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 particular product of concern:

4.

*

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/

7.

5. Requestor's relationship to the product:

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.

Requestor Information

Requestor Name (Last, First):

VERSION 2 CONTINUED BELOW 1
8. Is this product, or a comparable product, available from sources in the United States? (If you

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

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.

2017 Value:

2016 Value:

2015 Value:

2017 Quantity:

2016 Quantity:

2015 Quantity:

% of your total gross sales in 2017 that the Chinese-origin product accounted for.

% of the total cost of producing the final product(s) the Chinese-origin input 

accounts for.

% of your total gross sales in 2017 that sales of the final product(s) incorporating 

the input accounted for.

VERSION 2 CONTINUED BELOW 2

indicate "NO", you must provide support for your assertion in Box 12).

indicate "NO", you must provide support for your assertion in Box 12).

11. Is the Chinese-origin product of concern sold as a final product or an input used in

a) For imports sold as final products, please provide:

b) For imports of inputs used in the production of final products, please provide:

the production of a final product or products?
12. Please provide information in support your request, taking account of the

VERSION 2 END 3

instructions provided in Section B of the Federal Register notice. If you

responded "NO" to Questions 8 or 9, you must provide support for your

assertion in the box below. (Note: text entered below can extend beyond the

apparent size of this box).
VIA ELECTRONIC SUBMISSION PUBLIC VERSION OF BCI 

WWW.REGULATIONS.GOV

The Honorable Robert E. Lighthizer 

United States Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW 

Washington, DC 20508 

Re: Section 301 Exclusion Request (Docket Number USTR-2018-0025) 

Compression-ignition internal-combustion piston engines for use in machinery, generator sets or 

equipment with a power range of 56kW to 97kW with in cylinder charge dilution (ICCD) 

(referred to herein as “Engine 1104”) in HTSUS 8408.90.90101

Dear Mr. Lighthizer: 

For more than 90 years, Caterpillar has been making sustainable progress possible and driving 

positive change in the United States, North America, and on every continent. Customers turn to 

Caterpillar to help them develop infrastructure, energy and natural resource assets. Caterpillar is 

the world’s leading manufacturer of construction and mining equipment, diesel and natural gas 

engines, industrial gas turbines and diesel-electric locomotives. Caterpillar products make it 

possible for U.S companies to mine and harvest resources in a profitable and sustainable way and 

are also used to meet increasing energy and transportation needs. Our customers in the U.S. and 

globally rely on Caterpillar products to advance sustainable progress and improve living standards, 

building a better world. 

I. Summary Introduction 

Caterpillar Inc. (hereinafter “Caterpillar”) respectfully presents this attached addendum, along 

with the completed form, as rationale in support of this Exclusion Request pursuant to Section B, 

83 Fed. Reg. 32181 (July 11, 2018) for a product-specific exclusion from the 25 percent tariff on 

certain products from China (the “Section 301 Tariff”). 

• A comparable product is not available either in the U.S., or other countries without 

significant time and cost to Caterpillar’s U.S. customers. U.S. customers specifically 

engineer and design their products to fit Engine 1104, making Engine 1104 a critical 

component to end products manufactured by our U.S. customer base. 

• Sales and use of Engine 1104 play a critical role in supporting Caterpillar’s U.S. 

customers in a wide variety of industries, construction projects and development in the 

U.S. 

1

 The information provided in this request is complete and accurate to the best of our knowledge. Disclosure of the 

information designated as business confidential would endanger trade secrets or profitability, and the information 

would not customarily be released to the public. Such business confidential information is displayed as empty 

brackets (i.e., "[ ]") in the Public Version. 
• Engine 1104 are not the types of products that appear to have benefitted from the 

practices associated with the Made in China 2025 or other Chinese industrial programs 

the Section 301 Tariff is meant to counter. 

• The addition of the Section 301 Tariff on the Engine 1104 will result in harm to U.S. 

interests by impacting Caterpillar, U.S. customers, U.S. third party dealers, and U.S. 

suppliers. 

II. Product Availability in the United States and/or Other Countries 

Caterpillar is aware of U.S. production of engines similar to Engine 1104, and is aware of 

production of engines similar to Engine 1104 occurring in countries other than the U.S. 

