Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

T +1 202 637 5600

F +1 202 637 5910

www.hoganlovells.com

October 9, 2018

BY ELECTRONIC FILING PUBLIC DOCUMENT

Mr. Arthur Tsao

Assistant General Counsel

Office of the United States Trade Representative

600 17th Street, N.W.

Washington, DC 20508

Re: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual 

Property, and Innovation, Docket Number USTR-2018-0025: Exclusion Request of 

BYD USA Regarding K7M Electric Busses 

Dear Mr. Tsao:

On behalf of BYD Motors, Inc. (“BYD”), an American manufacturer of electric battery 

powered mobility products including electric coaches, busses, and trucks, we respectfully 

submit this exclusion request pursuant to the publication by the Office of the United States 

Trade Representative (“USTR”) of 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. 

32,181 (July 11, 2018) (the “Exclusion Procedures”). For the reasons set forth below, a 25 

percent tariff on K7M electric busses would harm the competitiveness of our U.S. manufacturing 

business, harm related component manufacturers in the United States, increase noise and air 

pollution in U.S. cities, and diminish exports of high-quality manufactured electric mobility 

products from the United States to Canada and elsewhere. Simply put, these tariffs will put 

hundreds of well-paying U.S. manufacturing jobs at risk while hurting electric mobility solutions 

adoption in the United States. Accordingly, USTR should grant an exclusion from the Section 

301 tariffs for this product as described below.
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I. Introduction

BYD began as a start-up in 1995 and has grown into a global leader in electric products. 

We are not owned, controlled or directed by any foreign government. Our largest public 

shareholder is Warren Buffet’s firm, Berkshire Hathaway, based in Omaha, Nebraska. While 

BYD Motors, Inc.’s parent company is based in China, BYD is a U.S. manufacturing success 

story. BYD opened its U.S. headquarters in Los Angeles in 2011. Three years later, BYD 

opened its first U.S. electric mobility manufacturing plant in Lancaster, California. BYD then 

created a separate unit, BYD Energy, in Lancaster to manufacture electric transportation 

solution battery packs and battery modules. BYD Energy supplies all of the electric battery 

modules for BYD’s state-of-the-art, 550,000 sq. ft. electric bus manufacturing facility located 

nearby. BYD’s electric busses have the safest bus battery in the U.S. market and the first to 

have a 12-year warranty. 

BYD’s electric busses sold to U.S. transit authorities incorporate over 70% U.S. content, 

easily surpassing Buy America requirements for federally funded bus procurements. BYD’s 

busses sold to private U.S. customers and exported to Canada and elsewhere do not 

incorporate over 70% U.S. content, but still use significant U.S. content and involve U.S. 

assembly of U.S. and imported parts and components in the United States. We have produced 

and delivered over 280 electric busses in the United States and has received orders for more 

than 300 additional busses. BYD is forecasted to spend $50 million in 2018 on components 

made by American vendors across the nation.

BYD has scaled up quickly during the past four years and continues to grow U.S. 

manufacturing. BYD currently employs over 1,000 people in its U.S. operations and BYD plans 

to grow its workforce to approximately 1,200 as it expands its current facility to encompass 

increased manufacturing. BYD recently announced that it completed a new $5 million 100,000-
3

square-foot warehouse for its Lancaster manufacturing plant. 1/ This is the firm’s fourth 

expansion of its current manufacturing campus in Los Angeles County, bringing its total 

investment in Lancaster facilities to more than $53 million. According to the city of Lancaster, 

BYD’s presence has led to more than 3,000 additional jobs in the region. BYD’s total 

investment in U.S. manufacturing over the last seven years, through facilities, American workers, 

and partnerships with U.S. vendors, exceeds $250 million.

BYD is proud that our manufacturing workers are members of SMART, the International 

Association of Sheet Metal, Air, Rail and Transportation Workers, Local 105 (“Local 105”), a 

labor union representing sheet metal, air, rail, and transportation workers. BYD and Local 105 

recently signed an agreement in January increasing wages and implementing enhanced training 

opportunities. Commentators have declared that “[t]here is no [other] company that has a 

contract like this in the industry.” 2/

BYD invests in its community. Through an agreement with Local 105, BYD has 

committed to work toward the goal of recruiting and hiring 40 percent of our workers from 

populations facing significant barriers to employment, such as veterans. BYD has also initiated 

an effort to recruit workers from other populations that have been historically underrepresented 

in the manufacturing industry, including women and African Americans. BYD’s workforce is 

diverse with over 85% minority workers. BYD has sponsored an endowment at nearby Antelope 

Valley College to train students for manufacturing jobs in the technology sector. BYD and Local 

105 have also worked in partnership with the college to create a state-of-the-art green hightechnology manufacturing training program. The program will not only help BYD develop the 

next generation of green high-technology manufacturing workers for a career at our 

manufacturing facilities, but also enhance the region’s economic development opportunities by 

 

1/ BYD Continues U.S. Investment with New $5M Warehouse Facility, Mass Transit, September 26, 

2018, available at https://www.masstransitmag.com/press_release/12431527/byd-continues-usinvestment-with-new-5-million-warehouse-facility.

