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 3220 Model is a non-programmable, wall mounted thermostat to control heat and air conditioning in the 

home It can be either hard wired or battery operated. This model is compatible with heat pumps up to 3 heat/2 cool, 

conventional systems with up to 2 heat/2 cool, and 250mv — 750mv millivolt heating systems. The thermostat has a 

large 4 square inch bright blue backlit display and has circulating fan mode, indoor or outdoor remote sensing, and 

auxiliary heat fossil fuel option. This model also has adjutable temperature limits, multi-level keypad lockout, and 

separate user and installer reset buttons The products dimensions are 3.86" x 5.11" x 1 42. 

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 Narne: 

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: Importer 

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 
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: $76,960.80 2017 Quantity: 4,200 

2016 Value: $109,344.96 2016 Quantity: 6,072 

2015 Value: $37,028.16 2015 Quantity: 2,064 

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 
BRAUMILLER 

an 1,/ 1

'IOTA LAW GROUP, PLLC 

ro. INTERNATIONAL TRADE LAW 

Submitted Via 4/WIM/ Regulations. Gov 

September 25, 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 respecffully request that the wall mounted thermostats imported by Braeburn 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 Premier Series Model 3220, 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. It can be either hard wired or battery 

operated. This model is compatible with heat pumps up to 3 heat/2 cool, conventional systems 

with up to 2 heat/2 cool, and 250my — 750my millivolt heating systems. The thermostat has a 

large 4 square inch bright blue backlit display and has circulating fan mode, indoor or outdoor 

remote sensing, and auxiliary heat fossil fuel option. This model also has adjustable temperature 

limits, multi-level keypad lockout, and separate user and installer reset buttons. The products 

dimensions are 3.86" x 5.11" x 1.42. 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 

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

ILK'S 15254 OK Ir/141 -(&)r, FAX. P14)/1 I.0 303 IOU. TREF 077)271 SU] 

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

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 $135,000 to 

$236,000 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 promising 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 program 

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 2007 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 

WWW.BRAUMILLERLAWCOM 
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 Braebum Premier Series 

Model 3220 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. Braeburn 

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

Best regards, 

Digitally signed by Adrienne 

Adrienne Braurniller 

DN: cn=Adrienne Braumiller, 

o=Braurniller Law Group, PLLC, ou, 

Braumiller email=adrienne@braumillerlaw.co 

m, c=US 

Date: 2018.09.25 10:31:13 -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: 

httos://ustr.gov/sites/default/files/Section%20301%2OFINAL PDF. 

Page 3 

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WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
"ffillriMIT11111111.111 M0 

HEM 

FAN 

iLlre 

1 LI 

Braeburn 

• 

Braeburn 

Up to 3 Heat / 2 Cool Heat Pump 3220 Up to 2 Heat / 2 Cool Conventional 

Non-Programmable Thermostat 

ACTUAL SIZE 

,_ 

, rINIET7IOR 

WARRANTY 

Features 

• Large 4 Sq. In. Display with 

Bright Blue Backlight 

• Auto or Manual Changeover 

• SpeedBar. Multi-Function Button 

• Adjustable Temperature Limits 

• Indoor or Outdoor Remote Sensing 

• User Selectable Service Monitors 

• Separate User and Installer 

Reset Buttons 

• Permanent Memory Retains Settings 

• Circulating Fan Mode 

• Auxiliary Heat Fossil Fuel Option 

• Hardwire or Battery Powered 

• Multi-Level Keypad Lockout 

• Set Point Adjustment Limits 

• Adjustable Balance Points 

• Compressor Short Cycle Protection 

• Compatible with 2 or 3 Wire Hydronic 

Zone Systems 

• Trilingual Packaging and Instruction 

Card with FREE Contractor Branding 

PREMIER 

SERIES FREE Contractor Branding! Visit braeburnonline.com 

Toll-Free 866.268.5599 (U.S.) +1.630.844.1968 (Outside the U.S.) 
Rc Rh Y2 W1 /E /W3 S2 

10 19 t„. 

