OMB Control Number: 0694-0139 Expiration Date: 9/12/2018 Request for Exclusion from Remedies: Section 232 National Security Investigation of Steel Imports Exclusion Request Requirements: Only individuals or organizations operating in the United States that use steel products (e.g. flat, long, semi-finished, pipe and tube, and stainless) in business activities (e.g., construction, manufacturing, supplying steel product to users) in the United States may submit an Exclusion Request. For an Exclusion Request to be considered, the Exclusion Requester must provide factual information on 1) the single type of steel product it requires using a 10-digit HTSUS code, including its specific dimension; 2) the quantity of product required (stated in kilograms) under a one-year exclusion; 3) a full description of the properties of the steel product it seeks to import, including chemical composition, dimensions, strength, toughness, ductility, magnetic permeability, surface finish, coatings, and other relevant data. Exclusion Requests must be submitted using this Excel-based document. Paper submissions will not be accepted. A separate Exclusion Request must be submitted on each distinct type and dimension of steel product to be imported. All applicable question blocks in the form must be completed for the Exclusion Request to be accepted. Exclusion Requests will be denied if the applicant: 1) does not sufficiently address the specified reporting requirements; 2) cites the improper HTSUS code, or 3) provides incorrect product descriptions. Organizations electing to attach supporting documents must provide these documents in PDF format and it must not exceed 25 pages. All information submitted in the Exclusion Request is subject to public disclosure. Do not provide sensitive Personally Identifiable Information. Organizations should upload their completed Exclusion Request pertaining to a steel product to www.regulations.gov under Docket Number BIS-2018-0006. An Exclusion Request may be submitted at any time. Processing of an Exclusion Request will take approximately 90 business days. Notification of granted Exclusions will be posted on www.regulations.gov. For questions related directly to completing this form, contact BIS via email (steel232@bis.doc.gov) or telephone (202-482-5642). 1.a Identify the class of steel product for which the Exclusion is sought: Carbon and Alloy Long 10-Digit Harmonized Tariff Schedule Code of the United States (HTSUS) for the single steel product covered by this request: 7217204520 (See https://www.usitc.gov/publications/docs/tata/hts/bychapter/0900c72_0.pdf) Requesting Organization Information Full Organization Legal Name Importer of Record for Organization Requesting an Exclusion Pensmore Reinforcement Technologies, LLC d.b.a Helix Steel Street Address 2300 Washtenaw Ave, Suite 201 Full Organization Legal Name Pensmore Reinforcement Technologies Street Address 2300 Washtenaw Ave, Suite 201 City Ann Arbor City Ann Arbor State Michigan State Michigan Zip Code 48103 Headquarters Country Point of Contact Name Phone Number 1.b E-mail Address Zip Code 48103 United States Headquarters Country United States Luke Pinkerton Point of Contact - Representative Name Luke Pinkerton 734-322-2114 x 61 Phone Number 734-322-2114 x 61 luke.pinkerton@helixsteel.com E-mail Address luke.pinkerton@helixsteel.com Web Site Address www.helixsteel.com Web Site Address Parent Company of Requesting Organization Full Organization Legal Name www.helixsteel.com Requester's Authorized Representative/Agent (If applicable) N/A Requester Point of Contact Name Richard Wortman, Esq. Street Address Point-of-Contact Organization City Country Location State/Province Phone Number 213-452-0860 Zip Code/Postal Code E-mail Address rwortman@gdlsk.com Headquarters Country Web Site Address Web Site Address Other Information Does the parent organization hold ownership in (partially or completely), or is it otherwise engaged as a: Steel Manufacturer; Steel Distributor; Steel Exporter or, Steel Importer? If 1.c "Yes" identify the activity. Comments: www.gdlsk.com Identify the country where the organization is headquartered Pensmore Reinforcement is a privately held Virgina LLC with headquarters and manufacturing in Michigan. 1.d Identify the primary type of steel activity of the Exclusion Requester: Comments: If "Yes" - Identify the organization GDLSK, LLP United States Manufacturer Total Requested Annual Exclusion Quantity in Kilograms (1 metric ton = 1,000 kilograms) 4,000,000 kg Pensmore Reinforcement, d.b.a. Helix Steel, is a small U.S. manufacturing company (currently employing 22 production employees in Michigan, and, if this exclusion is granted, anticipates employing 50 manufacting employees in Michigan by 2020). Pensmore Reinforcement imports steel coil wires made to its exacting, unique specifications. At Pensmore's Michigan production facility, the wires are further manufactured into Helix (TM) micro rebar, a type of steel fiber reinforcement that is mixed into concrete to add tensile strength, durability, blast resistance and tornado/hurricane resistance. The product is used in buildings, roads, bridge decks, tunnels, and is under evaluation in two of the U.S.