122 Penn St.

El Segundo, CA 90245

T 562-948-1816

F 562-948-1672

info@adhguardian.com

www.adhguardianusa.com

Submitted via www.regulations.gov 

October 3, 2018

Ambassador Robert Lighthizer

U.S. Trade Representative

Office of the United States Trade Representative

600 17th Street NW, Room F516

Washington, DC 20508-0001

RE: Request To Consider Requests for Exclusion of Particular Products From the 

Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices 

Related to Technology Transfer, Intellectual Property, and Innovation (USTR-2018-0025)

Dear Ambassador Lighthizer:

ADH Guardian USA LLC (“Guardian USA”) hereby submits this request to exclude items under 

the Harmonized Tariff Schedule of the United States (“HTS”) subheading 8428.90.0290 from the 

additional ad valorem duty of 25 percent on approximately $34 billion worth of Chinese imports.

Headquartered in El Segundo, California, Guardian USA is a leading contract manufacturer of 

garage door hardware and residential garage door operators for U.S. companies. Founded in 

1981 by Herbert Liu, to meet the needs of U.S. garage door equipment manufacturers and 

hardware suppliers and increased demand for their products. Operations for die castings, steel 

stampings, and assembly were established to serve a partnership with several U.S. customers. 

Today, we employ 16 individuals that are based at various regional sales and distribution centers 

in the Midwest and on the East Coast. We are committed to a sustainable growth plan in the 

U.S. and aim to further extend our services to our customers by providing a one-stop-shop, local 

design capability, and shortened lead time. 

We are a part of Guardian Access Corp. (GAC), a company that specializes in the design and 

manufacture of operators, die castings, component stampings and plastic moldings for the garage 

door industry and serves markets in the Americas, Europe, Africa, Australia and Asia. GAC has 

been an original equipment manufacturer and original design manufacturer of garage door 

components and operators for over 30 years. GAC’s reputation is synonymous with quality and 

enjoys the privilege of supplying products to market. 
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Overall, while Guardian USA supports and understands U.S. Trade Representative’s (“USTR”) 

objectives to curb China’s predatory and unfair practices and policies, imposing the Section 301 

tariffs on Guardian USA’s products eliminates our profitability and places our company’s future 

in jeopardy. As detailed below, we request that USTR exclude 8428.90.0290 from the Section 

301 tariff because our products are only available from China, the tariff will result in significant 

financial harm to Guardian USA, and tariffs on our products will not be effective in curbing 

China’s practices and policies.

LXI. Product Description 

We request that USTR exclude [ ] 100525 that is imported under HTS subheading 

8428.90.0290. 

Item: [ ] 100525 

HTS subheading: 8428.90.0290 

Item Description: [ ] 100525 is a non-industrial, consumer garage door opener used for 

residential purposes. The mountable, motor-drive machine uses wheels and brackets to pull 

garage doors open. 

Component Parts: Garage door opener mechanism, T-rail drive, belt, Power cord, Button remote, 

Safety sensors, Wall panel, and Key pad 

Material(s): Steel, copper, plastic, aluminum, nylon 

Size of Garage Door Opener (inches H x W x D): 26X11.6X9inch 

Weight of Garage Door Opener (pounds): 32.4 

Size of T Rails (inches H x W x D): 122.6x2.75x2.75inch 

Weight of T Rails (pounds): 14.33

We believe U.S. Customs and Border Protection (“CPB”) will be able to easily and effectively 

administer the exclusion for the [ ] 100525. In order to identify and effectively exclude 

the [ 100525, CPB will need to only look at the description listed on the commercial 

invoice provided when the [ 100525 is imported as this information is required by CPB 

regulations.61

 Further, CPB has familiarity with importing the [ 100525 under this 

HTS subheading as there have been three administrative rulings published on similar products 

since 2000.62

 Unlike other products that fall under the broader HTS subheading such as vertical 

conveyors, wood log handling equipment, industrial robots, or carlifts, all of the products 

Guardian USA imported under this HTS subheading have similar size and weight characteristics, 

making them easily identifiable and distinguishable from other lifting products classified under 

] 100525. 

LXII. Guardian USA Cannot Source [ ] 100525 From Countries Outside of 

China. 

The 100525 and comparable products are not available in the U.S. or countries 

outside of China. While we have explored the possibility of sourcing these products from other 

countries, there are no alternative manufacturers of the 100525. 

