October 9, 2018

FILED VIA REGULATIONS.GOV

The Honorable Robert E. Lighthizer

U.S. Trade Representative

Office of the United States Trade Representative

600 17th Street, N.W.

Washington, D.C. 20508

RE: Request for Section 301 Exclusion

Soldering Irons

Classified in 8515.11.0000, HTSUS

Docket No. USTR-2018-0025

Dear Ambassador Lighthizer:

Apex Tool Group, LLC (hereinafter “ATG”) is submitting this exclusion request for certain 

soldering irons pursuant to Docket No. USTR-2018-0025, Procedures 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, 83 Fed. Reg. 32181 (Jul. 11, 2018). As detailed below, the soldering irons at issue are

not high-tech products that are strategically important to or related to the “Made in 2025” or any 

other Chinese industrial programs. Moreover, they are not commercially available outside of our 

own factories in China and the imposition of an additional 25% tariff will cause serious economic 

harm to ATG, its retail customers, and American consumers. For these reasons, ATG respectfully 

requests that soldering irons specifically and narrowly described below, which are classified in 

subheading 8466.10.01 of the Harmonized Tariff Schedule of the United States (“HTSUS”), be
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Office of the United States Trade Representative

October 9, 2018

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excluded from Annex A of the USTR Notice published at 83 Fed. Reg. 28710 (June 20, 2018) 

(“Annex A”). 

I. Overview of the Company

ATG is one of the largest manufacturers of professional hand and power tools in the world, 

serving the industrial, vehicle service and assembly, aerospace, electronics, construction and 

serious DIY markets. ATG maintains a portfolio of over 30 innovative brands 

including, GearWrench®, Weller®, Wiss®, Lufkin®, Cleco®, Jacobs® and Crescent®. ATG 

also manufactures select, premier private label mechanics tools. Across the board, our tools stand 

for quality, innovation and value. Known for solving seemingly impossible problems, they are 

intuitive and simple to use, yet indispensable.

ATG works collaboratively with distributors, retailers and large customers across the globe 

to make sure end users have the tools they need to solve real-world problems. ATG is 

headquartered in Sparks, Maryland and employs approximately 1,800 people in the United States 

and another 6,400 people worldwide. We have manufacturing facilities and/or distribution 

facilities in Arkansas, Michigan, Ohio, Pennsylvania, North Carolina, South Carolina, and 

Wisconsin. Our products are ratchets/drivers, power tools and electronic tools (described below). 

We provide these tools for various industries such as the industrial sector, vehicle repair, vehicle 

assembly, aerospace and the construction and do-it-yourself customers. ATG relies on imported 

components to produce many of its products here in the United States. In addition, ATG imports 

primarily lower value added finished goods from China and the vast majority [ ] of the subject 

tools from China are made at ATG-owned facilities 

Ratchets/drivers

The ratchets/drivers line consists of the business operations providing mechanic, trade, and 

specialty tools, chain, truck boxes, jobsite storage and drill soldering irons to a broad range 

of industrial, construction, vehicle repair and DIY customers worldwide.

Power Tools

The power tools line consists of the business operations providing electric tools, as well as 

high performance bits, torque measurement, metal cutting and drilling solutions to the 
Ambassador Lighthizer

Office of the United States Trade Representative

October 9, 2018

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global industrial, vehicle assembly, aerospace and utilities/energy markets. To learn more, 

explore the Cleco Production Tools website.

Electronic Tools

The professional electronic tools line consists of the business operations providing 

precision soldering, cutting, motion control and air ventilation solutions to electronics 

assembly industries.

Our products are sold through national industrial distributors, contractor supply houses, 

automotive tool and equipment distributors, and many independent regional and specialized 

distribution partners. Certain consumer retailers, home centers, and hardware stores also sell our 

private-label products alongside ATG brands.

II. Electrically Heated Soldering Irons (classifiable in 8515.11.0000).

We request exclusion from Annex A for our electric soldering irons (“soldering irons”). 

These are electrically heated hand tools used in soldering. Soldering is an operation in which metal 

parts are joined by means of a metal filler. This filler has a lower melting point than the metals 

being joined, and functions by “wetting” the parent metals. Soldering differs from welding in that 

the parent metals aren’t worked or melted by the soldering iron. Instead, only the filler is melted 

to create a joint between the two metals. Below is a photograph of a typical WELLER® soldering 

iron (WELLER® Item SP80NUS 80 Watts LED Soldering Iron):

These soldering irons are classified in the specific tariff provision for soldering irons and 

guns, tariff code 8515.11.0000, HTSUS. Soldering itself as a method for joining metals is an 
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Office of the United States Trade Representative

October 9, 2018

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ancient technology, with evidence that it has been used by humans for thousands of years, while 

electrically operated soldering irons have been around since 1921. 

