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 Supco 71157P Model is a 5/2 or 7 day universal wall mounted programmable thermostat to control heat and air 

conditioning in the home, and is compatible to 1 heat/1 cool systems, 24 VAC gas, oil or electrical systems, millivolt, 

hot water gravity & zoned, hot water solenoid valves (2-wires), hot water motor valves (3-wire), single stage heat 

pumps, and air/ground/hydronic exchangers. This model features a Large 4 square inch display with a bright blue 

backlight, has indoor or outdoor remote sensing, and has residential or commercial modes. This model also has 

programmable fan with on or auto modes, adaptive recovery mode, temporary override limits, and multi-level keypad 

lockout The products dimensions are 3.86" x 5.11" x 1.42. 

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 Systerns 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: 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: $1,218.96 2015 Quantity: 72 

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 sec attached letter. 

VERSION 1 END 2 
awwalk BRAUMILLER n. 

I SW: LAW GROUP PLLC 

INTERNATIONAL TRADE lAW 

Submitted Via 14/1MN.Regulations.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 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, Supco (privately-owned brand of Braeburn) Performance Series 71157P 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 5/2 

or 7 day universal wall mounted programmable thermostat to control heat and air conditioning in 

the home, and is compatible to 1 heat/1 cool systems, 24 VAC gas, oil or electrical systems, 

millivolt, hot water gravity & zoned, hot water solenoid valves (2-wires), hot water motor valves 

(3-wire), single stage heat pumps, and air/ground/hydronic exchangers. This model features a 

Large 4 square inch display with a bright blue backlight, has indoor or outdoor remote sensing, 

and has residential or commercial modes. This model also has programmable fan with on or auto 

modes, adaptive recovery mode, temporary override limits, and multi-level keypad lockout. The 

products dimensions are 3.86" x 5.11" x 1.42. See Attachment A for a description of the 

thermostat. 

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

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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 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 

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. 

The subject model was last imported in 2015 at a total cost of under one-thousand five hundred 

dollars. Braeburn intends to begin production of this model again in the near future. This future 

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 a valuable product line that Braebum has produced in the past, and 

intends to produce in the future. 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" propram 

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 

Page 2 

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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, Braebum sincerely requests that its thermostat Supco Performance Series 

71157P Model 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 

Braumiller 

Digitally signed by Adrienne Braumiller 

DN: cn=Adrienne Braumiller, 

o=Braumiller Law Group, PLLC, ou, 

email=adrienne@braurnillerlaw.com, 

c=US 

Date:2018.09.26 16:10:03 -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://ustrmov/sites/defaultifiles/Section%20301%20FINALPDF. 

Page 3 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
S'Ipeo) 

THE RIGHT CHOICE 

SEALED UNIT PARTS CO., INC. 

PO Box 21, 2230 Landmark Place 

Allenwood, NJ 08720 USA 

800-333-9125 • www.supco.com 

5/2, 7 Day or 

7 1 1 57 p Non-Programmable 

Thermostat 

RUM HEAT 

111 rrNW OS 

FAN 

• 

AM icy 

 IL 

-"jhrl 

.0 

(;) 

SYSTEM DAYMME PROG HOLD RETURN FAN 

AUTO 

Compatibility: 

• 1 Heat / 1 Cool Systems 

• 24 VAC Gas, Oil or Electric Systems 

• Millivolt 

• Hot Water Gravity & Zoned 

Features: 

• 4 Square Inch Display with Bright 

Blue Backlight 

• Auto or Manual Changeover 

• Adjustable Temperature Limits 

• Indoor or Outdoor Remote Sensing 

• Separate User and Installer 

Reset Buttons 

• Programmable Fan with On or 

Auto Modes 

• Hot Water Motor Valves (3-wire) 

• Hot Water Solenoid Valves (2-wire) 

• Single Stage Heat Pumps 

• Air / Ground / Hydronic Exchanger 

• Residential or Commercial Mode 

• Adaptive Recovery Mode 

• Temporary Override Limits 

• Hardwire or Battery Powered 

• Multi-Level Keypad Lockout 

• English / Spanish Packaging and 

Instruction Card 

As a licensee in the Energy Aware Programmable Thermostat Program, Sealed Unit Parts Company has determined that this product meets the NEMA 

Energy Aware efficiency specifications for programmable thermostats. Visit www.getenergyaware for more information. 

RiHS 

COMPLIANT PERFORMANCE SERIES 
24 Volt AC (18-30 Volt AC) 

1 amp maximum load per terminal 

3 amp total maximum load (all terminals) 

18-30 Volt AC 

3.0 Volts DC 

(2 "AN Alkaline batteries included) 

45° to 90° F (7° to 32° C) 

40° to 99° F (5° to 37° C) 

+/- 1° F (+/- .5° C) 

14° to 140° F (-10° to 60° C) 

5% to 95% Relative Humidity 

Rc, Rh, 0/BN3, Y1, W1, G, C, S1, S2 

Shipping Information 

INDIVIDUAL CARTON 

Dimensions: 5.0" x 6.3" x 2.0" 

Weight: .92 lbs. 

Accessories 

BTG-UN Universal Thermostat Guard 

6390 Remote Indoor Sensor 

6490 Remote Outdoor Sensor 

Product Specifications 

Dimensions: 3.86" x 5.11" x 1.42" 

Electric Rating: 

AC Power: 

DC Power: 

Control Range: 

Display Range: 

Accuracy: 

Storage Temperature: 

Operating Humidity: 

Terminations: 

MASTER CARTON 

Quantity: 6 

Dimensions: 6.4" x 13" x 5.6" 

Cubic Feet: .27 

Weight: 6 lbs. 

graD 

THE RIGHT CHOICE 

SEALED UNIT PARTS CO., INC. 

PO Box 21, 2230 Landmark Place 

Allenwood, NJ 08720 USA 

800-333-9125 • www.supco.com 

71157P 

Terminal 

Designations 

Rh 0/8/V3 Y1 1N1 G S1 S2 

to 40 to ti 

Cooling 

Transformer 

Reversing Valve or 

Zone Valve Power Close 

Heat 

Control 

Transformer 

Common 

ileating 

Transformer 

Cool 

Control 

Fan 

Control 

Remote Sensor 

(Indoor or Outdoor) 

Architectural Specifications 

The universal auto changeover thermostat shall be a CTC° model number 71157P, 3.86" high x 5.11" wide x 1.42" 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 and 2 or 3 wire hydronic zone systems. The thermostat shall have a bright blue 

backlight display, 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, 

programmable fan mode, 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 California Title 24 and Energy Aware Guidelines. 

Date: 

Job Name: 

Location. 

Contractor: 

Engineer: 

Model No.. 

Submitted By: 

Submitted For Approval: Record: 

02013 Climate Technology Corporation All Rights Reserved. 71157P-300-01