NEW YORK 

WASHINGTON, DC 

MILWAUKEE 

LOS ANGELES 

HONG KONG yxwvutsrqponmlkjihgfe

GRUNFELD I DESIDERIO i LEBOWITZ 

SILVERMAN I KLESTADT zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA LLP 

VIA WWW.REGULATIONS.GOV October 4, 2018 

The Honorable Robert E. Lighthizer 

Office of the United States Trade Representative 

Executive Office of the President 

600 17th Street, NW 

Washington, DC 20508 

Re:  Docket No. USTR­2018­0025 

Rikon Power Tools Inc. 

Request for Exclusion of Particular Products from the 

Determination of Action Pursuant to Section 301 

Our Reference:  13208­0890001 

RIKON Power Tools Inc. ("RIKON") respectfully submits this letter in support of its 

requests for the exclusion of the wet sharpeners described in the attached exclusion request form 

from the xutsrqonmlihfedcaSRPEDCA Determination of Action Pursuant to Section 301, 83 Fed. Reg. 28710 (June 20, 2018) 

(hereinafter "Section 301­List 1").  This letter is submitted in accordance with the Procedures to 

Consider Requests for Exclusion of Particular Products from the Determination of Action 

Pursuant to Section 301 as set forth in docket number USTR­2018­0025, 83 Fed. Reg. 32181 

(July 11, 2018), published by the Office of the United States Trade Representative ("USTR") 

(the "Request for Exclusion Procedures").1  The RIKON wet sharpeners in question are 

classifiable under subheading 8460.31.0080, Harmonized Tariff Schedule of the United States 

As discussed below, RIKON submits that the USTR should exclude the subject wet 

sharpeners classifiable under HTSUS subheading 8460.31.0080 from the additional duties for the 

following reasons: 

1  The Product Exclusion  Forms filed for each RIKON power tool sets out the annual quantity and value of the 

Chinese­origin product that RIKON purchased in each of the last three years. 

("HTSUS"). 

10060663  1 

599 LEXINGTON AVENUE FL 36 NEW YORK, NY 10022-7648 I TEL. 212.557.4000 I FAX 212.557.441 5 I www.GDLSK.com 
GDLSK 

GRUNFELD  1   DESIDERIO  ILEBOWITZ 

SILVERMAN  S  KLESTADT  LLP 

•  There is no pracLical  alternative source for supply, in the United States or 

elsewhere, for these products; 

•  Imposition of these tariffs will cause severe economic harm to U.S. interests, 

including small­ or medium­size businesses as well as U.S. consumers.  RIKON 

will have to raise  prices, limit growth, and consider layoffs in order to absorb 

these tariff increases. 

•  Imposing the additional 301 duties on these goods will be neither practicable nor 

effective in obtaining the elimination of what the USTR has found to be China's 

harmful acts, policies, and practices related to technology transfer, intellectual 

property, and innovation.  On the contrary, imposition of the 301 duties on these 

goods will cause severe economic harm to U.S. businesses and consumers. yxwvutsrqponmlkjihgfedc

1. COMPANY BACKGROUND 

Founded in 2009, RIKON is a small, privately held company headquartered in Billerica, 

MA.  RIKON designs, manufactures, and imports woodworking power tools, including the wet 

sharpeners described in the accompanying exclusion request.  RIKON's tools are typically sold 

at hardware and woodworking stores and are used primarily by  consumers for "do it yourself 

projects, as well as at some professional woodworking shops.  The tools are also used in 

commercial projects, including for public works and infrastructure projects, where cost increases 

would ultimately be borne by U.S. taxpayers.  The end products produced using such tools 

include furniture, cabinets, millwork, and shelving. 

II. TARIFF CLASSIFICATION AND PROPOSED DRAFT TARIFF 

LANGUAGE 

The wet sharpener described in the attached Exclusion Request Form is classifiable in 

subheading 8460.31.0080, FITSUS, which covers "Machine tools for deburring, sharpening, 

grinding, honing, lapping, polishing or otherwise finishing  metal or cermets by means of 

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GRUNFELD I DESIDERIO ! LEBOWITZ 

SILVERMAN zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA S  KLESTADT LLP 

grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear 

finishing machines of heading 8461: Sharpening machines: Other."  U.S. Customs and Border 

Protection ("CBP") has not issued any rulings on this particular product or tariff classification. 

We respectfully request that CBP consider the product description in box number 2 of the 

attached form to serve as Rikon's proposed draft tariff language. 

