N85 W12545 Westbrook Crossing • Menomonee Falls, WI 53051

_________________________________________________________________________________________________________________________

October 5, 2018 

Submitted via regulations.gov

Ambassador Robert E. Lighthizer

U.S. Trade Representative

Office of the U.S. Trade Representative

600 17th Street NW

Washington, DC 20508

RE: Request 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 (USTR-2018-0025)

Dear Ambassador Lighthizer:

ECM Industries LLC (“ECM”) hereby submits this request to exclude items under the 

Harmonized Tariff Schedule of the United States (“HTS”) subheading 8536.50.9040 from the 

additional ad valorem duty of 25 percent on approximately $34 billion worth of Chinese 

imports.112

ECM is a small business with a long history of manufacturing and supplying electrical 

components and products for the construction, industrial power, and transportation markets. We 

are headquartered in Menomonee Falls, Wisconsin, and have a global presence with six locations 

across the U.S., Mexico, and China. Our legacy dates back to 1959 with the founding of Gardner 

Bender, one of our leading brands. Since then, we have built a world-class organization.

ECM employs 350 employees worldwide, of which 320 are based in the U.S. Our company is 

one of the U.S.’s preeminent suppliers of innovative and niche electrical products and systems 

and we are dedicated to providing our customers with solutions for their electrical applications. 

From lighting a commercial building to remodeling a home to providing the electrical 

connections that stand up to the harshest outdoor environments, the brands of ECM Industries 

provide the right solution for the most demanding applications.

 

112 Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to\

Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and 

Innovation, 83 Fed. Reg. 28710 (Jun. 20, 2018). 
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CXLIX. Product Description

We request that USTR exclude the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 

125-277V 20/15A 125/277V) that is imported under HTS subheading 8536.50.9040. 

Item: #GSW-127, Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 

125/277V)

HTS subheading: 8536.50.9040

Item Description: Electrical toggle switch, made of plastic and metal components. Toggle 

attached to enclosed electric switch, where the toggle is used to operate the switch.

Material(s): Made of Plastic and metal components

Item Size (inches H x W x D): 5.3x2.4x3.7

Item Weight (ounces): 8.00

CL. ECM Cannot Source the Single Pull, Single Throw Heavy Duty Toggle Switch 

(2HP 125-277V 20/15A 125/277V) From Countries Outside Of China. 

The Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V)

and comparable products are not available in the U.S. or countries outside of China. While we 

have explored the possibility of sourcing these products from other countries, there are no 

alternative manufacturers of the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 

125-277V 20/15A 125/277V). 

Shifting to a non-Chinese source for the Single Pull, Single Throw Heavy Duty Toggle Switch 

(2HP 125-277V 20/15A 125/277V) is not a viable option at this time. Global supply chains are 

extremely complex and it can take years to find the right partners who can meet the proper 

criteria and our produce the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-

277V 20/15A 125/277V) at the scale and cost that is needed. The Single Pull, Single Throw 

Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) is designed and packaged to our 

unique specifications and we have been working with our Chinese vendors for over 20 years to 

ensure that the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 

125/277V) meets the high quality standards we expect. We have invested millions of dollars in 

tooling, training, and employ nearly 20 people in Shanghai who oversee and manage our supplier 

base. It is nearly impossible for us to develop similar relationships and supply chains in the near 

term to make this product.

We have explored the possibility of sourcing the Single Pull, Single Throw Heavy Duty Toggle 

Switch (2HP 125-277V 20/15A 125/277V) from other countries. This is extremely impractical 

given the prohibitive cost disadvantages of other countries such as labor and raw material costs. 

Several of our Chinese suppliers have even looked to move their factories to countries outside of 

China to remain in business and continue to support customers such as us. However, this 

relocation will not happen in the near term to help provide tariff relief. 

Additionally, there are few viable U.S.-based sources that manufacture the Single Pull, Single 

Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V). We believe that 

developing the necessary manufacturing capacity within America is technically and 
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economically infeasible in the short term to meet our customers’ demand requirements. Based 

on our understanding, the U.S. suppliers of Single Pull, Single Throw Heavy Duty Toggle 

Switch (2HP 125-277V 20/15A 125/277V) also import products or components from Chinese 

suppliers and then add some limited value through additional manufacturing here in the U.S. 

Because of this Chinese reliance, these suppliers have already demanded 25 percent price 

increase for this product. Because of this we have already run into difficulties on guaranteeing 

supply on the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 

125/277V). 

CLI. The Imposition of this Duty on the Single Pull, Single Throw Heavy Duty Toggle 

Switch (2HP 125-277V 20/15A 125/277V) Has a Significant Impact on ECM’s 

Business, Resulting in a Significant Profit Loss and Reduction of ECM’s 

Workforce. 

As you can tell from the below information, we import a significant amount of the Single Pull, 

Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) from China and 

imposition of this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) is

already subject to a heavy duty. The proposed duty on the Single Pull, Single Throw Heavy 

Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) would cost ECM thousands of dollars in 

increased duties. The cumulative impact of the list 1 Section 301 tariffs would cost ECM 

millions of dollars in increased duties. These additional unexpected costs for our small business 

are layered on top of the detrimental impacts from the Section 301 tariffs imposed on our 

products on lists 1 and 2 and those proposed for list 3 that total over $5.9 million. Overall, these 

tariffs cripple ECM, forcing ECM to reduce its workforce in the U.S. to afford these tariffs. 