Cooling 

Transformer 

2nd Stage Conventional 

Heat / 2nd Stage 

AUX Heat 

I st Stage 

Compressor Output 

1st Stage Conventional 

Heat/ Emergency/ 

3rd Stage Heat 

Heat Pump 

Check Input 

W2 0/B/V3 Y1 

:10 

Fan Output Heating 

Transformer 

Reversing Valve or 

Zone Valve Power Close 

2nd Stage 

Compressor Output 

Transformer 

Common 

Remote Sensor 

(Indoor or Outdoor) 

I 

0 I 

:•: -- 

1 r. _ • s EL All, ig s 

Braebum 

Terminal 

Designations 

Architectural Specifications 

The digital non-programmable thermostat with auto changeover shall be a Braeburno model number 3220, 3.80" high x 5.11" wide x 1.42" deep, powered with either 24 

Volt AC or with two "AA" Alkaline batteries (3.0 Volt DC). In the event of a power failure, the unit shall retain all user, installer and temperature settings. The thermostat 

shall be compatible with low voltage single stage or multi-stage gas, oil, or electric conventional heating or cooling systems with up to two stages of heating and two stages 

of cooling, and heat pump systems with up to three stages of heating and two stages of cooling. Also compatible with 250mv — 750mv millivolt heating only systems and 

2 or 3 wire hydronic zone systems. The thermostat shall have a bright blue backlight display, SpeedBar, separate sub-base and multi-level keypad lockout. Temperature 

control range shall be between 45° and 90° F (7° and 32° C), accuracy of +/- 1° F (+/- .5° C). Operating humidity range between 5% and 95% relative humidity. The 

thermostat shall include separate installer and user setup modes, permanent non-volatile memory to retain user settings, filter, UV and humidifier pad check monitor, 

residual cooling fan delay, indoor or outdoor remote sensor capability, auxiliary heat fossil fuel programming, and compressor power outage protection. A front reset button 

will return user settings to default values when pressed. 

Product Specifications 

Dimensions: 3.86" x 5.11" x 1.42" 

Electric Rating: 24 Volt AC (18-30 Volt AC) 

1 amp maximum load per terminal 

5 amp total maximum load (all terminals) 

AC Power: 18-30 Volt AC 

Shipping Information 

INDIVIDUAL CARTON 

Dimensions: 5.0" x 6.3" )( 2.0" 

Weight: .92 lbs. 

MASTER CARTON 

Quantity: 6 

Dimensions: 6.4" x 13" x 5 6" 

Cubic Feet: .27 

Weight: 6 lbs. 

DC Power: 3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Compatibility: Heat pump systems up to 3 heat/2 cool, 

Conventional systems up to 2 heat/2 cool 

250mv — 750mv millivolt heating systems 

Control Range: 45° to 90° F (7° to 32° C) 

Display Range: 40° to 99° F (5° to 37° C) 

Accuracy: +/- 1° F (+/- .5° C) 

Temperature 

Differential: 1st Stage - .5°, 1°, or 2° F (0.2°, 0.5°, or 1° C) 

2nd and 3rd Stage - 1°, 2°, 3°, 4°, 5°, or 6° F 

(.5°, 1°, 1.5°, 2°, 2.5°, or 3° C) 

Storage Temperature: 14° to 140° F (-10° to 60° C) 

Operating Humidity: 5% to 95% Relative Humidity 

Terminations: G, Rc, Rh, W2, 0/BN3, Y1, Y2, W1/E/W3, C, 

L, S1, S2 

Date: 

Job Name: 

Location: 

Contractor: 

Braeburn 3220 Replaces* 

Honeywelr TH5220D, TH5320U 

Emerson° 1F83-0422, 1F83-0471, 1F83-277, 1F85U-42NP 

'verify specific application requirements. 

All trademarks are the properly of their respective owners. 

Accessories 

2920 Vertical J-Box Adapter Wall Plate 5390 Remote Indoor Sensor 

2950 Universal Wall Plate (6.5" x 6.5" x .125) 5490 Remote Outdoor Sensor 

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.). 

Engineer: 

Model No.: 

Submitted By: 

Submitted For Approval: Record: 

Braeburn Systems LLC e 2215 Cornell Avenue • Montgomery, IL 60538 • Toll-Free 866.268.5599 (U.S,) +1.630.844.1968 (Outside the U.S.) 
ATTACHMENT B 
F I t 

Moore 

r 

Dale of Patent: Jul. 11, 2006 

31111 IIil 11,411111p11111111HINI 

l5-1) ()PENH) 3000 THERMOSTAT 

! 75 I 1m emor: :1. Moon:. 111n1poiner. 

