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 units for 

automatic teller machines of subheading 8472.90.10 classified under heading 8473.40.8600. 

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). 

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purchased by your firm alone. 

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2017 Value: 2017 Quantity: 

2016 Value: 2016 Quantity: 

2015 Value: 2015 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). 

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Please see the attachment "8473408600 Diebold Nixdorf ECRMLWR BC_Section 301 Product 

Exclusion Request.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 

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

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

This product is not available from any sources in the United States. 

It is not 

possible to ask the supplier for significant changes in its supply chain footprint for product that is not a 

significant portion of its total demand. 

No other foreign supplier is currently capable of producing it. 

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. 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. 

2. 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.