III. ADMINSTRATION OF EXCLUSION BY CBP 

If the USTR grants this request for exclusion, the exclusion will  be easily administered 

by CBP.  The product is identifiable on entry  documents (including commercial invoices and 

bills of lading or packing lists) by product number and/or a clear  product description.  CBP, 

therefore, will not find  the exclusion of these products from Section 301 tariffs overly 

burdensome. 

IV. DISCUSSION 

A. R1KON Cannot Source This Product Outside of China 

RIKON sources this product in China because there are no comparable manufacturers in 

North America, including the United States, or elsewhere.  Indeed, none of RIKON's 

woodworking tools are manufactured in the U.S., and have not been for many years.  China, by 

contrast, possesses an experienced manufacturing industry for woodworking tools with the 

capacity to meet the demands of the U.S. market.  Significantly, there are currently no alternative 

manufacturing locations that can compete with or replace China with respect to tool production. 

3 
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GRUNFELD  I   DESIDERIO  ILEBOWITZ 

SILVERMAN S  KLESTADT  LLP 

Even if alternative manufacturing sources were available, RIKON estimates that it would 

take 9 to 16 months to move production and an additional 6 months to match its current 

production levels.  RIKON's wet sharpeners and their current manufacturers have also been 

vetted by various certification companies (e.g., Edison Testing Laboratories or "ETL") to apply 

their respective certification marks confirming that RIKON's products meet specific safety 

standards.  We have attached as yxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Exhibit A, for example, authorization letters covering multiple 

wet sharpeners imported by RIKON including the wet sharpener now at issue.2  This certification 

process took several months to complete and entailed a significant financial investment.  RIKON 

considers these certification marks very important to its business model and, therefore, the pool 

of potential non­China alternatives is necessarily narrowed to only those capable of 

manufacturing RIKON's wet sharpeners in the xutsrqonmlihfedcaSRPEDCA exact same manner as the company's current 

Chinese manufacturers and willing to under the certification process necessary to permit the use 

of the attached certification marks.  To date, RIKON is unaware of any such alternative 

manufacturers that can accommodate the company's demands. 

B. The Imposition of Additional Section 301 Duties on This Product 

Would Cause Severe Economic Harm to U.S. Consumers and to 

RIKON 

The imposition of additional 301 duties would lead to decreased sales and loss of profits 

for RIKON (and for the small businesses that distribute RIKON's products), and higher prices 

2  These certificates can be matched to the exclusion form at issue  by the item number provided on the accompanying 

exclusion form. 

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GRUNFELD I DESIDERIO i LEBOWITZ 

SILVERMAN zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 8  KLESTADT LLP 

for American consumers.  This lose­lose proposition conflicts with the USTR's stated goals in 

proposing the 301 duties. 

Imposing the additional 301 duties on these products will cause severe economic harm to 

RIKON and its customers.  RIKON estimates that the additional Section 301 duties would force 

it to increase its prices by 14% to 21% ­ the largest price increase in the history of the company. 

Those price increases would be passed along to U.S. consumers, resulting in an estimated 20­

30% decrease in sales for RIKON.  That significant decrease translates to a reduction in 

RIKON's profits of up to 15%.  If the additional tariffs remain in place for an extended period, 

RIKON believes that the combined drop in sales and reduction in profits would eventually force 

it to close one of its two distribution centers and lay off employees.  Indeed, as demonstrated by 

the e­mail attached as Exhibit B, RIKON  has already cancelled a planned expansion of its East 

Coast distribution center, as well as plans to upgrade its material handling equipment (fork lifts, 

order pickers, and the like).  This e­mail is dated August 2, 2018 and is from RIKON's President 

to its Board of Directors.  RIKON's President writes regarding the lease negotiation process for 

the expanded facility, "When this started nobody thought that the Tariffs would be implemented, 

considering the tariffs and what it looks like to me to be more to come.  I think we should just 

renegotiate the current lease and stay in the same space we have now [emphasis addedl."  A 

letter from Rikon to this effect is also included in Exhibit C.  Thus, as a direct result of the 

proposed tariffs, RIKON chose not to expand its distribution facility thereby foregoing additional 

jobs and profits that would  have accompanied the addition. 

Imposition of these tariffs will also cause severe economic harm to the U.S. construction 

industry, which is a primary engine of growth in the U.S. economy.  RIKON's tools  are used in 

5 
GDLSK 

GliUNFELD  I   DESIDERIO  ILEBOWITZ 

SILVERMAN S   KLESTADT  LLP 

a variety of large and small residential and commercial projects ­ including for public works and 

infrastructure projects, where cost increases would ultimately be borne by U.S. taxpayers. yxwvutsrqponmlkjihgfe

C. RIKON's Products Are Not Strategically Important or Related to 

"Made in China 2025' or Other Chinese Industrial Programs 

It is important to note that there are no intellectual property secrets transferred to the 

unrelated Chinese suppliers of woodworking tools.  The imposition of a 25% duty on such 

products is therefore not practicable or effective in obtaining the elimination of China's acts, 

policies, and practices.  Woodworking tools also do not utilize any significant industrial 

technology; as such, they cannot enhance technology transfer or Chinese innovation. 

