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).
350 S . MAIN S TREET , S UITE 300 

ANN ARBOR , M I 48104-2131 

TELEPHONE : (734) 623-7075 

F ACSIMILE : (844) 670-6009 

http://www.dickinsonwright.com 

MARK V . HEUSEL

MHeusel@dickinsonwright.com 

(734) 623-1908

 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

October 9, 2018 

BY ELECTRONIC FILING PUBLIC VERSION

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW, Room F516 

Washington, DC, 20508 

Re: Request for Exclusion of Filter Element from the Determination of 

Action Pursuant to Section 301 

Dear Hon. Robert E. Lighthizer: 

On behalf of Wanhe Filtration, Inc. (“WH Filtration”), we respectfully request 

the exclusion of certain wind turbine gear oil filter elements (referenced herein as 

the “Filter Elements”) from the USTR’s determination of action under Section 301 

of the Trade Act of 1974. Established in the United States in 2016 and headquartered 

in Detroit, Michigan, WH Filtration provides high-tech filtration, separation, and 

purification solutions to a broad array of industries, including the wind energy sector. 

The Filtration Elements are imported from China under HTS subheading 

8421.99.0080, and are therefore currently subject to a 25% ad valorem tariff under 

Section 301. WH Filtration respectfully requests that the Filter Elements be 

excluded from the Section 301 tariffs for the following reasons: 
Hon. Robert E. Lighthizer 

Page 2 

 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

(1) The Filter Elements are not strategically important or related to 

“Made in China 2025” or other Chinese industrial programs, and thus 

imposing tariffs on them will not serve Section 301’s stated purpose of 

eliminating China’s discriminatory acts, policies, and practices; 

(2) While Filter Elements are available from countries other than China, 

they are not available in sufficient quantities to meet industry needs; 

(3) Granting this exclusion will further the American interests of 

lowering energy costs and increasing energy independence; and 

(4) Denying this exclusion will cost American jobs and hamper the 

growth of an energy industry to the detriment of American consumers. 

Accordingly, and for the reasons further explained below, WH Filtration respectfully 

requests that the USTR exclude the Filter Elements from the Section 301 tariffs. 

1. A complete and detailed description of the Filter Elements. 

The Filter Elements are classified under HTS subheading 8421.99.0080 

“Centrifuges, including centrifugal dryers; filtering or purifying machinery and 

apparatus, for liquids or gases; parts thereof: Other.” The Filter Elements are 

cylindrical cartridges that filter dust and other particulate matter from the gear oil of 

wind turbines. The Filter Elements have a height of 921mm, and an outer diameter 

of 143mm. The Filter Elements consist of end cups, a skeleton, and a filter layer, 

and are mainly comprised of glass fiber, non-woven fabric, and iron. The filter 

media of the Filter Elements consist of glass fiber, and are capable of filtering matter 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

to 10 micron. A diagram and component list of the Filter Elements is attached as 

Exhibit A, and a photo of the Filter Elements is provided below. 

Filter Element: 

The Filter Elements are different from other articles classified under the 8-

digit subheading 8421.9900. While HTS subheading 8421.9900 is a basket 

provision of the HTS covering parts of filtering apparatuses for liquids or gases not 

more specifically described elsewhere, the Filter Elements are a specialized article 

with the limited application of removing dust and other particulate matter from the 

gear oil of wind turbine gearboxes. 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

The gearbox is the main component of a wind turbine; a standard wind turbine 

gearbox is approximately 9 feet tall with a circumference of 10 feet, and requires 80 

gallons of gear oil. Wind turbine gearboxes transfer the wind energy harnessed by 

the wind turbine blades to a shaft inside the wind turbine. Because a standard wind 

turbine blade experiences upwards of 800,000 ft. lb. of torque while harnessing wind 

energy, wind turbine gearboxes must be capable of withstanding extreme forces. 

Therefore, it is imperative that the gear oil inside the gearbox remain as clean as 

possible; dust particles as small as red blood cells may cause additional gear wear, 

which, over time, will significantly diminish the performance and lifespan of a wind 

turbine. The Filter Elements are capable of removing those dust particles, thereby 

preserving and extending the life cycle of a wind turbine. 

Finally, the Filter Elements are imported in a fashion that will allow U.S. 

Customs and Border Protection (“CBP”) to administer the exclusion with little 

effort. The Filter Elements are shipped to the United States via shipping container. 

The shipping containers, as well as the boxes containing the Filter Elements inside 

the shipping containers, are all clearly labelled and easily identified by CBP. 

Furthermore, WH Filtration is willing to make whatever accommodations necessary 

to assist CBP in administering an exclusion. 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

2. The annual quantity and value of Filter Elements purchased by 

WH Filtration in each of the last three years. 

While WH Filtration has been established in the United States since 2016, it 

did not begin distributing the Filter Elements until 2018. As a result, the annual 

quantity and value of Chinese-origin Filter Elements purchased by WH Filtration in 

each of the last three years (2015-2017) is zero. 

3. The Filter Elements are not strategically important or related to 

“Made in China 2025” or other Chinese industrial programs. 

The Filter Elements are neither strategically important nor related to the 

“Made in China 2025” or any other Chinese industrial programs. While the Filter 

Elements are used in the United States to advance cutting edge alternative and 

renewable energy, the technology to produce the filter elements is not advanced, and 

has no relation to existing technology disputes or claims between the U.S. and China. 

Indeed, the Filter Elements are produced with widely-used fundamental 

manufacturing technologies, such as injection molding, that has existed for several 

decades. It is not technology sought by international bad actors. 

