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:

2017 Value:

2016 Quantity:

2015 Quantity:

2017 Quantity:
 

United Scope LLC 14370 Myford Rd., Suite 150, Irvine, CA 92620 Tel: 949-333-0001

SE304-P 

Submitted via www.regulations.gov

October 9, 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) 

9011.10.8000

 

Dear Ambassador, 

 

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 stereo microscopes imported by United Scope LLC

(“United Scope” or “the Company”), under HTS 9011.10.8000 be excluded from the additional 

25% tariff imposed on this HTS code pursuant to Section 301.

 

Explained below are the reasons why the stereo microscopes 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 stereo microscopes are classified under HTS 9011.10.8000, which covers stereo 

microscopes, other than those provided with a means for photographing the image. Stereoscopic 

microscopes are classified under a 6-digit subheading – HTS 9011.10 – and immediately broken 

down into two finer categories at the 10-digit statistical suffix level. The first one is HTS 

9011.10.4000, “stereoscopic microscopes: provided with a means for photographing the image,” 

and the second one is HTS 9011.10.8000, “stereoscopic microscopes: other.” The subject 

stereoscopic microscope, model number SE304-P, is classified in the latter category because the 

imported microscope does not have the means for photographing an image. 

Since stereoscopic microscopes are not categorized by 8-digit HTS codes, United Scope will 

distinguish the subject merchandise at the 10-digit level. The product is distinguished from the 

other 10-digit tariff description, as it is a non-industrial, consumer stereoscopic microscope used 

for mainly educational purposes. Stereoscopic microscopes are compound optical microscopes 

that allow specimens to be viewed in three dimensions. United Scope’s stereoscopic microscope 

differs from stereoscopic microscopes classified under HTS 9011.10.4000 because they are 

incapable of supporting film-based photographing abilities, with or without simple attachment. This 

binocular stereoscopic microscope measures 10.5" x 6.6" x 4.5", and uses independent left-right 

optical-pathways with tilted objective lenses. The objective-housing has a pair of 2X objective 

 

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

~ United Scope t'f) Global microscopy and optical solutions 
Section 301 Exclusion Request – List 1

Page 2

United Scope LLC 14370 Myford Rd., Suite 150, Irvine, CA 92620 Tel: 949-333-0001

lenses, and a pair of 4X objective lenses, which can be rotated into alignment with the ocular 

assembly by turning the housing. A prism aligns the images projected by the objective lenses with 

the ocular lenses. The 10X ocular lenses produce 20X and 40X compound-magnification 

depending on the objective lenses used. The non-removable, rear-facing head features a 45-

degree tilt. A short pillar allows the head to be moved vertically. A halogen lamp is mounted behind 

the objective-housing, and provides a light-source for viewing objects. The microscope is 

constructed with plastic and metal components, and optical-glass lenses. It does not support 

photography.

2. The Stereo Microscopes Cannot be Sourced from the U.S.

United Scope cannot source this product from the United States. As aforementioned, the 

stereoscopic microscopes are classified under HTS 9011.10.8000, of which there is a great divide 

between products with different capabilities. For products that offer more complex functionality, 

there are currently countries other than China where this product can be manufactured; however, 

United Scope does not sell those models. United Scope deals in basic, value-driven products 

where price competition is strict and alternative sourcing is extremely difficult to find. For example, 

United Scope found comparably priced products in other countries, such as India, but upon closer 

inspection, the Company realized that the product is actually sourced from China with little to no 

value added in the third country. This search illustrates the scarcity of suppliers in this industry 

and evidences that alternatives for production are few. 

United Scope is continuing to look for alternate suppliers, however, the search thus far has proven 

unsuccessful in finding comparably priced sourcing. Additionally, because the Company does 

not currently manufacture the stereo microscopes, it would require significant capital investments 

by their suppliers, estimated to be between $10 to $12 million, or joint ventures between United 

Scope and their suppliers, to set up production in other countries. At present, the time and cost 

of setting up a manufacturing base of their own anywhere else is cost-prohibitive at the Company’s 

current size.

3. Severe Economic Burden to United Scope and U.S. Interests

In total, United Scope only imports from [ ] per year of subject stereo microscopes from China. 

This imported value represents an insignificant amount of the $50 billion in imported goods from 

China that the Section 301 List 1 tariffs are intended to address. Further, United Scope is a 

relatively small-sized business, employing only 39 people but has been providing dependable 

products to American consumers for more than 20 years. Without drastically changing sourcing, 

United Scope would be paying an additional 25% to import the stereo microscopes thereby adding 

immensely to the company’s cost relative to its [ ] profit margin. The additional burden of paying 

these tariffs for its imports is vastly disproportionate to the size of the Company. The additional 

duties make it impossible for United Scope to absorb the additional financial impact and still retain 

its level of economic competition. In fact, the Company could quite possibly be unable to do so, 

meaning the Company would be forced to close and lay off employees.

These stereo microscopes represent one of the Company’s largest revenue source. To levy this 

large of an additional cost to the product translates to an additional cost of $2.5 million for every 

$10 million in material purchases on Chinese manufactured stereo microscopes. This would 

basically eliminate United Scope’s net income on the entire product offering for the entire period 

the tariffs are in effect or quite possibly shut down United Scope’s business, altogether. The 

elimination of numerous jobs and the elimination of an American company’s footprint to offset the 

tariff impact would, undoubtedly, ensue. As such, United Scope – an American-made company

– would suffer due to imposition of the additional tariffs. 

I 

I 
Section 301 Exclusion Request – List 1

Page 3

United Scope LLC 14370 Myford Rd., Suite 150, Irvine, CA 92620 Tel: 949-333-0001

4. Relevance to “Made in China 2025” Program

United Scope’s products do not infringe or license any existing U.S. patents. There are no U.S. 

patents or patent applications for the product included in this request. In fact, there is no 

proprietary technology or intellectual property developed or owned by the Company. United 

Scope is not aware of any material breach of intellectual property rights from this factory in its 

history of operation. Because microscope technology is well-established, United Scope does not 

own or license any intellectual property in acquisition of its microscopes, and it is not transferring 

any IP to the Chinese factory. There is no forced transfer of technology, which transfer is the focus 

of the Section 301 tariffs as discussed in the Section 301 report from the USTR.2

Stereo microscopes 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 stereo microscopes and the goals 

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

Additionally, United Scope’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 whose products employ well-established, widespread technology by forcing it to 

pay additional duties does not further the U.S. government’s policy regarding the “Made in China

2025” initiative. 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 the stereo 

microscopes by United Scope does not serve the purpose of the Section 301 goals but in fact 

contravenes the goals.

In light of the above, United Scope sincerely requests that its stereo microscope model SE304-P

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 small-sized U.S. company. United Scope certifies 

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

 

2 United States Officer of the Trade Representative “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”, (Mar. 22, 2018); also found at: https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF. 
Section 301 Exclusion Request – List 1

Page 4

United Scope LLC 14370 Myford Rd., Suite 150, Irvine, CA 92620 Tel: 949-333-0001

If you require any additional information or have any questions, please do not hesitate to contact 

our General Manager for Global Business Operations, Roger de León at (714) 942-3230 or email 

Roger@unitedscope.com. Your response or request for any additional information you may 

require may also be sent to the undersigned at the following address: 

United Scope LLC

14370 Myford Rd.

Suite 150

Irvine, CA 92606

Sincerely,

Orlan Davies

Vice President