 

61 See 19 C.F.R. § 141.85. 

62 See CBP Ruling, The tariff classification of a garage door opener from Germany, CLA-2-84:OT:RR:NC:N1:106 

(Apr. 1, 2011); CBP Ruling, The tariff classification of a garage door opener from Germany, CLA-2-

84:OT:RR:NC:N1:106 (Feb. 1, 2011); CBP Ruling, The tariff classification of a garage door opener from China, 

CLA-2-84:RR:NC:1:103 F81926 (Feb. 7, 2000). 
Page 3

Shifting to a non-Chinese source for the 100525 is not a viable option at this time. 

Global supply chains are extremely complex and it can take years to find the right partners who 

can meet the proper criteria and produce products at the scale, cost, and quality that is needed. It 

has taken almost two decades to develop our supply chain relationships in China and ensure that 

the ] 100525 meets the high-quality standards we expect. GAC, our manufacturing 

arm in China, owns and operates an ISO 9001 certified, state of the art steel stamping, plastic 

injection molding, steel rolling, bearing and roller manufacturing facility in Shanghai, China that 

also conducts cable sizing and cutting, electronics assembly, and garage door operator testing. 

Aluminum and zinc die-casting are made in our ISO 9001 certified Shenzhen facilities. All 

tooling is made at the each of the plants to ensure the component quality that our customers 

expect. 

We have explored the possibility of sourcing the [ ] 100525 from other countries, 

including within the U.S. Currently, garage door openers are only available from manufacturers 

in Mexico, China, and Germany. From our understanding, these manufacturers source 

component parts from China and would not result in eliminating a Chinese source from the 

supply chain. Shifting our sourcing would be a serious interruption to our overall supply chain 

with many additional costs that we will not be able to justify or fund due to the extensive impact 

of the current tariffs. Additionally, there are no U.S.-based sources that manufacture the 

 100525 and all other Guardian USA’s products. It is economically infeasible to 

contemplate funding a complete rebuilding of our supply chain for the [ 100525 in the 

U.S. given the investment and time required. We believe that developing the necessary 

manufacturing capacity within America is technically and economically infeasible in the short 

term to meet our customers’ demand requirements. 

We believe it would take Guardian USA approximately two years to develop our supply chain in 

another country in order to hire new employees and educate the new manufacturer on our strict 

quality standards. However, due to the tight margins we operate under, Guardian USA will be 

forced to shut down its U.S. operations if it is unable to obtain tariff relief. 

LXIII. The Imposition of this Duty on the [ 100525 and All Other Guardian 

USA’s Products Causes Severe Economic Harm on Guardian USA’s Business, 

Including a Significant Profit Loss and Reduction of Guardian USA’s 

Workforce. 

As you can tell from the below information, we import a significant amount of the 

100525 from China and imposition of this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

Imposing a tariff on the [ 100525 will do irreparable harm to our small business. The 

cumulative impact of the list 1 Section 301 tariffs would cost Guardian USA 

 in duties. These are unexpected additional and burdensome costs for our small business. 

Additionally, this product is currently imported duty free. 
Page 4

Because we operate on tight margins, the Section 301 duty on the [ 100525 will absorb 

our The additional 

burden of paying these tariffs for our imports is vastly disproportionate to the size of Guardian 

USA. We are unable to absorb the increased duties on the 100525, resulting in 

significant financial losses, reducing our economic viability, and 

These garage door openers represent our company’s Currently, all of the 

profits generated from the sales of the 100525 are reinvested in the company to grow 

our U.S. operations through research and development, technical support, and distribution 

infrastructure. The impact from this tariff would for 

the entire period the tariffs are in effect. If we are unable to obtain tariff relief, we will be 

[ ] in the U.S. 

It is almost impossible for Guardian USA to pass these tariffs along to our customers or U.S. 

consumers as our customers are predominantly big box retailers, professional distributors and 

wholesalers, professional dealers, and dealer networks. The 100525 sells in a very 

competitive, price driven market due to their commodity nature and inelastic demand profile. 

Our end customers are price sensitive and we will not be able to compete in the market if we 

raise our prices. Additionally, our retail customers will not accept price increases for the 

] 100525. We have annual contracts that we are expected to perform to and this includes 

fixed pricing. The market for the [ 100525 is extremely price competitive due to a 

limited number of suppliers. Any tariff impact that Guardian USA is subjected to will need to be 

passed onto our customers. The increased cost will cause an adverse impact on our partners and 

will likely jeopardize any investment and employment those customers are able to provide in the 

U.S. 

