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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:

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*

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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VERSION 1

Requestor Information

Requestor Name (Last, First):
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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.

2016 Value:

2015 Value:

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Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

The Honorable Robert E. Lighthizer 

United States Trade Representative 

Office of the United States Trade Representative 

600 17th Street Northwest 

Washington, D.C. 20508 

Subject: Docket Number USTR-2018-0025

Request 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

 

Dear Ambassador Lighthizer: 

Michael Weinig, Inc. (“Weinig USA”) appreciates the opportunity to present this 

request for a product-specific exclusion from the 25-percent additional tariff on certain 

imports from China pursuant to your 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. Specifically, we request that the 

following product not be subject to the 25-percent ad valorem duty:

Product Name HTS Number 

(10-digit)

Product Description1

Wood moulder 8465.10.0045 Moulder for 4-sided planing or 

profiling of wood (provided for in 

subheading 8465.10.0045). 

The wood moulders for 4-sided planing or profiling of wood are entry-level 

machines that enable small and medium-sized, “mom and pop,” U.S. manufacturers across 

America to produce and sell wood products, such as crown moulding, architectural 

millwork, cabinetry, flooring, and many other solid wood components to home builders, 

architects, and home improvement stores. 

 

1

 See Annex 1 for a sample product (for reference only). 
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

This product should not be subject to the 25 percent tariff increase for the following 

three reasons. First, the Weinig USA products from China are specialized products, with 

specifications selected by the U.S. market for the U.S. market, manufactured exclusively 

by Weinig Yantai, a Weinig foreign affiliate of a foreign parent (FAFP) and not available 

anywhere outside of China. Second, imposing the tariffs will have not only a severe 

negative impact on the company’s operations in the United States, but also a systemically 

negative impact on small and medium-sized U.S. entrepreneurs who use our product to 

manufacture their solid-wood products. These U.S. manufacturers sell to U.S. retailers, 

builders, craftsmen, and numerous other outlets that support primarily the housing and 

furnishings markets, among many others. Finally, the technology used to manufacture 

these machines is already present in the Chinese market, and is small-scale and low-margin 

and presents no interest for acquisition by the Chinese government.2

Weinig USA – Company Background 

Incorporated in North Carolina in 1976, Weinig USA is a wholly-owned subsidiary 

of Michael Weinig AG based in Germany. Weinig USA employs [..] people in three 

locations in the United States, the majority at its headquarters in Mooresville, NC, which is 

responsible for sales, training, service, and aftermarket parts. The Weinig USA location in 

Connelly Springs, NC, designs and manufactures complementary material handling 

equipment used in wood manufacturing operations. In addition, a new showroom facility 

has just been secured in Anaheim, CA for West coast sales. Weinig USA is directly 

responsible for the support and service of over 12,000 moulders across the U.S. These 

solid-wood manufacturing customers depend on Weinig USA to keep their machinery 

running and in production on a daily basis. See below for how Weinig USA business 

model and how it operates to promote small and medium sized business in the United 

States. 

[...] 

 

2

 Please see Annex 2 for information regarding quantity of value of these imported goods over the past three 

years, as required by Docket Number USTR-2018-0025.
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

[...] 

Discussion

We believe that this product should be excluded from the Section 301 duties for the 

three reasons discussed below. 

1. Entry-level wood moulders at the necessary price point are not made in the United 

States and are not widely available outside of China. 

As referenced above, this product is an entry-level product priced to allow U.S. 

manufacturers to start a business or grow their business, producing and selling wood 

products to other U.S. customers. Weinig USA has been able to provide this entry-level 

product to U.S. manufacturers by situating production in its facility in China. Weinig USA 

produces these goods at the Weinig Yantai facility, a Weinig foreign affiliate of a foreign 

parent (FAFP). Notably, there is only one similar product in the market in this space. It is 

manufactured in Taiwan, is owned by a competitor, and is produced based on the 

competitor’s proprietary supply chain. It is not possible for Weinig USA to switch 

suppliers and move production because of the degree of investment that Weinig USA has 

made in China, which ensures its ability to manufacture moulders at the price-point 

necessary to serve the entrepreneurial space of the U.S. market. 

While Weinig USA does have a manufacturing facility in Germany, it would not be 

able to shift production there and maintain the same cost structure. The result would be 

simply that Weinig would no longer be able to offer its entry-level moulder product in the 

United States. [...] Weinig USA is concerned that the disappearance of this product from 

the U.S. market will have damaging effects on the U.S. supply and demand of other 

Weinig USA products. Moreover, Weinig USA believes it will hinder the investment and 

growth of U.S. based start-up manufacturing companies that rely on the expertise and 

consultancy of Weinig’s USA resources.
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

 

2. Tariffs will cause considerable harm to both Weinig’s U.S. business and related 

American manufacturers, without commensurate benefits to American industry.

