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 product of concern:

4.

5. Requestor's relationship to the product:

CONTINUED BELOW

*

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/

1

7.

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.

VERSION 1

Requestor Information

Requestor Name (Last, First):

PUBLIC VERSION
END 2

8. Is this product, or a comparable product, available from sources in the United States?:

VERSION 1

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

provided in Section B of the Federal Register notice (note: text entered below can extend

beyond the apparent size of this box).

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

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.

2016 Value:

2015 Value:

2017 Value:

2016 Quantity:

2015 Quantity:

2017 Quantity:

PUBLIC VERSION
1700 Pennsylvania Avenue, N.W.

Washington, DC 20006-4706

(202) 737-0500 (telephone)

(202) 626-3737 (fax)

www.kslaw.com

Stephen J. Orava

Direct Dial: (202) 661-7937

sorava@kslaw.com

October 5, 2018 

VIA REGULATIONS.GOV

The Honorable Robert E. Lighthizer

United States Trade Representative

Office of the U.S. Trade Representative 

600 17th Street, N.W.

Washington, DC 20508

Docket No. USTR–2018–0025 

PUBLIC VERSION

Re: Section 301 Investigation: China's Acts, Policies, and Practices Related to 

Technology Transfer, Intellectual Property, and Innovation / Request For 

Exclusion From Additional Duties 

Dear Ambassador Lighthizer :

Honeywell International Inc. (“Honeywell”) files this request for exclusion from 

additional duties for its engine compressor case imported from China. This request is made 

pursuant to the procedures announced on July 11, 2018.1

 

Honeywell is a U.S. manufacturer of a variety of products, ranging from HVAC 

accessories and work wear to advanced aerospace technology. Honeywell operates production 

facilities in Georgia, South Carolina, New York, New Jersey, Pennsylvania, and Washington, 

and it employs 46,000 people in the United States. 

1 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. 

32181 (July 11, 2018).

PUBLIC VERSION
Honeywell invents and manufactures technologies that address some of the world’s most 

critical challenges around energy, safety, security, productivity and global urbanization. It prides 

itself in being at the forefront of blending physical products with software to support connected 

systems that improve homes, buildings, factories, utilities, vehicles and aircraft, and that enable a 

safer, more comfortable and more productive world. Honeywell’s solutions enhance the quality 

of life of people around the globe and create new markets and even new industries. 

Honeywell requests an exclusion from the additional duties imposed under Section 301 

for its unique engine compressor case, which is presently unavailable in sufficient quantities

from sources other than Honeywell’s supplier in China. Exclusion should be granted for 

Honeywell’s engine compressor case because failure to do so would result in severe economic 

harm to Honeywell and other U.S. interests. Furthermore, granting exclusion for Honeywell’s 

engine compressor case would not undermine the objectives of the Section 301 action against 

China. Additional information supporting this exclusion request is set forth below. 

I. IDENTIFICATION OF THE PRODUCT SUBJECT TO THE EXCLUSION

REQUEST – ENGINE COMPRESSOR CASE

A. General Description

Honeywell seeks exclusion of its case engine compressor driven which is used in

auxiliary power units (APU) in aircraft manufactured in the United States and elsewhere. The 

engine compressor case is made of steel and Inconel alloy and is approximately 12.25” in 

diameter and 1.25” tall. It has a 14.12” outer diameter on the flange side with 22 holes, and 

7.40” diameter on the other sheet metal side. The overall length is 4.75”. The overall part is 

made from two Inconel 718 pieces welded together. This item is P/N 3827504-3 (the number 

physically located on one of the flat surfaces of the piece below the 22 holes). The engine 

The Honorable Robert E. Lighthizer 

PUBLIC VERSION

October 8, 2018

Page 2 
compressor case is an integral part of the Auxiliary Power unit. It requires ISO 9001 

certification and qualifications to meet Supplemental Type Certification for the APU.

The cost-sensitive nature of the aerospace industry necessitated the production of 

relatively less technologically sophisticated products, including the engine compressor case, in 

China. For APUs sold to commercial transport original equipment manufacturers (OEM), like 

Boeing and Airbus, profitability is made in aftermarket support for the airlines, with break-even 

points of a decade or longer. This business model is thus particularly sensitive to product cost. 

Therefore, Honeywell began to source the engine compressor case from China in an effort to 

drive down costs to remain competitive in the global market.

