Organization Name:

Note: Representatives submitting on behalf of an organization must enter information below.

Requestor Representative:

Section 301 Investigation: China's Acts, Policies, and Practices Related to Technology 

Transfer, Intellectual Property, and Innovation - Form to Request Exclusion of Product

When submitting a product exclusion request using this form, enter the specified 

information in the following fields and explain the basis and rationale for your statements. 

By completing this form, you certify that the information provided is complete and 

correct to the best of your knowledge. 

1. Indicate whether the comment contains business confidential information (BCI), is a public

document, or is a public version of a BCI document.

3.

2. Please provide a complete and detailed description of the product of concern:

4.

5. Requestor's relationship to the product:

CONTINUED BELOW

*

10-digit HTSUS item number* for product you wish to address in this product exclusion request:

Use numerical characters only with no special characters (example: 1023456789). For help in finding 

the HTSUS item number associated with your product, see https://hts.usitc.gov/

1

7.

6. Does this submission in regulations.gov include additional attachments?

Please indicate whether any additional attachment contains business confidential

information (BCI), is a public document, or is a public version of a BCI document.

VERSION 1

Requestor Information

Requestor Name (Last, First):
END 2

8. Is this product, or a comparable product, available from sources in the United States?:

VERSION 1

11. Please provide information in support your request, taking account of the instructions

provided in Section B of the Federal Register notice (note: text entered below can extend

beyond the apparent size of this box).

9. Is this product, or a comparable product, available from sources in third countries?:

10. Please provide the value and quantity (with units) of the Chinese-origin product of concern

that you purchased for each calendar year specified. Limit this figure to the products

purchased by your firm (or by members of your trade association) alone. Please provide

estimates if precise figures are unavailable.

2016 Value:

2015 Value:

2017 Value:

2016 Quantity:

2015 Quantity:

2017 Quantity:
October 9, 2018

Via online submission at regulations.gov, docket number USTR-2018-0025

PUBLIC DOCUMENT

The Honorable Robert E. Lighthizer

U.S. Trade Representative

Office of the United States Trade Representative

600 17th Street NW

Washington, D.C. 20006

Re: USTR-2018-0025 — Request for Exclusion of Product from Increased Duties

Dear Ambassador Lighthizer,

OutBack Power Technologies, Inc. (“OutBack Power”), the sole U.S. producer and developer of panel 

mounted solar power inverters in an industry dominated by foreign competitors, respectfully urges you 

to exclude the product described below from the tariffs imposed by USTR’s Notice of Action dated June 

20, 2018 (the “Notice of Action”).1

Product Name 10-Digit HTS Classification Physical Description & Proposed Tariff Language

Power Board for low 

voltage power in Skybox 

inverter 

8504.90.7500

Printed circuit assemblies of 

electrical transformers, static 

converters and inductors, 

nesoi

Description: Dual sided printed circuit board assembly with 

30 capacitors on the circuit board.

Part Number is printed on circuit board.

Dimensions: 7.5 ” x 8.5 ”

Primary Use: Transfer DC power into and out of battery 

Importer: Altair Advanced Industries

Consumer: Homeowners

This product is a fundamental component of our new SkyBox power inverter, which is scheduled to 

launch next year. As explained below, by raising the cost of the SkyBox to consumers, tariffs on this 

product will undermine our investment in the value-added American manufacturing and assembly that 

supports the new SkyBox product line, as well as the broader goal of American energy resilience. Tariffs 

 1 83 Fed. Reg. 28710 (June 20, 2018).
would also force us to cede the U.S. market for next-generation power inverters to foreign 

competition, a consequence that would be inconsistent with USTR’s objectives in this proceeding.

1. OutBack Power Provides Resilient Power for Families and Businesses Across the Country

Founded in 2001, OutBack Power is a designer and manufacturer of cutting edge power conversion 

solutions that provide reliable electric power for the renewable energy, backup power, marine, and 

mobile markets. Our engineers have decades of power conversion design and equipment installation 

experience and share a passion for leading the industry into a new era of power conversion equipment 

performance, ease of use, and standardization.

