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 1220 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 conventional systems with up to 

two stages of heating and two stages of cooling and heat pump systems with one compressor and up to one auxiliary 

stage, and 250mv — 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. 

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 rnust enter information below, 

Requestor Representative: Adrienne Brawn Hier. 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: $191,140.32 2017 Quantity: 16,752 

2016 Value: $183,867.84 2016 Quantity: 16,344 

2015 Value: $127,759.68 2015 Quantity: 11,488 

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 

LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Via WVVWRegulation&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 Model 1220, 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 conventional systems with up to two stages of heating and two stages of cooling 

and heat pump systems with one compressor and up to one auxiliary stage, 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. 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) 

I DALLAS, TLXAS /5)54 CIL-L VIM .448 9406 EAX ()14i )11 9W3 TOIL-ME 187 7) 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 Companys 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 

• ••••+1.•+•,)• iiv irr- .0•1 DALLAS. tEXAS 752S4 OFC-(214) 348-9306 'PAX (214) 211-gtOt T011 -flitt. (8/7) 

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 Braeburn Model 1220 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 Br.-- DIsk en=Adrienne Braurniller, 

o=Braurniller Law Group, PLLC, ou, 

Braumiller 7nasclrienne@braurnillerlaw.co 

Date: 2018.0,2412:47:9,8 -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: 

httris://ustr.gov/sites/defaultifiles/Section%20301%20FI NAL. PDF. 

Page 3 

E7Sil OFC: 1210 348. 9306 FMC (214) 212.930i Ti)ti -FREF (151 2)171 Co' 

WWW,BRAUM I LLER LAW.COM 
ATTACHMENT A 
Braeburn 

_ ROOM 

11(001 ON 

SYSTEM 

COOL OFF HEAT EIMER 

I 

FAN 

AUTO ON 

6-•-1 •-• 

ACTUAL SIZE 5 LIMITED 

WARRANTY 

YEAR 

Braeburn 

122 O Up to 2 Heat / 2 Cool Conventional 

Up to 2 Heat / 1 Cool Heat Pump 

Non-Programmable Thermostat 

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 Differentials 

• Auxiliary Heat Indicator 

• Low Battery Indication 

• ESD GuardTM 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.) 
Cool 24 Volt AC 

Transformer 

Emergency 

Heat Control 

2nd Stage Heat / 

Auxiliary Heat 

Rh Rc 0 B C Y1 Y2 E/W1 W2 

CIO 10 lo rio . 4f) 

Reversing 

Valve Heat 

Energized 

1st Stage 

Compressor 

Heat 24 Volt AC 

Transformer 

Reversing 

Valve Cool 

Energized 

Transformer 

Common 

2nd Stage 

Compressor 

Fan 

Control 

Braeburn 

Terminal 

Designations 

Architectural Specifications 

The digital non-programmable thermostat shall be a Braeburn', model number 1220, 3.70" high x 5.16'' wide x 1.38" deep, powered independently with 

either 24 VAC or two "AA Alkaline batteries (3.0 Volt DC). The thermostat shall be compatible with multi-stage conventional systems with up to two stages 

of heating and two stages of cooling, heat puMp systems with one compressor and up to one auxiliary stage. 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 user settings and auxiliary heat indicator. 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. 

Product Specifications 

Dimensions: 3.70" x 5.16" x 1.38" 

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

1 amp maximum load per terminal 

4 amp total maximum load (all terminals) 

AC Power: 18-30 Volt AC 

DC Power: 3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Compatibility: Conventional systems with up to two stages of 

heating and two stages of cooling; Heat pump 

systems with one compressor and up to one 

auxiliary stage; 250 - 750 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 Stage: 2°, 3°, 4°, 5° or 6° F (0.50, 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: Rh, Rc, 0, B, C, Y1, Y2, E/W1, G, W2 

Date: 

Job Name: 

Location: 

Contractor: 

Shipping Information 

INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 3.9" x 6.2" x 1.6" Quantity: 6 

Weight: .72 lbs. Dimensions: 5.2" x 12.8" x 4.5" 

Cubic Feet: .17 

Weight: 4.7 lbs. 

Braeburn 1220 Replaces* 

Honeywelr TH3210 

Emersone 1F89-0211, 1F89-211, 1F83-261, 1F89EZ-0251 

*Verify specific application requirements. 

All Irademarks are the property 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.braebumonline.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 • 2215 Cornell Avenue • Montgomery, IL 60538 • Toll-Free 866.268.5599 (US.) +1.630.844.1968 (Outside the U.S.) 