However, there are various distinguishing factors when comparing Engine 1104 with similar 

products produced by other companies. A comparable product is not available either in the U.S., 

or other countries without significant time and cost to Caterpillar’s U.S. customers. Engine 1104 

has been specifically engineered into our U.S. customers’ machines and are therefore critical 

components to end products manufactured by our U.S. customer base. Any change in engine 

provider would drive significant research and development costs for our U.S. customers. Further, 

additional research and development needed by our U.S. customers would also take many months 

to complete. 

Caterpillar’s foreign competitors, who manufacture or assemble products similar to Engine 1104, 

are not impacted by the Section 301 Tariff and therefore receive a competitive economic advantage 

over Caterpillar. 

III. Strategic Importance or Relation to “Made in China 2025” or Other Chinese 

Industrial Programs 

The Made in China 2025 initiative targets ten strategic industries or sectors deemed critical for 

economic competitiveness and growth, including, next generation information technology, 

aviation, rail, new energy vehicles, and agricultural machinery.2 Caterpillar’s Engine 1104 do not 

appear to be related or strategically important to the “Made in China 2025” initiative or other 

Chinese Industrial Programs, to Caterpillar’s knowledge after analysis and review. 

The Made in China 2025 program cites “Energy-efficient and new-energy vehicles (NEV)” as one 

of ten priority sectors. However, based upon the capabilities and end use of the Engine 1104, it 

does appear to align with either the Goals for 2020 or Goals for 2025 in that priority sector.3

Engine 1104 would not be a critical element or strategic product to “ [i]ncrease infrastructure for 

battery charging stations, hydrogen refueling stations...” or support the development of smart cars, 

smart grid, smart cities infrastructure.4

2 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017)

3 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).

4 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).
Additionally, the Made in China 2025 program cites “Agricultural machinery and equipment” as 

another priority sector.5 However, based upon the capabilities and end use of the Engine 1104, it 

does not appear to align with either the Goals for 2020 or Goals for 2025 in that priority sector.6

Engine 1104 does not produce sufficient horsepower and therefore does not meet the goal for 

Chinese domestic production “...of agricultural machinery products...large scale tractors with 

over 200 horsepower...7”. 

According to the USTR’s Section 301 Investigation findings, a key concern underlying the Section 

301 Investigation involves the acquisition of foreign technologies through acts, policies and 

practices of the Chinese government that are unreasonable or discriminatory and that burden or 

restrict U.S. commerce.8 Technology and innovation are critical components in maintaining 

Caterpillar’s competitive advantage in the global economy. [ 

]

[ 

]

IV. Economic Harm to U.S. Interests by Imposition of Duties 

The imposition of additional duties on Engine 1104 creates adverse economic consequences to 

U.S. interests and Caterpillar’s U.S. based customers, Caterpillar’s third-party dealers in the U.S., 

U.S. suppliers, and Caterpillar. Should Caterpillar’s U.S. customers decide to seek alternative 

5 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).

6 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).

7 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).

8

 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE, FINDINGS OF THE INVESTIGATION INTO CHINA’S ACTS,

POLICIES, AND PRACTICES RELATED TO TECHNOLOGY TRANSFER, INTELLECTUAL PROPERTY, AND INNOVATION 

UNDER SECTION 301 OF THE TRADE ACT OF 1974 (March 22, 2018). 
engine suppliers in light of the Section 301 Tariff applied to Engine 1104, Caterpillar would lose 

sales, many of which could be lost to non-U.S. companies. 

 Components manufactured in US and included in the Engine 1104 play a significant role in the 

final production undertaken in China. An impact on sales of Engine 1104 in the United States 

could result in unintended downstream impacts, including potential impact on U.S. jobs of the 

various U.S. companies depending on the use, sales and distribution of Engine 1104 in the U.S. 

Engine 1104 is a critical component to our U.S. customer base. Any change in engine provider 

would drive significant research and development costs for our U.S. customers. Additional 

research and development needed by our U.S. customers would also take many months to 

complete. 

Caterpillar’s foreign competitors, who manufacture or assemble products similar to Engine 1104, 

are not impacted by the Section 301 Tariff and therefore receive a competitive economic advantage 

over Caterpillar. 

Our customers in the U.S. and the industries they support globally rely on Caterpillar products, 

including the Engine 1104 to advance sustainable progress and improve living standards, building 

a better world. 

V. Exclusion Request 

For the reasons set forth herein, Caterpillar respectfully requests the product-specific exclusion for 

Engine 1104 pursuant to Section B, 83 Fed. Reg. 32181 (July 11, 2018) from the Section 301 

Tariff.