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. 

Public Document 

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

Picoammeters are cube-shaped enclosures made of metal and plastic weighing up to 12 lbs and measuring 19 x 13 x 

9 inches. A picoammeter is an electrical instrument for measuring electrical current. The front of the device features z 

screen surrounded by various buttons and knobs for setting up the device to measure accurately, where equipped 

setting up forcing potentials and sweeps and analyzing the data etc. Last, the back of the device has various ports fo 

connecting to the device being tested, for extemal computer control and data, in some models also an analog output 

that represents the measurement. In its condition as imported, it is in brown box packaging. Included with the main 

unit are accessories, such as cables, connectors and test fixtures etc. 

Please see cover letter for additional description and picture 

3. 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/ 

9030.39.0100 

4. Requestor Information 

Requestor Name (Last, First): 

Organization Name: 

Carpenter, Jon 

Tektronix, Inc. 

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

Requestor Representative: 

5. Requestor's relationship to the product: Importer 

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

YES 

7. Please indicate whether any additional attachment contains business confidential 

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

Public Document 

VERSION 1 CONTINUED BELOW 1 
8- Is this product, or a comparable product, available from sources in the United States?: 

NO 

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

NO 

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: $ 262,714 2017 Quantity: 334 

2016 Value: $ 269,422 2016 Quantity: 341 

2015 Value: $ 417,104 2015 Quantity: 417 

II. 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). 

Please see attached cover letter 

Proposed tariff language 

(9030) Oscilloscopes... 

Other,with a recording device 

Picoammeter 

Note that a picoammeter is not a Tektronix or Keithley trade name, it is a subtype of Ammeter. A picoammeter, or 

pico ammeter, measures very low electric current, usually from the picoampere range at the lower end to the 

milliampere range. Definitions can be found in Wikipedia and elsewhere. 

VERSION 1 END 2 
Tektronix, Inc. 

14150 SW Karl Braun Drive 

Beaverton, OR 97077-0001 

Phone: 503 627-7111 

Tektronix 

October 8, 2018 

The Honorable Robert E. Lighthizer 

United States Trade Representative 

Office of the United States Trade Representative 

700 17th Street Northwest 

Washington, D.C. 20508 

Re: Docket No. USTR-2018-0025; Tektronix Inc. Request for Exclusion of Certain Picoammeters from 

the Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to 

Technology Transfer, Intellectual Property, and Innovation 

Dear Ambassador Lightizer: 

Tektronix Inc. ("TektronbC or "the Company") respecffully requests that certain picoammeters imported from 

China and classifiable in subheading 9030.39.0100 of the Harmonized Tariff Schedule of the United States 

("HTS") be excluded from the additional 25% ad valorem duty that took effect on July 6, 2018 pursuant to the 

United States Trade Representative's determination under Section 301 of the Trade Act of 1974.1 

Picoammeters are cube-shaped enclosures made of metal and plastic weighing up to 12 lbs. and measuring 19 x 

13 x 9 inches. 

Itimilult 

A picoamrneter is an electrical instrument for measuring electrical current. The front of the device features a 

screen surrounded by various buttons and knobs for setting up the device to measure accurately, where equipped 

setting up forcing potentials and sweeps and analyzing the data etc. Last, the back of the device has various ports 

for connecting to the device being tested, for external computer control and data, in some models also an analog 

output that represents the measurement. In its condition as imported, it is in brown box packaging. Included with 

the main unit are accessories, such as cables, connectors and test fixtures etc. 

The key components in picoammeters include sensitive and very accurate current meters. They may also 

sometimes include a voltage source, depending on the model. Tektronix and its affiliate Keithley Instruments 

LLC import these articles into the United States and sells them to US customers to use for measuring sensitive 

electrical currents. In many cases this is in research and development and in universities. 

I Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: 

China's Acts, Policies. and Practices Related to Technology Transfer, Intellectual Property and Innovation, 83 Fed. Reg. 14,906 (Apr. 6. 

