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 I 

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

The Braeburn 1200NC Model Is a 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 multi-stage conventional or 

heat pump systems with up to two stages of heating and one stage of cooling. The thermostat has a large display witt 

bright blue backlit display and retains memory settings and has adjustable 1st and 2nd stage temperature differential. 

The products dimensions are 3.75" x 4.94" 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): I Glenn Moore 

Organization Name: IBraebum ~==========================~ Systems LLC 

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

Requestor Representative: IAdrieime Braumiller, Esq., Braumiller Law Group, PLLC 

5. Requestor's relationship to the product: I._II_n_,_p_o_rt_e_r __________________ __, 

6. Does this submission in regulations.gov include additional attachments? 

lvEs 

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?: 

9. Is this product, or a comparable product, available from sources in third countries?: 

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: $95,527.20 

2016 Value: $61,425.60 

2015 Value: $139,117.44 

2017 Quantity: 10,032 

2016 Quantity: 18,912 

2015 Quantity: 14,784 

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 
BRAUMILLER 

LAW GROUP, PUC 

I rn F R t~ A T I 0 N A L T R A D E L A W 

Submitted Via !MIVVV. Regulations. Gov 

September 21, 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 197 4: 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 Model 1200NC, 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 to control 

heat and air conditioning in the home. It can be either hard wired or battery operated. This model 

is compatible with multi-stage conventional or heat pump systems with up to two stages of heating 

and one stage of cooling. The thermostat has a large display with bright blue backlit display and 

retains memory settings and has adjustable 1st and 2nd stage temperature differential. The 

products dimensions are 3.75" x 4.94" 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 

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 

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

or 77) 77 7 

WWW.BRAUMILLERLAW.COM 
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 ~01mtry 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 $3,000,000 to 

$4,000,000 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 imported and highest-selling 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 

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 Modei1200NC 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. Braebum certifies that 

information provided is complete and correct to the best of his or her knowledge. 

Best regards, 

Adrienne Braumiller, Partner. 

Trade Counsel for Braeburn Systems LLC 

2 United 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/defauiVfiles/Section%2030 1 %20FI NAL. PDF. 

Page 3 

(11 9 (21 ' ) 1/Q 1 l r ( Til , 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
120 c Up to 2 Heat I 1 Cool Conventional 

Up to 2 Heat I 1 Cool Heat Pump 

Non-Programmable Thermostat 

SYSTEM 

ACTUAL SIZE 

Features 

• Bright Blue Display Backlight 

• Adjustable Temperature Limits 

• Hardwire or Battery Powered 

• Permanent Memory Retains 

All Settings 

• Compressor Short Cycle Protection 

• Separate 0 & B Terminals 

• Adjustable Temperature Differentials 

• FAN 

A~ __!!.N 

YEAR 

LIMITED 

WARRANTY 

• Low Battery Indication 

• Separate Heating and Cooling 

Set Point Temperatures 

• Auxiliary Heat Indicator 

• ESD Guard'M Electronic Circuitry 

• Front Access Reset Button 

• Fo I Co Switch 

• Mount to Horizontal Box 

BUILDER 

SERIES FREE Contractor Branding! Visit braeburnonline.com 

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

Terminal 

Designations 

Architectural Specifications 

R 0 B c Y1 E/W1 G W2 

The digital non-programmable thermostat shall be a Braeburn" model number 1200NC, 3.72" high x 4.75" wide x 1.12" deep, powered independently with 

either 24 VAG or two "AA'' Alkaline batteries (3.0 Volt DC). The thermostat shall be compatible with multi-stage conventional or heat pump systems with up 

to two stages of heating and one stage of cooling. The thermostat shall have a bright blue backlight display, front loading battery door and separate sub-base 

for trouble free installation. Temperature control range shall be between 45° and gooF (7° and 32° C), accuracy of +1-1 oF(+/- .5° C), humidity range between 

5% and 95% relative humidity. The thermostat shall include non-volatile memory to retain user settings, adjustable temperature limits and auxiliary heat 

indicator. Thermostat shall have low battery indication and a front reset button will return user settings to default values when pressed. The thermostat can 

be mounted to a horizontal junction box. 

Product Specifications 

Dimensions: 3.72" X 4.75" X 1.12" 

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

1 amp maximum load per terminal 

4 amp total maximum load (all terminals) 

AC Power: 18-30 Volt AC 

DC Power: 3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

Compatibility: Conventional systems up to two stages of 

heating and one stage of cooling; Heat 

pump systems with one compressor and 

up to one auxiliary stage; 250mv - 750mv 

millivolt heating systems 

Control Range: 45° to goo F (?" to 32° C) 

Display Range: 40° to ggo F (5° to 37° C) 

Accuracy: +1- 1 o F (+/- .5° C) 

Temperature 

Differential: 1st Stage- .5°, 1°,0r2o F (0.2°, 0.5°, or 1° C) 

2nd Stage- 2°, 3°, 4°, 5°, or 6° F 

(1 °, 1.5°, 2°, 2.5°, or 3° C) 

Storage Temperature: 14 o to 140° F ( -1 oo to 60° C) 

Operating Humidity: 5% to 95% Relative Humidity 

Terminations: R, 0, B, C, Y1, EIW1, G, W2 

Date: __________________________________ __ 

Job Name: ________________________________ __ 

location: -----------------------------------

Contractor: ---------------------------------

Shipping Information 

INDIVIDUAL CARTON 

Dimensions: 3.75" x 5.5" x 1.4" 

Weight: .45 lbs. 

MASTER CARTON 

Quantity: 12 

Dimensions: 9" x 4.25" x 11 .5" 

Cubic Feet: .25 

Weight: 5.71bs. 

Braeburn 1200NC Replaces* 

Honeywell" TH221 0, Y594, T841, T8411, T8424 

Emerson• 1F58, 1 F59-11 , 1 F74-174, 1 F79-111 

*Verrfy speciric application requirements. 

Alllrademarks are 1he property o11helr respecHve owners 

Accessories 

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

5970 Universal Thermostat Guard 

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.). 

Engineer: -----------------------------------

Model No.: ---------------------------- -

Submitted By: ----------------

Submitted For Approval: ______ Record: _____ __ 

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

©2013 Brae burn Systems LLC • All R1ghts Reserved • 12DDNC·300-02 

- --------------------- --- - ----- --------- - ------ ----- -------- -
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