September 5, 2018 

Submitted via regulations.gov

Ambassador Robert E. Lighthizer 

U.S. Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street NW 

Washington, DC 20508 

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: 

GHL International, Inc. (“GHL”) and Pioneer Pet Products, LLC (“Pioneer Pet”) hereby submit 

this request to exclude items under the Harmonized Tariff Schedule of the United States (“HTS”) 

subheading 8421210000 from the additional ad valorem duty of 25 percent on approximately 

$34 billion worth of Chinese imports.94

GHL is a 29-year-old company registered in 1989 in the State of Wisconsin as an S corporation 

with approximately 350 employees, 50 employees are in the U.S. with the remainder located in 

China. GHL is the parent corporation of multiple wholly-owned subsidiaries in the U.S. and 

China and holds interest in additional affiliates. GHL supplies products across the globe 

originating from both the U.S. and China. An example would be components for the high speed 

trains in China manufactured at one of our wholly owned facilities in China. 

GHL owns more than 100 active patents registered around the world. These patents are assigned 

only to the U.S.-based companies and cover technologies such as: 

• Furniture, 

• LED and HID lighting, 

• Various pet products, 

 

94 Notice of Action 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. 28710 (Jun. 20, 2018). 
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• Protein grinding for human consumption and pet food, and

• Starch chemistry supporting cat litter, fermentation, and waste oil/chemical clean up.

Our core strength is in our multiple company diversity, each having different core engineering 

and marketing skills. Separately, each company has its own strengths and can stand alone in its 

market. Pioneer Pet is a wholly owned subsidiary of GHL. 

Pioneer Pet is a small business headquartered in Cedarburg, Wisconsin with a long history of 

manufacturing and supplying a wide variety of pet products to U.S. consumers. Our legacy dates 

back to the 1990s when our founder, Betsy Lipscomb, began making cat scratching posts by 

gathering wooden fence posts from her farm in Wisconsin. We started a company whose sole 

mission was to enhance the quality of our pets’ lives, by providing for their behavioral needs. 

From these humble beginnings, we have grown our business with a sole mission in mind, to 

provide superior products that will improve the quality of life for pets and their owners. 

Pioneer Pet employs 38 employees in the U.S. Our company is one of the U.S.’s primary 

suppliers of specialty pet products and we are dedicated to providing our customers with 

solutions for their pet behavior needs. From cat scratching posts to pet water fountains, from pet 

feeder to specialty litter, our business provides U.S. and international (including China) 

consumers solution-based products to tame pet’s bad behaviors in the home without taking away 

their natural instincts. Our historical core expertise has been hard goods such as cat furniture, 

litter boxes, pet toys, accessories, pet drinking fountains, feeders and training products. Our 

Ultimate Scratching Post is the bestselling scratching post on Amazon.com. Our pet fountains 

are also leaders in the pet industry. We do all the private branding for a major pet retailer’s pet 

fountains. We are proud that our business is a leader in the U.S. industry and helps serve millions 

of U.S. consumers. 

CXXV. Product Description

We request that USTR exclude Replacement Filters for Ceramic and Stainless Steel Fountains 

that is imported under HTS subheading 8421210000. 

Item: Replacement Filters for Ceramic and Stainless Steel Fountains 

HTS subheading: 8421210000 

Item Description: The water filter cartridge is constructed of two filtration pads. The first is a 

duo density polyester felt pad that provides limited filtering and acts as a carrier for the carbon. 

The second is composed of activated carbon to absorb bad tastes and odors from the water. In 

between the pads is granulated charcoal, which is just carbon, used to expand the filtration 

surface area. The essential character of this complete filtering apparatus is imparted by the 

activated carbon. 

Material(s): Plastic, Felt and charcoal 

Item Size (inches): 0.75 H x 1.5 W x 1 D 

Item Weight (pounds): 0.15 
3

CXXVI. Pioneer Pet Cannot Source Replacement Filters for Ceramic and Stainless 

Steel Fountains from Countries Outside Of China. 

Replacement Filters for Ceramic and Stainless Steel Fountains 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 

Replacement Filters for Ceramic and Stainless Steel Fountains. 

There are currently no U.S.-based sources that manufacture Replacement Filters for Ceramic and 

Stainless Steel Fountains. Developing the necessary manufacturing capacity within America is 

technically and economically infeasible in the short term to maintain our current supply of 

Replacement Filters for Ceramic and Stainless Steel Fountains and continue to meet the needs of 

U.S. pet owners. In sum, shifting to a non-Chinese source for these products is not a viable 

option at this time. 

The additional 25 percent ad valorem tariff would severely disrupt our entire engineering and 

manufacturing processes and ability to supply our U.S. customers. Replacement Filters for 

Ceramic and Stainless Steel Fountains is in Changsha, China, a 

company that GHL has a . Our ownership interest in did not come 

about due to any Chinese government policy; instead we made the decision to invest to gain 

better control of our supply chain and the quality of our products. Additionally, the profits that 

GHL makes from its relationship with do not remain in China, but instead end up in the 

U.S. for GHL’s use and investment.