Because of the price-sensitivity of this entry-level product, an additional 25-percent 

duty [...] will leave the Weinig Yantai machinery unmarketable in the U.S. due to pricing 

constraints. [...]. As notable as the loss of sales directly at Weinig USA, is the fact that 

U.S. manufacturers will also lose competitiveness. 

Weinig USA’s direct and indirect sales employees would also face a negative 

impact to the extent they will have no product to sell in this price-sensitive space. [...] As 

mentioned above, the price-sensitivity for this product is very high. There is no chance to 

pass on additional cost to our customers, and there is no chance for Weinig USA to absorb 

it. [...] 

The tariff will negatively impact our U.S. investment and growth expectations. [...] 

As our customers grow their U.S manufacturing businesses, we grow our business. [...] 

Certain U.S. based manufacturing companies, our customers, would never be able to start 

their business without this machine. Most importantly, the absence of this product would 

impede the hiring of thousands of manufacturing jobs in the U.S. at these growing start-up 

companies. 

3. Wood moulders are made with technology which is already present in the Chinese 

economy and not a target for acquisition by the Chinese government as part of the 

“Made in China 2025” initiative. 

Some 100% of the intellectual property (IP) used to produce these moulders is 

owned and held by Michael Weinig AG in Germany. China is used exclusively for the 

assembly of the product. There is no risk of IP theft. Moreover, given the presence of the 

technology in the market there is no need for Chinese companies to use illegal means to 
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

acquire it. Finally, we are immune to China’s aggression because of the relatively smallscale and low-margin business for which this machine is used. The Weinig USA product in 

question is used by small and medium-sized entrepreneurs to start solid-wood production 

businesses. This is not a target of the “breakthrough” areas highlighted by the “Made in 

China 2025” initiative. 

Administrability by CBP 

The U.S. Customs and Border Protection (CBP) will be able to effectively administer and 

enforce this provision. The specifications of the product would not require CBP to make 

complex differentiations in order to administer the exclusion. In addition, Weinig USA will 

ensure that its invoices reflect the specific terms of the nomenclature and maintain substantive 

and accessible records of import, production, and specification standards. Weinig USA will 

cooperate with CBP with respect to any request for additional documentation including requests 

to inspect the imported merchandise and/or the production facility in China. 

Conclusion

Our machinery enables the start-up of thousands of entrepreneurial U.S. 

manufacturing operations in Middle America to produce and sell wood products such as 

crown moulding, architectural millwork, cabinetry, flooring, and many other solid wood 

components. These U.S. manufacturers are primarily suppliers to the housing industry 

builders and architects; to commercial, institutional, and recreational development; to DIY 

home improvement stores (Lowes, Home Depot); and almost any other retailer of solidwood finished goods. A 25 percent tariff on wood moulders would severely limit Weinig’s 

ability to provide goods and services to these small and medium-sized U.S. manufacturers 

and their customers. We respectfully request that you exclude “Moulder for 4-sided 
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

planing or profiling of wood (provided for in subheading 8465.10.0045)” from the list of 

products imported from China subject to Section 301 tariffs.3

Sincerely, 

__________________ 

 Jason Howell 

 President 

 Michael Weinig, Inc. 

 

3

 The submitter hereby certifies that the information provided is complete and correct to the best of his 

knowledge. 
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

ANNEX 1: SAMPLE PRODUCT (FOR REFERENCE ONLY) 

Name Tariff Code 

(HTS)

Picture Description 

Unimat 

200 

Wood 

moulder

8465.10.0045

Wood moulder 

for 4-sided 

planing or 

profiling of 

wood 

(provided for in 

subheading 

8465.10.0045).
Michael Weinig Inc. 

124 Crosslake Park Drive, P.O. Box 3158, Mooresville, NC 28117 USA 

Sales & Administration: (704) 799-0100 . Parts & Service: (704) 799-0400 . Fax: (704) 799-7400 . E-mail: weinig@weinig.com . 

 Internet: www.weinigusa.com 

ANNEX 2: ANNUAL QUANTITY AND VALUE OF IMPORTS 

Type Tariff Code 

(HTS) 

Annual Quantity and Value 

2015 

QTY 

2015 Import 

Value 

2016 

QTY 

2016 Import 

Value 

2017 QTY 

Instruments 

2017 Import 

Value 

Unimat 8465.10.0045 [ ]