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. 

!Public Document I 

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

This exclusion request is for 90430 l 7 AC. The product is a wiring harness assembly used in camera systems for 

passenger vehicles. A wire harness is a cluster of wires, outside coating, and connectors. Wire harnesses are 

differentiated to the specification of customers and are described by their length and the number of wires. This 

product is a T3L harness assembly, is 145 mm in total assembly length, 6 wires. The product is sold to OEM 

(original equipment manufacturer) vehicle manufacturers for use in the automotive industry . This product is 

specifica lly made for Advanced Driver Assistance ("ADAS") camera systems. The product is packaged and shipped 

in expendable packaging. The Magna part number is listed on the commercial invoice and the pa,1 number, 

quantity, and description is located on the packing slip affixed to the package. This distinguishes this product from 

other imported products and facilitates the administration of this exclusion by CBP. 

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/ 

8544300000 

4. Requestor Information 

Requestor Name (Last, First): !Bender, Paul 

;:· =====================================================~ Organization Name: !Magna Electronics Technology Inc. 

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

Requestor Representative: .... ID_a_v_id_ H_a_m_j_ll.._, A_ re_n_t_F_o_x_L_L_P _______________ __, 

5. Requestor's relationship to the product: !.... I_m~p_o_rt_e_r __________________ ~ 

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

IYES 

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. 

!Public Document 

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

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

!No 

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: $52,536.12 

2016 Value: $139,134.12 

2015 Value: $74,185.62 

2017 Quantity: 9,100 units 

2016 Quantity: 24,100 units 

2015 Quantity: 12,850 units 

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). 

See attached for argument in support of this exclusion request. 

VERSION 1 END 2 
Magna Electronics

2050 Auburn Road 

Auburn Hills, MI 484326 

magna.com 

October 5, 2018 

VIA REGULATIONS.GOV PUBLIC DOCUMENT 

The Honorable Robert E. Lighthizer Docket No. USTR-2018-0025 

U.S. Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW, Room F516 

Washington, D.C., 20006 

Re: Request for Exclusion of Wire Harnesses under 8544.30.0000 from the Determination of 

Action Pursuant to Section 301

Dear Ambassador Lighthizer: 

Magna Electronics Technology Inc. (“Magna”) respectfully submits this request for 

exclusion of Wire Harness assemblies from the proposed determination of action pursuant to 

Section 301 of the Trade Act of 1974.1 

Magna International (Magna) is the largest automotive supplier in North America. 

Globally, the company has 339 manufacturing operations and 89 product development, 

engineering and sales centers and over 173,000 employees. In the U.S., Magna has 58 

manufacturing operations and 13 product development, engineering, and sales centers in 11 

 

1

 19 U.S.C. § 2411. 

• !\\MAGNA 
states. Magna employs 27,150 people in the U.S. and, since 2011, has created more than 8,400 

U.S. jobs. 

Magna Electronics, a subsidiary of Magna, is a 230,000 facility that employs 576. 

Magna Electronics provides leading technologies for automated driving to secure connectivity 

and vehicle electrification. With our competitive position and our culture of innovation, we are 

transforming mobility. Magna Electronics manufactures unique electronic systems that offer a 

comprehensive range of electronic controls and sensors to provide drivers with systems that offer 

enhanced safety and convenience. 

This exclusion request addresses wire harnesses classified under HTSUS subheading 

8544.30.0000, which are currently subject to the 25% additional Section 301 tariff. Please note 

that a separate Section 301 Investigation Form to Request Exclusion of Product has been 

submitted for each unique part number for which we are requesting an exclusion. 

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

Representative (“USTR”),2 Magna provides the following information requested by the USTR in 

support of this request. 

1. 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 

 Magna is not aware of any immediately available U.S. or third-country sources for the 

same or comparable products. Any supplier change would require a multi-year process to 

 

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 (USTR July 

11, 2018). 
identify and establish a new source, complete testing, and obtain compliance approvals from 

government and our automotive customers. While there are wire harnesses manufactured in 

other countries, an acceptable replacement for Magna’s products is not readily available. 

Magna’s wire harnesses are customized to the needs of our specific customers for the use in 

specific vehicle models. This is not a one size fits all situation and requires great attention to the 

needs of our customers. Products are designed and developed in coordination with our 

customers and are made to their specifications. Changes in the manufacture, importation, and 

supply of these wire harnesses would create significant cost increases and challenges for us and 

our customers. 

 Additionally, the approval of a new product source would be very expensive based on the 

way Magna’s contracts work with its suppliers. Typically, Magna enters into contracts that 

contain pricing based on the life of the program. This means that pricing is set for 5-8 years. 

Often times there is fixed pricing for the first 3 years or the first 5 years depending on the 

contract. This approach is fairly standard in the industry. Thus, an immediate change in 

sourcing would not only take years for testing and compliance purposes, but Magna would have 

to either complete its contracts or negotiate an exit from existing contracts. This would likely 

add significant time and expense to any effort to change sources. We estimate that a change in 

supplier would take approximately 3-4 years. Thus, no comparable products are immediately 

available. 

2. Whether the imposition of additional duties on the particular product would cause 

severe economic harm to the requester or other US interests 

 The products imported by Magna are automotive parts used to support domestic 

manufacturing operations and jobs in the United States. The imposition of a 25% tariff on these 

automotive parts could cause severe economic harm to U.S. interests. The tariffs will also cause 
harm to Magna and its employees, customers, and consumers. If Magna absorbs the tariff on any 

of these products, it will take a significant loss. Magna does not make a profit margin of 25% on 

any of these products. Nor will we be able to pass it on to our customers. The customers in this 

highly competitive industry will simply refuse to accept such a price increase. Passing on the 

cost of the tariffs to our U.S. customers in particular would lead to increased vehicle costs for 

American consumers. Given the competitiveness of the industry and the potential impact on 

Magna and downstream consumers, we respectfully request that you grant this exclusion request. 

3. Whether the particular product is strategically important or related to “Made in 

China 2025” or other Chinese industrial programs 

The imposition of a 25% tariff on wire harnesses will not impact the Chinese intellectual 

property violations they seek to eliminate. Furthermore, the imposition of a 25% tariff on the 

wire harnesses will not impact the Chinese intellectual property violations they seek to eliminate. 

Section 301 tariffs should be specifically targeted at products that have benefitted from the 

China’s acts, policies, and practices detailed in the USTR’s Section 301 Report. The various 

components at issue have not benefited from China’s discriminatory licensing requirements, 

foreign ownership restrictions, state-funded acquisitions, or state-backed hacking operations. 

Magna has not transferred any intellectual property rights to Chinese producers, has not 

experienced any intellectual property theft, and has safeguards in place to prevent IP theft. 

For the reasons set forth above, Magna respectfully requests that Wire Harnesses 

classified under HTSUS 8544.30.0000 be excluded from the 25% Section 301 tariff. We 

appreciate the Department’s consideration of this exclusion request. Please contact the 

undersigned if you have any questions regarding this submission. 
I hereby certify that the information provided is complete and correct to the best of my 

knowledge. 

Respectfully submitted, 

 

 

 Paul Bender 

 Global Director, Purchasing & Supply Chain 

 Magna Electronics 

 2050 Auburn Road 

 Auburn Hills, MI 48326 USA