Organization Name:

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

Requestor Representative:

Section 301 Investigation: China's Acts, Policies, and Practices Related to Technology 

Transfer, Intellectual Property, and Innovation - Form to Request Exclusion of Product

When submitting a product exclusion request using this form, enter the specified 

information in the following fields and explain the basis and rationale for your statements. 

By completing this form, you certify that the information provided is complete and 

correct to the best of your knowledge. 

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

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

3.

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

4.

*

10-digit HTSUS item number* for product you wish to address in this product exclusion request:

Use numerical characters only with no special characters (example: 1023456789). For help in finding

the HTSUS item number associated with your product, see https://hts.usitc.gov/

7.

5. Requestor's relationship to the product:

6. Does this submission in regulations.gov include additional attachments?

Please indicate whether any additional attachment contains business confidential information 

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

Requestor Information

Requestor Name (Last, First):

VERSION 2 CONTINUED BELOW 1
8. Is this product, or a comparable product, available from sources in the United States? (If you

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

10. Please provide the value and quantity (with units) of the Chinese-origin product of concern

that you purchased for each calendar year specified. Limit this figure to the products

purchased by your firm (or by members of your trade association) alone. Please provide

estimates if precise figures are unavailable.

2017 Value:

2016 Value:

2015 Value:

2017 Quantity:

2016 Quantity:

2015 Quantity:

% of your total gross sales in 2017 that the Chinese-origin product accounted for.

% of the total cost of producing the final product(s) the Chinese-origin input 

accounts for.

% of your total gross sales in 2017 that sales of the final product(s) incorporating 

the input accounted for.

VERSION 2 CONTINUED BELOW 2

indicate "NO", you must provide support for your assertion in Box 12).

indicate "NO", you must provide support for your assertion in Box 12).

11. Is the Chinese-origin product of concern sold as a final product or an input used in

a) For imports sold as final products, please provide:

b) For imports of inputs used in the production of final products, please provide:

the production of a final product or products?
12. Please provide information in support your request, taking account of the

VERSION 2 END 3

instructions provided in Section B of the Federal Register notice. If you

responded "NO" to Questions 8 or 9, you must provide support for your

assertion in the box below. (Note: text entered below can extend beyond the

apparent size of this box).
350 S . MAIN S TREET , S UITE 300 

ANN ARBOR , M I 48104-2131 

TELEPHONE : (734) 623-7075 

F ACSIMILE : (844) 670-6009 

http://www.dickinsonwright.com 

MARK V . HEUSEL

MHeusel@dickinsonwright.com 

(734) 623-1908

 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

October 9, 2018 

BY ELECTRONIC FILING PUBLIC VERSION

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW, Room F516 

Washington, DC, 20508 

Re: Request for Exclusion of Sheet Pile Mill from the Determination of Action 

Pursuant to Section 301 

Dear Hon. Robert E. Lighthizer: 

This exclusion request is unlike any other because Shunli Steel USA, Inc. 

(“S2-USA”) is doing exactly what the Administration of President Donald J. Trump 

wants it to do: relocate steel production operations from China to the United States. 

S2-USA, through its parent company Jiangsu Shunli Cold-Formed Steel Industrial 

Co., Ltd. (“Shunli Steel Group”), currently provides steel products such as sheet pile 

and pipe pile for the construction of highways, seawalls, and offshore oil platforms 

throughout the United States. By relocating steel production operations from China, 

S2-USA not only intends to domesticate its operations that currently supply 

infrastructure and marine construction industries in the United States, but it will also 

create more than 110 U.S. manufacturing jobs, purchase and rehabilitate a 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

brownfield industrial property, and source $50 million of American steel from 

American suppliers on an annual basis. 

Overview of Exclusion Request 

Upon relocating operations from China, S2-USA, a Michigan corporation, 

will base its new operation in Monroe, Michigan. But to relocate steel production 

operations to the United States, S2-USA must import its own vital steel milling 

equipment from China. To that end, S2-USA will import a Sheet Pile Assembly 

Line (the “Sheet Pile Mill”), classified under subheading 8455.22.0000 of the 

Harmonized Tariff Schedule, which has been transferred to S2-USA by its parent 

company as part of an overall investment in American steel production. 

