1001 Pennsylvania Avenue, NW, Washington, DC 20004-2595  p202 624-2500  f202 628-5116

October 9, 2018

VIA ELECTRONIC FILING PUBLIC VERSION

Amb. Robert E. Lighthizer Docket No.: USTR-2018-0025

United States Trade Representative

600 17th Street NW

Washington, DC 20508

Re: Request to Exclude Certain Parts and Accessories for Use with Onshore 

Wind Turbines from Section 301 Tariffs

Dear Ambassador Lighthizer,

Siemens Gamesa Renewable Energy, Inc. (“SGRE”) respectfully requests for the exclusion of 

certain parts and accessories for use with onshore wind turbines (see exclusion form for HTS)

from the Section 301 tariffs enacted against products from the People’s Republic of China 

(“China”). 

I. Background

Siemens Gamesa Renewable Energy, Inc. (“SGRE”), with US headquarters in Orlando, FL, is a 

global wind turbine manufacturer with a significant presence in the U.S. SGRE also has a 

number of service locations throughout the country, as well as factories in Fort Madison, Iowa, 

and Hutchinson, Kansas, and a $7 million state-of-the-art turbine technician training center in 

Orlando.

II. The Product

SGRE imported the items for its onshore wind turbines from wholly foreign-owned enterprises 

in China.

An onshore wind turbine, like any wind turbine, is considered a green energy source because it 

does not produce emissions, and is also a sustainable, cost-effective renewable energy source.

Wind energy is one of the lowest-cost electricity generation technologies available today.

III. Rationale for Requested Exclusion

A. The Technology Is Not Covered by Made in China 2025

We understand that Section 301 tariffs are designed, among other things, to safeguard U.S. 

industries and technologies highlighted in the Chinese government’s “Made in China 2025” plan. 

However, the technology for these items is not covered by the “Made in China 2025” plan. 

Therefore, imposition of additional 25% duties on the parts and accessories SGRE imports from 
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China would serve no practical purpose to eliminate China’s unreasonable and discriminatory 

acts, policies, and practices identified by the United States Trade Representative (“USTR”).

The items requested for exclusion are minor parts and accessories used in onshore wind turbines. 

The technology involved does not contain the properties responsible for achieving or exceeding 

the performance levels, characteristics, or functions of the large-scale wind power equipment

covered by “Made in China 2025”.

Specifically, “Made in China 2025” covers the following large-scale wind power equipment and 

intelligent control systems: 

• Wind turbines with power of 5MW: advanced high reliability wind turbines, with wind 

energy conversion efficiency (CP value) of 0.48, usability of 97%;

• Offshore wind turbines: advanced superconducting wind turbines with power of 10MW; 

and 

• Wind power intelligent control systems: systems with remote data transmission and fault 

diagnosis, wind power intelligent management and control.

SGRE’s imported parts and accessories are not among those that benefit from the “Made in 

China 2025” program, or any other Chinese Government’s acts, policies or practices identified 

by the USTR as being unreasonable and discriminatory and that burden or restrict U.S. 

commerce.

B. The Imported Parts and Accessories Are Solely from Wholly Foreign-Owned 

Enterprises in China. No Technology Has Been Transferred For Which the 301 

Tariffs Seek to Protect.

SGRE imported parts and accessories for use with onshore wind turbines are sourced exclusively 

from wholly foreign-owned enterprises in China. As recognized by USTR in its March 22, 2018 

report, force-transfer of technology exists in joint-ventures between a U.S. and a Chinese 

company

1

. Unlike joint-ventures, wholly foreign-owned enterprises are not susceptible to state 

coercion of any kind, including forced transfer of technology. 

Moreover, wholly foreign-owned enterprises support our U.S. operations and U.S. work force, 

including product development, engineering, testing, information technology, purchasing and 

supply chain, finance, planning, customer service, corporate development, as well as sales and 

marketing jobs. Imposition of additional 25% duties on our imported products, however, will 

only punish SGRE with no practical effect to eliminate China’s unfair trade policies identified by 

USTR.

 1 See 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, Executive 

Summary, by office of the USTR Executive Office of the President (March 22, 2018), at vi-vii.
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C. The Imported Parts and Accessories Cannot Be Sourced Elsewhere

A wind turbine can contain up to 10,000 components, and like every industrial manufacturing 

industry, the wind industry relies on a global supply chain to produce cost-effective products that 

then deliver affordable, reliable, domestic energy to American consumers. SGRE’s production 

facilities in the US employ roughly 1,000 people in Kansas and Iowa, where we have recently 

invested millions to re-tool the factories for our newest line of products. Imposing 25% duties on 

SGRE’ parts and accessories for onshore wind turbines would significantly increase our 

production costs, and ultimately result in increased energy prices in an already price sensitive 

market. Shifting the supply chain of these products will take time, and a temporary exclusion 

from the 25% tariff would help to alleviate the burden of increased prices on our customers and 

ultimately on American consumers. 

The American Wind Energy Association (AWEA) estimates that the cumulative impacts of the 

Section 232 and Section 301 tariffs will drive up the cost of wind energy by at least 5%, which in 

a price-constrained market will result in a loss of up to 24% of future development. Such an 

impact to the wind industry would put thousands of domestic manufacturing jobs at risk, 

eliminate up to 21,000 American jobs, mostly in rural America where these jobs are desperately 

needed, and billions in lost investment. 

The US economy depends on a secure and reliable supply of affordable energy, of which wind 

energy is a crucial component. Wind energy is now the least-cost new electricity generation 

resource in many areas. Wind energy is also a rapidly growing global industry of strategic 

importance to the US’s foreign policy goals.

For all of these reasons, tariffs that would increase the cost of wind energy in the US would pose 

severe economic harm to SGRE as well as all American consumers of electricity and would 

threaten American energy independence. 

IV. Conclusion

For the reasons outlined above, SGRE respectfully requests an exclusion of these parts and 

accessories for use with onshore wind turbines from the Section 301 tariffs because it would 

significantly increase the company’s operating cost making its products less competitive and 

would also result in increased electricity costs to US consumers. The technology of these items is

not covered by the Made in China 2025 or otherwise affected by the concerns cited by the USTR 

as justification for implementing the Section 301 tariffs. Tariffs on parts and accessories for 

onshore wind turbines that are not available elsewhere outside of China will not advance national 

trade objectives and will be to the detriment of U.S. manufacturing. 

* * *

This submission contains business confidential information for which SGRE requests 

confidential treatment. As permitted in the Exclusion Request Procedures, SGRE has identified 

business confidential information in brackets and has appropriately stamped each page 

containing business confidential information. As requested, we are simultaneously providing a 
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public version of this request. SGRE hereby certifies that disclosure of the bracketed business 

confidential information would endanger trade secrets or profitability, and that the information 

would not customarily be released to the public. The undersigned further certifies that the 

information provided is complete and correct to the best of his knowledge.

Should you have any questions or require additional information, please do not hesitate to 

contact the undersigned.

Respectfully submitted, 

Daniel J. Cannistra

Counsel to SGRE, Inc.
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).