Equally important, WH Filtration’s parent company—Xinxiang Wanhe 

Filtration Technology Co., Ltd. (“WFT”)—owns the intellectual property associated 

with the Filter Elements, and that intellectual property has never been requested by, 

nor provided to, the Chinese government or any other non-governmental Chinese 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

organization. Furthermore, neither WH Filtration, WFT, nor its ownership are 

affiliated in any way with the Communist Party of China. WFT is a private company 

in China that is not incentivized by the national government. 

Therefore, imposing a 25% tariff on the Filter Elements will not serve the 

stated purpose of Section 301 because it will not eliminate China’s discriminatory 

acts, policies, and practices regarding intellectual property and technology transfer. 

It will not change Chinese trade behavior or the purchasing patterns of U.S. 

consumers because, as explained above, the technology to produce the Filter 

Elements is unrelated to the “Made in China 2025” and other Chinese industrial 

programs, and is wholly owned by WH Filtration and WFT. Accordingly, imposing 

Section 301 tariffs on the Filter Elements will not deter or harm bad actors in China, 

but will instead cause unnecessary, irreparable harm to American companies, 

employees, and consumers, with no gain whatsoever to American interests. 

4. The Filter Elements are available from countries other than China, 

but not in sufficient quantities to meet industry needs. 

WH Filtration purchases the Filter Elements from its parent company, WFT, 

and imports those Filter Elements from China. While goods comparable to the Filter 

Elements are available from countries other than China—including, among other 

countries, the United States—those goods are not produced in sufficient quantities 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

in the United States to meet WH Filtration’s demands, and, upon information and 

belief, are not produced in sufficient quantities in the United States to meet the 

demands of the wind energy sector. Therefore, and for the reasons explained below, 

American interests will incur severe economic harm absent an exclusion. 

5. Imposing a 25% ad valorem duty on the Filter Elements will cause 

severe economic harm to U.S. Interests. 

Imposing a 25% ad valorem tariff under Section 301 on the Filter Elements 

will cause severe economic harm to WH Filtration, its distributors, the American 

wind energy industry, and American consumers. 

First, WH Filtration is a fledgling company. Established in 2016 and just now 

beginning its operations in earnest, WH Filtration provides filtration solutions to the 

wind energy sector, among others. The U.S. wind energy sector is one of the largest 

and fastest growing wind markets in the world. As a result, WH Filtration anticipates 

rapid growth, which in turn will necessitate that WH Filtration hire more employees. 

If, however, the Filter Elements remain subject to tariffs under Section 301, WH 

Filtration’s already thin profit-margin will remain at approximately 5%, thereby 

reversing WH Filtration’s growth trend, and possibly sending the company into 

insolvency. Should that occur, not only will WH Filtration not hire more employees, 

but its existing personnel will lose their jobs. 
Hon. Robert E. Lighthizer 

Page 8 

 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

Second, the Filter Element distribution market in the United States will suffer 

severe economic harm. Years ago, the Filter Element distribution market was 

growing at a rate roughly equal to that of the wind energy sector itself. In recent 

years, however, Original Equipment Manufacturers (“OEMs”) began selling their 

replacement Filter Elements directly to end-users—thereby circumventing the 

distribution market. While in some markets it may be favorable to “cut out the 

middle man,” that was not the case here, as foreign-owned OEMs forced American 

manufacturers and distributors out of the market. This harmed not only American 

distributors and manufacturers, but also end users that were left with no choice but 

to by direct from OEMs at artificially inflated prices. 

WH Filtration recently reintroduced competition to the market by providing 

an alternative to direct-sale OEM Filter Elements. So long as the Filter Elements 

remain subject to the Section 301 tariffs, however, the wind energy sector is again 

without meaningful competition in the Filter Element market, as WH Filtration must 

raise its prices to account for the Section 301 tariffs. The harm is substantial. Filter 

Element distributors small and large, from Texas to Iowa to Oregon, find themselves 

again without meaningful competition in the market, and, as a result, must confront 

higher supply costs and lower profit margins. Filter Element end users—the owners 

and operators of wind farms comprising the growing American wind energy 
Hon. Robert E. Lighthizer 

Page 9 

 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

industry—bear the brunt of these tariffs as the corresponding additional costs are 

passed on to them at the end of the supply chain. This growing sector operates close 

to the margins as it is, and the additional costs not only slow the growth of the 

industry, but also hamper the decline of American energy costs and the growth of 

energy independence—all at the cost of American consumers. 

In sum, granting the instant exclusion request will further the American 

interests of lowering energy costs and increasing the United States’ energy 

independence. Denying the exclusion request, on the other hand, will cost American 

jobs and slow the growth of an otherwise booming energy industry, all to the 

detriment of American consumers. 

6. Conclusion. 

For the reasons outlined above, WH Filtration respectfully urges the USTR to 

exempt the Filter Elements from a 25% ad valorem tariff under Section 301. 

Respectfully submitted, 

DICKINSON WRIGHT PLLC 

Mark V. Heusel 

Robert L. Avers 

Attorneys for Wanhe Filtration, Inc. 
Hon. Robert E. Lighthizer

Page 10

We hereby certiff that the information provided in this exclusion request is

complete and correct to the best of our knowledge. We further certiff that the

disclosure of information for which business confidential keatment is requested

would endanger profitability, ild is not inforrnation that would customarily be

disclosed to the public.

ANNARBO R 7 7 4344 249a4.Zv3

iltration,Inc.

ARIZONA

NEVADA OHIO

CALiFORNIA FLORIDA

TENNESSEE TEXAS

KENTUCKY MICHIGAN

TORONTO WASHINGTON DC