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 2020NC Model is a 5-2 day 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 single state gas, oil or 

electric systems, single stage heat pump systems, and 250mv — 750mv millivolt heating systems. The thermostat has 

a large 2 square inch bright blue backlit display and retains memory settings with temporary program override and 

programmable extended hold mode. This model also has setting retention, adjustable temperature differential, and 

adaptive recovery mode along with a FIC switch. The products dimensions are 3.62" x 4.72" 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 

Braebum 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 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: $293,297.76 2017 Quantity: 26,352 

2016 Value: $455,934.72 2016 Quantity: 42,000 

2015 Value: $189,734.40 2015 Quantity: 17,568 

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 

WIL LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Via WINWRegulations.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 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's Builders Series Model 2020NC, 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 5-2 day 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 single state gas, oil or electric systems, single stage heat 

pump systems, and 250mv — 750mv millivolt heating systems. The thermostat has a large 2 

square inch bright blue backlit display and retains memory settings with temporary program 

override and programmable extended hold mode. This model also has setting retention, 

adjustable temperature differential, and adaptive recovery mode along with a F/C° switch. The 

products dimensions are 3.62" x 4.72" 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 

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

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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 

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 approximately 

$1,200,000 to $1,900,000 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" 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 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 

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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's Builders Series 

Model 2020NC 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 Braumiller 

cn=Adrienne Braumiller, 

,,Braurniller Law Group, PLLC, ou, 

Braurniller 7cm_auils=adrienne@braumillerlaw.com 

Date: 2018.09.25 10:21:26 -05'00' 

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://ustr.Qov/sites/default/fI es/Section%20301%20FI NALPDF. 

Page 3 

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ATTACHMENT A 
5YEAR 

UMW 

IVARRANTY 

ACTUAL SIZE 

Braeburn 

2020NC Single Stage Heat / Cool 

Conventional or Heat Pump 

5-2 Day Programmable Thermostat 

Braeburn 

SYSTEM FAN 

COOL OFF HEAT PROG HOLD RETURN DAY/TIME AUTO ON 

Features 

• 5-2 Day Programming 

• Large 2 Sq. In. Display with 

Bright Blue Backlight 

• Adjustable Temperature Limits 

• Hardwire or Battery Powered 

• Permanent Memory Retains Settings 

• Filter Check Monitor 

• Adjustable Temperature Differential 

• Adaptive Recovery Mode (ARK,r) 

• Meets Energy Aware® Guidelines* 

• ESD Guard- Electronic Circuitry 

• Compressor Short Cycle Protection 

• Temporary Program Override 

• Programmable Extended Hold Mode 

• Front Access Reset Button 

• F° / C° Switch 

• Trilingual Packaging and Instruction 

Card with FREE Contractor Branding 

BUILDER 

SERIES 

FREE Contractor Branding! Visit braeburnonline.com 

*As a licensee in the Energy Aware Programmable Thermostat Program, Braeburn Systems LLC has determined 

that this product meets the NEMA Energy Aware efficiency specifications for programmable thermostats. Visit 

www.getenergyaware for more information. 

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

Control 

_ 

Cool 24 Volt AC Reversing Valve 

Transformer Heat Active 

Rh Rc 0 B Y1 W1 

40 40 4 

Transformer 

Common 

Heat 24 Volt AC 

Transformer 

Reversing Valve 

Cool Active 

Cool 

Control 

an 

Control 

Shipping Information 

INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 3.8" x 5.8" x 1.6" Quantity: 12 

Weight: .70 lbs. Dimensions: 11" x 11.7" x 4.3" 

Cubic Feet: .32 

Weight: 9.2 lbs. 

Braeburn 2020NC Replaces* 

Honeywell° TH2110 

Emerson° 1F78-151, 1E78-151 

'Verify specific applicalion requiremenls 

All trademarks are the properly of their respective owners 

Accessories 

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.). 

Product Specifications 

Dimensions: 3.62'' x 4.72" x 1.38" 

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

1 amp maximum load per terminal 

3 amp total maximum load (all terminals) 

AC Power: 18-30 Volt AC 

DC Power: 3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Compatibility: Single stage gas, oil or electric systems 

Single stage heat pump systems 

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

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

Operating Humidity: 5% to 95% Relative Humidity 

Terminations: Rc, Rh, 0, B, Yl, W1, G, C 

Braeburn 

Terminal 

Designations 

Architectural Specifications 

The digital programmable thermostat shall be a Braeburne' model number 2020NC, 3.62" high x 4.72" 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 250my — 750my millivolt heating systems. The thermostat shall have a bright blue backlight 

display 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 user settings, adjustable temperature limits, filter check monitor, adaptive recovery mode (ARMTM) and separate heating and cooling set point program times and temperatures. 

Thermostat shall have low battery indication and a front reset button will return all user and program settings to default values when pressed. The thermostat can be mounted to a horizontal junction box. Meets Energy Aware Guidelines. 

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.) 

©2017 Braeburn Systems LLC • All Rights Reserved • 2020NC-300-05 
ATTACHMENT B 
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