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 particular product of concern:

4.

*

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/

7.

5. Requestor's relationship to the product:

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.

Requestor Information

Requestor Name (Last, First):

VERSION 2 CONTINUED BELOW 1
8. Is this product, or a comparable product, available from sources in the United States? (If you

9. Is this product, or a comparable product, available from sources in third countries? (If you

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.

2017 Value:

2016 Value:

2015 Value:

2017 Quantity:

2016 Quantity:

2015 Quantity:

% of your total gross sales in 2017 that the Chinese-origin product accounted for.

% of the total cost of producing the final product(s) the Chinese-origin input 

accounts for.

% of your total gross sales in 2017 that sales of the final product(s) incorporating 

the input accounted for.

VERSION 2 CONTINUED BELOW 2

indicate "NO", you must provide support for your assertion in Box 12).

indicate "NO", you must provide support for your assertion in Box 12).

11. Is the Chinese-origin product of concern sold as a final product or an input used in

a) For imports sold as final products, please provide:

b) For imports of inputs used in the production of final products, please provide:

the production of a final product or products?
12. Please provide information in support your request, taking account of the

VERSION 2 END 3

instructions provided in Section B of the Federal Register notice. If you

responded "NO" to Questions 8 or 9, you must provide support for your

assertion in the box below. (Note: text entered below can extend beyond the

apparent size of this box).
1

 

 

October 8, 2018 

 Docket No. USTR-2018-0025 

The Honorable Robert E. Lighthizer 

United States Trade Representative 

Office of the United States Trade Representative 

600 17th Street Northwest 

Washington, D.C. 20508 

Re: Request for Exclusion of 165 Piece Mechanics Tool Set Classified under HTS 8466.10.0175 from the 

Determination of Action Pursuant to Section 301 

Dear Ambassador Lighthizer: 

Sears Holdings Management Corporation (“Sears” or “the Company”) respectfully submits this request for

exclusion of the 165 Piece Mechanics Tool Set from the determination under Section 301 of the Trade Act of 1974 

(“Section 301 determination”).1

 In accordance with the USTR’s instructions, we respectfully request that certain 

information contained in the submission, identified by brackets, be afforded business confidential treatment.2

 The 

undersigned certifies that disclosure of the information identified in brackets in the confidential version of this 

submission would endanger the trade secrets and profitability of Sears and would not customarily be released to the 

public. 

For nearly a century, Craftsman tools have been the brand homeowners, home builders, auto enthusiasts 

and master mechanics trust. The Craftsman brand is known for its value-oriented, superior quality and highly 

reliable tools trusted for generations. Sears works with factories across the globe to ensure that the Craftsmanbranded tools maintain the quality and cost that consumers have grown accustomed to. 

 This exclusion request addresses 165 piece mechanics tool sets imported from China under HTSUS 

8466.10.0175 which is currently subject to the 25% additional Section 301 tariff. A full description as well as the 

ability of U.S. Customs and Border Protection to administer this exclusion is provided in the attached Section 310 

Investigation Form to Request Exclusion of Product. Please note that a separate Form has been submitted for each 

unique item number for which Sears is requesting an exclusion. 

In accordance with the procedures released by the Office of the United States Trade Representative 

(USTR),3

 Sears provides the following information requested by the USTR in support of this request. 

 

1 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. 28,710 (June 20, 2018) (“Request 

for Comment”). 

2 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, 32,183-84 (USTR 

July 11, 2018) (“Procedures To Consider Requests for Exclusion”). 

3

 Procedures to Consider Requests for Exclusion, 83 Fed. Reg. at 32,182-83. 

Dean Schwartz 

President, Hardlines 

Sears Holdings Management Corporation 

3333 Beverly Road, C4-100A 

Hoffman Estates, IL 60179 
2

1. A complete and detailed description of the product of concern. 

As noted above, we request exclusion of the 165 piece mechanics tool set from the Section 301 

determination. The specific details, including the components of the tool set, are included in the exclusion request 

form accompanying this attachment. A detailed description of the composition for the 165 piece mechanics tool 

sets classified under HTSUS 8466.10.0175 is also provided below. The photo below provides an example of the 

subject mechanics tool set imported under this classification. 