2/ SMART Local Union 105, BYD Workers Ratify Unprecedented Contract (Feb. 7, 2018), available 

at: http://local105.org/2018/02/07/byd-workers-ratify-unprecedented-contract (Exhibit 1).
4

creating an elite pool of highly-skilled advanced green manufacturing workers. Congressman 

Steven Knight, among many others, has applauded BYD’s investments: “BYD is a company that 

has brought good-paying manufacturing jobs back to California while other companies are 

choosing to export those jobs to other states and countries. . . . We need more companies like 

BYD in California that are training and building up a workforce of skilled individuals that are 

prepared for the manufacturing jobs of the future.” 3/

BYD is an example of a U.S. company developing its technology at home in the United 

States, rather than abroad. There is no forced technology transfer or stealing of intellectual 

property in China – rather, we are importing Chinese technology and benefitting from it here in 

the United States as we build upon that technology to improve the product. Imposing tariffs on 

BYD would be doing the opposite of the goals of the Section 301 investigation.

The product that is the subject to this exclusion request is contributing to the 

Administration’s efforts to reduce our global trade deficit – we have exported this product once it 

has been modified at our Lancaster facility, to Canadian transit agencies. BYD is an American 

success story, fulfilling the President’s goals to manufacture and export high-quality, globally 

competitive American products, all the while supporting good, well-paying U.S. manufacturing 

jobs. If BYD is not able to import the above requested products, it would incentivize the 

company to reduce the amount of U.S. manufacturing and open new manufacturing facilities in 

Canada, where Section 301 tariffs are not levied on our imports. We would prefer, however, to 

grow our presence in the United States and support the American workforce that we have 

trained and developed.

 

3/ Charged Electrical Vehicles Magazine, BYD expands California electric bus factory, Charged (Oct. 

17, 2017), available at https://chargedevs.com/newswire/byd-expands-california-electric-bus-factory 

(Exhibit 2); Ross Naksone, Electric Buses = More Good, Union Jobs for Low-Income Californians, Blue 

Green Alliance (Aug. 1, 2017), available at https://www.bluegreenalliance.org/resources/electric-busesmore-good-union-jobs-for-low-income-californians (Exhibit 3).
5

II. Tariffs will Harm U.S. Businesses and the Health of U.S. Communities

Tariffs on these products will harm U.S. manufacturing – both at BYD Motors, Inc., as 

well as at its customers. We up-fit the imported product with components and hardware in 

Lancaster, including for example suspension, brakes, steering, seats, video surveillance 

equipment, fabrication, and other features preferred by the customer. In other instances, the 

up-fitting is done by third party suppliers located around the United States. It is common for at 

least 30% of the final product’s value to come from United States manufacturing. 

More broadly, our products differ from other imported items in that they use a lithium 

iron-phosphate battery. These products are better for health and safety, and are superior to our 

competitors’ batteries. They are the longest lasting batteries on the market, are fully recyclable, 

and have no toxic chemicals. 

III. The Product is Only Available from China

BYD understands that this electric bus product using an iron-phosphate battery is only 

available in commercial quantities from China.

IV. The 10 Digit Subheading of the HTSUS Applicable to the Product 

Requested for Exclusion

The 10 digit subheading of the HTSUS applicable to the product at issue here is 

8702.90.3100.

V. Identification of the Particular Product, Physical Description of the Product, 

and Ability of CBP to Administer the Exclusion

BYD proposes that this product, with a length of 30.7 ft., width of 95.7 in., height of 132.3 

in., and wheelbase of 195.2 in., be excluded from the Section 301 tariffs. The product’s physical 

description is set forth below. Additional information is provided at Exhibit 4.
!Dimensions 

Performance 

Chassis 

Motor 

Length 

Width 

Height 

Wheelbase 

Overhang (Front/Rear) 

