USTR‐2018‐0025 

PUBLIC VERSION

Ogura Corporation 

Section 301 List 1, Exclusion Request 

1.  Indicate whether the comment contains business confidential information (BCI), is a public 

document, or is a public version of a BCI document. 

Is a public version of a BCI document.

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

One of the products imported from Ogura Clutch Co, Ltd., Dong Guan, our affiliated company in China, 

is a partial differential coil assembly, model B.  A photo and description is attached as Exhibit F1. 

The physical characteristics of the partial differential coil assembly are as follows: 

Model B – Outer diameter (mm) 155.10, Inner diameter (“ID”) (mm) 95.96, Length (mm) 19.00, 

Material is steel type GB699 # 10, Lead wire length is short. 

When the partial differential coil assembly, model B is received at our manufacturing facility, we press 

fit a collar into the ID, machine the ID of the collar, then a bushing is press fit into the ID of the collar.  

There are subsequent quality checks prior to packaging into returnable totes.   

Once assembled the finished differential coil assembly, model B is shipped to our U.S. customer for 

assembly into [                        ] pickup truck axles.                                       

3.  10‐digit HTSUS item number* for product you wish to address in this product exclusion request 

HTSUS 8505.90.7501, Article description ‐ Other     

4.  Requestor Information 

Requestor Name (Last, First): Teller, Timothy

Organization Name: Ogura Corporation (“OC”)

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

Requestor Representative: Leslie Alan Glick, Butzel Long 

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 Version of a BCI document 

8.  Is this product, or a comparable product, available from sources in the United States?   

Yes, but only from competitors.  Because we would be required to share customer confidential 

information with our competitors, this is a commercially impracticable option. 
USTR‐2018‐0025 

PUBLIC VERSION

There are only a couple of existing producers and they are competitors, so it’s not realistic to consider 

them for comparable product without handing our business over to them, and compromising 

confidential information relating to our customer specifications.  Additionally, a substantial amount of 

time, resources, and investment is necessary for establishing a supply line from another source in the 

U.S.  Per IATF‐16949  (International Automotive Task Force) quality management system standards 

and requirements for automotive production, parts produced from a new source are required to go 

through strict validation and approval processes, which is very time consuming and expensive for both 

the supplier and the customer.  Even if we were able to qualify a U.S. producer, the amount of time 

this process would take would result in disruption to our supply chain and delivery schedules and be 

detrimental to our U.S. OEM customers who rely on “just in time” deliveries.                                                                             

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

Yes, but only from a major competitor.  Because we would be required to share customer confidential 

information with our competitors, this is a commercially impracticable option. 

One of our major competitors is a [                         ] company that manufacturers parts in [                       ].  

It’s important to note that they already operate with a cost advantage due to the Free Trade 

Agreement the U.S. has with [                      ].  Thus, imposing this additional tariff on China does not 

accomplish the end result expected of requiring U.S. companies to buy the product from a U.S. 

producer since a duty‐free alternative from [                      ] exists. 

10.  Please provide the value and quantity (with unit) of the Chinese – origin product of concern that you 

purchased for each calendar year specified.  Limit this figures to the products purchased by your firm (or 

by members of your trade association) alone.  Please provide estimates if precise figures are 

unavailable. 

Total of all products OC imports from our affiliate in China: 

2017 Value: $[                    ]  

2017 Quantity: [                  ] pieces  

2016 Value: $[                    ]  

2016 Quantity: [                  ] pieces 

2015 Value: $[                    ]  

2015 Quantity: [                  ] pieces 

Total partial differential coil assembly model B, OC imports from our affiliate in China: 

2017 Value: $[                   ]  

2017 Quantity: [                ] pieces  

2016 Value: $[                   ]  
USTR‐2018‐0025 

PUBLIC VERSION

2016 Quantity: [               ] pieces 

2015 Value: $[                  ]  

2015 Quantity: [               ] pieces 

11.  Please provide information in support of your request, taking account of the instructions provided in 

Section B of the Federal Register notice. 

........................................................................................................................................................................................ 

On behalf of Ogura Corporation (“OC”), we hereby submit this request and the attached supporting 

information for Exclusion of the partial differential coil assembly pursuant to HTS 8505.90.7501, from 

the determination of Action Pursuant to Section 301 Investigation into China’s Acts, Policies, and 

Practices Related to Technology Transfer, Intellectual Property and Innovation, in accordance with the 

proposal by the U.S. Trade Representative (USTR) to impose a tariff of an additional 25% on certain 

Chinese imports on List 1. 

1. Introduction 

OC, a Michigan corporation based in Chesterfield, MI, was established in January 1988 as a subsidiary of 

Ogura Clutch Co., Ltd., Japan, to supply automotive A/C compressor clutches to U.S. OEM automobile 

and parts manufacturers in North America.  OC began supplying products primarily to [                              ] 

[                                                                                                   ].  In the early 2000’s, OC expanded its 

production capacity to manufacture A/C clutches for Japanese transplant automobile and parts 

manufacturers, including [                                                                                                                                           ] 

[                                                                                ].  More recently OC has expanded into transfer case coil 

assemblies and differential coil assemblies for [                                                    ].  OC also has a small 

aftermarket business that has been declining over the years. 

OC’s products are imported from Ogura Clutch Co., Ltd., Dong Guan our affiliated company in China.  

Importing these products from our affiliate in China allows us to be competitive with other suppliers 

marketing the same products to our U.S. customers.  Maintaining production of the [                           ] 

[            ] of our products in China allows us the ability to competitively perform the final assembly 

processes in the U.S.   