B. Specific Description for Customs Purposes

The following product descriptions may be used by U.S. Customs and Border Protection

(CBP) to administer the exclusion:

The engine compressor case is made of steel and Inconel alloy and 

is approximately 12.25” in diameter and 1.25” tall. It has a 14.12” 

outer diameter on the flange side with 22 holes, and 7.40” diameter 

on the other sheet metal side. The overall length is 4.75”. The 

overall part is made from two Inconel 718 pieces welded together. 

This item is P/N 3827504-3 (the number physically located on one 

of the flat surfaces of the piece below the 22 holes).

C. The Applicable HTSUS 10-Digit Subheading

The engine compressor case subject to this exclusion requests falls within the 10-digit

HTSUS subheading 8411.99.9090. This subheading provides for parts of aircraft gas turbines. 

II. AN EXCLUSION SHOULD BE GRANTED BECAUSE THE ENGINE

COMPRESSOR CASE IS NOT READILY OR SUBSTANTIALLY AVAILABLE

FROM OTHER THAN HONEYWELL’S SUPPLIER IN CHINA

An exclusion should be granted for the engine compressor case because it is presently

unavailable from sources other than Honeywell’s supplier in China. The engine compressor case

is proprietary to Honeywell and is manufactured to Honeywell’s unique specifications primarily

PUBLIC VERSION

The Honorable Robert E. Lighthizer 

October 8, 2018

Page 3 
by a trusted manufacturer in China. As a result, Honeywell is unable to source this part in 

commercially significant volumes from any other factory either in the United States or third 

countries.

Moreover, Honeywell is unable to modify its supply chain to transition the production of 

the engine compressor case to a supplier outside of China or ramp up other supply without severe 

economic harm to Honeywell and without undermining supply to the U.S. aircraft manufacturing 

industry. Honeywell estimates the transition process would take approximately two or more 

years to implement, at a cost of up to $1 million per part. Each supplier of an engine compressor 

case must also be vetted through a rigorous certification process, which could further lengthen 

the time required for Honeywell to modify its supply chain. This certification process includes

facility certification and working with the new vendor to achieve acceptable production quality 

levels at the required production rate. “Working with the new vendor” can include sending a 

team of process experts to the vendor for an extended period of time. In addition, an extensive 

material analysis of the product produced, a complete inspection of all dimensions and features 

of the product, and a system test at Honeywell to verify product performance is required. 

Capacity constraints in the aerospace industry are an additional obstacle to Honeywell 

sourcing the engine compressor case from sources other than its supplier in China. OEMs like 

Boeing and Airbus have increased production rates to unprecedented levels. At present, multiple 

parts suppliers have been unable to satisfy the increased demand. For example, casting and 

forging suppliers have been a significant delay for both engine and auxiliary power unit 

manufacturers over the past 24 months. Even if Honeywell attempted to manufacture the engine 

compressor case outside of its factory in China, in addition to the certification obstacles 

described above, it is unlikely that other potential suppliers to Honeywell would have the 

PUBLIC VERSION

The Honorable Robert E. Lighthizer 

October 8, 2018

Page 4 
capacity to ramp up tooling and increase capacity to meet the new demand. Therefore, the 

engine compressor case is presently unavailable outside of China. 

III. HONEYWELL AND OTHER U.S. INTERESTS WOULD SUFFER SEVERE

ECONOMIC HARM IF THE EXCLUSION IS NOT GRANTED

Honeywell will suffer significant economic harm if it does not receive an exclusion for

the engine compressor case. Honeywell would be unable to pass on the costs of the additional 

tariffs to either OEMs or airline customers due to long term contracts currently in place. For 

example, the 737 MAX contract expires with Boeing in 2026, and the Airbus A320 contract 

expires in 2023. Both contracts require key suppliers like Honeywell to reduce costs over the 

term of each contract, with no ability to change or increase price due to Boeing/Airbus influence.

Honeywell would thus be forced to absorb the costs of the additional tariffs, resulting in 

significant financial harm to the company. This harm would prevent Honeywell from 

supporting new required development program investment and supporting other current 

production program volumes. 

In addition, Honeywell could be closed out of its market if it were forced to modify its 

supply chain to produce the engine compressor case outside of China. As outlined above, 

modification of its supply chain would result in significant costs and lead time. It is also unclear 

whether other potential suppliers capable of producing the engine compressor case to 

Honeywell’s specifications could satisfy the additional demand. This would compromise the 

continuity of Honeywell’s supply to its OEM and airline customers. Given the intensity of 

competition in the industry and long duration contracts between suppliers and OEMs, disruption 

in the continuity of its supply could result in Honeywell being shut out of the market for up to 30 

years.

