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.85

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.

 

85 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). 
2

I. Product Description

We request that USTR exclude the Solenoid Voltage Tester that is imported under HTS 

subheading 9030.33.3800. 

Item: #GVT-392, Solenoid Voltage Tester

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): 4.6x11.5x10.5

Item Weight (ounces): 43.80

II. ECM Cannot Source the Solenoid Voltage Tester From Countries Outside Of 

China. 

The Solenoid Voltage Tester 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 Solenoid Voltage Tester. 

Shifting to a non-Chinese source for the Solenoid Voltage Tester 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 Solenoid Voltage Tester at the scale and 

cost that is needed. The Solenoid Voltage Tester 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 Solenoid Voltage Tester 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 Solenoid Voltage Tester 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 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 Solenoid Voltage 

Tester. 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 Solenoid Voltage Tester 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 Solenoid Voltage Tester. 
3

III. The Imposition of this Duty on the Solenoid Voltage Tester 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 Solenoid 

Voltage Tester from China and imposition of this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The Solenoid Voltage Tester is already subject to a heavy duty. The proposed duty on the 

Solenoid Voltage Tester 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 Solenoid Voltage Tester 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 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 Solenoid Voltage Tester 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 Solenoid Voltage Tester 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 Solenoid Voltage Tester can be passed on, we expect most of the impact will 

be felt by consumers and contractors who buy and use GVT-392 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. 
4

Instead of impacting China’s manufacturing industry, the tariff on the Solenoid Voltage Tester

will significantly harm ECM and our customers here in the U.S.

IV. Imposing the Ad Valorem Tariff under Section 301 on the Solenoid Voltage 

Tester 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.86

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.87

Notably, the Solenoid Voltage Tester and its manufacture are not among the list of advanced 

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

The Solenoid Voltage Tester 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 Solenoid Voltage Tester 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 Solenoid Voltage Tester 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.

* * *

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 

 

86 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].

87 Section 301 Findings, at 14. 
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respectfully request that the Solenoid Voltage Tester 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