III. ATG Products Use Widely Available Manufacturing Technology

and Are Not a Part of the Made in China 2025 or Any Other

Chinese Industrial Program Initiatives

In the USTR’s Executive Summary of its 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 (3/22/18), it cited a plan published by the Chinese 

Government entitled Made in China 2025 (July 7, 2015). One of the 10 Priority Sectors identified 

by China in this plan includes “High-end Digital Control Machine Tools and Robot” sectors:

3.6.2 High-end Digital Control Machine Tools and Robots

High-end Digital Control Machine Tools - We will:

• Develop precision machine tools capable of high speed, high efficiency 

and functional flexibility, and develop manufacturing equipment and 

integrated manufacturing systems.

• Accelerate research of frontier technologies and equipment like high-end 

digital control machine tools and additive manufacturing.

• Focus on reliability, stability and precision of major parts like high-end 

numerical systems, servomotors, bearings and grating to realize 

industrialization.

• Improve user process certification.

Robots – We will:

• Actively research new products and promote robotic standardization and 

market application modularization in order to meet demand for industrial 

robots in automobile, machinery, electronics, chemicals and light industry, 

specialty robots and service robots in medical treatment, domestic services, 

education and entertainment.

• Remove the bottleneck of essential spare parts like robot bodies, reducers, 

servomotors, controllers, sensors, drivers and integrated system design.

Made in China 2025, State Council, July 7, 2015; at 23.
Ambassador Lighthizer

Office of the United States Trade Representative

October 9, 2018

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We suspect this was the basis for the USTR’s inclusion of subheading 8515.11.00, HTSUS, 

as there is no other industrial sector in this plan that would involve soldering irons. However, 

soldering irons are not high-end digital control machines or robots. The technology behind 

electrically-operated soldering irons has been around for nearly a century and is clearly not the 

“cutting-edge” technology that is being sought by China. Accordingly, we fail to see how their 

inclusion in this Section 301 action would help the USTR meet its stated objective of eliminating 

China’s policies on intellectual property rights acts, policies, and practices or disrupting China’s 

industrial economic goals described in Made in China 2025.

IV. China Never Attempted to Acquire ATG Technologies

ATG has never been restricted by the Chinese government in its manufacturing in China. 

ATG can confidently state the Chinese government did not employ any tactics, such as opaque 

and discretionary administrative approval processes, joint venture requirements, foreign equity 

limitations, procurements or other mechanisms to regulate or intervene in our operations in China. 

Further, China did not require or pressure us to transfer any technology or intellectual property to 

Chinese company. The Chinese government’s acts, policies and practices did not deprive our 

Chinese facilities of the ability to set market-based terms in licensing and other technology-related 

negotiations nor did it undermine our control over our technology in China. It has not been limited 

by required Chinese equity in manufacturing nor subject to various administrative reviews or 

licensing processes. The Chinese government has never directed nor unfairly facilitated the 

systematic investment in or acquisition of our assets or intellectual property. Finally, we are 

unaware of any data attacks or breaches by the Chinese government on any of our facilities or 

other attempts by the Chinese government to penetrate our computer networks and access sensitive 

trade secrets.1

 

1ATG’s primary systems are located in the US and have not been compromised, hacked or attacked. Our systems 

located in other Asian countries have the same protections as our U.S. facilities. ATG has never suffered a breach of 

its IPR protections. 
Ambassador Lighthizer

Office of the United States Trade Representative

October 9, 2018

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Simply put, the Chinese government is not interested in our technology. Imposing tariffs 

on these soldering irons would only harm U.S. interests, and would in no way influence or bring 

about the elimination of China’s acts, policies and practices that threaten IPR or trade secrets.

V. Severe Economic Harm to ATG and Other U.S. Interests 

The imposition of tariffs of 25% on the subject soldering irons will cause severe economic 

harm to U.S. interests. China is the largest supplier in the world for soldering irons of subheading 

8515.11.0000, HTSUS. While our Weller soldering irons are primarily manufactured at our own 

factory in Queretaro, Mexico, we do rely on a third-party supplier in China to help fill out the 

Weller product line – specifically our battery powered irons, and a few basic consumer irons. 

Outside of the Weller soldering line, we also manufacture in the United States. Generally, ATG 

products with lower value-added manufacturing are centered in China whereas higher value-added

products are centered in the United States. Our ability to balance global manufacturing allows us 

to allocate costs across the various manufacturing scenarios to provide quality product at 

reasonable prices. 