77. ) Brachium Sycletris 1.1.0 Nlion ,,,mely. 

11 (1S) 

'41 lerm: 14 1Cars 

(211 \PO- No.: 29/240.21/( 

(221 Filed: Oct. 6. 21105 

10-04 

L.S. D3 i1/541 

155i Vicki ruf ClaNsIfication Search 0..46 50: 

236:46 R. -17. 40.3. 5 f 04: -MO ‘4S5, 

See applicauion file fur counpleie search 

Rcfcreuct, Citud 

t;S. PA.I1iN 1 lx.X.t.JMEN 

S 12 1997 ( x. It • Dlu 5(1 

1),1S7 '401 S 20n2 Ainhow :11, 49 

s 2 2003 .Aunbom cu al 1)10 49 

oiled hy examiner 

r

t(l,

oillet Aniullie I) is 

(74i .f/Jutire..l. ,,i• Fireit V. Allen. Esq. 

CL1IM 

oniamenta1 cle,ign for ffil 3000 awl-filo- 

:aut. as sli,.k\ ui. 

DES( R1PTION 

)O 1 is a persp,:eli‘c pre,:cni i,pened model 

301)0 iluerurBistal design; 

11(i. 2 is a from vier. of ihe ni cseull opcnvJ minkl ?•)11i) 

thermoslai 

FRi 3 is ;1 right side vim pru,Lmi iip.ied model 3010 

therm 'slot deiim: 

11ti 4 is e leli side viem il die presem opened mnilel 3000 

themnistin 

FR,. 5 is a lop vivo. au 11R: pfel_eni opened midi!! 3000 

therriussuat design: 

FR 6 is a hoiluin view of the prosesi opened model 3000 

thernnistal design: and. 

7 is: a .,r die presenl ilpened model 3000 

thermostat desiliat 

I claim. 2 Di.irwing Sheets 
11111111111111111111111111 IdI #

111!15

1111b1,1114 1111111111111111 

kln:iter!,,c-tatef. DeS2F11 tf-A!,1 1,3 0e7M P536,/71 S 

Moore Dale of Paieot: *Feb. 6, 2007 

(54) (TOSE!) N1CHwi. 311011 Tuntmosta 

( 75 ln‘ mho-, Chant A. Moore. Motagoiner. 11. WS) 

(73 1.ssigneQ: Ilraehown System Ll.C. Montgomery. 

11 (1.:S) 

Notice: Allis patent is subject lo a terminal disclaimer, 

tc't icon: 14 'Wan 

/21) Appl. No : 29/240.209 

I 221 1 led: Oct. 6. 2005 

(51 1 LOU (8). (:1 ......... It)-(14 

521 LI.S. ......,..., ................. 1)10150: 1.)10.'40 

(58! Field of Classification Search ..... ..... 1)1 0.'4,6 50: 

.2..1,6s41. P. 47. 493. 51. 84. 94:400:485 

See applieat iii lik for complete search himory. 

06) References Ched 

11.S_ PATFN F DOC1;\-11,14 rs 

D3N6.9,10 S 12 109% (ice. 11 1)10 511 

D.457.x2l s 3 20E12 .‘mborn et al 1)10 

1)-17(1. l 1,1 S ' J 1.011:3 Arnhorn ei i1 1)11)49 

cited by examiner 

Peiiiport• RP, is 

(7-1 .1)turoiei„ Firlt1 \1len. 

(

.

57) CLAIM 

'1 he ornamental design for a closed model 3000 thermostat. 

as shown. 

10:SCRIP 1107s 

l is a perspecti‘e io% a the present closed model 

30{10 thermostat desitio: 

F1(.i. 2 is front \jcii a the preset); closed oiltdel 31100 

thermostat design: 

1:1( 3 3 is ti right side vice, of die present eliFed model 3001) 

Mennostal design: 

l 1(i. 4 is a left t,ide i iiit ii I the present clo,ed model 311011 

thermostat design: 

5 is a top viev. of the present elt-tsed model 3000 

1110mm:tat design: 

1:1(i. 6 is a !Initial-) ;icn a the present closed model 3000 

iliennosial design. and. 

rui_ 7 is a rear view of the present closed model 1000 

flit:lawsuit design. 

1 Claim. 2 Drawing Sheets