Additionally, applying this tariff on the Single Pull, Single Throw Heavy Duty Toggle Switch 

(2HP 125-277V 20/15A 125/277V) will have a significant impact on ECM’s customers. ECM 

has thousands of customers, with more than 95 percent based in the U.S. Our customers are 

predominantly U.S. distributors, retailers, and manufacturers that distribute or use our products 

in electrical construction, maintenance, and repair applications. Because of the competitive 

nature of our business, and the fact we deal with many power buyers such as big box stores, we 

cannot recover the costs of the tariff on Single Pull, Single Throw Heavy Duty Toggle Switch 

(2HP 125-277V 20/15A 125/277V) by passing it along to our customers as they are extremely 

price sensitive and will look for an alternative supplier. Imposing this tariff on our product 

would cause substantial downstream injury to those industries as well, which would eventually 

trickle down to the U.S. consumer. 

This ad valorem tariff on the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-

277V 20/15A 125/277V) places our company between a rock and a hard place. If we try and 
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pass the full amount of the duty on to our customers, we run the risk of losing our contracts with 

major customers, and with that millions of dollars of sales and profits. The alternative is not a 

good one, and that means reducing our workforce in the U.S. in order to absorb the costs of this 

tariff. We have been a healthy and growing business and have not laid anyone off in over five

years; in fact we have been hiring. As of July 6, 2018, we have implemented a hiring freeze and 

are only replacing critical positions as a result of attrition. Because of the cumulative impact of 

these tariffs, we will be forced to reduce our headcount by 50 to 60 people in order to offset the 

costs to our bottom line. 

When the tariff on Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 

20/15A 125/277V) can be passed on, we expect most of the impact will be felt by consumers and 

contractors who buy and use GSW-127 in electrical installation and repair and remodel projects, 

which will ultimately have an impact on the cost of construction projects. In fact, a significant 

portion of the product is purchased by consumers directly at most leading retailers and hardware 

chains across the country.

Instead of impacting China’s manufacturing industry, the tariff on the Single Pull, Single Throw 

Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) will significantly harm ECM and 

our customers here in the U.S.

CLII. Imposing the Ad Valorem Tariff under Section 301 on the Single Pull, Single 

Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) Will Not Be 

Effective in Eliminating China’s Predatory Acts. 

USTR’s Section 301 report found that various policies and practices of the Chinese government 

are designed to promote Chinese companies as leaders in supplying certain advanced 

technologies around the world and to reduce imports of these technologies that Chinese 

industries rely upon. According to USTR and the White House’s Office of Trade and 

Manufacturing policy, China has participated in physical and cyber-enabled theft of 

technologies, required technology transfer for market access, and investment restrictions, among 

other coercive and intrusive restrictions that harm American intellectual property rights, 

innovation, and technology development.113

According to the various Section 301 reports, the technologies that China targets through its 

policies are advanced technologies in the following industries: (1) advanced information 

technology; (2) robotics and automated machine tools; (3) aircraft and aircraft components; (4) 

maritime vessels and marine engineering equipment; (5) advanced rail equipment; (6) new 

energy vehicles; (7) electrical generation and transmission equipment; (8) agricultural machinery 

and equipment; (9) new materials; and (10) pharmaceuticals and advanced medical devices.114

Notably, the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 

 

113 USTR, Findings of the Investigation Into China’s Acts, Policies, And Practices Related to Technology Transfer, 

Intellectual Property, and Innovation Under Section 301 of the Trade Act of 1974 1–2 (Mar. 22, 2018) [hereinafter 

Section 301 Findings]; Office of Trace and Manufacturing Policy, Executive Office of the President, How China’s 

Economic Aggression Threatens the Technologies and Intellectual Property of the United States and World (Jun. 

2018) [hereinafter China’s Economic Aggression].

114 Section 301 Findings, at 14. 
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125/277V) and its manufacture are not among the list of advanced technologies or industries that 

are targeted by the Chinese government policies.

The Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V)

has been on the market for many years and does not contain sensitive technology or intellectual 

property that is the target of China’s practices. In fact, ECM has been sourcing the Single Pull, 

Single Throw Heavy Duty Toggle Switch (2HP 125-277V 20/15A 125/277V) from China since 

the 1990’s and has not experienced these challenges. To the contrary, ECM has enjoyed a 

constructive relationship with its Chinese suppliers and has not encountered any of the 

intellectual property theft, cyber theft, or other technology-related compilations that advanced 

technology industries have faced. 

In sum, our importation of the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-

277V 20/15A 125/277V) from China is not linked to any purportedly unfair practices. Imposing 

punitive tariffs on our imports would only harm our small business and the U.S. customers we 

serve without advancing the stated objectives of the Section 301 proceeding.

* * *

ECM appreciates the opportunity to request this exemption from the Section 301 tariffs. While 

we understand and support the motivation for fair trade policies and a level playing field, we 

respectfully request that the Single Pull, Single Throw Heavy Duty Toggle Switch (2HP 125-

277V 20/15A 125/277V) imported from China under HTS subheading 8536.50.9040 be exempt 

from the additional 25 percent ad valorem duty because it will not accomplish the desired 

purpose and will have a significant detrimental impact on ECM, the businesses we supply, and 

U.S. consumers.

Respectfully submitted, 

David Scheer

Chief Executive Officer

ECM Industries LLC