-Mexico border wall prototypes (Yates Engineering) for the penetration resistance it provides. Continued on Next Page Page 1 of 5 Request for Exclusion from Remedies: Section 232 National Security Investigation of Steel Imports - Continued 2.a Average annual consumption for years 2015-2017 of the steel product that is subject of this Exclusion Request - Kilograms 1,116,182 kg Explain why your organization requires an Exclusion using 1) the drop-down box to the right and 2) by providing written comments in the space provided below. 2.b Comments: Insufficient U.S. availability Pensmore has attempted to qualify U.S. supply; however, the quality and capacity of that U.S. supply is severely insufficient. Quality is measured by the number of wire breaks per 100 kg and is critical for public safety and for Pensmore to remain competitive against imported finished products and a domestic plastic alternative. 2.c Identify the percentage of total steel product covered under this Exclusion Request not available from steel manufacturers in the United States: 92% 2.d Estimate the number of days required to take delivery of the steel product covered by this Exclusion Request, from the time the purchase order is issued by your organization: 60 2.e Estimate the number of days required to manufacture the steel product covered by this Exclusion Request, from the time a binding purchase order is executed: 90 2.f. Estimate the number of days required to ship the steel product covered under this Exclusion Request, from the foreign port of departure to the Exclusion Requester's loading dock: 45 2.g Estimate the number of distinct shipments from the foreign port(s) of departure that will be needed for transporting to the United States the steel product subject to this Exclusion Request: 208 Identify the U.S. Destination Port(s) of Entry through which the steel product subject to this Exclusion Request would be transported: 2.h Port 1 Port 2 Port 3 Port 4 Port 5 Los Angeles, CA Tacoma, WA International Falls, MN Detroit, MI Chicago, IL Port 6 Port 7 Is the organization making this Exclusion Request doing so on behalf of a non-U.S. steel producer that does not manufacture steel products in the United States? 2.i If "Yes" identify the non-U.S. steel producer No Identify the country where the organization is headquartered Comments: Exclusion Request Product Information For this single Exclusion Request, provide a full, complete description of the product in the space provided below. * See explanation below. The product for which an Exclusion is being requested is defined as follows: Diameter: 0.51 +/-0.01 mm, Steel Type: C 1060A - C1072A (0.6-0.72% carbon), specified for drawing, low inclusions, Tensile: 1700-2000 N/mm2, Elongation at break: 3-5%, Torsion Test: 120 Torsions Minimum per ASTM - A 938, 203 mm length, 7.35 N Coating: Electro-galvanized zinc at 10-15 g/m2 with 100% coverage., Zinc must be tightly adhered and pass a standard wrap test around a 0.5 mm diameter without any sign of flaking or cracking. Wire should be smooth, free of waves and have a natural coil diameter of more than 40 cm. 2. Wire should be tightly wound and able to be uncoiled from a standard fly unit at a minimum of 100 meters/minute without any difficulty. 3. No more than 1 weld per spool and all welds must be strong and properly dressed. Where possible mark welds with red die that will not harm the wire. 4. Must pass a hard kink test. 5. Incoming rod must be clean, class A for drawing and meet ASTM E-45 standards for inclusions and impurities. Package: MP100 plastic spool with 90 + 1kg. Lock nuts must be used to assemble the spools. Each spool must have a lot number label. Nine spools per pallet and pallets must be 1075 mm in size in both directions and meet U.S. shipping requirements for infestation. 23 pallets per 20' container. 