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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.

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2. Please provide a complete and detailed description of the product of concern:

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the HTSUS item number associated with your product, see https://hts.usitc.gov/

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

VERSION 1

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Submitted via www.regulations.gov 

October 8, 2018 

Ambassador Robert Lighthizer, U.S. Trade Representative 

Office of the United States Trade Representative

600 17th Street NW, Room F516 

Washington, DC 20508-0001 

 

RE: USTR 2018-00025; Request for Exclusion from the Determination of Action Pursuant 

to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, 

Intellectual Property, and Innovation Tariff Under Harmonized Tariff Code 

(“HTS”) 8425.39.0100 

Dear Ambassador Lighthizer, 

 

This request for exclusion is submitted pursuant to Federal Register notice published on July 11, 

2018,1 establishing the process to submit exclusion requests from tariffs applied to U.S. imports 

pursuant to the Determination of Action Pursuant to Section 301 of the Trade Act of 1974: China's 

Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation.

We hereby respectfully request that the subject winches imported by Academy, Ltd. d/b/a 

Academy Sports + Outdoors (“Academy” or “the Company”) under HTS 8425.39.0100 be 

excluded from the additional 25% tariff imposed on this HTS code pursuant to Section 301. 

 

Explained below are the reasons why the winches meet the elements in the Federal Register notice 

to be excluded from the additional tariff under Section 301. 

 

1. Distinguished from other products in the 8-digit HTS code

The subject winches are classified under HTS 8425.39.0100, “[p]ulley tackle and hoists other than 

skip hoists; winches and capstans; jacks: [w]inches; capstans: [o]ther.” The HTS classifies winches 

in the 4-digit HTS heading, 8425, and immediately breaks down the heading into two finer 

categories at the 10-digit statistical suffix level. The first one is HTS 8425.31.0100, “winches; ... 

powered by electric motor,” and the second one is HTS 8425.39.0100, “winches; ... other.” The 

Marine Raider 2-Way 1400 lb. Winch 200001192 is classified in the latter category because the 

imported winch is not powered by an electric motor. 

Since winches are not categorized by 8-digit HTS codes, Academy will distinguish the subject 

merchandise classified under HTS heading 8425 at the 10-digit level. The product is distinguished 

from the other 10-digit provision, as it is a hand-powered trailer winch with a ratchet handle. It 

also has a strap and zinc hook, hardened stacked steel gears, and is corrosion resistant. 

 

1 83 Fed. Reg. 32181 – 32184 (July 11, 2018).

BRAU MILLER 

LAW GROUP. PUC 

I NTERNAT IONAL TRADE LAW 

5220 SPRING VALLEY RD.,SUITE 200 DALLAS, TEXAS 75254 (214)348-9306 TEL. (214) 217-9309 FAX (877) 277-5987 TOLL-FREE 

WWW.BRAUMILLERLAW.COM 
Section 301 List 1 – Exclusion Request

Page 2 

2. Sourcing the winches outside of China would lead to significant delays in product 

development for Academy 

Academy has established a strong relationship with its manufacturer in China. The manufacturer 

produces the subject winches, among other winch models, according to Academy’s strict 

specifications and quality control measures. Academy has now created a long standing, dependable 

relationship with this supplier as it has been working with this Chinese manufacturer for many 

years. While the Company is unaware of alternative producers in the U.S. that could produce 

Academy’s winch line, the cost of winches would be much higher, in addition to the cost of 

changing sourcing. 

Academy has identified some entities in Taiwan that could produce the winch line; however, to 

suddenly change Academy’s sourcing to another country would take [ ] to open molds, 

develop the product, and establish the process to educate the new manufacturer on Academy’s 

strict standards. The Company can only move [ ] at a time due to constraints on engineering 

and manufacturing resources, and it would take [ ] to source winch production to Taiwan. 

This would require the entire effort of the Company to initiate and bring to a successful conclusion. 

Costs associated with moving production would likely be an additional [ ] depending on 

items and equipment needed to facilitate production. 

3. Severe economic burden to Academy and U.S. interests

In total, Academy imports [ ] of the subject winches from China. This imported value 

represents an insignificant amount of the $50 billion in imported goods from China that the Section 

301 tariffs are intended to address. Without changing sourcing, Academy would be paying an 

additional 25% to import the winches thereby adding immensely to the company’s cost. The 

additional duties represent a heavy burden on Academy’s ability to absorb the additional financial 

impact and still retain its level of economic viability.

These winches represent a very popular product line for Academy. To levy this large of an 

additional cost to the product translates to additional costs of $25,000 for every $100,000 in

material purchases on Chinese manufactured winches. This would eliminate a large portion of 

Academy’s net income on the entire product offering for the entire period the tariffs are in effect. 

Further, the additional tariffs would curtail the Company’s ability to develop new products and 

maintain its existing customer base. Eventually, this would lead to a reduction in Academy’s 

revenue and an increase in retail prices to cover the effects of the tariff.

4. Relevance to “Made in China 2025” program 

The purpose for the Section 301 tariffs is to stop the forced transfer of U.S. technology and 

intellectual property to China. The products that Academy sells to the American consumer are 

generally not high-tech. Some examples include: boat pumps, pool filters, deer feeders, and 

switches, which are products within the current scope of List 1. It is unlikely that adding an 

additional 25% duty on a winch, which is unrelated to technology, would deter China from its 

current policies. The goal of preventing the transfer of intellectual property or technology to China 

would only be furthered by increasing the duty on companies who are engaging in providing 

technology to China; this does not include Academy or its products. 

-

-

5220 SPRING VALLEY RD.,SUITE 200 DALLAS, TEXAS 75254 (214)348-9306 TEL. (214) 217-9309 FAX (877) 277-5987 TOLL-FREE 

WWW.BRAUMILLERLAW.COM 
Section 301 List 1 – Exclusion Request

Page 3 

In addition, winches are not one of the following ten industries which are the focus of the “Made 

in China 2025” program: 

 

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.

There is accordingly no direct link between these imports of the winches and the goals of the 

Section 301 tariffs to address the targeted industries in the “Made in China 2025” program. 

Additionally, Academy’s business relationship is not subject to any Chinese administrative 

policies which require the transfer of its intellectual property in any manner. Thus, penalizing a 

U.S. company by forcing it to pay additional duties does not further the U.S. government’s policy 

regarding the “Made in China 2025” program. In fact, the relationship between the Section 301 

tariff goals and the actual impact in this instance is nonexistent. Applying the Section 301 tariff to 

the imports of winches by Academy does not serve the purpose of the Section 301 goals but in fact 

contravene the goals.

 

In light of the above, Academy sincerely requests that its Marine Raider 2-Way 1400 lb. Winch

200001192 be granted an exclusion of the 25% Section 301 tariff. Importation of this product does 

not undermine the U.S. government policy toward the “Made in China 2025” program and would 

only be detrimental to the economic viability of this U.S. company. Academy certifies that 

information provided is complete and correct to the best of its knowledge.

Best regards,

Adrienne Braumiller, Partner

Outside Trade Counsel for Academy, Ltd.

5220 SPRING VALLEY RD.,SUITE 200 DALLAS, TEXAS 75254 (214)348-9306 TEL. (214) 217-9309 FAX (877) 277-5987 TOLL-FREE 

WWW.BRAUMILLERLAW.COM