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).
VIA ELECTRONIC SUBMISSION PUBLIC VERSION OF BCI 

WWW.REGULATIONS.GOV

The Honorable Robert E. Lighthizer 

United States Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW 

Washington, DC 20508 

Re: Section 301 Exclusion Request (Docket Number USTR-2018-0025) 

Micro hydraulic excavators are a compact tracked vehicle with an operating weight under 2 tons 

with a width of 39" to 43". (referred to herein as “Micro Excavator(s)”) in HTSUS 

8429.52.10101

Dear Mr. Lighthizer: 

For more than 90 years, Caterpillar has been making sustainable progress possible and driving 

positive change in the United States, North America, and on every continent. Customers turn to 

Caterpillar to help them develop infrastructure, energy and natural resource assets. Caterpillar is 

the world’s leading manufacturer of construction and mining equipment, diesel and natural gas 

engines, industrial gas turbines and diesel-electric locomotives. Caterpillar products make it 

possible for U.S companies to mine and harvest resources in a profitable and sustainable way and 

are also used to meet increasing energy and transportation needs. Our customers in the U.S. and 

globally rely on Caterpillar products to advance sustainable progress and improve living standards, 

building a better world. 

I. Summary Introduction 

Caterpillar Inc. (hereinafter “Caterpillar”) respectfully presents this attached addendum, along 

with the completed form, as rationale in support of this Exclusion Request pursuant to Section B, 

83 Fed. Reg. 32181 (July 11, 2018) for a product-specific exclusion from the 25 percent tariff on 

certain products from China (the “Section 301 Tariff”). 

• To Caterpillar’s knowledge, no Micro Excavator of this size class is manufactured by any 

company in the United States. 

• Sales and use of Micro Excavators play a critical role in supporting U.S. industries such 

as landscaping, domestic utility, general construction and national utility. 

• Micro Excavators do not appear to be the types of products that have benefitted from the 

practices associated with the Made in China 2025 or other Chinese industrial programs 

the Section 301 Tariff is meant to counter. 

1

 The information provided in this request is complete and accurate to the best of our knowledge. Disclosure of the 

information designated as business confidential would endanger trade secrets or profitability, and the information 

would not customarily be released to the public. Such business confidential information is displayed as empty 

brackets (i.e., "[ ]") in the Public Version. 
• The addition of the Section 301 Tariff on Micro Excavators will result in harm to U.S. 

interests by impacting Caterpillar, U.S. customers, Caterpillar’s U.S. third party dealers, 

and U.S. suppliers. 

II. Product Availability in the United States and/or Other Countries 

The Micro Excavator is not produced in the U.S., nor is it believed there is a directly comparable 

product produced in the U.S. by other companies, based upon the unique specifications of the 

product. The Micro Excavator is about 30% smaller than other comparable products produced in 

the U.S. and has an engine with gross power of 21.6hp with operating weights under 2 tons. 

Caterpillar is aware of production of machines similar to Micro Excavators occurring in countries 

other than the U.S. Caterpillar’s competitors, who manufacture products similar to the Micro 

Excavator in Japan and Europe, are not impacted by the Section 301 Tariff and therefore receive 

a competitive economic advantage over Caterpillar. 

Caterpillar invested heavily in development in the U.S. to support Micro Excavator production. 

The particular models of the Micro Excavator covered by this Exclusion Request cannot be built 

in Caterpillar’s U.S. facilities, without significant additional development and infrastructure costs. 

To our knowledge, all competitors to the Micro Excavator produce their machines outside of the 

U.S., most of which are non-U.S. companies. 

III. Strategic Importance or Relation to “Made in China 2025” or Other Chinese 

Industrial Programs 

The Made in China 2025 initiative targets ten strategic industries or sectors deemed critical for 

economic competitiveness and growth, including next generation information technology, 

aviation, rail, new energy vehicles, and agricultural machinery.2 Caterpillar’s Micro Excavators 

do not appear to be related or strategically important to the “Made in China 2025” initiative or 

other Chinese Industrial Programs, to Caterpillar’s knowledge after analysis and review. 

The Made in China 2025 program cites “Agricultural machinery and equipment” as a priority 

sector.3 However, based upon the capabilities and end use of the Micro Excavator, it does not 

appear to align with either the Goals for 2020 or Goals for 2025 in that priority sector. The Micro 

Excavator does not appear to meet the goal for Chinese domestic production “...of agricultural 

machinery products...large scale tractors with over 200 horsepower...4”. 

According to the USTR’s Section 301 Investigation findings, a key concern underlying the Section 

301 Investigation, involves the acquisition of foreign technologies through acts, policies and 

practices of the Chinese government that are unreasonable or discriminatory, and burden or restrict 

2 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017)

3 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).

4 U.S. CHAMBER, MADE IN CHINA 2025: GLOBAL AMBITIONS BUILT ON LOCAL PROTECTIONS 27 (2017).
U.S. commerce.5

 Technology and innovation are critical components in maintaining Caterpillar’s 

competitive advantage in the global economy. [

 

 ]

5

 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE, 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 (March 22, 2018). 
IV. Economic Harm to U.S. Interests by Imposition of Duties 

The imposition of additional duties on Micro Excavators creates adverse economic consequences 

to U.S. interests and Caterpillar’s U.S. based customers, Caterpillar’s third-party dealers in the 

U.S., U.S. suppliers, and Caterpillar. Should Caterpillar’s U.S. customers decide to seek 

alternative suppliers in light of the Section 301 Tariff applied to Micro Excavators, Caterpillar 

would lose all such sales to non-U.S. manufactured products. 

An adverse impact on sales of Micro Excavators in the United States could result in unintended 

downstream impacts, including potential adverse impact on U.S. jobs of the various U.S. 

companies depending on the use, sales and distribution of Micro Excavators in the U.S. In addition 

to the impact of lost sales on U.S. third-party dealers that sell Micro Excavators, a U.S. third-party 

dealer unable to make a sale, also loses the ongoing opportunity to sell service parts (and perform 

labor) and work tools associated with Micro Excavators, further impacting U.S. profitability. 

Caterpillar’s foreign competitors, who manufacture or assemble products similar to the Micro 

Excavator in Japan and Europe are not impacted by the Section 301 Tariff, and therefore would 

receive a competitive economic advantage over Caterpillar. 

Micro Excavators are growing in popularity, especially in the U.S. This is due to many reasons, 

including labor shortages, smaller and tighter development areas (Brownfield over Greenfield 

development), urbanization and changes to the way in which we work. Landscapers, builders and 

small business owners must turn to machinery to complete their tasks in an efficient manner. 

Caterpillar customers in the U.S. and the industries they support globally rely on Caterpillar 

products, including Micro Excavators to advance sustainable progress and improve living 

standards, building a better world. 

V. Exclusion Request 

For the reasons set forth herein, Caterpillar respectfully requests the product-specific exclusion for 

Micro Excavators pursuant to Section B, 83 Fed. Reg. 32181 (July 11, 2018) from the Section 301 

Tariff.