©2018 Braebum Systems LLC • All Rights Reserved • 1220-300..03 
ATTACHMENT B 
ijl 111 11 

n53fU33 

IIR111111111#1,111151, 0

11111 11111 0!INIII 

Moore Date of Pmeol: *Oct. 24, 2006 

i4j OPENED ‘101)1,..1. 10/111 TlIERMOSTAT 

(75, invemor. Clem A. Moore. Mtmlgoinery. 1) t1.1S1 

173) Assignee! Bruchurn Systems IAA'. Montgomery. 

11 t1.St -

1 Notice: 1 hì,pment is subject li Ll tenninal disektimer. 

1)470. S ' 2 200 inhrrn ei ,t1 .... 1111149 

Cited hv examiner 

l'rimary Eraminer--Aninine 1) is 

(74) Attc,rtio Agent rw /7on Dillis V. Alien. Esq. 

(57) CLAM 

111e tvilamental design for an opened nuttlel 1000 thermostat. as iht)wil 

DE.ScRil"TION 

121) Imp] No.: 29/2411,205 

122) Filed: Oct. (i. 21105 

t!,1) 1,0C (8)U1 .. 10-114 

(52) U.S. Cl. 010/49: D10 50 

(5g/ Held f (°lasNitication .Scarch 1)1046 50: 

236;46 R. 47. -19 7. 51. 84. ,LE 41I6i4N5 

See applicin Me for e. onplete search lie.tory. 

1.5() References Clied 

U.S. P,V11,!%11 DOCI.;NlliN1S 

1)3Xi...)an S 12 1997 (iee. 11 ............ 1)10 CO 

1)4 57.:0. 21102 inborn ....... ()19 49 

116, 1 is a penpeetive vievk of The present opened model 

1(X)0 thernms1:11 design: 

11(1 2 is a 11r1(n Vit,.i of the pre.,ent opened model 1000 

thermostat tlesigit: 

1-16, 3 is ct right side %kw, of the pi esonl oponed model 10(.X1 

thermosiat design; 

1:1(i 4 isti loll .ide El f the present opened tnodol 1000 

thenrwislat design; 

HO 5 ix a lop c ¡ex% of the present opened model 1000 

diennosiat design: 

1:1(i. 6 is a bottom view of the presein Opened Inlaid 1000 

them-ea:0 design: and. 

FIG. 7 is /I rear %ieti1 of the prewiti opened model 1000 

thermostat design. 

1 Clnlm. 2 Drawing Sheds 

• 
(11 11111 ,111111114fillitI 1)2 R41,1,111111111111 11111111 

litee,11 Plesigp r ìi&ji TY.-71.7,65R. 

Nloore 145 )Date of Sep. 5. 2006 

(541 CLONED NIODEL 1000 '111ER1ONTAT 

(75tìì cin or: (;1eint .t. Nolan le. Moolgorner.

.. 11. ()_ S) 

(71i 1ssignec: Firacborn Syh si! ros LIS% Mitillgoniery. 

11. 

lerrn: 14 Years 

121 i Appl. : 29/2411.2116 

22 i I iled: Oci. 6. 21)115 

151i LOC' (Ji) Cl. ........ ..... , 10-114 

i 52) 11.S. (1. • . ... 1)11)150 

(58) Field Of Classilicaliim Search ..... ....... D1(1i46 5t): 

'236;46 R. 47. 49-'4. 51. 84. Y-4: 411(ii4K5 

See appi icai ion lile for crimpleie search hidory, 

(56) Ittferences Cited 

PAI*ENT DocIAirNTS 

wtso.,)g9 s 4 i2 irpr Gee. 11 Mr) 50 

1):190.134 S" 2 1')9N IngehriNon el al Dlli CI) 

" cited by examiner 

,Nnioinc 1). I );1% is 

174) Allonivit New. or 1 -bm Dillis 

(57) !CLAIM 

The ornamental design for i 1:k!scd 1LÉI 'del 11)(10 thennosmi. 

n, 

DESC"R1PTION 

HU. I i5 perspeeth viem ol the preAini closed inncicl 

1000 thermosiai design: 

HO.2 is a front %icyì of the present elohed 1001) 

therimismi deigrr, 

3 is a righi side view orthe pro-soni clii,ed mink] MOO 

lherinnsim design; 

FIG 4 i:.. 11:11 side km of ihe presont 1:10:svd model 1000 

iherithimal desigm 

5 is a loll vico• of the pteseni closcd fl5 ìJil 10011 

iliennostin design: 

1;1(i. 6 is Il ISO i 11.1M view of Me preseni closed model 1000 

Merino:a:11 design: and. 

I'M 7 is a rear vien of the present closed model 10110 

theniu.suil design. 

I Claim. 2 Draw im.!, Shoe ts