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 3020 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 single state gas, oil or electric 

systems, single stage heat pump systems with or without auxiliary heat, 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 adjustable temperature limits, multilevel 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 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: $93,240.00 2017 Quantity: 5,760 

2016 Value: $127,343.04 2016 Quantity: 8,016 

2015 Value: $98,654.40 2015 Quantity: 6,240 

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 cornplete and correct to the best of his or 

her knowledge. Please see attached letter. 

VERSION 1 END 2 
Maasir 

WIMIEV 

BRAUMILLER 

LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Via WWW 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 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-diait 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 3020, 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 single state gas, oil or electric systems, single stage heat 

pump systems with or without auxiliary heat, 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 

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

ir Pi/ 'UT 200 DALW, 'RYAS 75254 01( 1114} :448 930b f-AX 1.,14) /17-9301 10U-TREE4 (877} 217.9.48. 

WWW,BRAUMILLERLAW.COM 
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 $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 

TEX, 15)54 04(.• (214) 448 9306 FAY f2 21 i•9301 IOU -Rif (R77) )71 YU I) 

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 3020 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, 

Adrienne Digitally signed by Adrienne Braumiller 

DN: ct,Adnenne BraumIller, 

o=Braumiller Law Group, PLLC, ou, 

ernall,dperme@braumillerlaw.com, Braurniller CD: 2018.09.25 1029:39 -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://ustr.gov/sites/defaultifil es/Section%20301%2OF I NAL.PDF. 

Page 3 

'•rl , CA(: • (11 14) 3118-9306 FAX. 1214) 11-93 ICMI FJF 1417) )7 54437 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
m 

SIM nimomall 

AUTO 

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FAN 7111 sr 

AUTO 

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49/. .#41,,vrt, 

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BACK NEXT RETURN FAN 

Braeburn 

2 Heat / 1 Cool Heat Pump 3020 1 Heat / 1 Cool Conventional 

Non-Programmable Thermostat 

ACTUAL SIZE 

rse 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 

• Permanent Memory Retains Settings 

• Separate User and Installer 

Reset Buttons 

• Circulating Fan Mode 

PREMIER 

SERIES 

• Auxiliary Heat Fossil Fuel Option 

• User Selectable Service Monitors 

• Hardwire or Battery Powered 

• Multi-Level Keypad Lockout 

• Set Point Adjustment Limits 

• Compressor Short Cycle Protection 

• Compatible with 2 or 3 Wire Hydronic 

Zone Systems 

• Trilingual Packaging and Instruction 

Card with FREE Contractor Branding 

FREE Contractor Branding! Visit braeburnonline.com 

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

Architectural Specifications 

The digital non-programmable thermostat with auto changeover shall be a Braeburn® model number 3020, 3.86" 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). The thermostat shall be compatible with low voltage single stage gas, oil, or electric heating or cooling systems, 

and single stage heat pumps with auxiliary heat. 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) and operating humidity range between 5% and 95% relative humidity. The thermostat shall include separate installer and 

user setup modes, permanent memory to retain all user, installer and temperature settings, filter, UV and humidifier pad check monitor, adaptive recovery mode (ARIVI—), 

residual cooling fan delay and indoor or outdoor remote sensor capability. A front reset button will return user settings to default values when pressed. 

Shipping information 

INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 5.0" x 6.3" x 2.0" Quantity: 6 

Weight: .92 lbs. Dimensions: 6.4" x 13" x 5.6" 

Cubic Feet: .27 

Weight: 6 lbs. 

Braeburn 3020 Replaces* 

Honeywell° TS51100, TH5220D 

Emerson° 1F85U-22NP, 1F86-0471 

'Verify specilic application requirements. 

All trademarks are the property 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.). 

