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 7500 Model is a 7 day and 5-2 day universal programmable, or non-programmable, wall mounted 

thermostat with humidity control to control heat and air conditioning in the home. It can be either hard wired or battery 

operated. This wireless model is compatible with heat pump systems up to 3 heat/2 cool and conventional systems ur 

to 2 heat/2 cool. The thermostat has a large 5 square inch easy read, bright blue backlight display and has circulating 

fan mode, indoor or outdoor remote sensing, and an auxiliary "A" terminal for economizer, fresh air or output control. 

This model has superior wireless range, includes return air sensor for default temperature control even if batteries are 

drained, and has optional wireless outdoor sensing for outdoor whole-house humidification control. The products 

dimensions are 3.86" x 5.11" x 1.42. 

3. 1O-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 

Braebuni 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: hnportcr 

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: $137,501.28 2017 Quantity: 3,024 

2016 Value: $45,884.16 2016 Quantity: 1,008 

2015 Value: $137,652.48 2015 Quantity: 3,024 

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 
aMia r viL BRAUMILLER 

A onaW! LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Via IMIVW.Reaulations.Gov 

September 26, 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, Braeburn BlueLink Wireless Model 7500, 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 7 day and 5-2 day universal programmable, 

or non-programmable, wall mounted thermostat with humidity control to control heat and air 

conditioning in the home. It can be either hard wired or battery operated. This wireless model is 

compatible with heat pump systems up to 3 heat/2 cool and conventional systems up to 2 heat/2 

cool. The thermostat has a large 5 square inch easy read, bright blue backlight display and has 

circulating fan mode, indoor or outdoor remote sensing, and an auxiliary "A" terminal for 

economizer, fresh air or output control. This model has superior wireless range, includes retum 

air sensor for default temperature control even if batteries are drained, and has optional wireless 

outdoor sensing for outdoor whole-house humidification control. The products dimensions are 

3.86" x 5.11" x 1.42. See Attachment A for a description of the thermostat. 

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

DALLki,, c(A.57'525+4 3441-tA06 1114 ;i1 7-0303 1-041-13EE: 7) 2-T7 

WWW.BRAUMILLERLAW.COM 
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 

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. In total, Braeburn only imports from $399,000 to 

$480,000 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 popular 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" proqram 

The wireless thermostats manufactured by the Chinese factory are made according to Braebum's 

own proprietary specifications and patented technology. 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 

Page 2 

O\l IF •!` ',I 111 1 T[ Í. 1.; 

WWW.BRALIMILLERLAW.COM 
transfer of technology, which transfer is the focus of the Section 301 tariffs as discussed 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 BlueLink Wireless 

Model 7500 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 

DN:cn=Adrienne Braurniller, 

o=Braumiller Law Group, PLLC,ou, 

Brau miller ecmtls=adrienneenbraumillerlaw.corn 

Date: 2018.09.2616:0319 -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://ustrmov/sites/defaultifiles/Section%20301%20FINAL.PDF. 

