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. 

Public Document 

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

The Braeburn 1020 Model is a non-programmable wall mounted thermostat to control heat and air conditioning in the 

home, and is compatible to both cool conventional AC or heat pumps. It can be either hard wired or battery operated. 

This model is compatible with single stage gas, oil or electric heating or cooling systems including single stage heat 

pumps and 250mv — 750mv millivolt heating systems. The thermostat has a large 3 square inch bright blue backlit 

display and retains memory settings. The products dimensions are 3.70" x 5.16" x 1.38. 

3. 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/ 

9032100030 

4. Requestor Information 

Requestor Name (Last, First): 

Organization Name: 

Glenn Moore 

Braeburn Systems LLC 

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

Requestor Representative: Adrienne Braumiller, Esq., Braumiller Law Group, PLLC 

5. Requestor's relationship to the product: I m porter 

6. Does this submission in regulations.govinclude additional attachments? 

YES 

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. 

Public Document 

VERSION 1 CONTINUED BELOW 1 
8. Is this product, or a comparable product, available from sources in the United States?: 

NO 

9. Is this product, or a comparable product, available from sources in third countries?: 

YES 

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. 

2017 Value: $747,930.96 2017 Quantity: 69,696 

2016 Value: $708,583.20 2016 Quantity: 67,080 

2015 Value: $521,159.04 2015 Quantity: 49,824 

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). 

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

her knowledge. Please see attached letter. 

VERSION 1 END 2 
amis. vAL BRAUMILLER 

lasW.` ImA LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Via WWW Regulations.Gov 

September 24, 2018 

Ambassador Robert Lighthizer, U.S. Trade Representative 

Office of the United States Trade Representative 

600 17th Street NW, Room F516 

Washington, DC 20508-0001 

RE: USTR 2018-00025; Request for Exclusion from the Determination of Action Pursuant 

to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, 

Intellectual Property, and Innovation Tariff Under Harmonized Tariff Code 

(HTS) 9032.10.0030 

Dear Ambassador Lighthizer, 

This request for exclusion is submitted pursuant to Federal Register notice published on July 11, 

20181, establishing the process to submit exclusion requests from tariffs applied to U.S. imports 

pursuant to the Determination of Action Pursuant to Section 301 of the Trade Act of 1974: China's 

Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation. 

We hereby respectfully request that the wall mounted thermostats imported by Braebum Systems 

LLC (Braeburn or the Company), under HTS code 9032.10.0030 be excluded from the additional 

25% tariff imposed on this HTS code pursuant to Section 301. 

Explained below are the reasons why the thermostats meet the elements in the Federal Register 

notice to be excluded from the additional tariff under Section 301. 

1. Distinguished from other products in the 8-digit HTS code 

The subject thermostats are classified under HTS 9032.10.0030, "Thermostats; for air 

conditioning, refrigeration or heating systems; wall-mounted". The 8-digit code is only for 

"Thermostats; for air conditioning, refrigeration or heating systems". Accordingly, the subject 

thermostats, Braeburn Economy Model 1020, differ from other thermostats in this general 8-digit 

classification as these thermostats may only be mounted on walls. The product is distinguished 

from the 8-digit tariff description, as it is a non-programmable wall mounted thermostat to control 

heat and air conditioning in the home, and is compatible to both cool conventional AC or heat 

pumps. It can be either hard wired or battery operated. This model is compatible with single stage 

gas, oil or electric heating or cooling systems including single stage heat pumps and 250my — 

750my millivolt heating systems. The thermostat has a large 3 square inch bright blue backlit 

display and retains memory settings. The products dimensions are 3.70" x 5.16" x 1.38. See 

Attachment A for a description of the thermostat. 

2. The thermostats are currently only available from China 

Braeburn Systems LLC has established a strong relationship with its manufacturer in China. The 

manufacturer produces the thermostats according to Braebum's strict specifications and quality 

control measures. Braeburn has now created a long standing, dependable relationship with this 

supplier as it has been working with this Chinese manufacturer for 17 years. In fact, the Chinese 

1 83 Fed. Reg. 32181 — 32184 (July 11, 2018). 

•'' "V! ItAS. T(XAS 752S4 OF( 1/14) 448 930(, FAX: (*)14) M-93113 It:A(.-MU gin) 277 5987 

WWW.BRAUMILLERLAW,COM 
supplier, Computime Group Limited, is a 27% member of Braeburn Systems LLC. However, all 

products manufactured are under Braeburn's protected intellectual property. Generally, only 10% 

of the north American thermostat market is produced in the U.S., Canada, and countries other 

than China and Mexico. Accordingly, there are very few U.S. producers available that could 

produce Braeburn's thermostats and the cost would be much higher, in addition to the cost of 

changing sourcing. Although the thermostats could be made by entities in Mexico, to suddenly 

change Braeburn's sourcing to another country would take at least 9-12 months to establish the 

process and educate the new manufacturer on Braeburn's strict standards. Braeburn has over 40 

different room thermostat variations. The Company can only move 5 to 8 models at a time due to 

constraints on engineering and manufacturing resources. This would require the entire effort of 

the Company to initiate and bring to a successful conclusion. Costs associated with moving 

production could be as high as $500,000 depending on need for new tooling, test fixtures or other 

related equipment to facilitating production at the new facility. 

