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

PUBLIC VERSION
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?

PUBLIC VERSION
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).

PUBLIC VERSION
PUBLIC VERSION 

Addendum to Request for Exclusion of Tariffs under Section 301 

Johnson Controls, Inc. ("Johnson Controls" or the "Company") seeks an exclusion of the 

25% tariff recently imposed under Section 301 upon certain Chinese imports. As outlined 

below, Johnson Controls qualifies for this exclusion because (1) the Variable Speed Drive 

(as described below) is not available from a source outside of China; (2) the additional 

duties cause severe economic hann to Johnson Controls; and (3) the VSD is not 

strategically important or related to Chinese industrial programs including "Made in China 

2025". Each of these reasons for an exclusion to be granted will be further discussed 

below. 

Consistent with USTR's Section 301 notice, Johnson Controls requests confidential 

treatment for the infonnation designated as business confidential in this submission. Such 

information consists of information that would not customarily be released to the public, 

including business or trade secrets regarding production costs and processes, data on sales, 

product characteristics, customers, destinations, and other product, sales, and cost-related 

business secrets. Business confidential information has been indicated herein by enclosing 

it in single brackets("[]"). A public version of these comments is also being filed with all 

confidential information removed. 

I. Relevant Product and Tariff Lines 

Johnson Controls imports a liquid cooled Variable Speed Drive, with circuit breaker 

disconnect mechanism, capable of driving a chiller magnetic bearing motor (the ''VSD"). 

The imported VSD units I 

] The VSD is a critical component of a water-cooled centrifugal chiller (the 

"Chiller") [ J. A Chiller is a 

machine that moves heat from one location to another, such as removing heat from a 

building and transferring it outside of the building. 

The VSD is a liquid cooled, transistorized, inverter in a highly integrated package mounted 

directly to the chiller. This VSD is specifically designed to drive the high speed induction 

motor with magnetic bearings used on the Chiller. This allows the Chiller to be designed 

as a complete system, and take full advantage of the strengths of each major component 

within the system. 

The VSD is imported by Johnson Controls into the U.S. under HTSUS code 8504.40.4000, 

which provides for "Electrical tramformers, static converters (!Or example, rectifier:,) and 

inductors; parts thereof Static converters: Speed drive controllers for electric motors:· 

[ 
PUBLIC VERSION 

]. 

Photos and specification drawings of the VSD are provided in Exhibit 1. For reference, 

CBP ruling letters classifying certain similar products as speed drive controllers for electric 

motors in HTSUS 8504.40.4000 are also provided in Exhibit 2. Based on the images 

provided, as well as the tariff classification confirmation, CBP should be able to administer 

this exclusion request for the VSDs. 

II. The VSD is Not Available from a Source Outside of China 

Johnson Controls is not able to immediately source the VSD from another Johnson 

Controls plant or a third party located outside of China for a variety of reasons. 

First, the VSDs are complex machines that require specialized manufacturing equipment, 

currently available in Johnson Controls' Wuxi Factory. Manufacturing of the VSDs 

requires rigorous training to assemble and comply with applicable domestic and 

international standards. Any change to another Johnson Controls manufacturing plant will 

result in costs to design and reconfigure a new production line that will be exorbitant [ 

]. 

Second, even though it might be technically feasible for Johnson Controls to outsource the 

manufacturing of the VSDs to third party suppliers outside of China, in order to do so 

Johnson Controls would have to (1) undertake significant costs to qualify a supplier which 

would take at least twelve (12) months at the earliest, but typically will entail a much 

longer period of time; and (2) would have to share its proprietary designs with such third 

party. Johnson Controls is unable to do that, as the Company does not believe surrendering 

its proprietary designs (and competitive advantage) is necessary to effectuate the purpose 

of the Section 301 tariff program. 

l 

III. Additional, Broader Adverse Impacts 

The 25% tariff for these VSDs significantly impacts Johnson Controls and its employees, 

and creates a competitive disadvantage to Johnson Controls that may lead to market share 

loss in chiller sales. Specifically, the additional duties will result in: 

• potential loss of millions of dollars in sales in the United States; 

• potential loss of manufacturing jobs in the United States due to increased costs and 

lower sales, resulting in a reduction of Johnson Controls' skilled workforce; 
PUBLIC VERSION 

• increase in prices to customers to reflect the effect of the 25% tariff; 

• reduced ability and incentive to reinvest Johnson Controls operations, engineering 

and product development in the US. 

It is important to note that the outcomes described above may impact Johnson Controls 

more than other similarly situated companies, despite the fact that the Company has 

significant assembly operations for these Chiller products in the U.S. (San Antonio Plant), 

and uses significant U.S. research and development (R&D) for their production. While 

Johnson Controls has other U.S. competitors in this area, it is unclear whether those 

Companies source their Chiller inputs, such as the VSDs, from China, or from another 

foreign location. This additional tariff can have the unintended consequence of rewarding 

a company that relies heavily on foreign inputs and assembly (in Japan, for example), while 

punishing a Company that sources some inputs from China, but otherwise has significant 

manufacturing and R&D investments in the U.S. 

It is also important to note that [ ] of the Chiller products 

manufactured and assembled in the U.S. are exported from the U.S. and sold in foreign 

markets. Thus, not only is Johnson Controls committed to U.S. manufacturing and R&D, 

but it also contributes to reducing the trade deficit of the United States. 

IV. The VSD is not strategically important or related to "Made in China 2025" 

In our interpretation of the "Made in China 2025" initiative, this VSD does not appear to be 

strategically important or related to the initiative. This VSD does not fall directly under the 10 

priority sectors of the initiative as this VSD is manufactured specifically for chiller applications 

(as are all products manufactured in the Wuxi Plant). Similar products exist with an application 

in Power Generation market, but Johnson Controls does not service this industry, nor does it 

manufacture these products in the Wuxi Plant. 