2.j * With regard to the product for which an Exclusion is requested, such a description must be limited to a single product. The description must be limited solely to physical properties (e.g., chemical requirements, mechanical requirements, dimensions, etc.) and exact descriptive terms/phrases covering the product subject to the Exclusion Request (e.g., “hot-rolled,” “seamless pipe,” “suitable for use in boilers,” “longitudinally submerged arc welded,” etc.). All such physical properties must be defined based on actual, rather than nominal, measurements; references to specific dimensions (e.g., “cross-sectional diameter of 5.50 mm”) or measurements (e.g., “yield strength of 300 MPa,” “carbon content 0.08%,” etc.) will be interpreted as meaning the exact dimension or measurement. Ranges (e.g., “cross-sectional diameter falling within the range 5.35 mm and 5.65 mm,” “yield strength greater than or equal to 300 MPa,” “carbon content less than or equal to 0.15%, by weight,” etc.) are allowed. Where a range is needed, it should be identified based on the end points of the range (as in the examples above), rather than through references to absolute or percentage tolerances. Comments: Identify the standards organizations that have set specifications for the product type that is the subject of this Exclusion Request, and provide the reference designation(s) for the 2.k identified standards organization(s), (e.g., ASTM A108-13): 1 2 Organization Designation ASTM A938 ASTM E45 Other (specify) Organization Designation 3 Organization Designation Hot Rolled Cold Rolled Pickled Other (Use Comment Box) 5 4 6 Other (specify) Other (specify) General Steel Product Description Identify the classification and properties of the steel product covered under this Exclusion Request. Other classification or properties may be described in the Comment box below. (Select all that apply) Slab Blooms Billets Ingots Flat Long Beams Semi -Finished Pipe Tube Stainless Wire Yes 2.l Annealed Plated ElectroPlated Galvanized ElectroGalvanized Zinc Plated Aluminum Plated Lead Plated Yes Comment: The product is electrogalvanized wire. Continued on Next Page Page 2 of 5 Tin Plated Painted Varnished Plasticized Request for Exclusion from Remedies: Section 232 National Security Investigation of Steel Imports - Continued Identify the chemical composition of the specific steel product for which your organization seeks an Exclusion. Numbers may appear rounded, but full values will be stored. Chemical Composition Chemical Aluminum Antimony Bismuth Boron Minimum % Chromium Copper Iron Lead Nitrogen Phosphorous Selenium Manganese Molybdenum Nickel 0.30% 0.75% Niobium 0.90% Silicon Sulfur Minimum % 0.00% 0.10% 0.00% Maximum % 0.05% 0.30% 0.05% Comments: Cobalt 0.60% Maximum % 3.a Carbon Tellurium Titanium Tungsten Vanadium Zirconium [Other - List Below] [Other - List Below] We only specifiy the max and min carbon contents Provide the following information on the single steel product that is the subject of this Exclusion Request: 1) dimensional information for the single steel product and a single size -- not a range of products and or sizes (e.g., 19 mm dia. rebar - not 19, 22, 25, and 29 mm.) A separate Exclusion Request must be submitted for each steel product by physical dimension; 2) performance data for tensile strength, yield strength, hardness, impact, shear and test temperature. Steel Product Specifications (Millimeters) Thickness Inside Diameter Outside Diameter Length Toughness (If Applicable) Strength Width Height 3.b Tensile Strength Mega Pascal (MPa) Yield Strength Mega Pascal (MPa) Hardness (specify method below - Brinnell, Rockwell, Vickers, etc.) Test Type Drop-Weight Tear Testing Other (specify type in comment box) Impact (Charpy) Testing Temperature (°C) Minimum 0.50 mm 1700 MPa Joules Maximum 0.52 mm 2000 MPa % Shear Comments: Provide the following information on the single steel product that is the subject of this Exclusion Request: 1) performance data for ductility, magnetic permeability, surface finish; and 2) metal coating process, material type, weight, and thickness. Global Ductility Elongation % Reduction -in-Area % Local Ductility (If Applicable) Hole Expansion % Bendability (Bend Radius/Sheet Thickness [millimeter] Magnetic Permeability (If Applicable) Magnetic Permeability [Epstein Test] Magnetic Permeability [Greer Lab Method] Stacked Wide Sheet [ASTM A804/ A804M-04 (2015)] Surface Finish (If Applicable) Profilometer - [SAE J911] Coating Type and Composition (If Applicable) Coating Method Coating Product Name and Abbreviation Composition (e.g., Zn, Al, Si, Mg, other intentionally added elements or alloys) 3.c Minimum Maximum Select any additional processing methods used: Comments: Other (specify) Not Applicable Continued on Next Page Page 3 of 5 Weight [Grams per Sq. Meter] Coating Thickness [micrometers] Request for Exclusion from Remedies: Section 232 National Security Investigation of Steel Imports - Continued List the Commercial Name(s) of the single steel product that is the subject of this Exclusion Request. 