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. 

Fiblic Document 

2. Please provide a complete and detailed description of the product of concern: 

The ProStat PRS6420 Model is a universal 7 day or 5-2 day programmable, or non-programmable wall mounted 

thermostat to control heat and air conditioning in the home, and is compatible with heat pump systems up to 4 heat/2 

cool, conventional systems up to 3 heat/2 cool, and 250mv — 750my millivolt heating systems. This model features a 

Large 12 square inch display with a bright blue backlight, has permanent memory retainer setting, humidity control, 

and has compressor short cycle protection. This model also has multi-level keypad lockout, dehumidification control 

with overcooling, adjustable over cooling limits, and indoor or outdoor remote sensing. The products dimensions are 

4.13" x 6.13" 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 Braum Wei-, 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: N/A - Did not import 2017 Quantity: N/A - Did not import 

2016 Value: N/A - Did not import 2016 Quantity: N/A - Did not import 

2015 Value: N/A - Did not import 2015 Quantity: N/A - Did not import 

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, The above information is currently unavailable as these products will shortly begin 

irnportation. Additional information available upon request. 

VERSION 1 END 2 
wigk BRAUMILLER 

di a 11=kr 

11.11k LAW GROUP, PLLC 

INTERNATiONAL TRADE LAW 

Submitted Via WINVVRegulations.Gov 

September 28, 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 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, ProStat (privately-owned brand of Braeburn) PRS6420 Model, 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 universal 7 day or 

5-2 day programmable, or non-programmable wall mounted thermostat to control heat and air 

conditioning in the home, and is compatible with heat pump systems up to 4 heat/2 cool, 

conventional systems up to 3 heat/2 cool, and 250my - 750my millivolt heating systems. This 

model features a Large 12 square inch display with a bright blue backlight, has permanent 

memory retainer setting, humidity control, and has compressor short cycle protection. This model 

also has multi-level keypad lockout, dehumidification control with overcooling, adjustable over 

cooling limits, and indoor or outdoor remote sensing. The products dimensions are 4.13" x 6.13" 

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). 

; I f ' LS. TEXAS 152SA OK P14) 148 9int, FAX I/14) n1 9 tO3 1011 I E (877) 277 Sq8/ 

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. Braebum 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. The subject thermostats represent 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 

To levy this large of an additional cost to the product translates to additional costs 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" prodram 

The thermostats manufactured by the Chinese factory are made according to Braeburn's own 

proprietary specifications and patented technology. Braebum 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 in the 

Page 2 

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WWW.BRAUMILLERLAW.COM 
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, Braebum sincerely requests that its thermostat ProStat PRS6420 Model be 

granted an exclusion of the 25% Section 301 tariff. Importation of this product does not undermine 

the U.S. govemment 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 BOrlda7TAerdrienne Braurniller, 

owBraurniller Law Group, PLLC, ou, 

Braurniller emrnctl=uasdrienne@braumillerlaw.co 

Date: 2018.09.28 15:28:48 -0900' 

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/files/Section%20301%20FI NAL. PDF. 

Page 3 

. tivz, XAS 7525-1 (214) 4-9306 FAX! 1214) /17-Q303 F(Xl-f REF (877) 1/7-5987 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
PROSTATTM Model PRS6420 

CUMi-Oki CON i 

Premier 

Universal 

Programmable 

Thermostat 

Up to 4 Heat / 2 Cool 

Heat Pump 

Up to 3 Heat / 2 Cool 

Conventional 

Features 

• 7 Day, 5-2 Day or Non-Programmable 

• Large 12 sq. in. easy-read touchscreen 

• Auto or manual changeover 

• Bright blue backlight display 

• Humidification control 

• Dehumidification control with overcooling 

• Adjustable over cooling limits 

• Residential or commercial modes 

• Adjustable temperature limits 

• indoor or outdoor remote sensing 

• SpeedSer programming 

• Programmable and circulating fan modes 

• Auxiliary heat fossil fuel option 

• Hardwire or battery power 

• Multi-level keypad lockout 

• Auxiliary "A" terminal for economizer, 

Fresh air or output control 

All trademarks are the property of their respective owners. 
PROSTAT" Model PRS6420 

COMFORT CONTROL 

Terminal 

Designations 

A/D H G Rc Rh W2/AUX2 W3/0/B Y1 Y2 W1 /E /AUX1 C L S1 S2 

2nd Stage Conventional 1st Stage 

Humidifier Cooling Heat/ 2nd Stage 1st Stage Conventional Heat/ Heat Pump 

Output Transformer AUX Heat Compressor Output Emergency /AUX Heat Check Input 

Economizer Ou put/ 

Dehumidification Output 

Fan Output Heating 

Transformer 

3rd Stage Conventional 

Heat/ Reversing Valve 

2nd Stage 

Compressor Output 

Transformer 

Common 

Remote Sensor 

(Indoor or Outdoor) 

Architectural Specifications 

The universal auto changeover thermostat shall be a PROSTAT, model number PRS6420, 4.13" high x 6.13" wide x 1.38" 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 program settings. The thermostat shall be compatible with 

low voltage single stage or multi-stage gas, oil, or electric conventional heating or cooling systems, up to three stages of heating and two stages of cooling, and heat pump 

systems with up to four stages of heating and two stages of cooling. Also compatible with 250mv — 750mv millivolt heating only systems. The thermostat shall have a 

bright blue backlight display, touchscreen with SpeedBar®, separate sub-base and multi-level keypad lockoutTemperature 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, residential or commercial setup modes, permanent non-volatile memory to retain user settings, filter, UV and humidifier pad check monitor, adaptive 

recovery mode (ARMTM), programmable independent fan control, humidification and dehumidification control, 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: 

Electric Rating: 

AC Power: 

4.13" x 6.13" x 1.38" 

24 Volt AC (18-30 Volt AC) 

1 amp maximum load per terminal 

8 amp total maximum load (all terminals) 

18-30 Volt AC 

Shipping Information 

INDIVIDUAL CARTON 

Dimensions: 6.8" x 4.7" x 2.0" 

Weight: 1.2 lbs. 

MASTER CARTON 

Quantity: 6 

Dimensions: 14.3" x 6.6" x 5 4" 

Cubic Feet: .26 

Weight: 8 lbs. 

DC Power: 3.0 Volts DC PROSTAT PRS6420 Replaces* 

(2 "AV Alkaline batteries included) 

Compatibility: Heat pump systems up to 4 heat/2 cool, 

Conventional systems up to 3 heat/2 cool 

250my — 750my 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 - .50, 1°, or 2° F (0.2°, 0.5°, or 1° C) 

2nd, 3rd and 4th Stage - 1°, 2°, 3°, 4°, 50, 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: A/D, H, G, Rc, Rh, W2/AUX2, W3/0/B, Y1 , Y2, 

W1/E/AUX1, C, L, S1, S2 

Honeywell° 

Emerson. 

Prol' 

TH8320, TH8321 

1F95-1277, 1F95-1280, 1F95-1291, 1F97-1277 

T915, T925, T955 

'Verify specific application requirements. 

All trademarks are the properly of their respective owners 

Accessories 

PRS6390 Remote Indoor Sensor 

PRS6490 Remote Outdoor Sensor 

Date: 

Job Name: 

Location: 

Contractor: 

Engineer: 

Model No.: 

Submitted By: 

Submitted For Approval: Record: 

©2018 PROPARTS • All Rights Resei ved. PRS8420-300-01