2018); Notice of Action and Reuuest for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China's 

Acts. Policies, and Practices Related to Technology Transfer, Intellectual Property. and Innovation, 83 Fed. Reg. 28,710 (June 20, 2018). 

1 
As discussed further below, an exclusion for picoammeters is appropriate and necessary. First, these specific 

products are produced only in China by a wholly foreign-owned Tektronix subsidiary; there is no other 

commercially comparable product made by contract manufacturers. Second, the additional duty will cause severe 

economic harm to Tektronix, causing it to raise prices and lose market share to competitors with little or no U.S. 

manufacturing operations; similarly, the Company cannot immediately abandon its investment in China without 

sustaining significant capital losses. Third, these types of picoammeters are not products of strategic importance, 

nor do they contain the types of advanced technology that benefit China's Made in China 2025 plan. Thus, the 

grant of a product exclusion will not undermine the objective of the Section 301 duty. 

To mitigate the adverse impact that the additional duties will have on U.S. companies that wholly own 

manufacturing facilities in China, we also request that USTR categorically exempt from the Section 301 duty 

products manufactured in China by a wholly foreign-owned enterprise ("WFOE"). This may be effectively 

accomplished by refming the existing product exclusion request process to allow companies to certify under 

penalty of perjury that products have been manufactured by a WFOE (i.e. an entity that is 100% owned by a nonChinese entity; not subject to foreign ownership restrictions), and have not been subject to forced technology 

transfers. 

Additional background on the Company, and our request, is set forth below. 

I. Company Background 

Tektronix is a world-leading manufacturer of test and measurement devices, including oscilloscopes, analyzers, 

signal generators, meters, power supplies and sources, and video and mobile test protocol equipment. The 

Company holds leading positions in most of its product categories, and is recognized as an innovation leader. The 

Company's products are utilized in a wide range of industries, including electronics design and manufacturing, 

aerospace and defense, broadcast, telecommunication, automotive and education. 

The Company is headquartered in Beaverton, OR. We employ approximately 2,200 people in the United States 

(4,000 globally) in a variety of capacities, including R&D, engineering, manufacturing, sales & service, and 

various professional and administrative positions. 

Tektronix has two primary manufacturing locations — the United States (approximately 40%) and China 

(approximately 60%). The China operation was strategically set up decades ago to sustain manufacturing of our 

established, lower-end, mainstream products that no longer required the expertise of our U.S. operations, and to 

provide products specifically designed for the Asian markets. The U.S. operation is designed to support new 

product introduction (research, design, and engineering), and to manufacture technically advanced, high-end 

instruments that require advanced technical skills, products that are subject to sensitive U.S. export controls, 

products that are subject to trade secrets, and products specifically procured by the United States government. 

The Section 301 duty impacts Tektronix finished goods manufactured by our wholly owned subsidiary in China, 

as well as to parts and assemblies manufactured by WFOEs in China, and imported in furtherance of our U.S. 

manufacturing operations. 

II. Tektronix Manufactures Chinese-Origin Picoammeters Because They Are Not Produced in the 

United States or Third Countries 

Tektronix's picoammeters are manufactured at the Company's WFOE in China. Because these products contain 

proprietary technology, they cannot currently be sourced from contract manufacturers located in other countries. 

These items are custom designed and imported into the United States for sale to US customers. In other words, 

these are NOT generic products purchased on the basis of simple specifications. 

2 
While generic picoammeters are available outside China they are not comparable for Tektronix's purposes. 

Tektronix is in the business of designing and manufacturing its own propriety equipment. The Company could 

not purchase a competitive product and resell it to U.S. customers. Our competitors would not enter into 

distribution agreements with Tektronix as they would be cannibalizing their own market channels. Also, 

Tektronix would not be able to make a profit reselling a technology which our competitor owned and developed. 

Tektronix has invested years of engineering time and millions of dollars in developing our own propriety products 

which are differentiated from competitors with superior performance and features. In short, as the only 

manufacturer of these specific products, there is no other commercially comparable product currently available 

outside of China. 

