N85 W12545 Westbrook Crossing • Menomonee Falls, WI 53051 

_________________________________________________________________________________________________________________________ 

October 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: 

ECM Industries LLC (“ECM”) hereby submits this request to exclude items under the 

Harmonized Tariff Schedule of the United States (“HTS”) subheading 9030.33.3800 from the 

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

imports.157

ECM is a small business with a long history of manufacturing and supplying electrical 

components and products for the construction, industrial power, and transportation markets. We 

are headquartered in Menomonee Falls, Wisconsin, and have a global presence with six locations 

across the U.S., Mexico, and China. Our legacy dates back to 1959 with the founding of Gardner 

Bender, one of our leading brands. Since then, we have built a world-class organization. 

ECM employs 350 employees worldwide, of which 320 are based in the U.S. Our company is 

one of the U.S.’s preeminent suppliers of innovative and niche electrical products and systems 

and we are dedicated to providing our customers with solutions for their electrical applications. 

From lighting a commercial building to remodeling a home to providing the electrical 

connections that stand up to the harshest outdoor environments, the brands of ECM Industries 

provide the right solution for the most demanding applications. 

157 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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I. Product Description

We request that USTR exclude the Holiday Lights Tester, Multi-Purpose 12-600 VAC 

Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each that is 

imported under HTS subheading 9030.33.3800. 

Item: #VD7500LBCS, Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable NonContact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each 

HTS subheading: 9030.33.3800 

Item Description: Electrical tester, made of plastic and metal components. Instrument that 

measures electrical connections through contacts and probe(s) attached to enclosure. 

Material(s): Made of Plastic and metal components 

Item Size (inches H x W x D): 27.5x4.8x3.1 

Item Weight (ounces): 28.80 

II. ECM Cannot Source the Holiday Lights Tester, Multi-Purpose 12-600 VAC

Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller,

1/Each From Countries Outside Of China.

The Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester 

w/Bulb and Fuse Tester, Bulb Puller, 1/Each 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 Holiday Lights 

Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse 

Tester, Bulb Puller, 1/Each. 

Shifting to a non-Chinese source for the Holiday Lights Tester, Multi-Purpose 12-600 VAC 

Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each 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 our produce the Holiday Lights 

Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse 

Tester, Bulb Puller, 1/Each at the scale and cost that is needed. The Holiday Lights Tester, MultiPurpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb 

Puller, 1/Each is designed and packaged to our unique specifications and we have been working 

with our Chinese vendors for over 20 years to ensure that the Holiday Lights Tester, MultiPurpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb 

Puller, 1/Each meets the high quality standards we expect. We have invested millions of dollars 

in tooling, training, and employ nearly 20 people in Shanghai who oversee and manage our 

supplier base. It is nearly impossible for us to develop similar relationships and supply chains in 

the near term to make this product. 

We have explored the possibility of sourcing the Holiday Lights Tester, Multi-Purpose 12-600 

VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each from 

other countries. This is extremely impractical given the prohibitive cost disadvantages of other 

countries such as labor and raw material costs. Several of our Chinese suppliers have even 

looked to move their factories to countries outside of China to remain in business and continue to 
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support customers such as us. However, this relocation will not happen in the near term to help 

provide tariff relief. 

Additionally, there are few viable U.S.-based sources that manufacture the Holiday Lights 

Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse 

Tester, Bulb Puller, 1/Each. 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. Based on our understanding, the U.S. suppliers of Holiday 

Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and 

Fuse Tester, Bulb Puller, 1/Each also import products or components from Chinese suppliers and 

then add some limited value through additional manufacturing here in the U.S. Because of this 

Chinese reliance, these suppliers have already demanded 25 percent price increase for this 

product. Because of this we have already run into difficulties on guaranteeing supply on the 

Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester 

w/Bulb and Fuse Tester, Bulb Puller, 1/Each. 

III. The Imposition of this Duty on the Holiday Lights Tester, Multi-Purpose 12-600

VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb

Puller, 1/Each Has a Significant Impact on ECM’s Business, Resulting in a

Significant Profit Loss and Reduction of ECM’s Workforce.

