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.64

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.

 

64 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). 
2

I. Product Description

We request that USTR exclude the Wire Connector Kit With Assorted Connectors; 570/Kit 5 

Kits/Master that is imported under HTS subheading 8536.90.4000. 

Item: #CK-570, Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master

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): 14.5x10x13

Item Weight (ounces): 244.80

II. ECM Cannot Source the Wire Connector Kit With Assorted Connectors; 

570/Kit 5 Kits/Master From Countries Outside Of China. 

The Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master. 

Shifting to a non-Chinese source for the Wire Connector Kit With Assorted Connectors; 570/Kit 

5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master at the scale and cost 

that is needed. The Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 

570/Kit 5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 

570/Kit 5 Kits/Master 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 Wire Connector Kit 

With Assorted Connectors; 570/Kit 5 Kits/Master. We believe that developing the necessary 

manufacturing capacity within America is technically and economically infeasible in the short 

term to meet our customers’ demand requirements. Based on our understanding, the U.S. 

suppliers of Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master also import 

products or components from Chinese suppliers and then add some limited value through 
3

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 Wire Connector Kit With Assorted 

Connectors; 570/Kit 5 Kits/Master. 

III. The Imposition of this Duty on the Wire Connector Kit With Assorted 

Connectors; 570/Kit 5 Kits/Master 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 Wire 

Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master from China and imposition of 

this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The proposed duty on the Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master 

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 Wire Connector Kit With Assorted Connectors; 570/Kit 

5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master 

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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 

Kits/Master 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 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 
4

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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master can be 

passed on, we expect most of the impact will be felt by consumers and contractors who buy and 

use CK-570 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 Wire Connector Kit With 

Assorted Connectors; 570/Kit 5 Kits/Master will significantly harm ECM and our customers 

here in the U.S.

IV. Imposing the Ad Valorem Tariff under Section 301 on the Wire Connector Kit 

With Assorted Connectors; 570/Kit 5 Kits/Master 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.65

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.66

Notably, the Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master and its 

manufacture are not among the list of advanced technologies or industries that are targeted by the 

Chinese government policies.

The Wire Connector Kit With Assorted Connectors; 570/Kit 5 Kits/Master 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 Wire Connector Kit With 

 

65 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].

66 Section 301 Findings, at 14. 
5

Assorted Connectors; 570/Kit 5 Kits/Master 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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 

Kits/Master 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 Wire Connector Kit With Assorted Connectors; 570/Kit 5 

Kits/Master 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