In the meantime, Braeburn would be paying an additional 25% to import the thermostats thereby 

adding immensely to the company's cost. In total, Braeburn only imports from $3,000,000 to 

$4,000,000 per year of the subject thermostats from China. This imported value represents an 

insignificant amount of the $50 billion in imported goods from China that the Section 301 tariffs 

are intended to address. Further, Braeburn is a small sized business, employing directly about 23 

people. The additional burden of paying these tariffs for its imports is disproportionate to the size 

of the Company. The additional duties represent a heavy burden on Braeburn's ability to absorb 

the additional financial impact and still retain its level of economic viability. 

3. Severe economic burden to Braeburn and U.S. interests 

These thermostats represent one of the Company's most imported and highest-selling lines. To 

levy this large of an additional cost to the product translates to an additional cost of $2.5 million 

for every $10 million in material purchases on Chinese manufactured room thermostats. This 

would basically eliminate Braeburn's net income on the entire product offering for the entire period 

the tariffs are in effect. Further, the additional tariffs would severely curtail the Company's ability 

to develop new products, generate new proprietary intellectual property, source new customers, 

and maintain existing large volume customers. Eventually this would lead to reduction of the 

Company's SG&A budgets, elimination of numerous jobs, and reduction in its overall company 

footprint to offset the tariff impact. A truly "American made" company would suffer due to 

imposition of the additional tariffs. 

4. Relevance to "Made in China 2025" prociram 

The thermostats manufactured by the Chinese factory are made according to Braeburn's own 

proprietary specifications and patented technology. The patent for this thermostat was approved 

in 2006 and is attached to this request. See Attachment B. Braeburn has experienced no breach 

of its intellectual property rights from this factory in its history of operation, and the Company 

would instantly lodge a complaint if such violation were identified. As the intellectual property is 

owned exclusively by Braeburn, it is not transferring any IP to the Chinese factory. There is no 

forced transfer of technology, which transfer is the focus of the Section 301 tariffs as discussed 

Page 2 

• ,t tIY ijt r?)r, ILXAS 75254 OR: (224) 348 9306 f AX ()14) 21/AVM 10114RI:f (81 I)11.%481 

WWW.BRAUMILLERLAW.COM 
in the Section 301 report from the USTR.2. Further, the thermostats are not one of the ten 

industries which are the focus of the "2025" program. Rather, these industries include: 

(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. 

There is accordingly no direct link between these relatively low volume imports of the thermostats, 

and the goals of the Section 301 tariffs to address the targeted industries in the "China 2025" 

program. 

Additionally, there is no joint venture between the two companies, and all intellectual rights are 

owned by Braeburn Systems LLC, a U.S. company. Braeburn's business relationship is not 

subject to any Chinese administrative policies which require the transfer of its intellectual property 

in any manner. Thus, penalizing a U.S. company whose intellectual rights are already protected 

by forcing it to pay additional duties does not further the U.S. government's policy regarding the 

"Made in China" initiative. In fact, the relationship between the Section 301 tariff goals and the 

actual impact in this instance is nonexistent. Applying the Section 301 tariff to the imports of the 

thermostats by Braeburn does not serve the purpose of the Section 301 goals but in fact 

contravenes the goals. 

In light of the above, Braeburn sincerely requests that its thermostat Braeburn Economy Model 

1020 be granted an exclusion of the 25% Section 301 tariff. Importation of this product does not 

undermine the U.S. government policy toward the "Made in China 2025" program and would only 

be detrimental to the economic viability of this small sized U.S. company. Braebum certifies that 

information provided is complete and correct to the best of his or her knowledge. 

Best regards, 

Adrienne 

Braumiller 

Digitally signed by Adrienne Braurniller 

cn=Adrienne Braurniller, 

o=Braunsiller Law Group, PLLC, ou, 

email=adrienne@braurnillerlaw.cons, 

c=US 

Date: 2018.09.24 1149:27 -0500' 

Adrienne Braumiller, Partner. 

Trade Counsel for Braeburn Systems LLC 

2United States Officer of the Trade Representative "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, (Mar. 22, 2018); also found at: 

https://ustrciov/sites/default/files/Section%20301%20FINAL.PDF. 