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

Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and 

Fuse Tester, Bulb Puller, 1/Each from China and imposition of this duty will negatively impact 

our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester 

w/Bulb and Fuse Tester, Bulb Puller, 1/Each is already subject to a heavy duty. The proposed 

duty on the Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage 

Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each would cost ECM thousands of dollars in 

increased duties. The cumulative impact of the list 1 Section 301 tariffs would cost ECM 

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

are layered on top of the detrimental impacts from the Section 301 tariffs imposed on our 

products on lists 1 and 2 and those proposed for list 3 that total over $5.9 million. Overall, these 

tariffs cripple ECM, forcing ECM to reduce its workforce in the U.S. to afford these tariffs. 

Additionally, applying this tariff on the Holiday Lights Tester, Multi-Purpose 12-600 VAC 

Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each will have a 

significant impact on ECM’s customers. ECM has thousands of customers, with more than 95 

percent based in the U.S. Our customers are predominantly U.S. distributors, retailers, and 

manufacturers that distribute or use our products in electrical construction, maintenance, and 
4

repair applications. Because of the competitive nature of our business, and the fact we deal with 

many power buyers such as big box stores, we cannot recover the costs of the tariff on Holiday 

Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and 

Fuse Tester, Bulb Puller, 1/Each by passing it along to our customers as they are extremely price 

sensitive and will look for an alternative supplier. Imposing this tariff on our product would 

cause substantial downstream injury to those industries as well, which would eventually trickle 

down to the U.S. consumer. 

This ad valorem tariff on the Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable 

Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each places our company 

between a rock and a hard place. If we try and pass the full amount of the duty on to our 

customers, we run the risk of losing our contracts with major customers, and with that millions of 

dollars of sales and profits. The alternative is not a good one, and that means reducing our 

workforce in the U.S. in order to absorb the costs of this tariff. We have been a healthy and 

growing business and have not laid anyone off in over five years; in fact we have been hiring. 

As of July 6, 2018, we have implemented a hiring freeze and are only replacing critical positions 

as a result of attrition. Because of the cumulative impact of these tariffs, we will be forced to 

reduce our headcount by 50 to 60 people in order to offset the costs to our bottom line. 

When the tariff on Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact 

Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each can be passed on, we expect most of 

the impact will be felt by consumers and contractors who buy and use VD7500LBCS in 

electrical installation and repair and remodel projects, which will 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 retailers and hardware chains across the country. 

Instead of impacting China’s manufacturing industry, the tariff on the Holiday Lights Tester, 

Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester w/Bulb and Fuse Tester, 

Bulb Puller, 1/Each will significantly harm ECM and our customers here in the U.S. 
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IV. Imposing the Ad Valorem Tariff under Section 301 on the Holiday Lights

Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester

w/Bulb and Fuse Tester, Bulb Puller, 1/Each 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.158

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.159

Notably, the Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact 

Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each and its manufacture are not among 

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

policies. 

The Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable Non-Contact Voltage Tester 

w/Bulb and Fuse Tester, Bulb Puller, 1/Each has been on the market for many years and does not 

contain sensitive technology or intellectual property that is the target of China’s practices. In 

fact, ECM has been sourcing the Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable 

Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each from China since the 

1990’s and has not experienced these challenges. To the contrary, ECM has enjoyed a 

constructive relationship with its Chinese suppliers 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 Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable 

Non-Contact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each from China is not 

linked to any purportedly unfair practices. Imposing punitive tariffs on our imports would only 

harm our small business and the U.S. customers we serve without advancing the stated objectives 

of the Section 301 proceeding. 

158 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].

159 Section 301 Findings, at 14. 
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* * *

ECM 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 Holiday Lights Tester, Multi-Purpose 12-600 VAC Adjustable NonContact Voltage Tester w/Bulb and Fuse Tester, Bulb Puller, 1/Each imported from China under 

HTS subheading 9030.33.3800 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 ECM, the businesses we supply, and U.S. consumers. 

Respectfully submitted, 

David Scheer 

Chief Executive Officer 

ECM Industries LLC