2. Product is Not Available from a Commercially Practicable Source Outside China 

As explained in the responses to Nos. 8 and 9 above, the partial differential coil assembly model B is not 

available from any sources outside of China other than OC’s competitors, and OC would be forced to 

disclose its customer confidential information to its competitors.  This makes the partial differential coil 

assembly model B effectively unavailable from any source outside of China. 

   
USTR‐2018‐0025 

PUBLIC VERSION

3. Product is Not Related to “Made in China 2025” and is Not Strategically Important 

The manufacturing process in China is not a high‐tech operation and our products are not strategically 

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

The partial differential coil assembly we import from China has a long history of existence in the U.S. 

market.  One of the first manufacturers was Studebaker‐Packard Corporation in 1956.  So even though 

there has been advancement since its early introduction this is extremely old technology and has been 

around for 60 plus years.  The partial differential coil assembly imported from our affiliated company in 

China is not related to technology transfer, intellectual property or innovations, further supported by 

the existence of this type of product over the last 62 years.  The partial differential coil assembly that OC 

imports has a [                                                                                         ], which in turns allows OC to 

manufacture the final product here at our factory with locally procured components while still offering a 

competitive price to our customers.   The imposition of tariffs will [                                                          ] 

[                                                                                                                                                                       ].   

Our largest customer for the differential coil assemblies we produce is [                                              ] 

[                                                                                                                                                                                  ] 

[                                                                                                                        ] 

[                                                                                                                       ] 

[                                                                                                               ] 

[                                                                     ].  The differential coil assemblies that OC produces are a 

significant part of [                                                                            ], and OC is a major supplier to [       ] of the 

differential coil assemblies that it needs for these vehicles.  All of these U.S. plants could ultimately be 

negatively affected as a result of [                                                           ] due to the tariffs imposed.  [          ] 

[                                                                                                                                                                                      ] 

[                           ]   

4. Additional Duties Would Cause Severe Economic Harm to OC, the Industry, and Other U.S. Interests 

 1. OC employs approximately [    ] employees in Chesterfield, MI of which [    ] are directly related to the 

manufacturing process and final assembly of products imported from our affiliate in China.  If we did not 

[                                                                                                                      ] to our affiliate in China, we would 

not be [                                                                                                                                                                          ] 

[                                                                                                               ]   

The imposition of the Section 301 tariff on our goods imported from China is potentially devastating to 

our business and will certainly cause severe economic harm to OC.  Our current annual U.S. sales are 

$[     ] million, and we import $[   ] million of product from our affiliate in China.  Due to the 25% tariff on 

these imports, OC will incur a cost increase of $[                                                   ].  This represents [    ]% of 

our annual sales of $[     ] million.  Without the imposition of tariffs, OC usually operates at [                      ] 

[                                                                                                                                                                           ] 

[                                                                                    ]. 
USTR‐2018‐0025 

PUBLIC VERSION

The partial differential coil assembly, model B represents $[      ] million of our annual U.S. sales total, 

and we import $[        ] million from our affiliate in China.  The partial differential coil assembly, model B 

is an integral part of the aforementioned business perspective.    

 2. Our U.S. customers, such as [                                                                                    ] are not receptive to 

sharing any portion of the cost increase due to the tariffs imposed.  This is primarily due to our contracts 

being [                                                                                                                                                                   ] 

[                ].    

Our U.S. customers have manufacturing operations that employ workers in the U.S. and produce 

vehicles in the U.S.  Our U.S. customers will eventually suffer severe economic consequences [           ] 

[                                                                             ].   

Larger suppliers have deeper pockets and can absorb costs and move things around.  The smaller 

suppliers [             ] can’t absorb these costs or move operations and the end result will be much worse 

than the recession that began in 2008.  Ultimately the increase in costs due to the tariffs will be passed 

onto consumers, but it will be a painful process getting to that point, with the loss of smaller companies 

and many U.S. workers along the way.  Overall the tariffs will lead to higher U.S. consumer prices, lower 

overall U.S. economic growth, higher unemployment and other unintended negative economic 

consequences. 

3. One of our strongest competitors is a [                        ] company with their production facilities located 

in [                      ], not the U.S.  They already have an advantage because they import product into the 

U.S. duty‐ free, under the Free Trade Agreement between the U.S. and [                      ].  [                             ] 

[                   ] they would certainly be in a position to ramp up production in [                      ] and further 

erode the U.S. work force as they have already done due to the existing Free Trade Agreement. 

 4. The imposed tariffs are certain to displace U.S. workers and weaken job prospects for the U.S. 

workforce.  [                                                                                                                                                           ] 

[                                                                                                                                                                                 ] 

[                                                                                                                 ] 

[                                                                                          ] to retain our current customer base.  If we 

[                                                                                                                                                                               ] 

[                 ] that are used in the final assembly process.  [                                                                                 ] 

[                                                                    ] as well. 

Should you have any further questions or should additional supporting documentation be requested, 

please contact our legal counsel: Leslie Alan Glick, Esq.; Butzel Long, 1909 K. Street, N.W. Suite 500, 

Washington D.C. 20006; glick@butzel.com

We thank you for your time and sincerely hope that your careful consideration of our situation will 

result in granting us a Section 301 exclusion. 
Partial differential coil assembly model B.

 ( Back )

 ( Front )

 MODEL B

 MADE IN CHINA

 O.D. (mm) 155.10

 I.D. (mm) 95.96

 LENGTH (mm) 19.00

 MATERIAL GB699 #10

 LEAD WIRE LENGTH SHORT

 EXHIBIT F1

 Partial Differntial coil B
Certifications 

The requestor certifies that the information provided is complete and correct to the best of our 

knowledge and that disclosure of the business confidential information would endanger trade secrets or 

profitability, and that the business confidential information would not customarily be released to the 

public. 

Ogura Corporation 

Timothy Teller, President