We are particularly proud of our contribution to America’s distributed energy revolution. We offer 

cutting-edge, battery-based power solutions that allow consumers to harness renewable energy 

resources. Our on-grid and off-grid inverter and energy storage products align with the trend toward 

distributed power generation, and support U.S. energy independence. Distributed generation also 

strengthens the resilience of the energy grid to natural disasters and other emergencies, since localized 

power sources are less vulnerable to a breach of central generation and distribution.

Over the past 17 years, we have grown into a thriving small business, employing over 100 individuals 

across the United States, and supporting a broader ecosystem of distribution, installation, and service 

partners from coast to coast. Our engineering team, located in San Jose, California; Arlington, 

Washington; and Bellingham, Washington, leads the R&D and design process for all of our products. 

Our business team helps bring these innovations to market, providing valuable administration, finance, 

accounting, sales, marketing, product management, technical support, application engineering, field 

services, and maintenance functions.

2. The Innovative SkyBox Product Offering is Crucial to OutBack Power’s Future

SkyBox represents the culmination of 5 years of research and development efforts to enhance our 

competitiveness against the cost and performance advantages of our foreign rivals, which are mainly 

based in China. Skybox is a true hybrid energy management and storage platform that combines the 

economic benefits of a grid-tied solar solution with the independence and self-sufficiency of an off-grid 
system. It is a smart inverter able to measure and control power from all 4 points: utility, loads, PV and 

storage.

This functionality provides owners with complete control over when, where and how energy is made, 

stored and managed. SkyBox intelligently measures and controls power to and from any connection 

point (utility, solar, battery, generator and load), dynamically optimizing energy distribution, 

consumption and transactions. This allows owners to leverage the benefits of energy storage to bank 

solar energy when the sun is shining and use it later when utility rates are high. Integrated software 

allows owners to control 100% of programming parameters while monitoring when, where and how 

energy is generated, consumed and stored—from any internet-connected device.

These features represent significant technological advances in the power inverter category. However, 

as noted above, the market for these products is highly competitive and dominated by low-cost foreign 

producers like Darfon and Huawei, both based in China. Thus, it is not sufficient for OutBack Power to 

lead the market in the innovativeness of our product features — we must also offer competitive 

pricing.

3. U.S. Manufacturing of the SkyBox Relies on a Complex Global Supply Chain, Including 

Components that are Only Available from China

OutBack Power estimates that more than 80% of its “spend” associated with bringing the SkyBox to 

market and ongoing manufacturing occurs within the United States. This includes the sourcing of 

domestically-produced raw materials and components, as well as the value-added manufacturing, 

assembly, and finishing work that OutBack Power performs in its U.S. facilities. These activities support 

hundreds of U.S. jobs, and generate millions of dollars worth of economic value in this country each 

year.

To support this U.S. production activity, OutBack Power has invested considerable resources in a global 

supply chain for certain components of the SkyBox. This includes the product referenced above, which 

OutBack Power sources from China. Through our partners that manufacture in China, we have invested 

millions of dollars in specialized tooling for production of these components in anticipation of the 

SkyBox launch. Moving this production line would require duplication of all existing tools – entailing 

considerable expense as well as almost 18 months of lead-time. It would also require us to qualify a 
new manufacturing facility, which can add an additional six to nine months. In all, it would likely take 

years to fully move production from our current facility in China to a new site.

A secondary drawback is that our partners in China have developed considerable skill and expertise in 

manufacturing components to our specifications. Shifting manufacturing to a new facility in a different 

country so close to a major product launch could lead to a deterioration in quality as the value of this 

“know how” is lost.

Taken together, these factors mean that OutBack Power has no options to avoid the application of the 

tariffs in the near term and limited options in the long term. Because of our already-slim margins in a 

competitive market, we have thus been forced to pass along the tariffs as price increases to our 

customers.

4. The Tariffs Harm the Range of U.S. Interests OutBack Power Supports, and Could Force Us to 

Fully Cede the American Market to Foreign Producers

As noted above, tariffs on components like the product that is the subject of this exclusion request 

have forced us to increase the price of the SkyBox on the eve of its launch. We estimate that this price 

increase in excess of 15% has led to a 50% reduction in the potential market for this new product. This 

is because the economics of purchasing an innovative product like the SkyBox simply do not make 

sense for homeowners at the higher price point caused by the tariffs, outside of select U.S. markets like 

California where we are well-positioned to compete because our technology meets the high regulatory 

barriers to market entry. In other markets, consumers will naturally gravitate toward lower-priced, less 

innovative product offerings. Absent the imposition of the tariffs, we believe that the SkyBox was 

priced to capture a portion of this broader market. However, the tariffs preclude us from offering the 

product at this price point.

