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 165 Model is a non-programmable wall mounted thermostat that can be installed in place of a standard 

thermostat during construction. This thermostat maintains a heating temperature set point of 65 degrees F, and its 

tamper-proof design prevents temperature adjustments. This model's sturdy enclosure protects the switch from 

drywall dust, painting, and mudding, and can also be reused from job to job. 

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 nurnber associated with your product, see https://hts.usitc.gov/ 

9032100030 

4. Requestor Information 

Requestor Narne (Last, First): 

Organization Name: 

Glenn Moore 

Braebum Systems LLC 

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

Requestor Representative: Adrienne Brauiniller, 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 
S. 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: $8,880.00 2017 Quantity: 4,800 

2016 Value: $13,852.80 2016 Quantity: 7,488 

2015 Value: $9,235.20 2015 Quantity: 4,992 

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 
174I B RAUMI LLER 

RIMIr LAW GROUP, PLLC 

irdM INTERNATIONAL TRADE LAW 

Submitted Via WWW.Regulations.Gov 

September 27, 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. Distinsiuished 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, Braebum Construction Model 165, 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 that can be installed in place of a standard thermostat during construction. This 

thermostat maintains a heating temperature set point of 65 degrees F°, and its tamper-proof 

design prevents temperature adjustments. This model's sturdy enclosure protects the switch from 

drywall dust, painting, and mudding, and can also be reused from job to job. 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 Braeburn'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 

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

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

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WWW.BRAUMILLERLAW.COM 
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 $8,800 to $14,000 

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 industry-specific 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.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 Braebum Construction Model 

165 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 Pgned by Adrienne 

Adrienne BOrlVemni—"Aerdrienne Braurniller, 

o=Braumiller Law Group, PLLC, ou, 

Braurniller email=adrienne@braumillerlaw.co 

m, c=l15 

Date: 2018.09.27 16:57:11 -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.gov/sites/default/files/Section%20301%2OFINAL.PDF. 

Page 3 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
The 

brighter 

choice® 

( 1 YR LIMITED 

WARRANTY 

Braeburn 

Model 165 Accessory 

Construction Thermostat 

Economical Construction Site 

Temperature Control 

6 Install in Place of Standard Thermostat 

During Construction 

• Maintains Heating Temperature 

Set Point at 65°F 

9 Tamper-proof Design Prevents 

Temperature Adjustment 

• Sturdy Enclosure Protects Switch from 

Drywall Dust, Painting and Mudding 

• Lowers Costs—Can be Reused from Job to Job 

Specifications: Braeburn 165 Replaces: 

Operating Voltage: 18 to 30 VAC Jackson Systems° TS-65 

Maximum Current: 1.0 Amp !CM° SC065 

All trademarks are the property of their respective owners White-Rodgers° 1078-140 

OM% CIMOrlIN 

• 1.11.•• h•••••••••••1•••••• 

• r•••....”...r ..'••••• 

• ••1,* • ••••••• 

FS 

Braeburn Bin Display 

Our bin display can assist in selling the 165 Construction Thermostat. 

Simply assemble the bin and fill with individually packaged Model 165 

Construction Thermostats. Contact your local sales representative 

today or call us at 1-866-268-8892 to find out how you can receive 

your FREE bin display (No.165-350-001) when you stock the 165 

Construction Thermostat. 

Braeburn Systems LLC • 2215 Cornell Avenue • Montgomery, IL 60538 • Toll Free 866.268.5599 (U.S.) • +1.630.844.1968 (Outside the U.S.) 

02005 Braeburn Systems LLC • wwwbraeburnonline,com • Patents Pending • All R. hts.Res rved • 16 -SOO- 
ATTACHMENT B 
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Oc;,17T-1 P Plif;Ail No.: I'S D534,1-11 S 

Al (we t 1)ale oF Palent: ;•:* .lan. 2. 2007 

( 54 1 ('ONSTIZU(TR)N 'FIIERNIOSTNE 

(751 Inventor. Glenn .1.. Minire, Nlonigt nnetik. 11. 111S) 

(71 / .15signee: Draelitirn Spam.; E.r.c. hlonigamery. 

11. (1:51 .

(" Icon: 14 Tears 

(211 Appl. No.: 29/243.761) 

(2.2) Tikel: Nov. 29. 2MI5 

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t 521 U.S. Cl. D10/51.1: Di M49 

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62-180: 236.1 C . 11. 46 R. 47. 493. 51. 

23(4., 94: 41)t):455 

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(56) References I ited 

PA1T:NE DOUAI/INES 

D272.52.2 S 2. l9s4 1)I11 -1() 

4cited by examiner 

/'rilliart ,Ewa/it/(r 1 ntoirte i) DoVis 

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'Ike orittimental do,ign ror a construction thermostat. as 

n 

DESCRIPTION 

Fl(i. 1 is a perspective vio% 01 the present constniction 

thermostat desivar. 

1.16. 2 is a front +. ici i filic preNvnl emistniction ther)iostat 

design: 

1:1( i is N rig,ht side 1. consimclion 

thermostat design: 

HO. .1 is a left iiil t cv, of the present construction 

thennostat design: 

I-1(i 5i a lop i (AS' 111 lbe pres-cni con,Irliclion thermostat 

design. 

6 is a bottom i jiM of the present coma/ netion MerinoclesiLin: 

7 is a rear view. or the present construction thennoslot 

design 

I Claim. 2 Drnwing Sheets