A massive assembly of equipment that turns raw steel coil into steel sheet pile, 

the Sheet Pile Mill is essential to S2-USA’s operation. The photos below 

demonstrate the radical transformation from steel coil to steel sheet pile made 

possible with the Sheet Pile Mill: 

[Remainder of page intentionally left blank] 
Hon. Robert E. Lighthizer 

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 A R I Z O N A C A L I F O R N I A F L O R I D A K E N T U C K Y M I C H I G A N 

N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

 Steel Coil (Pre-Sheet Pile Mill): Steel Sheet Pile (Post-Sheet Pile Mill): 

 

The difference between steel coil and steel sheet pile is clearly profound, and S2-

USA cannot turn steel coil into steel sheet pile for the American construction 

industries without the Sheet Pile Mill. 

Unfortunately, the Sheet Pile Mill is currently subject to a 25% ad valorem

tariff as a result of the USTR’s determination of action under Section 301 of the 

Trade Act of 1974. S2-USA, however, has no intention to sell the Sheet Pile Mill or 

otherwise transfer it to another party. Rather, it will use the Sheet Pile Mill for its 

new American manufacturing operation, thereby supplying necessary piling for 

infrastructure projects throughout the U.S., creating new manufacturing jobs in 

Michigan, and bolstering the American economy by purchasing tens of millions of 

dollars of raw materials from American suppliers each year. 

In sum, S2-USA requests that the Sheet Pile Mill be excluded from the 

additional Section 301 tariffs for the following reasons: 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

(1) S2-USA is importing the Sheet Pile Mill in connection with 

relocating its steel piling production operations from China to the 

United States, resulting in the creation of 110 new American 

manufacturing jobs and an investment of over $50 million dollars in the 

next four years; 

(2) The Sheet Pile Mill is only available from China because it was 

designed and fabricated there by S2-USA’s Chinese parent; 

(3) The Sheet Pile Mill is not strategically important or related to “Made 

in China 2025” or other Chinese industrial programs, and thus imposing 

additional tariffs on it will not serve Section 301’s stated purpose of 

eliminating China’s discriminatory acts, policies, and practices; and 

(4) The purpose of this importation is strictly to facilitate S2-USA’s 

investment in the U.S.; a tariff on this import does not further any of 

the reasons behind the USTR’s stated justification for taking such 

action under Section 301 of the Trade Act. 

Accordingly, and for the reasons further explained below, the USTR should 

grant S2-USA’s request and exclude the Sheet Pile Mill from the additional tariffs 

under Section 301. 

1. A complete and detailed description of the Sheet Pile Mill. 

The Sheet Pile Mill is classified under HTS 8455.22.000 “metal-rolling mills 

and rolls therefor; parts thereof; other rolling mills; cold.” The Sheet Pile Mill is a 

complete steel rolling mill designed to produce steel sheet pile from steel coil. The 

Sheet Pile Mill is generally blue in color, and, when fully assembled, is 

approximately 80 meters long, 2 meters wide, and 3 meters high. The Sheet Pile 

Mill consist mainly of steel, and is comprised of rollers, transition parts, and a frame. 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

A diagram and component list of the Sheet Pile Mill is attached as Exhibit A, and a 

photo of the assembled Sheet Pile Mill is provided below. 

Assembled Sheet Pile Mill in Operation: 

Simply put, steel coil is fed into the Sheet Pile Mill with a crane, which then 

transforms the steel coil into steel sheet pile. The Sheet Pile Mill changes the 

physical shape of the steel coil, first by expanding it into a flat state, and then by 

shaping it into the design or shape necessary to meet the end-user’s specifications—

for use in constructing sea walls, bridge or highway substructures, oil platforms, etc. 

The Sheet Pile Mill does not utilize any heating or chemical processes, creating the 

steel sheet pile instead with sheer mechanical force. 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

The Sheet Pile Mill is different from other articles classified under the 8-digit 

subheading 8455.2200 because it is capable of producing thicker sheet pile than 

other sheet pile mills. This additional capability is the result of modifications 

implemented by S2-USA’s parent, Shunli Steel Group, when it designed and built 

the Sheet Pile Mill in China. Specifically, Shunli Steel Group outfitted each of the 

19 forming rollers on the Sheet Pile Mill with its own engine. Typically, the rollers 

on a sheet pile mill are all driven by one single engine. Because each roller on S2-

USA’s Sheet Pile Mill is driven by its own engine, S2-USA’s Sheet Pile Mill is 

capable of creating steel sheet pile at a greater and more consistent thickness and 

strength than other sheet pile mills because it can vary the speed of its individual 

rollers while transforming steel coil to steel sheet pile. 

Finally, the Sheet Pile Mill is being imported in a fashion that will allow U.S. 