We have had a business relationship with for over seventeen years. is a plastic 

injection molding company with expertise focused not only on the molding but also the 

engineering associated with assemblies and retail-ready shelf products for our Pioneer Pet 

furniture, fountains, litter accessories, and electronic toys. Where appropriate uses GHL 

design and utility patents and intellectual property to make our products, but has no 

ownership in those patents and associated intellectual property. is also Pioneer Pet’s 

licensed distributor of pet products in China. Because of our ownership interest in the 25 

percent tariff on this Replacement Filters for Ceramic and Stainless Steel Fountains causes 

additional harm to GHL and Pioneer Pet by potentially requiring us move our supply chain to 

outside of China, instead using our own manufacturing facility. However, to reiterate, we have 

been unable to identify a source of our product from any other manufacturers outside of China or 

within the U.S. Thus, the tariff will harm U.S. based interests instead of harming solely Chinese 

based interests, while reducing our ability to bring home profits of our goods 

manufactured at 
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CXXVII. The Imposition of this Duty on Replacement Filters for Ceramic and 

Stainless Steel Fountains Has a Significant Impact on Pioneer Pet’s Business, 

Resulting in a Loss of of Our Profits and Reduction of Pioneer Pet’s 

Workforce of 38 Employees. 

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

Filters for Ceramic and Stainless Steel Fountains from China and imposition of this duty will 

negatively impact our business. 

Year Value (dollars) Quantity (units)

The imposition of this tariff on Replacement Filters for Ceramic and Stainless Steel Fountains 

would cause severe economic harm to Pioneer Pet, GHL, its customers, and U.S. pet owners. 

Specifically for Pioneer Pet, the cumulative impact of these tariffs will eliminate our 

profits and cause significant damage to GHL as Pioneer Pet makes up of GHL’s 

profits. This product is one of our top selling items and is a large margin of our sales as well as 

contributes to the overall financial stability of our company. This increased tariff has impacted 

our ability to provide Replacement Filters for Ceramic and Stainless Steel Fountains at a 

competitive price to our customer supply chains. The tariff will need to be passed on to our 

customers who will pass it onto U.S. pet owners, impacting approximately 1.5 million 

Americans. 

Because these tariffs are currently imposed on our products we have had to lay off some of 

Pioneer Pet’s 38 employees in order to keep our fixed costs down. If the tariffs continue to be 

imposed on Replacement Filters for Ceramic and Stainless Steel Fountains we will be forced to 

lay off even more employees. 

Additionally, the tariffs will prevent GHL from making any major capital investments in our 

products and our future. For example, Pioneer Pet’s fastest growing product line is its all natural 

litter products made from sorghum. We have been exploring opportunities to expand our 

relationships with U.S. farmers to increase sorghum and wheat acreage that we can purchase for 

our litter. We currently purchase in excess of 10,000,000 pounds of farm product with a growing 

export market of our sorghum litter that will be put in jeopardy from these tariffs. To support this 

increased sorghum supply, GHL would need to build a new storage facility and automatic filler. 

However, because these tariffs will significantly impede our company’s growth and reduce any 

capital that could be used to fund these projects, GHL will not be able to support U.S. sorghum 

farmers and add jobs to GHL for this additional business. 

CXXVIII. Including Replacement Filters for Ceramic and Stainless Steel Fountains in 

the Tariff 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 
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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.95

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.96

Notably, Replacement Filters for Ceramic and Stainless Steel Fountains and its manufacture are 

not among the list of advanced technologies or industries that are targeted by the Chinese 

government policies. 

Additionally, there is no evidence that the production of Replacement Filters for Ceramic and 

Stainless Steel Fountains in China has been a target of the aggressive trade and investment 

practices outlined in the reports. In fact, the Replacement Filters for Ceramic and Stainless Steel 

Fountains manufacturing industry in China has developed independent of these practices due to 

lower labor, raw material and manufacturing costs. There also has not been forced technology 

transfer. To the contrary, Pioneer Pet holds the intellectual property right to the Replacement 

Filters for Ceramic and Stainless Steel Fountains that our Chinese manufacturing partner 

produces for us and has supported with their engineering expertise. 

This Replacement Filters for Ceramic and Stainless Steel Fountains has been in the pet market 

and in the homes of Americans for many years and does not contain sensitive technology or 

intellectual property that is the target of China’s practices. In fact, Pioneer Pet has been sourcing 

these products from our Chinese partners for the last 17 years and has not experienced these 

challenges. To the contrary, Pioneer Pet has enjoyed a constructive relationship with its Chinese 

partners and has not encountered any of the intellectual property theft, cyber theft, or other 

technology-related compilations that advanced technology industries have faced. In sum, our 

importation of the Replacement Filters for Ceramic and Stainless Steel Fountains from China is 

not linked to any purportedly unfair practices. Imposing punitive tariffs on our imports, 

therefore, would not advance the stated objectives of the Section 301 proceeding. 

Due to these factors, we believe that targeting these tariffs on Replacement Filters for Ceramic 

and Stainless Steel Fountains is misplaced and will not curb China’s predatory policies, and 

instead negatively impact U.S. pet owners. 

 

95 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]. 

96 Section 301 Findings, at 14. 
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* * *

GHL and Pioneer Pet appreciate 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 Replacement Filters for Ceramic and Stainless Steel Fountains 

imported from China under HTS 8421210000 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 Pioneer Pet and GHL, the business we supply, and millions of U.S. pet 

owners. 

Respectfully submitted, 

John Lipscomb 

President 

GHL International, Inc.