beneficiary "supervises and 
controls other supervisory, managerial and professional employees,'' but elaborates only as to 
professional subordinates. To determine whether the Beneficiary manages professional employees, 
we must evaluate whether the subordinate positions require a baccalaureate degree as a minimum for 
entry into the field of endeavor. Cf 8 C.F.R. § 204.5(k)(2) (defining "profession'' to mean "any 
occupation for which a United States baccalaureate degree or its foreign equivalent is the minimum 
requirement for entry into the occupation"). Section 101(a)(32) of the Act states that "[t]he term 
profession shall include but not be limited to architects, engineers, lawyers, physicians, surgeons, 
and teachers in elementary or secondary schools, colleges, academies, or seminaries.'' 
The Petitioner stated that four of the Beneficiary's subordinates as of the time of filing (the overseas 
purchasing manager, sales manager, assistant manager, and payroll clerk) hold bachelor's degrees. 
The Petitioner documented only one of the degrees (for the sales manager). The Director asked the 
Petitioner to establish that the positions require bachelor's degrees(which is a separate question from 
whether the employees have such degrees). The Petitioner's response did not address that issue. 
Therefore, the Director correctly concluded that the Petitioner had not shown that any of the 
Beneficiary's subordinates are professionals. 
On appeal, the Petitioner submits third-party materials to support the assertion that "International 
Business jobs usually require a bachelor's degree in a Business related major.'' The submitted 
evidence relates to international trade specialists and international sales managers. The information 
relating to the latter position appears to have some relevance to some of the subordinate positions. It 
does not, however, show that the Beneficiary's oversight over the specified subordinates is a primary 
responsibility. Also, as we have already discussed, the Petitioner has not established that the 
Beneficiary's immediate subordinates primarily performed duties commensurate with their titles at 
the time of filing. 
In the denial notice, the Director found that the Petitioner had not shown that its organizational 
structure at the time of filing relieved the Beneficiary from primarily performing non-qualifying 
tasks. The Director acknowledged that the Petitioner had hired several employees after the petition· s 
filing date, and planned to hire more in the future, but found that the newly hired workers cannot 
establish eligibility as of the filing date. The Petitioner does not substantively address these findings 
on appeal. Instead, the Petitioner summarily asserts that, even with the smaller staff at the time of 
filing, "the beneficiary has been relieved from performing operational duties'' and "[t]he totality of 
the record shows that the beneficiary does not need to spend the majority of his time on day-to-day 
operational or administrative functions.'' 
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Matter of QNNS- (U~A) Inc. 
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 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 perform, 
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 ofG- Inc., Adopted Decision 2017-05 (AAO Nov. 8, 2017). In this matter, the Petitioner has 
not described or provided evidence that the Beneficiary manages an essential function, or articulated 
a specific function that the Beneficiary will manage. 
III. CONCLUSION 
The Petitioner has not established that it will employ the Beneficiary in a managerial or executive 
capacity. 
ORDER: The appeal is dismissed. 
Cite as Matter ofQNNS- (USA) Inc., ID# 757110 (AAO Dec. 12, 2017) 
II