Woodworking tools also do not contribute to the advancement of any of the industries identified 

in the "Made in China 2025"3 or similar China initiatives. There is simply no nexus between 

woodworking tools and the objectives of Section 301. 

In addition, the value of woodworking tools exported from China to the U.S. is extremely 

insignificant relative to the Chinese market.  Even if the export of woodworking tools from 

China to the U.S. were to  be stopped altogether, it would  have little or no impact on China; the 

Chinese suppliers can simply sell such products to other countries without feeling the effect of 

the U.S. tariff. 

,gov/sites/default/Files/enforcement/301 Investigations/30 l%20Draft%20Exec%20Summarv%203 

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GRUNFELD I DESIDERIO ILEROWITZ 

SILVERMAN zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 5  KLESTADT LLP 

Finally, we are not aware of any domestic industry that will be protected by imposing the 

proposed 301 duties on woodworking tools.  As a consequence, increased duties on such tools 

will not be practicable or effective in obtaining the elimination of the acts, policies, and practices 

of China identified by the USTR. 

V. CONCLUSION 

For the reasons set forth above, we request that the USTR exclude the wet sharpeners 

classifiable under subheading 8460.31.0080, HTSUS, and identified on the attached exclusion 

request form from Section 301­List 1.  We further certify on behalf of RIKON  that the 

information provided with this exclusion request is complete and correct to the best of RIKON's 

knowledge.  We appreciate the USTR's consideration of these comments. 

Please contact us if you have questions about this submission. 

Respectfully submitted, 

GRUNFELD, DESIDERIO, LEBOWITZ, 

SILVERMAN & KLESTADT LLP ywutsrponlkjihg

/J  /ti ^ 6 <• .(. y 

Patrick J. Caulfield 

10060663  1 

7 
EXHIBIT A xutsrqonmlihfedcaSRPEDCA

C>\ 
AUTHORIZATION TO MARK zyxwvutsrqponmlkihgfedcbaYXWVUTSRPON

This authorizes the application of the Certification Mark(s) shown below to the models described in the Product(s) 

Covered section when made in accordance with the conditions set forth in the Certification Agreement and Listing 

Report. This authorization also applies to multiple listee model(s) identified on the correlation page of the Listing Report. 

This document is the property of Intertek Testing Services and is not transferable. The certification mar1<(s) may be 

applied only at the location of the Party Authorized To Apply Mark. 

Applicant: 

Address: 

Country: 

Contact: 

Phone: 

FAX: 

Email: 

WENDENG ALLWIN MOTORS 

MANUFACTURING CO., LTD. 

NO.15, SICHAN ROAD, WENDENG, 

SHANDONG, CHINA 264400 

CHINA 

Mr. Wang Yanqing 

86-631-8984856 

86-631-8451624 

paul@allwin-motor.cn 

Manufacturer; 

Address: 

Country: 

Contact: 

Phone: 

FAX: 

Email: 

WENDENG ALLWIN MOTORS 

MANUFACTURING CO., LTD. 

NO.15, SICHAN ROAD, WENDENG. 

SHANDONG, CHINA 264400 

CHINA 

Mr. Wang Yanqing 

86-631-8984856 

86-631-8451624 

paul@allwin-motor.cn 

Party Authorized To Apply Mark: 

Report Issuing Office: 

Control Number: ywutsrponlkjihgfedcbaYUTSOMJCA 3168328 

Same as Manufacturer 

Intertek Testing Services Shanghai Limited 

Authorized by: 

Intertek 

This document supersedes all previous Authorizations to Mark for the noted Report Number. zyxwvutsrqponmlkjihgfedc

This AuthorizabOfi to  Mark is for the exclusive use of Intertek'a Client and Is provided pursuant to the Certrfication agreement between  Intertek and its Client. Intarlek's responsibility and liability are limited 

to the terms and conditions of the agreement. Intertek assumes no liability to any party, other than to the Client in accordance with the agreement, lot any loss, expense or damage occasioned by toe  use 

of  this Authorization to Mark. Only the Client is authorized to permit copying  or distribution of  this Authorization to Mark and  then only in its entirety. Use of  Intertek's Cerlincation mark is restricted to the 

conditions laid out in the agreement and in this Authorization to Mark. Any further use of the intertek name for the sale or advertisement of the tested material, product or service must first be approved in 

writing by Intertek. Initial Factory Assessments and Foaow up Services are for the purpose of assuring appropriate usage of the Certification mark In accordance with the agreement, they are not for the 

purposes of production quality control and do not relieve the Ciienl of their obligatkms in this respect. 