Terminal 

Designations 

Rh 0/BN3 Y1 W1/E 

Cooling 

Transformer 

Reversing Valve or 

Zone Valve Power Close 

Conventional Heat 

or Auxiliary Heat 

Transformer 

Common 

Fan 

Control 

Cool 

Control 

Heating 

Transformer 

S1 S2 

Remote Sensor 

(Indoor or Outdoor) 

Product Specifications 

Dimensions: 

Electric Rating: 

AC Power: 

DC Power: 

Compatibility: 

Control Range: 

Display Range: 

Accuracy: 

Temperature 

Differential: 

Storage Temperature: 

Operating Humidity: 

Terminations: 

3.86" x 5.11" x 1.42" 

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 "AN Alkaline batteries included) 

Single stage gas, oil or electric systems 

Single stage heat pumps with or without 

auxiliary heat 

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 ° C) 

14° to 140° F (-10° to 60° C) 

5% to 95% Relative Humidity 

Rc, Rh, 0/BN3, Y1, W1/E, G, C, S1, S2 

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.) 

I 

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ATTACHMENT B 
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1111 11111111111111111 1111 

• ‘,15-4-pfl 9-114PQ Pci2n F 11)52 

Moore Date of Patent: ** Jul. 11, 2006 

04) OPENEO MODEL 30(11) THE42MOSTAT 

t75.0 1115C/14M Given !loom. IN.4.miptsmery. l ft 

AoNignee: Britehoro Systems 1,11,C. Monlgomery. 

11.11;51 

lerm: 14 Years 

(21 ppl. No.: 291240.208 

(221 Filed: Oct. 6. 2005 

151) 1.0C (S) Cl........ • .l O-1.14 

, 521 

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1741 •Itir./r//0). It!em. hrtir Dillis V. Allen. 

137) 

ornamental clei an for no opened model 2000 thermoZ.VI chi /W /I. 

DESCRIPTION 

11/ /1 perspective vietk the preq,ent opened model 

3000 thermoctat desi;zn; 

1-.1(i. 2 iz; [Rini vivo of the pi esem opened model 3000 

thermostat cithatm: 

ric 3 is zi rig10 side view if the present opened model 3000 

thermilmai 

11(i. 4 is LI MI side view of the preg,eni opened model 2000 

thermostat desiim: 

11(i. is a lop vievk of the p.rcceni opened model 3000 

thernlostat design: 

b ic zi bollom 1VW iif the opened model 3000 

ilicrnii /SIM design: and. 

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Ihemosiai dt.Ni2n. 

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llt111111E1H 11111111111111 

Statof..; Desi2n ratew pp.fr,m. No.: vs r)536./71 

Nloo re J. Date of Patent: Feb. 6, 2007 

04, ci.osco NionEl loon Tinuolosta 

( 751 11.0 valor: Chant A. Moore. f41itgotuer%. t 1151 

173 tssigne‘2: Brach ttrn Syste fi MI113 lgionern 

11 (CS) 

t ' Notice: 'this patent is subject to a terminal disclaintet, 

Fenn. 14 Years 

121 Appl. No : 29/240109 

122; Filed: Oct. 6. 200.5 

(51 LOC (NY CI. . 

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cited by examiner 

Peimar;• Eraminer 1).nloine D, Diit 

(74) :NOW. ur Firm 1 \lien. Ë.i1. 

(571 CLA I M 

he ornamental design for a closed model 3000 thermostat. 

a; shown. 

DES( 'RIP 1 ION 

FICi 1 is s persrciii e %iem of the present closed model 

3000 thermostat design: 

C1(1. 2 is a limit . i c u F iho preAmt closed wo:11e1 3or)U 

thermostat design. 

1:1( 3 is a right side vie%,, rifilie present clo,4ed model 3000 

thermostat design; 

1 Mi. 4 is s MI side \ 101 11 r the present closed model 3000 

thermostat desip. 

1.11.i. 5 is u up Yieu of the present closed model 3000 

liwrintisUil design: 

1:1(i. 6 is a hottom 1411A of the presen) closed [wide) 3000 

thermostat design: and. 

HU 7 i5 a rear N,iew of the present closed model 3000 

thermostat design. 

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