965 S Wells Street  Lake Geneva, WI 53147  www.thepfoc.com

September 24, 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:

Primex Family of Companies (“Primex”) hereby submits this request to exclude items under the 

Harmonized Tariff Schedule of the United States (“HTS”) subheading 9015.80.8080 from the 

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

imports.106

Primex is a small, 75-year old family business that focuses on applying current and future 

technology to help people’s lives become easier and more convenient and businesses more 

productive. We believe innovation is synonymous with small business and live that credo. Our 

offerings span from clocks parts, to weather stations to industrial scale cloud solutions. We 

process over 20 billion transactions a month supporting sensor monitoring devices for the Joint 

Commission deemed by the Centers for Medicare and Medicaid Services. Our products are in 

over 30 percent of all hospitals today and we are one of the largest suppliers of weather stations 

and clocks in North America through our mass online and direct channels.

Our business started at a kitchen table by an innovative entrepreneur who wanted to make a 

better life for his family and have an impact on his community. It is a classic American story 

built on sweat equity and innovation, and we are proud to have started from just an idea and have 

grown into a larger company. Over the course of the last 75 years, we have grown Primex into a 

$100,000,000 business and employ 175 people in the U.S., Canada and Hong Kong, 150 of 

which are located here in the U.S. We are proud of our longevity given the average lifetime of a 

 

106 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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company on the S&P is less than 15 years today and getting shorter, as well as our ability to 

provide good, stable jobs here in the U.S.

CXLI. Product Description

We request that USTR exclude the Digital Weather Station Forecaster - Color that is imported 

under HTS subheading 9015.80.8080. 

Item: Digital Weather Station Forecaster - Color

HTS subheading: 9015.80.8080

Item Description: Color Weather Station

Material(s): Plastic, electronic components, LCD, metal

Item Size (H x W x D inches): 12.625 x 10.125 x 1.875

Item Weight (pounds): 1.78

CXLII. Primex Cannot Source Digital Weather Station Forecaster - Color From 

Countries Outside Of China. 

The Digital Weather Station Forecaster - Color 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 Digital Weather 

Station Forecaster - Color. 

Shifting to a non-Chinese source for the Digital Weather Station Forecaster - Color 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 and 

cost that is needed. It has taken almost three decades to develop our supply chain relationships 

in China and ensure that the Digital Weather Station Forecaster - Color meets the high quality 

standards we expect. Our relationship is actually with a small, private family business that has 

no relationship with the Chinese government and not interested in manufacturing advanced 

technology. 

We have explored the possibility of sourcing the Digital Weather Station Forecaster - Color from 

other countries, including within the U.S. However, this 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.

It is economically infeasible to contemplate funding a complete rebuilding of our supply chain 

for the Digital Weather Station Forecaster - Color in the U.S. given the investment and time 

required. We do not believe any bank would fund such an endeavor due to the inherent risk, 

small size, and ongoing costs such as low pay and high job turnover in this type of 

manufacturing. Additionally, the U.S. is not a competitive market to develop this type of low 

technology manufacturing, mainly due to prohibitive cost disadvantages such as labor and raw 

material costs. The U.S. is a mature advanced country with higher expectations and 

opportunities for its citizens.
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CXLIII. The Imposition of this Duty on the Digital Weather Station Forecaster - 

Color Has a Significant Impact on Primex’s Business, Resulting in a Significant 

Profit Loss and Reduction of Primex’s Workforce. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

Imposing a tariff on the Digital Weather Station Forecaster - Color will do irreparable harm to 

our small, family business. The cumulative impact of the list 1 Section 301 tariffs would cost 

Primex millions of dollars in increased duties. These additional unexpected costs for our small 

business are layered on top of the detrimental impacts from the tariffs already imposed on our 

products on lists 2 and those proposed for list 3 that total over $5.9 million. 

Because this product is a low margin commodity product, the additional duty on the Digital 

Weather Station Forecaster - Color will absorb our entire profit margin, resulting in any sales of 

these products to be at a loss. The increased duties on the Digital Weather Station Forecaster - 

Color cannot be absorbed by Primex and would result in significant financial losses and put our 

future in jeopardy. Due to the tariffs, we are considering major staff reductions. If we are 

unable to obtain tariff relief, we will be forced to eliminate two thirds of our employees, which is 

almost our entire consumer division. 

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

The Digital Weather Station Forecaster - Color 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 Digital Weather Station Forecaster - 

Color. We have annual contracts that we are expected to perform to and this includes fixed 

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

foreign competitors are not subject to these tariffs and will be able to supply our customers with 

the Digital Weather Station Forecaster - Color at a more competitive price and absorb our place 

in the market. 

The tariffs imposed on the Digital Weather Station Forecaster - Color are disproportionately 

large in comparison to our small, family business selling this good. As a result, the tariff will 

irreparably hurt Primex’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. 

CXLIV. Imposing the Ad Valorem Tariff under Section 301 on the Digital Weather 

Station Forecaster - Color 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.107

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.108

Notably, the Digital Weather Station Forecaster - Color and its manufacture are not among the 

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

The Digital Weather Station Forecaster - Color does not contain sensitive technology or 

intellectual property that is the target of China’s practices. The technology used is relatively 

simple and is generally considered a late, low technology product. They are not made through 

advanced technology manufacturing. Generally, our products do not provide value in and of 

themselves. It can require sophisticated software to provide value. People buy our products for 

the utility they provide not necessarily because of technology in the product. 

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.

Due to these factors, we believe that targeting these tariffs on the Digital Weather Station 

Forecaster - Color is misplaced and will not curb China’s predatory policies, and instead 

negatively impact U.S. consumers. 

* * *

 

107 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].

108 Section 301 Findings, at 14. 
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Primex 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 Digital Weather Station Forecaster - Color imported from China 

under HTS subheading 9015.80.8080 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 Primex, the businesses we supply, and U.S. consumers.

Respectfully submitted, 

Paul Shekoski

Chief Executive Officer

Primex Family of Companies