965 S Wells Street  Lake Geneva, WI 53147  www.thepfoc.com

September 24, 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:

Primex Family of Companies (“Primex”) hereby submits this request to exclude items under the 

Harmonized Tariff Schedule of the United States (“HTS”) subheading 9015.80.8080 from the 

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

imports.76

Primex is a small, 75-year old family business that focuses on applying current and future 

technology to help people’s lives become easier and more convenient and businesses more 

productive. We believe innovation is synonymous with small business and live that credo. Our 

offerings span from clocks parts, to weather stations to industrial scale cloud solutions. We 

process over 20 billion transactions a month supporting sensor monitoring devices for the Joint 

Commission deemed by the Centers for Medicare and Medicaid Services. Our products are in 

over 30 percent of all hospitals today and we are one of the largest suppliers of weather stations 

and clocks in North America through our mass online and direct channels.

Our business started at a kitchen table by an innovative entrepreneur who wanted to make a 

better life for his family and have an impact on his community. It is a classic American story 

built on sweat equity and innovation, and we are proud to have started from just an idea and have 

grown into a larger company. Over the course of the last 75 years, we have grown Primex into a 

$100,000,000 business and employ 175 people in the U.S., Canada and Hong Kong, 150 of 

which are located here in the U.S. We are proud of our longevity given the average lifetime of a 

 

76 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

company on the S&P is less than 15 years today and getting shorter, as well as our ability to 

provide good, stable jobs here in the U.S.

CI. Product Description

We request that USTR exclude the Display 01605RX that is imported under HTS subheading 

9015.80.8080. 

Item: Display 01605RX

HTS subheading: 9015.80.8080

Item Description: Replacement Display

Material(s): Plastic, electronic components, LCD, metal

Item Size (H x W x D inches): 3 x 4.375 x 8.625

Item Weight (pounds): 0.82

CII. Primex Cannot Source Display 01605RX From Countries Outside Of China. 

The Display 01605RX 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 Display 01605RX. 

Shifting to a non-Chinese source for the Display 01605RX 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 produce products at the scale and cost that is needed. It has 

taken almost three decades to develop our supply chain relationships in China and ensure that the 

Display 01605RX meets the high quality standards we expect. Our relationship is actually with a 

small, private family business that has no relationship with the Chinese government and not 

interested in manufacturing advanced technology. 

We have explored the possibility of sourcing the Display 01605RX from other countries, 

including within the U.S. However, this would be a serious interruption to our overall supply 

chain with many additional costs that we will not be able to justify or fund due to the extensive 

impact of the current tariffs.

It is economically infeasible to contemplate funding a complete rebuilding of our supply chain 

for the Display 01605RX in the U.S. given the investment and time required. We do not believe 

any bank would fund such an endeavor due to the inherent risk, small size, and ongoing costs 

such as low pay and high job turnover in this type of manufacturing. Additionally, the U.S. is 

not a competitive market to develop this type of low technology manufacturing, mainly due to

prohibitive cost disadvantages such as labor and raw material costs. The U.S. is a mature 

advanced country with higher expectations and opportunities for its citizens.
3

CIII. The Imposition of this Duty on the Display 01605RX Has a Significant Impact on 

Primex’s Business, Resulting in a Significant Profit Loss and Reduction of 

Primex’s Workforce. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

Imposing a tariff on the Display 01605RX will do irreparable harm to our small, family business. 

The cumulative impact of the list 1 Section 301 tariffs would cost Primex millions of dollars in 

increased duties. These additional unexpected costs for our small business are layered on top of 

the detrimental impacts from the tariffs already imposed on our products on lists 2 and those 

proposed for list 3 that total over $5.9 million. 

Because this product is a low margin commodity product, the additional duty on the Display 

01605RX will absorb our entire profit margin, resulting in any sales of these products to be at a 

loss. The increased duties on the Display 01605RX cannot be absorbed by Primex and would 

result in significant financial losses and put our future in jeopardy. Due to the tariffs, we are 

considering major staff reductions. If we are unable to obtain tariff relief, we will be forced to 

eliminate two thirds of our employees, which is almost our entire consumer division. 

It is almost impossible for Primex to pass these tariffs along to our customers or U.S. consumers. 

The Display 01605RX sells in a very competitive, price driven market due to their commodity 

nature and inelastic demand profile. Our end customers are price sensitive and we will not be 

able to compete in the market if we raise our prices. Additionally, our retail customers will not 

accept price increases for the Display 01605RX. We have annual contracts that we are expected 

to perform to and this includes fixed pricing. Further, the tariff on this product makes us 

vulnerable to losing our market share. Our foreign competitors are not subject to these tariffs 

and will be able to supply our customers with the Display 01605RX at a more competitive price 

and absorb our place in the market. 

The tariffs imposed on the Display 01605RX are disproportionately large in comparison to our 

small, family business selling this good. As a result, the tariff will irreparably hurt Primex’s 

ability to provide good, stable, U.S. based jobs and continue to supply consumers and businesses 

goods to make their lives and jobs easier. 

CIV. Imposing the Ad Valorem Tariff under Section 301 on the Display 01605RX 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 
4

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.77

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.78

Notably, the Display 01605RX and its manufacture are not among the list of advanced 

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

The Display 01605RX does not contain sensitive technology or intellectual property that is the 

target of China’s practices. The technology used is relatively simple and is generally considered

a late, low technology product. They are not made through advanced technology manufacturing. 

Generally, our products do not provide value in and of themselves. It can require sophisticated 

software to provide value. People buy our products for the utility they provide not necessarily 

because of technology in the product. 

Because our products do not contain sensitive technology or intellectual property that is the 

target of China’s practices, we have not experienced any of the intellectual property theft, cyber 

theft, or other technology-related compilations that advanced technology industries have faced.

Due to these factors, we believe that targeting these tariffs on the Display 01605RX is misplaced 

and will not curb China’s predatory policies, and instead negatively impact U.S. consumers. 

* * *

 

77 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].

78 Section 301 Findings, at 14. 
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Primex 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 Display 01605RX imported from China under HTS subheading 

9015.80.8080 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 Primex, the 

businesses we supply, and U.S. consumers.

Respectfully submitted, 

Paul Shekoski

Chief Executive Officer

Primex Family of Companies