Customs and Border Protection (“CBP”) to administer the exclusion with little 

effort. The Sheet Pile Mill will enter the United States by two different shipping 

methods: (1) in approximately 30 shipping containers; and (2) as approximately 80 

tons of break bulk cargo. The shipping containers will make entry in Detroit, 

Michigan, by way of rail from New York, before being delivered to S2-USA’s 

facility in Monroe, Michigan. The shipping containers will be clearly labeled, and 

will not include any articles except for the Sheet Pile Mill. Meanwhile, the break 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

bulk cargo will make entry in the Port of Baltimore, Maryland, before making its 

way to S2-USA’s new operation in Monroe, Michigan. The break bulk cargo will 

consist of approximately 6-10 pieces, each of which will be clearly labelled and 

easily identified by CBP. The Sheet Pile Mill will not be comingled with other 

articles, and, in any event, S2-USA is willing to make whatever accommodations 

necessary to assist CBP in administering an exclusion. 

2. The annual quantity and value of the Chinese-origin product that 

S2-USA purchased in each of the last three years. 

As explained throughout this Letter, the importation of the Sheet Pile Mill is 

a one-time action. S2-USA will import the Sheet Pile Mill for the sole purpose of 

relocating steel production operations to the United States from China. Thus, the 

annual quantity and value of Chinese-origin Sheet Pile Mills purchased or imported 

by S2-USA in each of the last three years is zero. 

3. The Sheet Pile Mill is only available from S2-USA and China. 

The Sheet Pile Mill is only available from S2-USA and China. The Sheet Pile 

Mill is a one-of-a-kind piece of equipment that was designed and fabricated by S2-

USA and its parent company. As discussed above, the Sheet Pile Mill was designed 

to produce sheet pile at a more consistent thickness and strength than other sheet pile 

mills, which is possible because S2-USA modified the Sheet Pile Mill so that each 

of its 19 forming rollers is driven by its own engine. This design is exclusive to S2-
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

USA and its parent company; an innovation patent for this design is held by S2-

USA’s parent company, and that intellectual property has never been shared or 

reproduced. Copies of the corresponding innovation patents are attached as Exhibit 

B. As a result, this is not a matter of the absence of a reasonable alternative or 

comparable equipment that could produce sheet pile of the same quality and 

functionality as that produced by S2-USA. Rather, the Sheet Pile Mill is a one-ofa-kind assembly of equipment available only from S2-USA and its parent. 

Therefore, the Sheet Pile Mill is only available from China because it is only 

available from S2-USA and its parent company, who designed and fabricated the 

Sheet Pile Mill to produce their own special line of steel sheet pile products. 

4. Imposing an additional duty on the Sheet Pile Mill will cause severe 

economic harm to S2-USA and other U.S. interests, including its

110 future employees, American Steel Suppliers, and American 

Consumers. 

Imposing a 25% ad valorem tariff under Section 301 on the Sheet Pile Mill 

will cause severe economic harm to S2-USA, its goal of creating employment for 

American workers, American steel suppliers, and American consumers. As 

described above, S2-USA intends to relocate steel production operations from China 

to Monroe, Michigan, where it intends to create new manufacturing jobs and 

stimulate state and local economies by investing in a new production facility. If, 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

however, S2-USA’s production equipment is subject to additional tariffs under 

Section 301, it may decide not to relocate operations to the United States, or if it 

does, the tariffs will have the effect of diverting investment dollars away from the 

local economy. 

In addition to importing the Sheet Pile Mill, S2-USA will also import a Pipe 

Pile Mill—an equally vital piece of its steel operation. An exclusion request for the 

Pipe Pile Mill was submitted concurrently with the instant request. Combined, the 

Sheet Pile Mill and the Pipe Pile Mill are valued at $1,000,000 USD, and, therefore, 

S2-USA will suffer a direct $250,000 loss if both the Sheet Pile Mill (valued at 

$350,000 USD) and the Pipe Pile Mill (valued at $650,000 USD) are subject to a 

25% ad valorem tariff under Section 301. Incurring that loss at such an early stage 

of its relocation investment will likely cause S2-USA to decide against relocating 

steel operations to the United States, and the domino effect would be staggering: 

 The 110 new manufacturing jobs at S2-USA’s new operation in 

Monroe County, Michigan, will never materialize. 

 The American steel producer from whom S2-USA intends to lease 

60,000 square feet of production space while S2-USA builds its own 

facility will lose millions of dollars in rent payments and steel supply 

business. 