Curb Weight 

OVVVR 

Seats 

Wheelchair Area 

Top Speed 

Max_ Gradeabilirif 

Ground Clearance 

(Outside Axle Zones 

Range 

Turning Radius 

Approach/Departure 

Angle 

Front Axle 

Drive Axle 

Suspension 

Brakes 

Tires 

Type 

Max. Power 

Rated Rower 

Max_ Torque 

Rated Torque 

Type 

Capacity 

Power 

Charging Time 

Standard 

30_7 ft, (9360 mm) 

95.7 in (2430 mm) 

132.3 in (3360 rnm) 

195.2 in (4957 mm) 

89.0 / 84.4 in (2260 / 2143 mm) 

22.487 lbs (10200 kg) 

29,762 lbs. (13500 kg) 

Up to 22.-1 

2 

56 mph (90km/h) 

a.-17% 

59 in (228.6 mm) 

5137 miles (5220 km) 

-<31 ft 4 m) 

58 6- / _?-8 6- 

ZF front axle 

BYO in-wheel drive axle 

Air suspension with mechanical 

leveling valves 

Front & rear disc-brakes, ABS 

285/70R19.5 

AC Permanent magnet 

synchronous mom 

90 kVVx2 

75 kWx 2 

400 N-mx2 

280 N•mx2 

BYD Iron-Phosphate Battery 

176 kWh (652.8'V', 300Ah x1) 

40 kW x2, 480 V, 3 phases, AC 

2-2,5 h 

IIX. Quantity and Value of the Product over the Last Three Years 

BYD has not imported this product from 2015-2017. 

************** 

For the reasons explained above, we urge USTR to grant an exemption for the 

aforementioned product from the Section 301 tariffs. 

Respectfully submitted, 

HOGAN L VELLS US LLP 
Exhibit 1


Exhibit 2




Exhibit 3


Exhibit 4
THE OFFICIAL SPONSOR 

OF MOTHER NATURETM

THE WORLD’S FIRST

30-FT LONG-RANGE BATTERY-ELECTRIC BUS

Aordable, Dependable and American-Made

BYD’s 30-ft Battery-Electric Bus brings an innovative, green solution to your transportation needs. Utilizing BYD’s 

proprietary Iron-Phosphate battery, this quiet vehicle produces zero emissions, has a range of 135 miles

on a single charge, and integrates easily into your transit or shuttle fleet.

Built at the BYD Coach and Bus Factory in California, this bus is compliant with “Buy America,” FMVSS and

ADA regulations.

Revolutionary Iron-Phosphate Batteries

are non-toxic and environmentally

friendly.

Powerful in-wheel motors provide

instant torque for great performance

in all driving conditions.

Regenerative breaking reduces wear

while capturing energy to charge

the battery.

This bus can be charged in 2-3 hours

and can also be used as a mobile

power supply.
VEHICLE 30–FT

Dimensions

Performance

Chassis

Powertrain

Note: 1. All information based on the latest data available at the time of printing. Final specs subject to change at production.

2. Initial battery capacity shown. May decrease with time and use.

3. Battery age and outside ambient temperature aect charging times.

Length

Width

Height

Wheelbase

Curb Weight

Gross Weight

Seats

Wheelchair 

Positions

Top Speed

Max Gradeability

Range

Turning Radius

Approach/

Departure Angle

Front Axle

Rear Axle

Suspension

Brakes

Tires

Motor Type

Max Power

Max Torque

Battery Type

Battery Capacity

Charging Capacity

Charging Time

30.7 ft

95.7 in

132.3 in

195.2 in

22,487 lbs

29,762 lbs

Up to 22 + 1

2 on street side

56 mph

17%

135 miles

30.1 ft

8.6° / 8.6°

ZF

BYD in-wheel drive axle

Air suspension

Knorr front/rear brakes, ABS,Regenerative braking

285/70 R 19.5

AC Synchronous

90 kW x 2

400 N•m x 2

Iron Phosphate

195.6 kWh

40 kW x 2

2-3 hrs

facebook.com/bydcompany twitter.com/bydcompany youtube.com/bydcompany www.byd.com

WHAT SETS BYD APART

HIGH PERFORMANCE

BYD’s breakthrough battery technology oers

an impressive range of over 135 miles

per charge

LONG-LASTING

With a 12-year battery warranty, you’ll never

need to replace batteries

ECO-FRIENDLY

No need for oil changes or particulate traps,

and our batteries are 100% recyclable

SAFE

BYD’s proprietary Iron-Phosphate Battery has

been tested in the most extreme conditions and

is far safer than standard lithium-ion batteries

AFFORDABLE

lower total cost of ownership than diesel,

CNG or hybrid alternatives

Lower fuel and maintenance costs mean