PUBLIC VERSION

The Honorable Robert E. Lighthizer 

October 8, 2018

Page 5 
IV. GRANTING AN EXCLUSION FOR THE ENGINE COMPRESSOR CASE

WOULD NOT UNDERMINE THE OBJECTIVES OF THE SECTION 301

ACTION

USTR should grant an exclusion for Honeywell’s engine compressor case because an

exclusion for this product would not undermine the objectives of the Section 301 action. The 

Section 301 action is aimed, in part, at combatting forced technology transfer of industrially 

significant technologies from U.S. companies to Chinese entities. With respect to the 

manufacture of Honeywell’s engine compressor case, no advanced technology or technical 

know-how has been transferred to the Chinese supplier manufacturing the product. Operations 

in China are limited to the manufacture of select product families, including the engine 

compressor case, while design and assembly of the APU or engine takes place in Honeywell’s 

facilities in the United States. The valuable technology and intellectual property involved in the 

design and manufacture of the APUs thus remains in the United States, and imposition of tariffs 

on the engine compressor case would not impact China’s technology transfer practices in any 

material way.

Failure to grant an exclusion would undermine the objectives of the Trump 

Administration by benefiting foreign manufacturers of engine compressor cases to the detriment 

of Honeywell, its U.S. employees, and other U.S. businesses. Honeywell’s main competitors for 

the downstream engines in which the subject products are incorporated are United Technology’s 

Pratt Canada division, and Safran’s Microturbo division located in France. Honeywell’s 

understanding is that its main competitors are not subject to the 301 tariffs, so the tariffs would 

put Honeywell at a significant cost disadvantage relative to its foreign competitors.

PUBLIC VERSION

The Honorable Robert E. Lighthizer 

October 8, 2018

Page 6 
V. THE EXCLUSION FOR THE ENGINE COMPRESSOR CASE SHOULD BE

GRANTED BECAUSE THE PRODUCT IS NOT IDENTIFIED IN MADE IN

CHINA 2025

The specific products requested to be excluded are not identified in the Made in China

2025 report. Although these types of products are referenced generally in that document, the 

imposition of additional tariffs now on the engine compressor case would not impact in any 

material way China’s policies, and such policies are more likely to be affected, if at all, by 

sustained, comprehensive, and multilateral efforts. Imposition of additional tariffs would, 

however, have a significant detrimental impact on Honeywell and likely its customers. 

Accordingly, increased tariffs would not alter Chinese policies, would increase Honeywell’s 

costs, and would decrease its competitive position. 

VI. THE EXCLUSION FOR THE ENGINE COMPRESSOR CASE SHOULD BE

GRANTED BECAUSE IT IS ADMINISTRABLE

Finally, U.S. Customs and Border Protection will be able to administer the exclusion at

the border. The engine compressor case is comprehensively described in the preceding sections 

of this request, and this request is accompanied by additional documentation depicting the 

product. 

VII. IMPORT DATA APPLICABLE TO ENGINE COMPRESSOR CASE

Please see the table below for quantity and value data for imports of engine compressor

cases originating from China over the past three years. 

Year Quantity Value

2015 [ ] [ ]

2016 [ ] [ ]

2017 [ ] [ ]

The Honorable Robert E. Lighthizer 

PUBLIC VERSION

October 8, 2018

Page 7 
VIII. CONCLUSION

For the above reasons, USTR should grant an exclusion for Honeywell’s engine

compressor case. Granting an exclusion is warranted because the product is not readily available 

outside of China, Honeywell, its employees, and customers would suffer severe economic harm, 

and the exclusion would not undermine the objectives of the Section 301 action. 

Respectfully submitted,

Stephen J. Orava 

Partner

The Honorable Robert E. Lighthizer 

PUBLIC VERSION

October 8, 2018

Page 8 
CERTIFICATION 

I, Raymond M. Boyd of Honeywell International Inc., certify that the information 

contained in this submission is accurate and complete to the best of my knowledge. I 

also certify that disclosure of the information marked "business confidential" would 

endanger trade secrets or profitability, and that the information would not customarily be 

released to the public. 

Signature: � � �_} 

Date: ___,__/_O +--/4_'1---f-/.....;.._;/8;;;___ __ 

I / 

Honeywell Restricted 

PUBLIC VERSION
ATTACHMENT 

PUBLIC VERSION
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved. 

3827504-3

CASE, ENGINE COMPRESSOR

Material: Inconel Alloy

Approx. 14.25” Diameter X 4.75” Tall

PUBLIC VERSION
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved. 

PUBLIC VERSION