DI. The Additional Duty Will Cause Severe Economic Harm to Tektronix 

First, Tektronix will bear the expense of the additional duties on picoammeters. Tektronix has made strategic 

investments in manufacturing, including supply chains, capital equipment, processes and personnel based on the 

trade rules in effect for decades. Tektronix's China operations produce goods not only for the United States, but 

also for the local market and global markets. Because the Company cannot abandon its investments without 

substantially harming its U.S. employees and shareholders, the Company expects that it will need to continue to 

produce picoammeters in China. 

Second, the duties will mostly likely result in loss of market share to the Company's non-U.S. competitors. At the 

proposed duty rate of 25%, it will be economically infeasible for Tektronix to import these products without 

raising prices for U.S. customers. If Tektronix raises prices, it will likely lose market share. Loss of market share 

will result in a loss of profitability and a long term loss of competitiveness. 

Third, Tektronix is heavily invested in the United States, employing approximately 2,200 employees in R&D, 

engineering, manufacturing, sales & service, and a host of other professional functions. The U.S. workforce 

represents the majority of the Company's global expenditure on labor. To the extent the Company is not able to 

fully pass on this price increase to its customers, the fmancial impact will be felt by the Company's U.S. 

operations. Tektronix, and other companies in this position, will need to make difficult decisions, including cost 

reductions and decreased investments in hiring, R&D, etc., to mitigate the impact of increased costs incurred as a 

result of the proposed duties. Collectively, such cutbacks will adversely impact the U.S. economy. As a proud 

America company, Tektronix does not wish to have to take these measures. 

Fourth, when and if Tektronix does reposition its supply chain away from its investments in China, the result will 

most likely be a sigtificantly higher cost structure. A higher cost structure would be the result of higher labor 

costs in other jurisdictions, loss of process efficiency gained over years and significant transition costs. 

Based on the foregoing, the additional duties will cause severe economic harm to Tektronix. 

IV. The Grant of a Product Exclusion Wilt Not Undermine the Objectives of the Section 301 Duty 

A product exclusion request covering Picoammeters will not undermine the ultimate objective of the Section 301 

duty—to obtain the elimination of China's unreasonable and discriminatory acts, policies and practices in relation 

to technology transfers, intellectual property and innovation—because these products are not strategically 

important to China's industrial policies, including "Made in China 2025. Products, industries, and technologies 

that have been identified as strategically important to China's industrial policies include advanced integrated 

circuits, information and telecommunication equipment, manufacturing equipment including CNC and robotics, 

3 
aerospace and aviation, maritime engineering and manufacturing, rail equipment, electrical generation equipment, 

agricultural machinery and equipment, new materials, and biomedical and medical devices.' 

In contrast to the above, while a few Made in China 2025 focus areas may use test and measurement equipment. 

Made in China 2025 does not appear to include a plan to create a Chinese test measurement equipment industry. 

Specifically, picoammeters are used to measure sensitive electrical currents with for applications is in research 

and development and in universities. These products do not contain the types of technologies that have been 

identified as important for Chines industrial growth policy. Furthermore, to the extent picoammeters contain 

intellectual property, it is protected by virtue of Tektronix wholly owning and operating its own manufacturing 

facility in China. In fact, Tektronix's intellectual property arguably is better protected at its own facility in China 

than it would be at a contract manufacturer in a third country. 

As picoammeters are unrelated to the Made in China 2025 plan, excluding these products will not undermine the 

objective of the Section 301 duty. 

V. Imposing Additional Duties on Goods Manufactured by Wholly-Owned Subsidiaries of U.S. 

Corporations is Unsupported by the Statute, and Runs Contrary to USTR's Stated Goals 

Imposing the additional duties on products manufactured by wholly-owned subsidiaries of U.S. corporations is 

not an "appropriate means of eliminating China's harmful acts, policies and practices cited in the Section 301 

determination. To the contrary, imposing additional duties on goods manufactured by WFOEs (particularly where, 

as in Tektronix's case, that WFOE has not been required to make involuntary transfers of technology) is a remedy 

which runs directly contrary to the objectives of the Section 301 determination. As such, it will not have the 

desired effect on the Chinese governrnent's policies, and will not "level the playing fiele for U.S. companies. 