In the United States, we manufacture:

1. Steel chain and accessories at our York, PA facility; 

2. Forging operations for chain and ratchets/drivers at our Sumter, SC facility;

3. Power tools and some torque wrench production that relies on imported Chinese 

components subject to the tariff at our Lexington, SC facility;

4. Delta truck boxes and jobox constructions storage boxes are made in our Jonesboro, AR

facility; 

5. Configure U.S. and German-made power tools into specific application fixtures for auto 

manufacturing plants in our Auburn Hills, MI facility;

6. Manufacture ATG brand bits and sockets for power tool applications in Dayton, OH; and

7. Special precision machining in our Walworth, WI facility.
Ambassador Lighthizer

Office of the United States Trade Representative

October 9, 2018

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ATG operations in the United States are already being negatively impacted by the steel 

tariffs imposed by the President under Section 232 of the Trade Act of 1962. Even though we use 

USA steel in our truck boxes and storage boxes, within three weeks of the tariffs being imposed 

on imported steel, our suppliers increased our prices by [ ]. The increase in manufacturing costs 

already in the United States combined with increases of another [ ] for goods made globally will 

impact our ability to provide these soldering irons, which are necessary for industrial technicians, 

contractors, tradesmen, and serious do-it-yourselfers. Our increased costs will be passed on to 

these vital U.S. industries and negatively impact their ability to use our tools and continue to build,

make, and manufacture in the United States.

For these specific soldering irons, ATG alone faces nearly [ ] in potential additional 

duties each year. These products are strong margin contributors to ATG and contribute to the 

overall financial stability of the company. Furthermore, when all three phases of the Section 301 

duties announced to date are considered, ATG faces a staggering sum - nearly [ ] - in potential 

additional duties each year. This is a severe, unanticipated expense that if fully implemented will 

cause serious economic harm to our company.

Furthermore, the subject soldering irons are already at their upper limit in terms of price 

point. ATG will be unable to absorb the cost increase and will have to pass it on to our customers. 

This price increase will mean American consumers will buy fewer soldering irons. The suppressed 

demand will erode profitability. Revenues will decrease, as will direct investment. As a result of 

diminishing returns, we will not be hiring additional personnel to support expected growth from 

this segment. 

VI. These Soldering Irons Are Not Commercially Available Outside of China

While the large majority of Weller soldering irons are produced at our plant in Queretaro, 

Mexico, we do rely on a third-party supplier for a few specific models. Currently, China produces 

approximately 95% of the world’s supply of all soldering equipment. The only U.S. producer of 
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Office of the United States Trade Representative

October 9, 2018

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soldering equipment that we know of is a direct competitor, Wall Lenk, who produces an inferior 

class of product. We clearly couldn’t source our product from Wall Lenk, but even if they weren’t 

a direct competitor, their U.S. production capacity would not be able to meet our needs as their 

current capacity is only equal to approximately 5% of our current sales volume. 

Furthermore, it would likely take us up to a year to move production to the U.S. or some 

third country. The ability to source a few specific soldering iron models from China (battery 

powered and low-end consumer) is critical to maintaining a complete product line offering. 

Ironically, our foreign competitors that can avoid the 25% tariff will likely benefit from ATG’s 

loss of market share.

VII. Exclusion Proposal

As established above, the soldering irons at issue are not high-tech products that are 

strategically important to or related to the “Made in 2025” or any other Chinese industrial 

programs. Moreover, China has never sought our technology for these items. Furthermore, they 

are not commercially available outside of China in quantities sufficient to meet consumer demand 

and the imposition of an additional 25% tariff will cause serious economic harm to ATG, its retail 

customers, and American consumers. For these reasons, ATG respectfully requests that the 

soldering irons described below be excluded from Annex A: 

“Electrically Heated Soldering Irons (classifiable in 8515.11.0000).”

CBP’s enforcement of this exclusion request is very simple not only from a quick visual 

examination of the imported merchandise but from a review of import paperwork, for which the 

invoices will always describe the imported items by name and with an additional reference to this

10-digit classification number: 8515.11.0000, HTSUS. 
Ambassador Lighthizer

Office of the United States Trade Representative

October 9, 2018

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VIII. Conclusion

Based upon the foregoing, ATG respectfully request that the subject items be excluded 

from Annex A, which is the final list of items subject to the additional 25% tariffs if imported from 

China.

Very truly yours, 

Thomas Pifer 

Director, Global Customs Compliance 

Apex Tool Group, LLC 

14600 York Road, Suite A 

Sparks, MD 21152 

Thomas.Pifer@apextoolgroup.com