Intertek Testing Services NA Inc. 

545 East Algonquin Road, Arlington Heights, IL 60005 

Telephone 800­345­3851 or 847^39­5667  Fax 312­283­1672 

Stationary and Fixed Electric Tools 

Standard(s); UL987, Eighth edition, Rev. December 19, 2013 , 

Electric Bench Tools 

CAN/CSA C22.2 No. 71.2-10, Update No. 1: Oct. 2010 

Product: Sharpener 

Brand Name: ­

Models: SCM8101, 055-3506-0, MAG-SCM8101, CT191, SCM8080, 49837(82-100 1* 

ATM for Report 150401915SHA-001 Page 1 of 1 ATM Issued: 12-Jun-2015 

ED 16.3.15 (1^an­13) Mandatory 
CSA 

Group yxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJI

Certificate of Compliance 

Certificate: 1936834 

Project: 70050632 

Issued to: Wendeng Allwin Motors Manufacturing 

Co Ltd 

15 Sichan Rd 

Wendeng, Shandong 264400 

China 

Attention: Paul Yanqing 

Master Contract: zyxwvutsrqponmlkjihgfedcbaZY226002 

Date Issued: February 16, 2016 ywutsrponlkjih

The products listed below are eligible to bear the CSA 

Mark shown with adjacent indicators 'C and 'US'for 

Canada and US or with adjacent indicator 'US' for 

US only or without either indicator for Canada only. 

ChrOy Y0n/ 

Issued by: Chris Yin 

PRODUCTS 

CLASS 3881 83  ­ TOOLS­Stationary and Fixed ­ Electrical Tools­Certified to US Standards 

CLASS 3881 03  ­ TOOLS ­ Bench 

Grinder, cord connected, grounded, Models 055­3500­2, 055­3503­6, 055­3521­2, 13573, 13574, 13575, 

176388, 21124­3, 21154­3, 21162­3, 2201960, 23­196, 23­197, 241­0817, 241­0818, 31510, 31520, 32739211, 

32739237, 351.211241^.211242, 380873, 4276, 4286, 49H004, 49H008, 55­3518­2, 61748, 61748, 

6973838, 720006.(80­805? 80­805, 80­808, 8335390, 8499154, 94071, APPB006,  APT2301, ATD­10556, 

ATD­10558, BG1500BD, BG1500PC, BG2000BD, BG2000M, BGSS801, CX905, CX906, DS150, DSM150, 

ERPB006, H7757, M90083, MAG­TDSG150VLA, MAG­TDSG200VLA, PCB515BG, RK7867, SP­PB006, 

T10875, T24464, T27305, TBG6A, TDS­150C, TDS­150CL, TDS­150CLA, TDS­150EB, TDS­150EBL, 

TDS­150ED, TDS­150EE, TDS­200C4, TDS­200CL, TDS­200D4, TDS­200EA, TDS­75, TDS­75B, TDSG150YEA, TDS­G150VLB, TDS­G150VLC, TDS­G150VLCB, TDS­G150VLD, TDSG150VLDB, TDSG150VLE, TDS­G150VLG, TDS­G200VLA, TDS­G200VLB, TDS­G200VLC, TDSG200VLCB, TDSG200VLD, TDS­G200VLDB , TDS­G200VLE, TDS­G200VLG, TLG­150AL, TLG­200L4, VG1500PC, 

VG2000PC. 

Grinder/Sander, cord connected grounded, Model TDS­150CSL, TDS­150CSA, TLGS625, TLGS625A, 

TLGS825, 4266, 8532285. 

DQD 507 Rev. 2012­05­22  Page:  I 
CSA 

Group yxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONM

Certificate: 1936834 

Project: 70050632 

Master Contract: 226002 

Date Issued: zyxwvutsrqponmlkjihgfedcbaZYXWVUTFebruary 16, 2016 

Notes: Prefix and suffix may be added for features not affecting Certification. 

For details related to rating, size, configuration, etc. reference should be made to the CSA Certification Record 

or the descriptive report. 

