Public Document

This exclusion request is for a housing, part number 6040091DB, used to manufacture Advanced Driver 

Assistance (“ADAS”) Cameras, which are sold to vehicle OEMs to manufacture passenger vehicles. It 

has dimensions of 41mm x 113.40mm and is made of plastic PA6 GF30/VO flammability. The product 

is shipped in expendable packaging with a label that clearly indicates the component part number 

(6040091DB). Additionally, the commercial invoice accompanying each shipment references the 

component part number. This distinguishes this product from other imported products and facilitates the 

administration of this exclusion by CBP. 

8538906000

Bender, Paul

Magna Electronics

David Hamill, Arent Fox LLP

Importer

YES

Public Document

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. 

I. Indicate whether the comment contains business confidential information (BCI), is a public 

document, or is a public version of a BCI document. 

I I 

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

3. I 0-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/ 

4. Requestor Information 

Requestor Name (Last, First): 

Organization Name: 

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

Requestor Representative: 

5. Requestor's relationship to the product: 

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

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. 

VERSION 1 CONTINUED BELOW 1 
NO

NO

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*Magna did not import this product in 2015.

See Attachment 1 for arguments in support of this exclusion request.

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?: 

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. 

2017Value: 

2016 Value: 

2015 Value: 

2017 Quantity: 

2016 Quantity: 

2015 Quantity: 

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). 

VERSION 1 END 2 
ATTACHMENT 1 
• !\\MAGNA 

October 5, 2018 

VIA REGULATIONS.GOV 

The Honorable Robert E. Lighthizer 

U.S. Trade Representative 

Office of the U.S. Trade Representative 

600 17th Street, NW, Room F516 

Washington, D.C., 20006 

Magna Electronics 

2050 Auburn Road 

Auburn Hills, Ml 484326 

magna.com 

PUBLIC DOCUMENT 

Docket No. USTR-2018-0025 

Re: Request for Exclusion of Advanced Driver Assistance (ADAS) Camera Components 

under 8538.90.6000 from the Determination of Action Pursuant to Section 301 

Dear Ambassador Lighthizer: 

Magna Electronics Technology Inc. ("Magna Electronics") respectfully submits this 

request for exclusion of Advanced Driver Assistance ("ADAS") Camera Components 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 

l 19 U.S.C. § 2411. 
manufacturing operations and 13 product development, engineering, and sales centers in 11 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 square footage 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 various Advanced Driver Assistance ("ADAS") 

Camera Components classified under HTSUS subheading 8538.90.6000, 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. 

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). 
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 does not have any immediately available U.S. or third-country sources for the 

same or comparable products. Any supplier change would require Magna to identify and 

establish a new source, complete testing, and obtain compliance approvals. This would be a 

tremendous undertaking for the company, requiring 1-2 years to complete and a financial 

investment of $12,000,000 USD in capital expenditures and validation costs. While there are 

similar components manufactured in the U.S. and other countries, an acceptable replacement for 

Magna' s products is not readily available. Changes in the manufacture, importation, and supply 

of these components would create unacceptable cost increases and supply chain delays for us and 

our customers. 

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

severe economic harm to the requester or other US interests. 

The imposition of the additional 25% duties on ADAS Camera components is causing 

severe economic harm to Magna and other U.S. interests. The products imported by Magna are 

used to manufacture ADAS Cameras in the United States, which are sold to various OEMs for 

incorporation into vehicles. As such, these components are used to support domestic 

manufacturing operations and jobs in the United States. 

We estimate that the tariffs on the ADAS Camera components will cause significant 

harm to our business, leading to a negative impact on our U.S. sales and profits. Decreased sales 

and profits will lead to workforce reductions necessitated by the change in the company's 

manufacturing footprint. 

Furthermore, some of the increased cost associated with the additional 25% tariff will be 
recouped in the price charged to Magna's OEM customers for the ADAS Camera. Ultimately, 

the OEMs will likely to pass those costs along to American consumers by increasing the cost of 

American-made vehicles. Accordingly, the imposition of the 25% tariff on ADAS Camera 

components will place our U.S.-based company at a competitive disadvantage and impact the 

budgets of many American households. 

All the components from China that are the subject of this exclusion request are critical to 

the design of an ADAS camera. As discussed in section 1 above, the cost for a change in 

manufacturing for semiconductors suppliers is astronomical, and they have spoken out that 

automotive is a very small portion of their business so they do not intend to make any rash 

manufacturing changes. The commercial market has much more flexibility to change their 

designs and not bound to automotive standards, nor do they have extended service 

requirements. If these exemptions are not approved, this will put our business in severe jeopardy 

due to the excessive financial liability placed upon us. This would lead to our products being 

uncompetitive, reductions in workforce in North America and the potential shift of all 

manufacturing out of the United States. 

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

China 2025" or other Chinese industrial programs 

The ADAS Camera components at issue are not strategically important to the "Made in 

China 2025" initiative, nor related to any other Chinese industrial program. Specifically, the 

various components are a lower-technology product that is imported to support the production of 

higher-technology ADAS Cameras in the United States. 

Furthermore, the imposition of a 25% tariff on ADAS Camera components 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 ADAS Camera 

components classified under HTSUS 8538.90.6000 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