0.51 mm Electro Galvanized Wire on MP 100 Spools 4.a Comments: State the 1) application for the steel product (e.g., automotive, appliances, industrial products, structural, etc.) that is the subject of this Exclusion Request, and 2) why similar steel products manufactured in the United States, if available, are not suitable. 4.b 1) Construction: bridge decks; tunnels; Mex. border wall prototype; warehouses; retail centers; residential. 2) U.S. source has not passed quality testing and quantity insufficient. Quality: U.S. source has 1.4 wire breaks/90 kg spool; imported product has 1.0 breaks/90 kg spool. Quantity: U.S. source 250,000 kg/year; Pensmore's 2015-17 average consumption +1 million kg / year. The 25% tariff will make the Pensmore Michigan manufacturing facility unable to compete with a domestic plastic alternative and finished imported product. If the Exclusion is needed to support U.S. national security requirements (critical infrastructure or national defense systems), provide a detailed description of the specific uses of this single steel product in the space below: 4.c The product is used to repair bridge decks (Missouri DOT, Phillips Hardy, Contractor) and is under evaluation in two of the prototypes for in the Mexico border wall (Yates Constuction Contractor) for the penetration resistance it provides to concrete. It has also been used by the US Army Corps of Engineers on military bases and at FEMA's Mt Weather Facility (Century Concrete Contractor). Identify the source countries for the single steel product for which the Exclusion is requested, the annual quantity to be supplied in kilograms, and the name of the current manufacturer(s) of the steel product. If this steel product is not obtained directly from the manufacturer, identify the current supplier(s) and the country of the supplier(s). The Exclusion Request, if granted, will pertain solely to the identified supplier(s) listed in this form and the country of origin. NOTE: Steel products encompassing more than one 10-digit HTSUS code must submit a separate Exclusion Request for each pertinent code. 4.d Current Manufacturer Current Supplier (if not obtained directly from manufacturer) Country of Origin Country of Export Exclusion Quantity 1 China China 3,000,000 kg Nantong Longyang International Trading, CO LTD 2 China China 1,000,000 kg Wuhan Linking Trade Co Ltd. 3 4 5 Product Availability Information 4.e Does the Requester possess knowledge of any domestic U.S. parties that currently manufacture the described steel product in the United States? Comment: Does the Requester possess knowledge of any parties that currently manufacture the described steel product in a country exempted from this tariff? If yes, identify the country or countries below. 4.f Comment: Has the Exclusion Requester attempted to qualify any steel manufacturer in the United States as a supplier of the steel product that is the subject of this Exclusion Request in the past two years? If “Yes” provide supporting information in the space below. Supporting documents must be submitted as a consolidated PDF file and may not exceed 25 pages. 1 4.h No Comment: Is the Requester aware of any manufacturers capable of producing a substitute for the steel product in the United States? If “Yes” provide supporting information (name and address) in the space below? 4.g Yes WJC Pilgrim product has not passed quality/qualification testing, and their capacity is far below what Pensmore requires. Quality: WCJ product has 1.4 wire breaks per 90 kg spool; imported product has 1.0 wire breaks per 90 kg spool. Capacity: WCJ has 250,000 kg / year; Pensmore consumption has averaged over 1 million kg per year (2015-17). It is unclear whether Mt. Joy offers sufficient quality and quantity; the qualification process takes 18 months and Mt. Joy has not responded to our initial request for information. WCJ Pilgrim, Steve Kauffman 220 Boxwood Lane, York, PA 17402 Telephone: 717-755-7491 5 2 6 3 7 4 Comment: 8 WCJ product did not pass quality testing and WCJ has insufficient capacity/quantity. Continued on Next Page Page 4 of 5 No Request for Exclusion from Remedies: Section 232 National Security Investigation of Steel Imports - Continued 5.a Has the Exclusion Requester attempted to purchase the described steel product that is the subject of this Exclusion Request, or a substitute, from a U.S. manufacturer in the past two years? If "Yes" identify the manufacturers, addresses, and your points of contact at the U.S. steel manufacturing organizations in the space below. Comment: 5.b 5.c Yes Yes, WCJ Pilgrim, Steve Kauffman 220 Boxwood Lane, York, PA 17402 Telephone: 717-755-7491 Cell: 717-515-1001 skauffman@wcjwire.com www.wcjwire.com Has the Exclusion Requester had supply contracts, or does it have current contracts, with steel