For the manufacturing of this VSD in China, Johnson Controls uses existing factories and 

production lines in a factory that has been operating and producing similar products classified 

under the same HTSUS code for several years. [ 

l 

As stated above, [ ] 

Johnson Controls is not aware of any instance where technology was transferred to the Chinese 

government. Rather, although mature, the technology is solely and tightly controlled by Johnson 

Controls [ ]. 

For these reasons, Johnson Controls respectfully requests the USTR to grant this exclusion 

request. 

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Title : The tariff classification of an Otis variable frequency (OVF) drive from China

N005851

February 2, 2007

CLA-2-85:RR:E:NC:MM:109

CATEGORY: Classification

TARIFF NO.: 8504.40.4000

Ms. Laura Roberts Customs Compliance Manager Otis Elevator Company 1331 S. Curry Pike Bloomington, IN 47403

RE: The tariff classification of an Otis variable frequency (OVF) drive from China

Dear Ms. Roberts:

 In your letter dated January 23, 2007 you requested a tariff classification ruling.

 The merchandise subject to this ruling is an Otis variable frequency (OVF) drive. The OVF drives are described in your

letter as insulated gated bi-polar transistor (IGBT)-Inverters with digital and analog control and are made up of

active/passive power electronic devices, a high-speed central controlling unit (microprocessor) and optional sensing

devices, depending upon the application requirement. The OVF drive is applicable for low, medium, and high speed geared

or gearless elevators with AC motors.

 The basic function of the OVF drive is to act as a variable frequency generator in order to vary speed of the elevator

motor as per the user setting. The rectifier and the filter convert the alternating current (AC) input to direct current (DC) with

negligible ripple. The inverter, under the control of the microcontroller, synthesizes the DC into 3-phase variable voltage,

variable frequency AC. Additional features can be provided, such as DC bus voltage sensing, OV and UV trip, over-current

protection, accurate speed/position control, temperature control, easy control setting, display, PC connectivity for real time

monitoring, etc.

 The OVF drive provides open loop speed control for one/two speed elevator motors. The system controls the fast speed

of the motor winding during the whole run without using an additional encoder and assures smooth riding comfort, as well as

high leveling accuracy under all load conditions. The motor speed is determined by variable frequency output of the OVF

drive power section. The 3-phase mains supply is rectified, smoothened by a condenser in the DC link, and the transistor

inverter transforms the DC voltage with pulse width modulation into three phase variable voltage and variable frequency

output. The digital control generates ideal speed pattern for a predetermined profile with fixed parameters for jerk and

acceleration. Load current feedback and speed measurement at the end of each run maintains load independent accurate

leveling.

 The applicable subheading for the Otis variable frequency (OVF) drive will be 8504.40.4000, Harmonized Tariff Schedule

of the United States (HTSUS), which provides for Electrical transformers, static converters (for example, rectifiers) and

inductors; parts thereof: Static converters: Speed drive controllers for electric motors." The rate of duty will be 1.5 percent ad

valorem.

 Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the

accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

 This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

 A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time

this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Linda M.

Hackett at 646-733-3015.

 Sincerely,

 Robert B. Swierupski Director, National Commodity

 Specialist Division

Copyright 2009 CUSTOMS Info LLC. All Rights Reserved.
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Title : The tariff classification of AC Motor Speed Controllers and Insulated Gated Bi-Polar Transistors from New Zealand

NY B86868

 July 17, 1997

CLA-2-85:RR:NC:MM:109 B86868

CATEGORY: Classification

TARIFF NO.: 8504.40.4000; 8541.29.00 

Mr. David M.Perrine N Z Drives Inc.

P.O. Bo# 4135 751 Rothrock Circle Akron, OH 44321 RE: The tariff classification of AC Motor Speed Controllers and

Insulated Gated Bi-Polar Transistors from New Zealand

Dear Mr. Perrine:

 In your letter dated June 13, 1997, you requested a tariff classification ruling.

 The merchandise is described in your letter as AC Motor Speed Controllers and Insulated Gated Bi-Polar Transistors.

The AC Motor Speed Controllers consist of the following type items: PDL, Picodrive , Xtravert, Microdrive, Microflo and

Microvector. These items are variable frequency drives that are state of the art electronic motor controls for controlling AC

induction motors in many different applications such as fans, pumps, general industrial applications and the material

handling industry such as crane controls. The Insulated Gated Bi-Polar Transistor (IGBT) is a power transistor with a

dissipation rate of 1W or greater. We can not address the classification of the populated printed circuit board at this time due

to insufficient information. We need a description of this merchandise and the function of each board. What device is this

merchandise a part of? If it is for electrical control, does it have two or more connectors, switches, relays or fuses? 

 The applicable subheading for the AC Motor Speed Controllers will be 8504.40.4000, Harmonized Tariff Schedule of the

United States (HTS), which provides for Speed drive contollers for electric motors. The rate of duty will be 2.1 percent ad

valorem. 

 The applicable subheading for the Insulated Gated Bi-Polar Transistor will be 8541.29.00, Harmonized Tariff Schedule of

the United States (HTS), which provides for transistors, other than photosesitive - transistors... other. The rate of duty will be

free.

 This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

 A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time

this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Eileen

Kaplan at 212-466-5673.

 Sincerely,

 Robert B. Swierupski Chief, Metals & Machinery Branch National

Commodity Specialist Division

Copyright 2009 CUSTOMS Info LLC. All Rights Reserved.