APPLICABLE REQUIREMENTS 

CAN/CSA­C22.2 No.  71.2­10  ­  Electric Bench Tools 

UL Std No.  987­8th Edition  ­  Stationary and Fixed Electric Tools 

DQD 507 Rev. 2012­05­22  Page: 2 
EXHIBIT B 
Caulfield, Patrick J. ywvutsrponmlkjihgfedcbaZUTSRONMKJIHGFCBA

To: zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Jack Bransfield 

Subject: RE: Lease in  Billerica 

From: Jack Bransfield 

Sent: Thursday, August 2, 2018 9:49 PM 

To: John Zhush 

Cc: Ben Shum ,Steve Wang, Joe Taylor 

Subject: Lease in Billerica 

John and all 

I  have attached the moist recent offer from CBRE the agents Albany Road the owners of 16 Progress Road. I  do not think 

it will get any better than what you see in these 2 attachments. When this started nobody thought that the Tariffs would 

be implemented, considering the tariffs and what it looks like to me to be more to come. I think we should just 

renegotiate the current lease and stay in the same space we have now. It is very crowded right now, but we have most 

of our Inventory in without paying much in the Tariffs yet. I  think we can stay where we are for now. I  would like to try 

and negotiate another 3­year lease, if the landlord won't accept that then we still have 10 Months to look for new space 

or consider signing a 5­year lease. I  only mention this because I  know that is what they want. The reason we were 

offered the adjoining space is that Amarr the current tenant only wants to sign a 3­year lease, so it might be that they 

will accept our request. Then it is just a matter of how much they want for rent. 

If  you disagree please let mew know I  have another meeting with them tomorrow and I  know they want an answer on 

the attached offer. I  can probably stall until Monday but then I  will have to either sign a letter of intent or let them know 

we are not interested in the additional apace 

Attachments 

1.  RIKON OCA 7­27­18  this is a comparison of the Occupancy costs for each of the offers we have 

discussed 

2.  16 Progress rd.  ­ revised  this is a copy of the most recent offer. They lowered the rent to what I  had 

been asking for, and are also offering us a one­time payment $81,400.00 (2.00 psf) Improvement Allowance to 

be used by RIKON to make improvements in the space 

Thanks 

Jack Bransfield 

President 

16 Progress Road 

Billerica, MA 01821 

^www. rikontools.com 

T: 877­884­5167 

0:781­983­5518 

F: 978­528­5383 

1 
CONFIDENTIALITY. This electronic mail and any files transmitted with it may contain information proprietary to RIKON Power Tools, Inc. (RIKON), or one of its 

subsidiaries or affiliates, and are intended solely for the use of the individual or entity to whom they are addressed, shall be maintained in confidence and not 

disclosed to third parties without the written consent of the sender. If you are not the intended recipient or the person responsible for delivering the electronic mail 

to the intended recipient, be advised that you have received this electronic mail in error and that any use, dissemination, forwarding, printing, or copying of this 

electronic mail is strictly prohibited. If you have received this electronic mail in error, please immediately notify the sender by return mail. 

2 
EXHIBIT C 
POWER TOOLS, INC. 

16 Progress Road, Billerica, MA 01821  I  www.rikontools.com 

Toll Free: 877­884­5167  i  Tel: 978­528­5380 I  Fax: 978­528­5383 

October 1, 2018 

RIKON East Coast Distribution Center expansion. 

When we closed the year in 2015, we realized that if we wanted to continue to grow and 

expand the business we would need a 2

nd Distribution center that was located more in the center of the 

Country. In 2016 we found space in Franklin Park IL and opened our second Distribution Center with 4 

new employees. It has now been up and running for a full year and we feel it has been a big help in 

satisfying our Customers, 

When we closed 2017, we had an opportunity to expand our East Coast Corporate Headquarters 

and Distribution Center. We started negotiations with our current landlord to take an additional 20,000 

sqft in the same building we are in now. This would have doubled the size of our facility and reduced our 

Inventory handling costs. We now use storage trailers for more than 6 months of the year because we 

have out grown our space. 

When we learned that the government would implement the Tariffs on China imports, we 

started to reconsider our expansion. Then in August when negotiations were starting to get serious and 

it was time to make a commitment, we decided that considering the uncertainty over the Tariffs and 

how long it might last we decided to cancel the East Coast expansion. We also cancelled plans to 

upgrade our warehouse equipment (fork lifts. Order pickers and shrink wrappers). This was done due to 

our uncertainty over how long the Tariffs would continue. 

We also announced the largest product price increase in the history of the Company ­ as much 

as 20% on items affected by the Tariffs. This may cause us to lose our Canadian customers that are 

already pushing back on paying any increases caused by the tariffs.  We are anticipating as much as a 

25% drop in total US & Canadian sales for 2019 if the Tariffs continue. 

All these plans are now on hold until the current situation with China Trade is stabilized. 

Jack Bransfield 

President