 The brownfield property that S2-USA has identified to purchase,

rehabilitate, and build its American production facility will remain a 

polluted, vacant swath of land. 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

 Construction companies in Southeastern Michigan and Northwestern 

Ohio will lose the opportunity to bid on the construction of S2-USA’s 

new American steel operation, which will be worth tens of millions of 

dollars. 

 The American steel suppliers from whom S2-USA will purchase 

upwards of $50 million of American steel on an annual basis will lose 

that business. A letter in support of this exclusion request from 

Heidtman Steel Products is attached as Exhibit C.

 The federal, state, and local governments will lose what otherwise will 

be a long-term taxpaying job provider. A letter in support of this 

exclusion request from the Monroe County Business Development 

Corporation is attached as Exhibit D.

 American consumers will continue to pay $260.00 per metric ton to 

ship S2-USA’s one-of-a-kind steel sheet pile from China to the United 

States for the purpose of building America’s bridges, highways, and 

waterways.1

In essence, granting an exclusion for the Sheet Pile Mill will greatly benefit 

not only American steel producers, American consumers, S2-USA’s future 

employees, but will also further the current Administration’s overall effort to bring 

manufacturing jobs and steel production back to the United States. To deny the 

exclusion, on the other hand, would fly in the face of those efforts, cost American 

 

1 Shipping costs currently comprise hundreds of thousands, if not millions of dollars, 

of American customers’ costs when purchasing steel sheet pile from China.
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

jobs, and result in the loss of a reliable customer to the American steel industry and 

a reliable taxpayer of American governments. 

5. The Sheet Pile Mill is not strategically important or related to 

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

The Sheet Pile Mill is neither strategically important nor related to the “Made 

in China 2025” or any other Chinese industrial programs. Although the Sheet Pile 

Mill is itself vital to S2-USA’s operation, the underlying technology has no relation 

or bearing on existing technology disputes or claims between the U.S. and China. 

Indeed, that technology has existed for hundreds of years, tracing even its so-called 

“modern” roots back to the late 1500’s in Belgium and England. It is simply not the 

sort of technology that an international bad actor would pursue. Therefore, imposing 

a 25% tariff on the Sheet Pile Mill will not serve the stated purpose of Section 301 

because it will not eliminate China’s discriminatory acts, policies, and practices 

regarding intellectual property and technology transfer. 

As outlined above, S2-USA worked hand-in-hand with its Chinese parent to 

develop the Sheet Pile Mill. S2-USA and its Chinese parent own the intellectual 

property associated with the Sheet Pile Mill, and that intellectual property has never 

been requested by, nor provided to, the Chinese government or any other nongovernmental Chinese organization. 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

In sum, imposing a 25% tariff on the Sheet Pile Mill will not drive change in 

Chinese trade behavior or the purchasing patterns of U.S. Consumers because the 

technology required to manufacture the Sheet Pile Mill is wholly unrelated to the 

“Made in China 2025” and other Chinese industrial programs, and is in fact wholly 

owned by S2-USA and its Chinese parent, Shunli Steel Group—who, itself is a 

private company in China and not incentivized by the national government. S2-USA 

is trying to do exactly what the United States wants it to do: relocate steel production 

operations to the United States. Rather than harming the targeted bad actors in 

China, however, imposing the Section 301 tariffs on the Sheet Pile Mill will cause 

unnecessary, irreparable harm to American companies, employees, and consumers, 

with no gain whatsoever to American interests. 

[Remainder of page intentionally left blank] 
Hon. Robert E. Lighthizer 

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N E V A D A O H I O T E N N E S S E E T E X A S T O R O N T O W A S H I N G T O N D C 

6. Conclusion. 

For the reasons outlined above, S2-USA respectfully urges the USTR to 

exempt the Sheet Pile Mill from additional tariffs under Section 301. It would be 

counterintuitive to punish S2-USA for doing what the Administration wants it to do. 

Respectfully submitted, 

DICKINSON WRIGHT PLLC 

Mark V. Heusel 

Robert L. Avers 

Attorneys for Shunli Steel USA, 

Incorporated. 

We hereby certify that the information provided in this exclusion request is 

complete and correct to the best of our knowledge. We further certify that the 

disclosure of information for which business confidential treatment is requested 

would endanger profitability, and is not information that would customarily be 

disclosed to the public. 

Shunli Steel USA, Incorporated 

By: 

Its: 

ANNARBOR 80779-3 249680v5 

CEO/SHUNLI