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 product of concern:

4.

5. Requestor's relationship to the product:

CONTINUED BELOW

*

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/

1

7.

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.

VERSION 1

Requestor Information

Requestor Name (Last, First):
END 2

8. Is this product, or a comparable product, available from sources in the United States?:

VERSION 1

11. Please provide information in support your request, taking account of the instructions

provided in Section B of the Federal Register notice (note: text entered below can extend

beyond the apparent size of this box).

9. Is this product, or a comparable product, available from sources in third countries?:

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.

2016 Value:

2015 Value:

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2016 Quantity:

2015 Quantity:

2017 Quantity:
CERTIFICATION REGARDING BUSINESS CONFIDENTIAL INFORMATION 

I, Andrew Stienecker, certify that I prepared or otherwise supervised the preparation of 

the attached product exclusion request of Electrolux Home Products Inc., filed September 21, 

2018 (Docket No. USTR-2018-0025). The business confidential version of this submission 

contains information enclosed in brackets, which has been redacted from the public version. 

This information would not customarily be released to the public, and disclosure of this 

information would endanger trade secrets or profitability and cause substantial competitive and 

commercial harm to Electrolux Home Products Inc. 

? 

Signature: 

/ 

---...,,.,.,/:: __ -p··"""' 

Date: 
1 

PUBLIC VERSION 

Attachment 1

Electrolux manufactures refrigerators and freezers in two U.S. manufacturing facilities. To support 

growing U.S. refrigerator demand, the company is investing $250 million in its Anderson, South Carolina 

plant. The plant will double in size, will employ 1,900 South Carolinians and will be complete next year. 

Current U.S. production utilizes an HFC refrigerant (R134a) that requires a compatible compressor 

design.  This type of compressor is an old technology that is primarily only available from China and is 

not available in the United States.  Fortunately, it is being phased out across the appliance industry.  The 

rest of the world has already transitioned to a different non HFC refrigerant (R600a) and the associated 

compatible compressor.  A recent change in U.S. safety requirements has cleared the way for U.S. 

manufacturers to make this transition as well. 

With our new investment in South Carolina, we are transitioning to the new refrigerant (R600a) and will 

begin using it as soon as our expansion is complete next year. This change will increase our supply 

options for the new compressors and will give us the opportunity to switch to a non‐Chinese supplier for 

our U.S. manufacturing on a going forward basis. 

Until our expansion is complete next summer, China is the most viable source for the old R134a 

compatible compressor.  A small number of these compressors are made in other countries, and we are 

working with existing suppliers to purchase as many of these compressors that we could, albeit at a 

higher price.  However this will take time and creates uncertainty and unnecessary disruption for the 

business.   And, given that this technology is being phased out, no suppliers are willing to invest to 

increase capacity for this type of compressor for just one year. 

As the engine of all refrigerators and freezers the compressor is the most expensive part of the 

appliance.  The 25% additional duty that we are currently paying on our imports of these compressors is 

causing severe economic harm to Electrolux and our U.S. based employees.  It significantly undermines 

the competitiveness of the refrigerators and freezers we manufacture in the United States as it gives 

foreign manufacturers an advantage because they are not paying a higher cost for this key component. 

For these reasons and as detailed below, we respectfully request that USTR exclude the compressors in 

question from the 25% additional duty during the one‐year period while we complete the expansion of 

our Anderson, South Carolina facility and transition to the new compressor design which will enable us 

to switch to a non‐Chinese supplier on a going forward basis. 

A. The Compressors that are the Subject of this Exclusion Request are Primarily Available

Only From China

At present, our U.S. production of refrigerators and freezers utilizes an HFC refrigerant (R134a) that 

requires a compatible compressor design.  The compressors in question utilize an older and relatively 

less environmentally‐friendly technology that is being phased out globally across the appliance industry.  

This type of compressor is not manufactured in the United States and there are no comparable 

compressors available from sources in the United States.  In addition, because the technology in 

question is being phased out, there are no U.S. manufacturers who are willing to invest in adding 

capacity to manufacture them. 
PUBLIC VERSION 

2 

It is also not currently possible for us to source these or comparable compressors in sufficient quantities 

from sources in third countries.  The majority of the production of this type of compressor is located in 

China.  We are working with existing suppliers to purchase compressors from third countries where 

possible but these purchases, even if available, are at a [ ].  Since this compressor 

technology is being phased out, there are no third‐country manufacturers who are willing to invest in 

increasing production capacity of R134a‐compatible compressors.