Foregoing half of the estimated market for this new product will have a range of negative 

consequences for OutBack Power, and for the American economy more generally: 

• Suspended Expansion and Investment — The success of the SkyBox is critical to OutBack 

Power’s expansion and investment plans. Absent the tariffs, we planned to add a second U.S. 

production line for SkyBox to our existing manufacturing facilities, which would have meant an 
additional 50 U.S. jobs. Now, these plans are on hold, along with a range of potential U.S. 

investments: plans to add 40,000 square feet to our Bellingham, Washington facility in the next 

year, which would have required a capital investment of $7 million; plans to expand our 

Suwanee, Georgia facility by 65,000 square feet, a $6 million investment; and plans to invest in 

building our company’s presence in the commercial marketplace. All told, if the accompanying 

human resources, product development, and engineering investments are terminated, the total 

loss by 2020 would near $50 million.

• Ceding the Market to Foreign Competition — The tariffs mean that the price of the SkyBox is 

nearly two times the price of competing offerings from Chinese producers, including Darfon 

and Huawei. While we believe the innovative features of the SkyBox are distinctive in the 

marketplace, a price discrepancy of this magnitude is extremely difficult to compete against. 

Outside of select markets like California, the tariffs thus force us to cede the entire market 

category to our foreign competition.

• Undermining of Grid Resilience — The decline of the sole American participant in this 

marketplace would also undermine our efforts to support American energy independence and 

grid resilience. As noted above, inverters are integral to harnessing the power of renewable 

energy resources for on-grid and off-grid applications. It is simply not in the national interest to 

rely on foreign companies to supply these vital components of our energy infrastructure.

These negative impacts also are inconsistent with the aims of the China 301 Determination. USTR has 

indicated that the list of products targeted for tariffs aimed to avoid “disruptions to the U.S. 

economy.” 2 Clearly, millions of dollars in lost investment, hiring freezes and layoffs, and the 

undermining of the nation’s energy supply would be a disruption to the U.S. economy.

 2 83 Fed. Reg. 14906, 14907 (Apr. 6, 2018).
5. Tariffs on Inverter Components Would Not Advance USTR’s Goals with Respect to China’s IPR 

Acts, Policies, and Practices

The components we import from China have no nexus to the technology and intellectual property 

concerns that motivated this proceeding and are not, to our knowledge, a focus of “Made in China 

2025” or any other Chinese industrial policy. We also actively monitor our patent portfolio worldwide 

to further guard against the risk of infringement and expropriation.

Furthermore, USTR’s announcement of the tariffs makes clear that they are intended to cause changes 

in China’s acts, policies, and practices with respect to certain high-tech products and intellectual 

property.3 However, applying tariffs to OutBack Power’s products will not have this result. As indicated 

above, we are severely constrained in our ability to shift production away from China in the near-term, 

and thus the tariffs will have little to no economic impact on China or our Chinese manufacturing 

partners. While they may eventually lead to a decline in volumes ordered by OutBack Power in the 

U.S., those declines will likely be offset by orders from our competitors in other parts of the world, and 

will come at the expense of a heretofore flourishing U.S. manufacturer.

The de minimis nature of OutBack Power’s anticipated imports from China relative to the broader 

subheading means that the requested carve out will not undermine USTR’s goals and actions with 

respect to this proceeding. We believe U.S. Customs and Border Protection (“CBP”) will be able to 

easily administer an exclusion for OutBack Power’s products because they are imported exclusively 

under the narrowly-defined 10-digit HTS 8504.90.7500 classification. OutBack Power also is willing to 

work directly with CBP to identify its product in terms of its specific physical characteristics if that 

would be helpful.

