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. 

I. 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 5310 Model is a 7 day and 5-2 day programmable, or 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 stage gas, oil or electric systems, single state heat pump systems, and 250my — 750mv millivolt heating 

systems. The thermostat has a large 6.5 square inch easy read, bright blue backlight/touchscreen display and has 

circulating fan mode, indoor or outdoor remote sensing, and SpeedBar Multi-Function Button. This model also has 

SpeedSet 7 day programming mode, multi-level keypad lockout, separate user and installer reset buttons, and 

residential or commercial modes. The products dimensions are 3.94" x 5.56" x 1.19. 

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 13raum 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: $29,131.20 2017 Quantity: 1,008 

2016 Value: $29,181.60 2016 Quantity: 1,008 

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. 

VERSION 1 END 2 
mmv4k BRAUMILLER ur 

11 LAW GROUP, PLLC 

INTERNATIONAL TRADE LAW 

Submitted Vra WIAM/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. 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 Premier Series Model 5310, 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 programmable, or nonprogrammable, 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 stage gas, oil or 

electric systems, single state heat pump systems, and 250mv 750mv millivolt heating systems. 

The thermostat has a large 6.5 square inch easy read, bright blue backlight/touchscreen display 

and has circulating fan mode, indoor or outdoor remote sensing, and SpeedBar Multi-Function 

Button. This model also has SpeedSet 7 day programming mode, multi-level keypad lockout, 

separate user and installer reset buttons, and residential or commercial modes. The products 

dimensions are 3.94" x 5.56" x 1.19. 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 

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

LE Li AS, TEXA'.-,1525.1 348 9304.) FN.:- 04'; 

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 from $209,000 to 

$504,000 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 touchscreen 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 2006 and is attached to this request. See Attachment B. 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 

Page 2 

Nov. . m !‘,Ni 15,'54i. ( 

WWW.BRAUM1LLERLAW.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 Premier Series 

Model 5310 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: cn.Adrienne Braumiller, 

o=Braunnller Law Group, PLLC, ou, 

email=adrienne@braurnilIerlaw.com, 

Braurniller c=US Date: 2011109.27 17:01:05 -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.ciov/sites/ii efa u Itifil es/Secti o n %20301%20F1NA L . P D F. 

Page 3 

At IP? Pi, `,1, II I '(1,", PAL LAS. ITX8V.. 755-1 OK1,2141 ')2114. 1 11 I 1 '11-1 E- ;1 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
ln ROOM 

lL_i T0N 0 N 

TU 

Sfl At DAY 

n 10:E10 U 

AUTO KEAT 

AUTO 

SYSTEM 

FAN 

DAY/TIME 

NOLO 

CLEAN 

CONFIG 

ACTUAL SIZE 

YEAR 

LIMITED 

WARRANTY 

Braeburn 

5310 Single Stage Conventional or Heat Pump Universal Programmable Thermostat 

Features 

• 7 Day, 5-2 Day or Non-Programmable 

• Large 6.5 sq. in. Easy-Read Touchscreen 

• Auto or Manual Changeover 

• Bright Blue Backlight Display 

• SpeedBar Multi-Function Button 

• Adjustable Temperature Limits 

• Indoor or Outdoor Remote Sensing 

• SpeedSet° 7 Day Programming Mode 

• Meets Energy Aware. Guidelines* 

• Separate User and Installer 

Reset Buttons 

• Hardwire or Battery Powered 

• Multi-Level Keypad Lockout 

• Circulating Fan Mode 

• Programmable Fan Mode 

• Residential or Commercial Modes 

• English / Spanish Packaging 

and Instruction Card with 

FREE Contractor Branding 

PREMIER 

SERIES 

FREE Contractor Branding! Visit braeburnonline.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 for more information, 

Touchscr;e9n 

Toll-Free 866.268.5599 (U.S.) +1.630.844.1968 (Outside the U.S.) 
Rh 0/6 Yi w1 S2 

JO 

Product Specifications 

Dimensions: 

Electric Rating: 

AC Power: 

DC Power: 

Compatibility: 

Control Range: 

Display Range: 

Accuracy: 

Temperature 

Differential: 

Storage Temperature: 

Operating Humidity: 

Terminations: 

3.94" x 5.56" x 1.19" 

24 Volt AC (18-30 Volt AC) 

1 amp maximum load per terminal 

4 amp total maximum load (all terminals) 

18-30 Volt AC 

3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Single stage gas, oil or electric systems 

Single stage heat pump systems 

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/B, Y1, W1, G, C, 51, S2 

Braeburn 

Terminal 

Designations 

Reversing Valve Cooling 

Transformer 

Heat 

Control 

Transformer 

Common 

Cool 

Control 

Fan 

Control 

Hee ing 

Transformer 

Remote Sensor 

(Indoor or Outdoor) 

Architectural Specifications 

The universal auto changeover thermostat shall be a Braeburre model number 5310, 3.94" high x 5.56" wide x 1.19" 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 gas, oil, or electric heating or cooling systems, and single stage heat pump systems. 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 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 non-volatile memory to retain user settings, filter, UV and humidifier pad check monitor, adaptive recovery 

mode (ARM''''), programmable independent fan control, residual cooling fan delay and indoor or outdoor remote sensor capability. A front reset button will return user settings 

to default values when pressed. Meets Energy Aware, Guidelines. 

Shipping information 

INDIVIDUAL CARTON MASTER CARTON 

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

Weight: 0.9 lbs. Dimensions: 6.4" x 13 x 5.6" 

Cubic Feet: .27 

Weight: 6 lbs. 

Braeburn 5310 Replaces* 

Honeywelr TH8110 

Emerson* 1F97-0671, 1F97-1277 

'verity specific application requirements 

All trademarks are the property 01 their respective owners. 

Accessories 

2950 Universal Wall Plate (6.5" x 6.5" x .125) 5390 Remote Indoor Sensor 

5970 Universal Thermostat Guard 5490 Remote Outdoor Sensor 

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.). 

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.) 

©2015 Braebum Systems LLC • A1113 ghts Reserved • 534.0-300-04 
ATTACHMENT B 
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See application File for complete semvh histor". 

Reference% Cited 

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"ei.icti h tIfl1] nor 

Primoo• Examhwr Antoine I) Davis 

t74) Attorney Agent. or Fit 111 NIBS \." 

(57) CI AIVE 

The imimental design for na 1,1peited model 5000 thermostat. as 

DESCRIPTION 

no. 1 6 porspoctho viev. of the preseni opened model 

5000 thermostat 

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thermostat design: 

i,zi light side view of the pr,t,:ent opened int idel 5000 

thermostat design: 

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rhermoslai dusign: 

1:R1 5 is o nip view of the present opened miniel 50110 

thennosim design: 

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thenliostal design) and, 

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the rmiwtal design 

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I :141 I ihermostai design: 

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