**SYNTRON MATERIAL HANDLING**

**Monday, October8, 2018**

**Ambassador Robert Lighthizer**

**U.S. trade Representative**

**Office of the United States Trade Representative**

**600 17th Street NW**

**Washington, DC  20006**

**Re:  USTR-2018-0025 - Procedures to Consider Requests for Exclusion of Particular Products from the Determination of Action Pursuant to Section 301:**

**SYNTRON Drive item number 6501-027-E.BUY**

**Syntron technical description: DRIVE, BF-3 FEEDER  115/60  RUBBER FOOTING**

**Physical dimensions: width: 5 inches; length: 28 inches, height: 14 inches**

**weight: 150 pounds made from SAEJ431b gray cast iron and is painted.**

**Vibratory movement of the electromagnetic drive assembly is used in manufacturing to actuate dry materials or parts from point A to point B.**

**(HTS# 8474.90.0010)**

**Dear Ambassador Lighthizer:**

   Syntron Material Handling (SMH) provides material handling solutions for conveying, feeding, elevating, vibratory flow aids and mining controls of bulk product. As a leader of innovative material handling solutions, we offer efficient and cost-effective solutions to improve and enhance the technology manufacturing business customers are already using. 

   Industries we serve include food handling, ports and terminals, aggregates, cement, glass mining, pulp and paper, power generation and trona-potash-salt. 

   Our products include vibrating conveyors, belt conveyor idlers, screw conveyors, bucket elevators, underground mining, heavy duty and light industry feeders.

SMH is located in Saltillo, Northeast Mississippi. Saltillo has an estimated population of 5000. Our 300,000 square foot facility was built in 1974 and it houses Syntron Material Handling and our Corporate Office. SMH currently employs 229 full-time team members.

Additionally, there is a Syntron Material Handling Solutions facility in Changshu, China. This location was established in 2006 and employs 23 team members.

**Mission Statement**

Syntron material Handling is a customer focused industry leader with a reputation for providing innovative engineering, high-performance products, and superior customer service.

**Annual Quantity & Value**

2017 Value:	**[BCI]**			2017 Quantity:  **[BCI]**

2016 Value:	**[BCI]**			2016 Quantity:**[BCI]**

2015 Value:	**[BCI]**			2015 Quantity:  **[BCI]**

**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:**

**[BCI] %**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:**

**[BCI] %**of the total cost of producing the final product(s) the Chinese-origin input accounts for.

**[BCI] %**of your total gross sales in 2017 that sales of the final product(s) incorporating the input accounted for.

**RATIONALE FOR REQUESTED EXCLUSION**

**This product is a component in production processes for SMH customers. This vibratory drive is small, compact encased in dust-tight housings with pre-drilled holes for easy attachment to the mass to be vibrated.  Drive type and number of drives is determined by the width, length and weight of the mass to be vibrated.**

**While we can sell one piece singly as imported, controls are available to operate a**

**single-drive unit or multiple drive configurations.**

**Assembly of this drive unit is labor intensive and is of unique SMH design.**

**Our competitive edge is our design and ease of integration to customer’s use.**

**Other vibratory drives are available from our competitors , but we are looking to sell our product design and customization.  SMH sourced from China due to cost competitiveness.**

**Economic Impact**

**SMH understands that the purpose of the Section 301 tariffs is to eliminate unfair Chinese trade practices relating to the misappropriation of United States intellectual property and technology.  The imposition of these tariffs is intended to be practicable and effective to obtain the elimination of acts, policies, and practices viewed as detrimental.  Imposing tariffs on these products would negatively affect this company as well as SMH customers.**

**Once all phases of the Section 301 duties announced to date are implemented SMH will be impacted by a substantial increase in cost by way of duties in a 12-month time frame without grant of exclusion.**

**SMH currently employs 229 team members in our Saltillo, MS, location. SMH employees represent approximately 9% of Saltillo, Mississippi workforce. Additional costs in tariffs will lead to reduced competitiveness and a reduction in product demand, ultimately resulting in loss of employment and marginal profitability.**

**Made in China 2025**

**Placing tariffs on this vibrator drive would not benefit U.S. industry, nor would it further the USTR’s stated goals underlying the Section 301 investigation.   According to the USTR’s Section 301 Investigation findings, China’s “Made in China 2025” industrial policy is centered on promoting ten strategic sectors of high-technology industries.   Vibratory drives are not among those categories.**

**The Chinese government has not employed any tactics to intervene in or regulate SMH’s operations in China.  It has not attempted to use discretionary administrative licensing and approval processes, foreign equity limitations, or foreign ownership restrictions to require or pressure SMH to transfer technology.  SMH’s control over its intellectual property and technology in China has not been undermined, and the Chinese government has not directed or facilitated investment in or acquisition of SMH’s assets or intellectual property.  SMH is similarly unaware of any data breaches or attacks on any SMH facilities in China.  The Chinese government does not consider SMH’s vibratory drives to be an area of strategic concern for its industrial policies.**

****

**Imposing additional tariffs on such vibratory drives would only harm American interests and would not have a material effect on China’s acts, policies and practices used to acquire foreign technology or that the USTR has found to be unreasonable or discriminatory.**

**Other Relevant Information**

**This product is a component in a final product process of SMH customer.**

**Assembly of this drive unit is labor intensive and of unique SMH design.**

**Our competitive edge is our design and ease of integration to customer’s application.**

**Impact to Company Workforce**

**Should we have to raise costs of products to recoup this additional tariff expense, which we have begun to do, and that could reduce our competitiveness in the market and ultimately impact retention of our current workforce of 229 people in Saltillo, MS.**

**SMH is unaware of any potential issues that would affect the ability of US CBP to administer subject exclusion.  CBP should be able to easily identify the products based on HTSUS code and standard information provided.**

**As such, we respectfully request exclusion from Section 301 for our product 6501-027-E-BUY  classified under HTS# 8474.90.0010, that is produced and sourced from China.**

**PRODUCT PHOTO**

**6501-027 photo SMH**

8474900010 SMH 6501-027-E-BUY Exclusion Letter P.docx

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