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 8536.90.4000 from the 

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

imports.154

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.

 

154 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). 
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I. Product Description

We request that USTR exclude the Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 

30A, 600V, #22-#10 Awg, 1/Pkg that is imported under HTS subheading 8536.90.4000. 

Item: #GTB-408-UT, Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-

#10 Awg, 1/Pkg

HTS subheading: 8536.90.4000

Item Description: Electrical connector, made of plastic and metal components. These connectors 

are attached to electrical wire in order to provide the means for an electrical connection.

Material(s): Made of plastic and metal components

Item Size (inches H x W x D): 5x8.3x3

Item Weight (ounces): 11.20

II. ECM Cannot Source the Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg From Countries Outside Of China. 

The Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg

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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 

600V, #22-#10 Awg, 1/Pkg. 

Shifting to a non-Chinese source for the Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 

30A, 600V, #22-#10 Awg, 1/Pkg at the scale and cost that is needed. The Ut Terminal Block, 8-

Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, 

#22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-

Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg. We believe that 

developing the necessary manufacturing capacity within America is technically and 
3

economically infeasible in the short term to meet our customers’ demand requirements. Based 

on our understanding, the U.S. suppliers of Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 

Awg, 1/Pkg. 

III. The Imposition of this Duty on the Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal 

Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg from China and 

imposition of this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The proposed duty on the Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, 

#22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp 

Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 

600V, #22-#10 Awg, 1/Pkg 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 
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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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-

#10 Awg, 1/Pkg can be passed on, we expect most of the impact will be felt by consumers and 

contractors who buy and use GTB-408-UT 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.

Instead of impacting China’s manufacturing industry, the tariff on the Ut Terminal Block, 8-

Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg will significantly harm 

ECM and our customers here in the U.S.

IV. Imposing the Ad Valorem Tariff under Section 301 on the Ut Terminal Block, 8-

Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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.155

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.156

Notably, the Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 

 

155 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].

156 Section 301 Findings, at 14. 
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Awg, 1/Pkg and its manufacture are not among the list of advanced technologies or industries 

that are targeted by the Chinese government policies.

The Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg

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 Ut Terminal 

Block, 8-Circuit, Screw Clamp Connections, 30A, 600V, #22-#10 Awg, 1/Pkg 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 Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 

600V, #22-#10 Awg, 1/Pkg 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 

respectfully request that the Ut Terminal Block, 8-Circuit, Screw Clamp Connections, 30A, 

600V, #22-#10 Awg, 1/Pkg imported from China under HTS subheading 8536.90.4000 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