To ensure that USTR's remedy is "appropriate .. . to obtain the eliminatioe 3of the cited acts, policies and 

practices of the government of China, while not disproportionally harming U.S. interests, we submit that USTR 

should exempt certain categories of goods from the additional duties—namely, goods manufactured by WFOEs, 

including wholly-owned subsidiaries of U.S. corporations that have not been subjected to involuntary transfers of 

technology (such as, for example, through the administrative review or licensing processes referenced in the 

Section 301 determination). 

The ultimate objective of the Section 301 determination (as far as manufacturing in China is concerned) is to 

eliminate forced technology transfers, including via compelled joint ventures or other ownership restrictions. It 

would be illogical, unfair and inappropriate to penalize companies such as Tektronix, which manufacture in China 

under conditions consistent with the end goals of the Section 301 determination (in a WFOE, without involuntary 

technology transfers) in order to achieve those goals. 

Tektronix has neither suffered frorn, nor contributed to, the Chinese government's acts, policies and practices 

identified in the Section 301 determination. The Company has not voluntarily transferred technology to the 

Government of China, and has not otherwise been compelled to do so. Tektronix has not licensed, or been 

required to license, any technologies to Chinese entities, has not been compelled to transfer IP and/or technology 

to Chinese companies or State actors. To the contrary, Tektronix has an established and impressive track record 

of protecting and enforcing its porffolio of more than 170 IP rights in China, including patents and trademarks. 

Absent a nexus between a Company's imports and the unfair activity of the Government of China, there is no 

rationale for requiring the Company to bear the brunt of the USTR's proposed enforcement activity. Additional 

2 Made in China 2025: Global Ambitions Built on Local Protections U.S. Chamber of Commerce (2017). 

3See 19 U.S.C. 2411(b)(2). 

4 
duties shoukl be limited to products manufactured by companies that have surrendered valuable intellectual 

property to the Government of China, or that have consented to the unfair acts and practices of China, such as by 

entering into joint ventures as a cost of doing business in China. 

We submit that the best way to target goods that benefited from Chines harmful acts, policies and practices is to 

refine the existing product exclusion request process to include a WFOE exemption mechanism. Companies that 

can establish independence from the alleged unfair acts of the Government of China should not be rnade to pay 

for those acts, and should be able to have their products excluded on a company-specific basis. 

Such an exclusion process would be relatively easy to administer. The USTR (or appropriate agency, such as U.S. 

Custorns and Border Protection) would determine the documentation sufficient to establish that a particular 

Chinese manufacturer is a WFOE, and a representative of the foreign (e.g., U.S.) owner of that WFOE would 

certify under penalty of perjury that the company had not been subjected to involuntary technology transfers in 

China. Exemptions would, therefore, be granted on a manufacturer-specific basis. As the manufacturer of 

imported merchandise is already a required data element in the entry declaration filed with U.S. Customs and 

Border Protection, grants of exemption could be easily enforced at the border. 

VI. Conchision 

We respectfully request that Picoammeters be excluded from the Section 301 duty because these products are 

manufactured only at Tektronix's WFOE in China, the additional duty would cause severe economic harm to the 

Company, and these products are unrelated to the Made in China 2025 plan. 

In addition, we request that the USTR refine its proposed remedy by establishing a transparent 

exemption/exclusion process. We believe that the USTR has the ability and responsibility to craft a more precise 

and effective remedy for the Section 301 violations than what is currently in effect. Specifically, we urge the 

adoption of an exclusion request mechanism, where companies importing goods manufactured by WFOEs which 

have not been subject to voluntary or involuntary technology transfers may be removed from the scope of the 

Section 301 duty. 

Thank you for the opportunity to submit this request. If you have any questions, or if you require any additional 

information, please contact Courtney Seelinger, Director, Trade Compliance Courtney.seelingeratektronix.com 

503-627-2503. 

Respectfully submitted, 

in Carpenter 

0-.....-----

Vice President, Operations 

Tektronix, Inc.