Page 3 

!!”trl .411.y 1c .1111 'Al LAS. TEXAS 75254 OTC: (214). 348 9306 FAX.‘21411 /1 /-9303 1011•143FE: 1814 2 11 !i987 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
SYSTEM 

COOL OFF HEAT 

;catFAN 

AUTO ON 

ACTUAL SIZE 

Braeburn 

1020 Single Stage Heat / Cool 

Conventional or Heat Pump 

Non-Programmable Thermostat 

Braeourn 

-- "111-111'r f h. i„Ern 

srT

—,

, 

0 

5YEAR 

LIMITED 

WARRANTY 

Features 

• Large 3 Sq. In. Display with 

Bright Blue Backlight 

• Adjustable Temperature Limits 

• Hardwire or Battery Powered 

• Permanent Memory Retains Settings 

• Separate 0 & B Terminals 

• Compressor Short Cycle Protection 

• Adjustable Temperature Differential 

• Low Battery Indication 

• ESD Guard"' Electronic Circuitry 

• Front Access Reset Button 

• F° / C° Switch 

• Gas / Electric Fan Switch 

• Mount to Horizontal Box 

• Trilingual Packaging and Instruction 

Card with FREE Contractor Branding 

ECONOMY 

SERIES FREE Contractor Branding! Visit braeburnonline.com 

Toll-Free 866.268.5599 (U.S.) +1.630.844.1968 (Outside the U.S.) 
Product Specifications 

Dimensions: 

Electric Rating: 

AC Power: 

DC Power: 

Compatibility: 

Control Range: 

Display Range: 

Accuracy: 

Temperature 

Differential: 

Storage Temperature: 

Operating Humidity: 

Terminations: 

3.70" x 5.16" x 1.38" 

24 Volt AC (18-30 Volt AC) 

1 amp maximum load per terminal 

3 amp total maximum load (all terminals) 

18-30 Volt AC 

3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Single stage gas, oil or electric systems 

Single stage heat pump systems 

250mv — 750mv millivolt heating systems 

45° to 90° F (7° to 32° C) 

40° to 99° F (5° to 37° C) 

+/- 1° F (+/- .5° C) 

.5°, 1°, or 2° F (0.2°, 0.5°, or 1.0° C 

14° to 140° F (-10° to 60° C) 

5% to 95% Relative Humidity 

Rc, Rh, 0, B, Y1, W1, G, C 

Shipping Information 

INDIVIDUAL CARTON 

Dimensions: 3.9'' x 6.2" x 1.6" 

Weight: .72 lbs. 

MASTER CARTON 

Quantity: 6 

Dimensions: 5.2" x 12.8" x 4.5" 

Cubic Feet: .17 

Weight: 4.7 lbs. 

Braeburn 

Terminal Rh Rc 0 B YI WI 

Designations 4 44 4 4 io 1 

Cool 24 VoIMC 

Transformer 

Reversing Valve 

Heat Active 

Heat Transformer 

Control Common 

Heat 24 Volt AC 

Transformer 

Reversing Valve 

Cool Active 

Fan 

Control 

Cool 

Control 

Architectural Specifications 

The digital non-programmable Thermostat shall be a Braeburno, model number 1020, 3.70" high x 5.16" wide x 1.38" deep, powered independently with 

either 24 Volt AC or with two "AA" Alkaline batteries (3.0 Volt DC). The thermostat shall be compatible with single stage gas, oil or electric heating or 

cooling systems including single stage heat pumps and 250mv — 750mv millivolt heating systems. The thermostat shall have a bright blue backlight 

display, adjustable temperature limits and separate sub-base for trouble free installation. Temperature control range shall be between 45° and 90° F (7' 

and 32°C), accuracy of +/- 1° F (+/- .5° C), humidity range between 5% and 95% relative humidity. The thermostat shall include non-volatile memory 

to retain all user and temperature settings. Thermostat shall have low battery indication and a front reset button will return user settings to default values 

when pressed. The thermostat can be mounted to a horizontal junction box. 

Braeburn 1020 Replaces* 

Honeywelr TH3110 

Emerson° 1F86-344, 1F86-0244, 1F86EZ-0251 

'Verify specific application requiremenls. 

All lrademarks are the properly of their respective owners 

Accessories 

2920 Vertical J-Box Adapter Wall Plate 

2950 Universal Wall Plate (6.5" x 6.5" x .125) 

5970 Universal Thermostat Guard 

FREE Contractor Branding Available! 

Visit our website (www.braeburnonline.com) for more information, contact your 

local distributor or call our sales department toll-free at 866.268.5599 (U.S.), 

+1.630.844.1968 (Outside the U.S.). 

Date: 

Job Name: 

Location: 

Contractor: 

Engineer: 

Model No.: 

Submitted By: 

Submitted For Approval: Record: 

Braeburn Systems LLC • 2215 Cornell Avenue • Montgomery, IL 60538 • Toll-Free 866.268.5599 (U.S.) +1,630.844.1968 (Outside the U.S.) 

