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. 

Contains BCI 

2. Please provide a complete and detailed description of the particular product of concern: 

The merchandise under consideration are electro-mechanical assemblies for automatic teller machines of 

subheading 8472.90.10 classified under heading 8473.40.8600. Each assembly functions as a mechanical 

component that drives currency within an automated teller machine. Internal names for these are picker, stacker, 

presenter, and transport, but all are assemblies that mechanically move cash within the ATM. 

This particular request involves multiple versions of what is called the stacker. 

3. 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/ 

8473408600 

4. Requestor Information 

Requestor Name (Last, First): 

Organization Name: 

Vliet, Christopher 

Diebold Nixdorf Incorporated 

Note: Representatives submitting on behalf of an organization must enter information below. 

Requestor Representative: 

5. Requestor's relationship to the product: Importer 

6. Does this submission in regulations.gov include additional attachments? 

YES 

7. Please indicate whether any additional attachment contains business confidential information 

(BCI), is a public document, or is a public version of a BCI document. 

Contains BCI 

VERSION 2 CONTINUED BELOW 1 
indicate "NO", you must provide support for your assertion in Box 12). 

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

7 Value: 7 Quantity: 

Value: Quantity: 

Value: Quantity: 

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

the production of a final product or products? 

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

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

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

% 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. 

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12. Please provide information in support your request, taking account of the 

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). 

XGTUKQP!3 END 4

Please see the attachment "ATM electro-mechanical components - attachment BC.docx" 

In addition, regarding the "Ability of U.S. Customs to administer the exclusion": 

All assemblies in this heading, are for use by Diebold Nixdorf, are imported under the importer of record 

number for Diebold Nixdorf 

. 
BUSINESS CONFIDENTIAL 

Whether the particular product is available only from China, or whether the particular product or 

comparable product are available from sources in the U.S. or third countries 

This product is available only from our joint venture partner in China because they manufacture 

uniquely designed electro mechanical modules that are sole sourced and contractually bound by 

a volume commitment over multiple years. In order to resource this product outside of China, 

it would take a minimum of 1 year 

Whether the imposition of additional duties on the product would cause severe economic harm to the 

requestor or other U.S. interests 

The additional duties cause harm to the requestor and other U.S. interests in multiple ways: 

1. Joint Venture impact: The requestor sources this product from our own internal joint 

venture in China. We entered into a long term contract to provide a certain volume of 

business to our Joint Venture partner in China. 
BUSINESS CONFIDENTIAL 

2. Investment in U.S. manufacturing: The requestor has made a decision to move certain 

European production of ATMs to the United States in 2017. As a result, our imports of 

certain subcomponents of products of 8472.90.10 under the heading 8473.40.86 are up 

significantly. The value of imports to date of these particular components in 2018 is 

already almost as much as 2017 through the first half of the year. We doubled our 

imports in order to be a U.S. manufacturer of ATMs 

The fact that we are now paying a 25% penalty 

after doubling our imports in order to obtain this advantage, simply erodes that 

advantage. The economic harm of the 25% tariff on these components hinders the cost 

structure for these products and defeats the goal of having more manufacturing 

competitiveness in the United States. 

3. Comparative advantage for this location eroded, competitive advantage for other 

competitors created: The requestor manufactures ATMs at multiple manufacturing 

locations in Asia and the United States. 65% of its customers are outside the United 

States. The United States location is harmed because its cost is being raised 

disproportionately to the other internal locations. Customers of the facility are not 

likely to accept additional costs. Instead they will consider alternative strategies from 

non U.S. based factories and possibly increased lead time. This could mean that the 

Company will be forced to source from our other global locations or may lose segments 

of our business entirely to others which ultimately could lead to a negative impact on 

the company's financials. This is due to the fact that our competitors currently source 

similar Chinese origin components (such as the assemblies in this request) and 

manufacture them into Korean or other non-US origin ATMs in their supply chain, and 

import a non-Chinese origin ATM that avoids the 25% duty. We will be unable to 

compete against their ability to avoid the cost increase. They are able to source in 

China for components at a 25% avoidance to the Chinese duty, manufacture in a third 

country, and substantially transform their product to compete against us at a lower total 

cost. 

4. Export competitiveness harmed-trade balance impact: The requestor chooses to 

source its Americas based final product demand from its US based manufacturing 

facility. This facility is the one that purchases the products under consideration. The 

additional duties harm the facilities ability to compete in the Americas market. A good 

portion of the demand for the product is from customers in NAFTA countries. The 

punitive duties are not subject to drawback because of the "lesser of two duties" rules 

under NAFTA drawback. 
BUSINESS CONFIDENTIAL 

This hurts the company and its ability to compete in the export market. It is also the 

belief of the company that it will experience decreased exports and thus have residual 

impact on U.S. employment. The purposes of the trade duties in this case against China, 

serve to undermine U.S. exports in this case, and rather than our company being more 

competitive and lowering the trade deficit with Mexico, the impact of the duties would 

cause the raising of the trade deficit with Mexico and Canada for our particular 

contribution to global trade because we would be forced to lower our exports to Canada 

and Mexico. 

5. Company harm: The last few quarters have been challenging for the requestor from a 

financial and operational perspective; as evidenced by the company's reported 

financials and declining stock price. In addition, the ATM industry as a whole is 

struggling to maintain profitability during this same period and the global market for 

ATMs has been in decline. The overall impact to the company due to the tariffs further 

increases these challenges because it is a usage of cash that does not benefit the 

company to invest in growth opportunities during these challenging times. 

The impact on our U.S. operation in North Carolina is about 25% of this value, and in 

Ohio, about 75%. Our local economy in these states is impacted by these tariffs as we 

do not believe we can pass them on effectively. Other non U.S. competitors continue to 

price based on the overall downturn and the long term benefit of the tariffs may not be 

realized until it is too late for Diebold Nixdorf to benefit. 

While we are in full agreement that China needs to change its practices regarding intellectual property 

and tariff and non-tariff barriers to entry, including the requirement of Joint Ventures in order to do 

business in China with certain sectors of its economy, we respectfully request an exclusion in full in 

order to maintain our U.S. based competitiveness going forward. 

Whether the product is strategically important or related to "Made in China 2025" 

This particular product is specific to the ATM industry. It is not listed among the industries targeted by 

Made in China 2025.