producers that manufacture in the United States the steel product identified in the Exclusion Request? If "Yes" identify the U.S. steel manufacturers, addresses, and your points of contact at the U.S. manufacturing organizations in the space below. Yes Yes, WCJ Pilgrim, Steve Kauffman 220 Boxwood Lane, York, PA 17402 Telephone: 717-755-7491 Cell: 717-515-1001 skauffman@wcjwire.com www.wcjwire.com. Although WCJ product did not pass Step 4 of qualification testing, Pensmore has purchased from WCJ, given that no other U.S. source passed Steps 1-3 of the qualification process. However, WJC's capacity is far below what Pensmore requires. Has the Exclusion Requester determined that there is no U.S. manufacturer that produces a near-equivalent steel product that would meet qualification requirements? If "Yes" identify in the space below the testing standards/procedures employed to make that determination (e.g., magnetic core loss, etc). No Comment: In the last two years, has the Requester purchased a substitute steel product manufactured in the United States in place of the steel product described in the Exclusion Request? If “Yes” provide supporting information in the space below. No 5.d Comment: 5.e Provide a detailed explanation as to how U.S. Customs and Border Protection (CBP) will be able to reasonably distinguish the steel product subject to the Exclusion Request at time of entry, without adding undue burden to their current entry system and procedures. Boxes bear the Helix trademark. Diameter: 0.51 +/-0.01 mm, Steel Type: C 1060A - C1072A (0.6-0.72% carbon); Tensile: 1700-2000 N/mm2, Elongation at break: 3-5%, 120 Torsions Minimum per ASTM - A 938, 203 mm length, 7.35 N Coating: Electro-galvanized zinc at 10-15 g/m2 with 100% coverage., Zinc must be tightly adhered. Package: MP100 plastic spool with 90 + 1kg). Package: MP100 plastic spool with 90 + 1kg. Lock nuts must be used to assemble the spools. Each spool must have a lot number label. Nine spools per pallet and pallets must be 1075 mm in size in both directions. Submission of Exclusion Requests: All Exclusion Requests must be fully completed and submitted to www.regulations.gov under Docket Number BIS-2018-0006 using this Microsoft Excel electronic form. All information submitted will be subject to public disclosure, regardless of any statements by the Requester that some information should be treated otherwise. Any further information required as a part of this Exclusion Request will be determined and requested solely by the U.S. Department of Commerce. Submission of Supporting Documents (Attachments): Supporting attachments should be submitted to www.regulations.gov as PDF documents and must be posted to www.regulations.gov under Docket Number BIS-2018-0006. Total supporting submissions may not exceed 25 pages. Other Comments: Please see attached. I have additional information to provide that is proprietary or otherwise business confidential that is relevant and necessary to this submission: No Instruction: This Exclusion Request must be signed by an organization official specifically authorized to certify the document as being accurate and complete. CERTIFICATION The undersigned certifies that the information herein supplied in response to this questionnaire is complete and correct to the best of his/her knowledge. It is a criminal offense to willfully make a false statement or representation to any department or agency of the United States Government as to any matter within its jurisdiction. [18 U.S.C. 1001 (1984 & SUPP. 1197)] Company Name: Pensmore Reinforcement Technologies Name of Authorizing Official: Luke Pinkerton Phone Number: 734-322-2114 Title of Authorizing Official: Email of Authorizing Official: CTO and Founder luke.pinkerton@helixsteel.com If the Point of Contact is different from the Authorizing Official provide point-of-contact information below. Point-of-Contact Name: Richard Wortman, Esq. Title E-mail Address: rwortman@gdlsk.com Phone Number Partner 213-452-0860 Paperwork Reduction Act Notice Per the Paperwork Reduction Act of 1995, public reporting burden for this collection of information is estimated to average 4 hours per response, including the time to review instructions, search existing data sources, gather and maintain data needed, and complete and review the collection of information. Send comments regarding this burden estimate or any other aspects of this collection of information, to 1401 Constitution Avenue, NW, HCHB 1093, Office of Technology Evaluation, Bureau of Industry and Security, U.S. Department of Commerce, Washington, DC 20230 attn: 0694-0139. Commerce may not collect this information, and you are not required to respond; unless this OMB number is displayed. Page 5 of 5