 3 83 Fed. Reg. 28710, 28710-11 (June 20, 2018).
6. Conclusion: USTR Should Exclude Products that are Crucial to U.S. Energy Independence and 

Grid Resiliency from the Tariffs Imposed by the Notice of Action

Alpha strongly believes that the reasons discussed above warrant exclusion of the product referenced 

above. Tariffs on this product raise the cost of a product that is crucial to our company’s ability to 

compete against foreign producers that do not manufacture in the United States. Thus, they threaten 

to undermine our investment in U.S. manufacturing and innovation, and significantly diminish our 

overall contributions to the American economy. Moreover, tariffs on this product would do nothing to 

advance USTR’s goals for this proceeding in terms of eliminating the unfair acts, policies, and practices 

of China with respect to technology and intellectual property. Therefore, we respectfully request that 

USTR exclude the product referenced above from the tariffs imposed by the Notice of Action.

Thank you for your consideration of this request. We also have attached several letters of support for 

our exclusion request. If you have any questions, please contact Andrew Zogby, President and COO, at 

360.392.2130 dzogby@alpha.com or our counsel, Stacy Ettinger, K&L Gates, at 202.778.9072.

I, Andrew Zogby, certify that the information provided herein is complete and correct to the best of my 

knowledge.

/s/ Andrew Zogby

President

OutBack Power Technologies, Inc.
Attachments - Support Letters** From:

• Representatives Dave Reichert (R-WA) and Suzan DelBene (D-WA)

• Power and Telephone Supply Co.

• The PowerStore Inc.

• Northern Arizona Wind and Sun Inc.

• Photon Electric, LLC

• AEG International

• Peck Electric

• BayWa r.e. Solar Systems, LLC

• Sentinel Solar

**OutBack Power is an affiliate of Alpha Technologies (referenced in the support letters)


 12621 E. FM 917, Suite A 

 Alvarado, TX 76009 

 (817) 779-7210 

 sales@thepowerstore.com

 

September 5, 2018 

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the United States Trade Representative 

600 17th Street, NW 

Washington, DC 20006 

Re: USTR-2018-0026: Support for Request by Alpha Technologies to Exclude Imports of Renewable 

Energy Products and Components from Increased Tariffs

Dear Ambassador Lighthizer: 

We write in support of Alpha Technologies’ request that renewable energy products and components be 

excluded from the proposed tariff on imports from China. The PowerStore Inc. are a Sales and 

Distribution Company supporting many companies, installers and end users throughout the USA with 

Alpha Technology product. This customer base ranges from the US Army to small residencies without 

the option of Grid Power. 

Application of increased tariffs would have a significant negative impact on Alpha Technologies’ 

products and put the company at a competitive disadvantage to products made by foreign competitors. 

Application of increased tariffs would also have a significant negative impact on The PowerStore Inc. 

directly due to loss of sales revenue. The PowerStore Inc is committed to only offering the best and 

most reliable products to our customers. Alpha Products meet all these requirements and as such are 

one of strongest selling product lines. 

We strongly support Alpha Technologies’ exclusion request and respectfully urge you to give full 

consideration to Alpha Technologies’ submission. 

Thank you. If you have any questions regarding this letter, please contact Jim White at 817-779-7210. 

Sincerely, 

Jim White 

President 

The PowerStore Inc. 

12621 East FM 917, Alvarado, TX USA 76009 

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Re: USTR-2018-0026: Support for Request by Alpha Technologies to Exclude Imports 

of Renewable Energy Products and Components from Increased Tariffs

Dear Ambassador Lighthizer:

 We write in support of Alpha Technologies’ request that renewable energy products and components 

be excluded from the proposed tariff on imports from China. Alpha Technologies supplies us with 

renewable energy products like battery inverters, solar controllers, batteries and lots of other accessories 

of which we service, install, and distribute. 

 Application of increased tariffs would have a significant negative impact on Alpha Technologies’ 

products and puts the company at a competitive disadvantage to products made by foreign 

competitors. Application of increased tariffs would also have a significant negative impact on 

Photon Electric, LLC as Alpha Technologies is a leading supplier of renewable energy products 

to Photon Electric, LLC. 

We strongly support Alpha Technologies’ exclusion request and respectfully urge you to give full 

consideration to Alpha Technologies’ submission. 

Thank you. If you have any questions regarding this letter, please contact me at 574-642-3731 ext. 204 or email 

henry@photonelectricllc.com. 

Sincerely, 

Henry Miller President - CEO
The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the United States Trade Representative 

600 17th Street, NW 

Washington, DC 20006 

Re: USTR-2018-0026: Support for Request by Alpha Technologies to Exclude Imports of 

Renewable Energy Products and Components from Increased Tariffs

Dear Ambassador Lighthizer: 

We write in support of Alpha Technologies’ request that renewable energy products and components be 

excluded from the proposed tariff on imports from China. AEG International writing in support of Alpha 

who is one of our main vendor for all our renewable power/energy product line for our business in USA 

and Worldwide. 