Mechanics Tool Sets classified under HTSUS 8466.10.0175 are utilized by auto enthusiasts and mechanics. 

It includes two (2) quick-release ratchets in 1/4" and 3/8" drives; seventy-nine (79) sockets in both inch and metric 

measures; two (2) extension bars; two (2) adapters; four (4) wrenches; one (1) magnetic handle; sixty-one (61) 

screw and nut driver bits; and fourteen (14) hex keys housed in a carrying case. 

2. The ability of US Customs and Border Protection (CBP) to administer the exclusion. 

We have filed a separate Section 301 Investigation Form to Request Exclusion of Product for each item 

number for which we are requesting an exclusion. The specific details on the ability of CBP to administer each 

separate exclusion are included in the exclusion request form for the item number accompanying this attachment. 

3. Availability of the product outside of China, i.e. whether the particular product and/or a comparable 

product is available from sources in the United States and/or in third countries. 

For the last ten years, China manufacturing has dominated the production of mechanics hand tools. [ 

]

[

 ]
3

Moreover, the 25% tariff will not protect, grow, or otherwise change the industry as it relates to the

production of mechanics tool sets. Given the large capital investment required to develop factories to manufacture 

such products at the capacity required, such factories will likely not be built in the U.S. as a response to the Section 

301 determination. There is virtually no possibility that major capital investments will be made based solely on the 

benefit that the tariff might provide to the domestic industry, as any tariff may easily be reversed in the future by a 

subsequent administration. 

4. Whether the imposition of additional duties on the particular product would cause severe economic harm 

to the requester or other US interests. 

The imposition of tariffs of 25% on the subject product will cause severe economic harm to U.S. interests. 

The sale and use of the products are directly tied to and complement U.S. operations and a variety of jobs. 

The increase in the importation duties of these products will impact our ability to provide products necessary for 

construction workers, auto repair technicians, contractors, trades people, and do-it-yourselfers. Our increased costs 

will be passed on to these vital U.S. industries and negatively impact their ability to use quality tools to build, repair, 

make and manufacture in the United States. 

[ ] For these 

specific products, Sears faces over [ ] in potential additional duties each year. These products are strong 

contributors to Sears and the Craftsman brand and contribute to the overall stability of the company and brand. 

When all three phases of the Section 301 duties are implemented, Sears faces a staggering sum of additional duties 

each year which will cause serious economic harm to our company. 

5. Whether the particular product is strategically important or related to “Made in China 2025” or other 

Chinese industrial programs. 

Mechanics tool sets are neither strategically important, nor related to “Made in China 2025” or any other 

Chinese industrial program. The technology required to produce them has no bearing on any existing U.S. – China 

technology dispute or claim. 

If the purpose of the Section 301 tariff is to change China’s behavior regarding intellectual property and 

technology transfer, the current tariff on mechanics tool sets is a completely unrelated product category to achieve 

those objectives. While Sears has developed strategic relationships with its suppliers and factories, it maintains no 

ownership interest in Chinese factories and does not purchase capital equipment or raw materials for their exclusive 

use. There is no relevant intellectual property associated with these products and Sears has never been asked nor 

required by the Chinese government or any other non-governmental Chinese organization to provide any assistance 

that would not itself benefit Sears or its customers.

Finally, as detailed above, the imposition of a 25% tariff on mechanics tools sets does not serve Section 

301’s stated purpose of eliminating China’s discriminatory acts, policies, and practices. Because the majority of 

mechanics tool sets are manufactured in China, U.S. retailers have no choice but to continue to make purchases 

from the China-based factories. A tariff on this product will not drive changes in Chinese trade behavior or the 

purchasing patterns of U.S. consumers. Accordingly, the tariff will simply function as a penalty tax on U.S. retailers 

and subsequent consumers who require such tool sets for their jobs or hobbies. 

Sears respectfully requests that the 165 piece mechanics tool set described below be excluded from the

Section 301 Determination: 

“Craftsman 165 Piece Mechanics Tool Set (classifiable in 8466.10.0175)” 

We appreciate the Department’s consideration of this exclusion request. Please contact the undersigned if you have 

any questions regarding this submission. 
4

I hereby certify that the information provided is complete and correct to the best of my knowledge.

Respectfully Submitted, 

Dean Schwartz, 

President, Hardlines