N85 W12545 Westbrook Crossing • Menomonee Falls, WI 53051

_________________________________________________________________________________________________________________________

October 8, 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 8536.50.9065 from the 

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

imports.19

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.

 

19 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). 
2

XXV. Product Description

We request that USTR exclude the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 

20 ma, Red, 1/Pkg that is imported under HTS subheading 8536.50.9065. 

Item: #40458, Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg

HTS subheading: 8536.50.9065

Item Description: Electrical switch with red light on end, made of plastic and metal components

Material(s): Made of plastic and metal components

Item Size (inches H x W x D): 7x3.25x5.5

Item Weight (pounds): 5.20

XXVI. ECM Cannot Source the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 

V DC 20 ma, Red, 1/Pkg From Countries Outside Of China. 

The Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 

1/Pkg. 

Shifting to a non-Chinese source for the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V 

DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg at 

the scale and cost that is needed. The Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V 

DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, 

LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting 

Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, 

LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg. We believe that developing the 

necessary manufacturing capacity within America is technically and economically infeasible in 

the short term to meet our customers’ demand requirements. Based on our understanding, the 

U.S. suppliers of the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 

1/Pkg also import products or components from Chinese suppliers and then add some limited 
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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 Indicator Light, Mini, LED., 

7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg. 

XXVII. The Imposition of this Duty on the Indicator Light, Mini, LED., 7/16" 

Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator 

Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg from China and 

imposition of this duty will negatively impact our business. 

Year Value (dollars) Quantity

2015 [ [

2016 [ [

2017 [ [

The Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg is already 

subject to a heavy duty. The proposed duty on the Indicator Light, Mini, LED., 7/16" Mounting 

Hole, 12 V DC 20 ma, Red, 1/Pkg would cost ECM hundreds 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V 

DC 20 ma, Red, 1/Pkg 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 the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, 

Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 

ma, Red, 1/Pkg places our company between a rock and a hard place. If we try and 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 
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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 the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 

1/Pkg can be passed on, we expect most of the impact will be felt by consumers and contractors 

who buy and use the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 

1/Pkg 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 Indicator Light, Mini, 

LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg will significantly harm ECM and our 

customers here in the U.S.

XXVIII. Imposing the Ad Valorem Tariff under Section 301 on the Indicator Light, 

Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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.20

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.21

Notably, the Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg and 

its manufacture are not among the list of advanced technologies or industries that are targeted by 

the Chinese government policies.

 

20 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].

21 Section 301 Findings, at 14. 
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The Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, 

LED., 7/16" Mounting Hole, 12 V DC 20 ma, Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 

ma, Red, 1/Pkg 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 Indicator Light, Mini, LED., 7/16" Mounting Hole, 12 V DC 20 ma, 

Red, 1/Pkg imported from China under HTS subheading 8536.50.9065 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