Further, the tariff on this product makes us vulnerable to losing our market share. Our 

competitors are not subject to these tariffs because they manufacture similar products in Mexico 

and Germany, from Chinese source components, and will not be forced to pass the tariffs onto 

their customers. This will allow them to supply our customers with the 100525 at a 

more competitive price and absorb our place in the market. 

If we are unable to obtain tariff relieve, our U.S. operations will [ This 

would cause significant disruption to our customer’s supply chains as we contract manufacturer 

highly customized products for them. Our customers rely on Guardian’s design, manufacturing, 

and leverage over our supply chain to produce the high quality products we are known for 

creating. These relationships took decades and significant research and development to develop. 

Forcing our customers to find an alternative supplier will take time and money that will 

ultimately be passed down to U.S. consumers. 

Even if the tariff on the 100525 could be passed on, we expect most of the impact 

would be felt by consumers and contractors who buy and use the 100525 in 

construction and garage repair projects. This would ultimately have an impact on the cost of 

construction projects. In fact, a significant portion of the product is purchased by consumers 

directly at most leading retailer and hardware chains across the country. 

The tariffs imposed on the 100525 are disproportionately large in comparison to the 

size of our small business. As a result, the tariff will irreparably hurt Guardian USA’s ability to 

provide good, stable, U.S. based jobs and continue to supply consumers and businesses goods to 

make their lives and jobs easier. 
Page 5

LXIV. Imposing the Ad Valorem Tariff under Section 301 on the [ 100525 

Will Not Be Effective in Eliminating China’s Predatory Acts. 

USTR’s Section 301 report found that various policies and practices of the Chinese government 

are designed to promote Chinese companies as leaders in supplying certain advanced 

technologies around the world and to reduce imports of these technologies that Chinese 

industries rely upon. According to USTR and the White House’s Office of Trade and 

Manufacturing policy, China has participated in physical and cyber-enabled theft of 

technologies, required technology transfer for market access, and investment restrictions, among 

other coercive and intrusive restrictions that harm American intellectual property rights, 

innovation, and technology development.63

According to the various Section 301 reports, the technologies that China targets through its 

policies are advanced technologies in the following industries: (1) advanced information 

technology; (2) robotics and automated machine tools; (3) aircraft and aircraft components; (4) 

maritime vessels and marine engineering equipment; (5) advanced rail equipment; (6) new 

energy vehicles; (7) electrical generation and transmission equipment; (8) agricultural machinery 

and equipment; (9) new materials; and (10) pharmaceuticals and advanced medical devices.64

 

Notably, the 100525 and its manufacture are not among the list of advanced 

technologies or industries that are targeted by the Chinese government policies. 

The 100525 does not contain sensitive technology or intellectual property that is the 

target of China’s practices. Because our products do not contain sensitive technology or 

intellectual property that is the target of China’s practices, we have not experienced any of the 

intellectual property theft, cyber theft, or other technology-related compilations that advanced 

technology industries have faced. 

Additionally, Guardian’s business relationship is not subject to any Chinese administrative 

policies which require the transfer of its intellectual property in any manner. Thus, penalizing a 

U.S. company whose intellectual rights are already protected by forcing it to pay additional 

duties does not further the U.S. government’s policy regarding the “Made in China” initiative. In 

fact, the relationship between the Section 301 tariff goals and the actual impact in this instance is 

nonexistent. Applying the Section 301 tariff to the imports of the garage door openers by 

Guardian does not serve the purpose of the Section 301 goals but in fact contravenes the goals. 

Due to these factors, we believe that targeting these tariffs on the [ 100525 as well as 

all other Guardian USA’s products is misplaced and will not curb China’s predatory policies, and 

instead negatively impact our small business. 

 

63 USTR, 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 1–2 (Mar. 22, 2018) [hereinafter 

Section 301 Findings]; Office of Trace and Manufacturing Policy, Executive Office of the President, How China’s 

Economic Aggression Threatens the Technologies and Intellectual Property of the United States and World (Jun. 

2018) [hereinafter China’s Economic Aggression].

64 Section 301 Findings, at 14. 
Page 6

* * *

Guardian USA appreciates the opportunity to request this exemption from the Section 301 tariffs. 

While we understand and support the motivation for fair trade policies and a level playing field, 

we respectfully request that the 100525 imported from China under HTS subheading 

8428.90.0290 be exempt from the additional 25 percent ad valorem duty because it will not 

accomplish the desired purpose and will have a significant detrimental impact on Guardian USA 

and our workforce. 

Respectfully submitted, 

Andrew Liu 

Managing Director 

ADH Guardian USA LLC