Application of increased tariffs would have a significant negative impact on Alpha Technologies’ products 

and put the company at a competitive disadvantage to products made by foreign competitors. Application 

of increased tariffs would also have a significant negative impact on AEG international’s business 

because we would not remain competitive in our pricing to our end users/customers who will ultimately 

have to bear the cost of increased tariffs. 

We strongly support Alpha Technologies’ exclusion request and respectfully urge you to give full 

consideration to Alpha Technologies’ submission. 

Thank you. If you have any questions regarding this letter, please contact Paresh Vasa at AEG 

International. 

Sincerely, 

Paresh Vasa 

AEG International 

Vice President – Business Development 

11529 Wilmar Blvd, 

Charlotte, NC 28273 

704-588-3670 Ext 7411 

BayWa r.e. Solar Systems LLC / 1730 Camino Carlos Rey, Santa Fe, NM 87507 / 505. 216.7834 / baywa-re.us 

September 5, 2018 

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the United States Trade Representative 

600 17th Street, NW 

Washington, DC 20006 

Re: USTR-2018-0026: Support for Request by Alpha Technologies to Exclude Imports of Renewable Energy 

Products and Components from Increased Tariffs

Dear Ambassador Lighthizer: 

We write in support of Alpha Technologies’ request that renewable energy products and components be excluded from 

the proposed tariff on imports from China. BayWa r.e. Solar Systems, LLC, writing in support of Alpha, relies on key 

vendor partnerships like we enjoy with Alpha Technologies, to provide innovative and reliable products at a competitive 

market price to our installer customers in the renewable energies segment. 

Application of increased tariffs would have a significant negative impact on Alpha Technologies’ products and put the 

company at a competitive disadvantage to products made by foreign competitors. Application of increased tariffs would 

also have a significant negative impact on BayWa r.e. Solar Systems, slowing market adoption of these products, 

increasing the total system cost for the installer and thereby the end user, and reducing the financial feasibility of solar 

power adoption in general. Market competitiveness is key to any industry’s growth and viability, and the application of a 

tariff on any one particular part of that industry or it’s supply chain is arbitrary and blocks access to components and 

competitive companies. 

We strongly support Alpha Technologies’ exclusion request and respectfully urge you to give full consideration to Alpha 

Technologies’ submission. 

Thank you. If you have any questions regarding this letter, please contact David Dunlap at (505) 216-5070. 

Sincerely, 

David Dunlap 

VP of Operations 
380 Four Valley Drive 

Concord, Ontario L4K 5Z1

T: 905.532.0770

F: 905.532.0593

www.sentinelsolar.com 

September 5th 2018 

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the United States Trade Representative 

600 17th Street, NW 

Washington, DC 20006 

Re: USTR-2018-0026: Support for Request by Alpha Technologies to Exclude Imports of 

Renewable Energy Products and Components from Increased Tariffs

Dear Ambassador Lighthizer: 

We at Sentinel Solar write in support of Alpha Technologies’ request that renewable energy products 

and components be excluded from the proposed tariff on imports from China. Sentinel Solar is a 

distributor, manufacturer, and design house for large and small commercial projects. Our 

commitment to excellence is what sets us apart from others in the industry and we have partnered 

with Alpha as our core values and goals align. 

The application of increased tariffs would have a significant negative impact on Alpha Technologies’ 

products and put the company at a competitive disadvantage to products made by foreign 

competitors. Sentinel Solar believes that the renewable energy market within the US has grown 

significantly year over year and the application of increased tariffs would be a potential set back to 

that growth. We also feel that these proposed tariffs would have a negative impact on Sentinel Solar 

as it would limit our ability to grow our business and maintain our relationship with Alpha 

Technologies and other US suppliers. 

We strongly support Alpha Technologies’ exclusion request and respectfully urge you to give full 

consideration to Alpha Technologies’ submission. 

Thank you. If you have any questions regarding this letter, please contact Adam Webb at 

awebb@sentinelsolar.com or 905-532-0770. 

Sincerely, 

Adam Webb 

President