The rest of the world has transitioned to a different refrigerant (R600a) that requires the use of a 

compressor that is compatible with this refrigerant.  A recent change in U.S. safety requirements has 

cleared the way for U.S. manufacturers to make this transition as well.  Accordingly, as part of the 

expansion of our South Carolina facility, we are fully transitioning to the R600a refrigerant.  We will 

begin using new the compressors that are compatible with R600a in our U.S.‐produced refrigerators and 

freezers as soon as our expansion is complete.   This will provide the opportunity for Electrolux to switch 

to a non‐Chinese supplier for the compressors we will use in our U.S. manufacturing activities on a 

going‐forward basis. 

  B.  The Additional 25% Duty is Causing Severe Harm to Electrolux and Our U.S. Employees  

The 25% duty is significantly undermining the competitiveness of our U.S.‐produced refrigerators and 

freezers relative to foreign‐origin products.  Because non‐U.S. manufacturers do not have to pay a 25% 

additional duty on their compressors, or on their U.S. imports of completed refrigerators and freezers, 

they have no need to try to pass a 25 percent cost increase onto consumers.  As a result, we will not be 

able to do so either.  Thus, we have no way to mitigate the impact of the additional duty; we are being 

forced to simply absorb the increased costs. 

As the “engine” of all refrigerators, the compressor is the most expensive part of the appliance.  We 

estimate that the 25% duty will cost Electrolux [        

             

            ].  In sum, the duties are having a severe negative impact on 

our company that could affect our future growth, and they are undermining the $250 million investment 

that we are currently making to expand our South Carolina facility and provide U.S. jobs. 

Already, 64 percent of refrigerators and freezers sold in the United States are built outside this country.  

The 25% duty will make the situation worse. 

C.  The Compressors That Are The Subject Of This Exclusion Request Are Not Strategically 

Important To China Or Related To The “Made In China 2025” Industrial Policy  

The type of compressor that is the subject of this exclusion request is being phased out globally.  It is old 

technology and is not a high‐tech product that is strategically important to the "Made in China 2025" 

initiative or any other Chinese industrial program.  Nor is this compressor related to any of the 10 

Priority sectors targeted by China under the “Made in China 2025” policy.  The policies and practices 

that USTR is addressing in the Section 301 investigation have no relevance to this product. 

D.  Conclusion

For the foregoing reasons, we respectfully request that USTR exclude the compressors in question from 

the 25% additional duty during the one‐year period while we complete the expansion of our South 
PUBLIC VERSION 

3 

Carolina facility and transition to the new compressor design which will enable us to switch to a non‐

Chinese supplier for our compressors on a going‐forward basis. 
PUBLIC VERSION 

Attachment 2 

NOT SUSCEPTIBLE TO PUBLIC SUMMARIZATION 
1/2

PUBLIC VERSION

Attachment 3

NY H80074

May 4, 2001

CLA-2-84:RR:NC:1:102 H80074

CATEGORY: Classification

TARIFF NO.: 8414.30.4000

Ms. Evelyn M. Suarez

Sonnenschein Nath & Rosenthal

1301 K Street NW (Suite 600, East Tower)

Washington, DC 20005

RE: The tariff classification of compressors for refrigerating equipment from Brazil.

Dear Ms. Suarez:

In your letter dated April 13, 2001 you requested a tariff classification ruling on behalf of your client Tecumseh

Products.

The items in question are described as non-screw type compressors, identified by the part numbers

AE151AS277A2, AE172AR908A2 and AE610AR716A2. The compressors are for use in a range of refrigeration and

air conditioning products. 

In your submission you indicate that the subject compressors have all been rated at 1⁄4 horsepower. In your

submission you explain that Tecumseh measures the cooling capacity of their compressors using calorimetric tests.

The tests yield capacity ratings in BTUs per hour within a variance of plus or minus five percent. By means of a

mathematical conversion, the cooling capacity is then converted to a nominal horsepower rating, rounded to the

nearest 1⁄4 horsepower for marketing purposes. You state that this nominal horsepower rating is reflected on all

commercial documentation and used by Tecumseh to classify the imported compressors for Customs purposes.

The applicable subheading for the subject compressors will be 8414.30.4000, Harmonized Tariff Schedule of the

United States (HTSUS), which provides for compressors of a kind used in refrigerating equipment, including air

conditioning, not exceeding 1⁄4 horsepower. The rate of duty is 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

Kenneth T. Brock at 212-637-7026.
2/2

Robert B. Swierupski

Director,

National Commodity

Specialist Division

Sincerely,