Organization Name:

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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.

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information (BCI), is a public document, or is a public version of a BCI document.

VERSION 1

Requestor Information

Requestor Name (Last, First):
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.

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JUNKER & NAKACHI, P.C.

ONE MARKET SPEAR TOWER; SUITE 3600

SAN FRANCISCO, CA 94105

(415) 498-0070

WWW.TRADELAWCOUNSEL.COM

MATT NAKACHI

(213) 458-2602

NAKACHI@TRADELAWCOUNSEL.COM

October 9, 2018 

Via Reglations.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 

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

Technology Transfer, Intellectual Property, and Innovation / Request For Exclusion 

From Additional 301 Duties

Dear Ambassador Lighthizer:

On behalf of Hatfield Manufacturing, Inc. (hereafter “Hatfield”) we provide this request for 

exclusion from additional duties on imports of certain dairy and livestock equipment from China.1

I. SUMMARY 

Hatfield is an American company based in Idaho that produces and imports dairy and livestock 

equipment. 

• The products are unique and not available elsewhere but from Hatfield’s own suppliers in 

China, and transitioning to other suppliers will requires significant time. 

• With over 100 Hatfield products subject to 301 duties, the tariffs are creating 

unsustainable losses. Hatfield is not able to pass on the price increases, because it faces 

foreign competitors that are not subject to these tariffs. The result will be the demise of 

the company, and U.S. manufacturing jobs. If Hatfield cedes the marketplace, then 

foreign competitors will consolidate market share, and U.S. dairy and livestock farmers 

will face fewer product choices, and eventually increased prices.

• Hatfield’s dairy and livestock products are not the subject of China’s “Made in China 

2025” policies. 

 

1

See, Docket USTR-2018-0025, Procedures to Consider Requests for Exclusion of Particular Products from the 

Determination of Action Pursuant to Section 301. 83 Fed. Reg. 32181 (July 11, 2018).

Docket No. USTR-2018-0025 

PUBLIC DOCUMENT
Hatfield Manufacturing, Inc.

Request for a 301 Tariff Exclusion

October 9, 2018

Page 2

II. 301 TARIFFS WILL CAUSE DEVASTATING ECONOMIC HARM TO HATFIELD 

The potential impact of 301 tariffs is so great that it threatens to put our American-based company 

out of business after forty-two successful years of operation. 

III. Section 301 Tariffs Exceed Company Margins 

Hatfield’s business produces an overall profit margin of only approximately 20%. A large 

quantity of Hatfield’s commodity products, such as free stalls, gates, and lockups, are 

manufactured at Chinese facilities and subject to the 25% tariffs. These product lines represent 

the economic backbone of our business. Without the business drawn from our commodity 

products, customers do not independently seek out our secondary product offerings. Due to the 

tariffs, Hatfield business model will face shortfalls of 5% in losses, which will destroy both our 

core and secondary businesses.

IV. American Workers Will Lose Jobs Unless Hatfield Products Receive 

Exclusions from Section 301 Tariffs 

Where it has been able, Hatfield still produces parts at two (2) Idaho manufacturing plants. 

Hatfield employs American men and women to manufacture parts, and to assemble our imported 

products. Our American jobs requiring skill and education, including engineering, marketing, 

quality control, finance, operations, and the like. Unfortunately, with over 100 Hatfield product 

lines facing operating losses under section 301’s unsustainable tariffs, these assembly jobs may 

no longer be available to our Idaho community.

V. Hatfield Cannot Pass on the 25% Increase, Because Foreign Competitors are 

Not Subject to Tariffs

Currently, Hatfield competes against three companies that bid against us on a daily basis, two 

foreign companies and one domestic. None of these competitors are subject to section 301 tariffs. 

One of our foreign competitors is based in Germany and manufactures many of its products in 

Eastern Block Europe. Another competitor is Canadian but with existing sourcing options from 

Vietnam. All competitors stand to gain tremendously if Hatfield is forced out of business. 

VI. U.S. Farmers Will Suffer When Competitors Consolidate Our Market Share

Hatfield sells to U.S. farmers. If the tariffs put Hatfield out of business, the competitors will 

consolidate our market share. U.S. farming businesses will then have an extremely limited 

market choice, and less market competition will exist to keep the price of these goods low. In the 

end, U.S. dairy and livestock farmers will suffer.

VII. THESE UNIQUE GOODS ARE NOT AVAILABLE IN THE USA OR FROM A THIRD-COUNTRY

Hatfield’s parts are unique designs. They are not fungible commodities, nor are they available 

“off-the-shelf” from other sources. Many of our products may be either hot-galvanized dipped 

and/or may require special tooling to manufacture.
Hatfield Manufacturing, Inc.

Request for a 301 Tariff Exclusion

October 9, 2018

Page 3

The development of Hatfield’s supply chain has been a slow and methodical process spanning the 

course the last twelve years. Any transition to another manufacturing site will also require years 

of focused effort, and collaboration. Substantial time and effort is required to transition even one 

individual part to another manufacturer. 

VIII. CONCLUSION

Hatfield’s cannot compete when subject to 25% tariffs when foreign competitors are not similarly 

paying these tariffs, and at present, Hatfield cannot obtain these unique products from other 

sources. Without a financially sustainable and practical option for re-sourcing production of 

Hatfield products, the company the tariffs will explode our business. Hatfield is an American 

company providing U.S. manufacturing jobs, that has been in business since 1976 and yet it is at 

risk of failure because of an American tariff. 

For those forgoing reasons, we respectfully request an exemption for Hatfield Manufacturing Inc.

We appreciate your consideration of this request. Should further questions arise, please feel free 

to contact the undersigned directly via telephone (415) 498-0070, or alternatively, via email at 

matt.nakachi@TradeLawCounsel.com.

Cordially yours,

JUNKER & NAKACHI, P.C.

Matt Nakachi, Esq.

Attorney’s for Hatfield Manufacturing, Inc.
EXHIBIT A


Certification Statement

The undersigned certifies that the information provided in this submission (USTR-2018-0025) is 

complete and correct to the best of my knowledge.

October 9, 2018

Matt Nakachi, Esq, 

JUNKER & NAKACHI, P.C. 

One Market Street; Suite 3600

San Francisco, CA 94105