Page 3 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
Hraeburn, 

BlueLintsITodIu7s1 

111UU 

Ms* Hui OXIL 

IMO dlb ssio di;;• 

.V.iC 1,9,D 

5 UNITED 

WARRANrY 

YEAR 

Braeburo 

Braeburn 

Up to 3 Heat / 2 Cool Heat Pump 7500 Up to 2 Heat / 2 Cool Conventional 

Universal Wireless Thermostat Kit 

BlueLin0 

smart connect • 

Thermostat Features 

• 7 Day, 5-2 Day or Non-Programmable 

• Large 5 Sq. In. Backlit Display 

• Auto or Manual Changeover 

• Residential or Commercial Modes 

• Battery Operated for Total Installation Flexibility 

• Compatible with 2 or 3 Wire Hydronic 

Zone Systems 

• Auxiliary Heat Fossil Fuel Option 

• Programmable Fan Control 

• R and C Terminals for Optional 24 Volt Operation 

• Adjustable Temperature Limits 

• Multi-Level Keypad Lockout 

• Quick Reference Instruction Card 

Wireless Features 

• Superior Wireless Range 

• Battery Life Exceeds Virtually All Competitive Models 

• Includes Return Air Sensor for Default Temperature 

Control Even if Batteries are Drained 

• Connect up to 4 Optional Wireless Indoor Sensors 

for Remote Temperature Sensing* 

• Optional Wireless Outdoor Sensing for Outdoor 

Temperature Display or Balance Point Control* 

• Optional Wireless Humidity Plenum Sensor for 

Whole-House Humidification Control* 

• Affordable Solution for Virtually Any 

Thermostat Application 

FREE Contractor Branding! Visit braebumonline.com 

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

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

www.getenergyaware.comfor more information. 

*Up to 4 wireless remote 

sensors can be connected. 

Toll-Free 866.268.5599 (U.S.) +1.630.844.1968 (Outside the U.S.) 
7330 

Plenum 

Humidity 

Sensor 

Control 

Module 

installed 

at H VAC 

Equipment 

Thermostat 

Total Installation Flexibility 

Up to 4 wireless Sensors can be connected - see Installer Guide. 

7390 

indoor 

Sensor 

7490 

Outdoor 

Sensor 

Heating 

Transformer Fan Output Transformer 

Common 

Regu'red Plenum 

Return Air Sensor 

1st Stage 

Compressor Output 

2nd Stage Conventional 

Heat / Auxi iary Heat 

Braeburn 

Control Module Terminal Designations Thermostat 

Designations 

Terminal 

S1 S2 P1 P2 L C Y2 Y1 0/BN3 W2/AUX W1/E Rh 

10 JO r:i0 .:40 10 10 10 

R C 

10 40 

1st Stage 

Conventional Heat / 

Emergency Heat 

1 

Wired Remote Sensor 

(indoor or Outdoor) 

Heat Pump 

Check input 

2nd Stage 

Compressor Output 

Reversing Valve or 

Zone Valve Power Close 

Cooling 

Transformer 

Optional 24 VAC 

Power Connection 

Shipping Information 

INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 7.25" x 6.6" x 4.0" Quantity: 3 

Weight 1.85 lbs. Dimensions: 12.25" x 7.5" x 7.25" 

Cubic Feet: .39 

Weight: 6.1 lbs. 

Braeburn 7500 Replaces 

Honeywell' YTH5320R, YTH6320R, TH8110R*, TH8320R*, TH8321R* 

Emerson' 1F98EZ-1621 

Prof* T955W, T955WH 

*Additional control module required. 

Verify specific application requirements All trademarks are the property of their respective owners 

Accessories 

7330 Wireless Remote Humidity Sensor 5390 Wired Remote Indoor Sensor 

7390 Wireless Remote Indoor Sensor 5490 Wired Remote Outdoor Sensor 

7490 Wireless Remote Outdoor Sensor 5970 Universal Thermostat Guard 

2950 Universal Wall Plate (6.5" x 6.5" x .125) 

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.). 

Product Specifications 

Thermostat Dimensions: 3.86" x 5.11" x 1.42" 

Control Module 

Dimensions: 6.0" x 6.0" x 1.25" 

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

1 amp maximum load per terminal 

5 amp total maximum load (all terminals) 

DC Power: 3.0 Volts DC (2 "AA" Alkaline batteries included) 

Optional AC Power: 18-30 Volt AC 

Compatibility: Heat pump systems up to 3 heat/2 cool, 

Conventional systems up to 2 heat/2 cool 

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 and 3rd Stage - 1°, 2°, 3°, 4°, 5°, 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 

Control Module S1, S2, P1, P2, L, C, Y2, Y1, 0/BN3, W2/AUX, 

Terminations: W1/E, Rh, Rc, G 

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

©2015 BraeburnSystems LI_C• AllRightsReserved•7500-300-05