©2018 Braeburn Systems LLC • All Rights Reserved • 1020-300-04 
ATTACHMENT B 
Illill111111111111111 10,11 1,11110!!111111111 11E 1 1111111 

• f-P ) 

Moore 

ri!t " t f--S. n530.633 S' 

1451 Dale of Paieni: *Oct. 24, 2006 

(5-1 I OPENED NIODEO. 10011 11 iitOSi.1 D-iÙ.l J. J 2 20111 Nink,orn el 111(1 4,) 

ciied by examiner 

(7.5) Inventor. (;ictin A. Minim. Montgomery, 11 WSJ Primari• Elaminer----.4w1c1)00 D. Davis 

(741 Amerno Agoir eir Yowl 011115 \ 1.110),. 

171) .Assimwe! Brut:burn S!..sterns 1J.C. MonIgoincr. 

11 WS; (57) ciA1M 

1 Make: 1 his patent is sullied 111 a letminal 1-lic ornamental design litr an opened nilidel Iroci 

SW. :In: shown. 

DESCRIPTION 

lerm: 14 Nilars 11(3. 1 perspcciis c ji.l of the present opened model 

1000 thcmilislal design: 

(211 

(221 

Appl 29/3,01,205 

rikd: Oct. 6. 21105 

1:1(i 2 is a lion! \ley. ol Ole prcsern opened ffilldel 3000 

thennostat design: 

1.10.11 is a right side iew. of the presern opened model 1000 

(51> 1.0C (S) Cl. ...... ...... ........ 10-114 tharmosial design: 

1521 U.S. Cl. IMO/49. 1310 50 4 is leli s.iiic icy. ol the present opened model 1000 

(51i) Field of Classification Search DI0:46 ihermusua design: 

23641; R. 47. 49 3. 51 I:4. 44; 4110i41(5 HO 5 is a lop t a the present opened model 1000 

tlientiostal SOO lppJlCli IL1FF JiI for I:i linplolv search libmry. 

Fl(.i. 6 is a bottom view of the preNuni opened model 101)(1 

i.56; Referenees Cited ihennnstai design: and. 

111.i. 7 is a rear t. of Ihe preson opened model 1000 

J.S. P.,r1T•N I 00C1.:?sl1iN1S theninislat design 

0;86.990 S 412 (1)97 (ice. 11 1)11) c1) 

s21 2002 Ninlmrrt jJi 3.1 1)11)•1') I Claim. 2 DrawIng Skeels 
IiIII1111111111111111111111111!1,1,11111 11111 p!III11111111111111111111 

kr.11;tefi St;Itc-s 110V; r5 13.c). fr" r61(' US 1)57,65R 

N.loore 1.45 Date of Patent: Sep. 5.2006 

(54 I CLOSED NIODEL TtIERmosTAT 

i75) lnsentor: (;lenn Moore. Monigomm. 11. (l)S) 

71. ) g nee: Brach u r n Sys lc ms Li.e. MI I II iglln Wry. 

11. :S 

Fenn: 14 Years 

121 .1ppl. No.: 29/240.2116 

1221 I MI: Out. 6. 20115 

(51 LOC (10 ........ ........... ..... . it1-04 

(52', 1.1.5. CL ........ ............ ......,.... .......... 11011/50 

15:11 field of Classification Scorch D10146 50; 

236,46 R. F. 49.3. 51. -10IP4K5 

See app0cation li/e for complete search history 

4.561 ReferVILCCV Cited 

1Xxl;Mrvis 

o3s6..n9 s 4 12 1997Gee. 31 Dlii51) 

1)390,13 I I: 2 199x Ingebrilson .9 al i)1(i *30 

cited by exailliller 

PYinnity rxwithwr AnIninOr). 1):n 

174) .4ilurth.r. !gent. rp. non 1)illis Allen. 

(57) Cl.AIM 

The tint:menial design for a closed model 11100 thermostat. 

shoo.n. 

DUSCRIPTION 

110. 1 is a perspeethe vicu a the present closed model 

1000 thermostat design: 

i. 1 is a front %rev. of the presem dosed 11111LICI WOO 

atomismu design: 

FJ(, 3 is a right !ride vieo ul the present closed int Kiel 1000 

Ihermnslat design: 

FKi. 4 left side vier% of the present eloso.1 model 1000 

thermostat design.: 

5 is a top view a the present closed rn.sdel 1004) 

tiro-roost:it design: 

Fll i. 6 is a bottom vim of the present closed model 1000 

thermostat design: ;incl. 

i 7 is a rear viev, of the present closed model 1000 

thermostat design. 

I Claim, 2 Drawing Sheets