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 product Braeburn 6425 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 model is compatible with heat pump systems up to 4 heat/2 cool, conventional systems up 

3 heat/2 cool, and 250mv — 750my millivolt heating systems. The thermostat has a large 12 square inch easy read, 

bright blue backlight/touchscreen 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 also has SpeedSet 7 day programming 

mode, multi-level keypad lockout, adjustable over cooling limits, and auxiliary heat fossil fuel options 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 

lBraebuni 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: 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 
S. Is this product, or a comparable product, available from sources in the United States?: 

i N 0 

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. 

VERSION 1 END 2 
1111.7rA 

I'M b. 

4,M11111' 

ARMS," 

BRAUMILLER 

LAW GROUP, PLLC 

INTERNATIONAL TRADE 

Submitted Via VVONV 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 respecffully 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 Deluxe Series Model 6425, 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 model is compatible 

with heat pump systems up to 4 heat/2 cool, conventional systems up to 3 heat/2 cool, and 250mv 

— 750mv millivolt heating systems. The thermostat has a large 12 square inch easy read, bright 

blue backlight/touchscreen 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 also 

has SpeedSet 7 day programming mode, multi-level keypad lockout, adjustable over cooling 

limits, and auxiliary heat fossil fuel options. The products dimensions are 4.13" x 6.13" x 1.38. 

See Attachment A for a description of the thermostat. 

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

I.AS, TEXAS 75254 041 1114j Inti 9306 FAX. (214111/1303 FOU FRET: KM 2175981 

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. 

As production is just recently ramping up, current estimated imports are only at approximately 

$43,000 per year. Additional heavy tariffs at this critical stage of new product development would 

be detrimental to company growth. Braeburn is investing a large amount of capital in the 

production of this model and early indications show it will be a promising line with many orders in 

the future. Given that the initial recent importations are relatively low, the 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 are intended to be a promising product line for the company. 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" progriarn 

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 

Page 2 

• • ••t•-• ,,i, Îrr)At tAS, 1EXAS 752.s4 OF (214) 34B- 9306 214) 21) 4303 10)1 -Fl*F. (H) i 598/ 

WNW. BRAUMILLERLAWCOM 
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 

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 Braeburn Deluxe Series 

Model 6425 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 BDrIluumni—HA'dr rienne Braurniller, 

o.=Braumiller Law Group, PLLC, ou, 

Braumiller ezail=uasdrienne@braumillerlaw.co 

Date: 2018.09.27 17:04:57 -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.gov/sites/default/files/Section%20301%20FINAL.PDF. 

Page 3 

7521.14 OFC: (214) 348 .9306 FAX (214) 2119303 f 011.-FRFF' (877) )11-S911. 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
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WARRANTY 

DAT/TIME 

CLEAN 

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DAY 

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11 Li PM 

SETAT 

-iri ILI 

*4 

ACTUAL SIZE 

HOLD 

PROG OUTDOOR 

CORM 

HUMIDITY 

Braeburn, 

6425 

Up to 4 Heat / 2 Cool Heat Pump 

Up to 3 Heat / 2 Cool Conventional 

Universal Programmable Thermostat 

with Humidification Control 

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 

• SpeedBare Multi-Function Button 

• 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 

• Trilingual Packaging and Instruction 

Card with FREE Contractor Branding 

DELUXE 

SERIES 

*As a licensee in the Energy Aware Programmable Thermostat Program, Braeburn Systems LLC 

has deterrnined that this product meets the NEMA Energy Aware efficiency specifications for 

programmable thermostats. Visit www.getenergyaware for more information. 

Touchscreen 

FREE Color Contractor Branding! Visit www.braeburnonline.com 
INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 6,8" x 4.7" x 2.0" Quantity: 6 

Weight: 1.2 lbs. Dimensions: 14,3" x 6.6" x 5.4" 

Cubic Feet: .26 

Weight: 8 lbs. 

Braeburn 6425 Replaces* 

Honeywell° TH8320, TH8321 

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

*Verify specific application requirements 

All trademarks are the property of their respective owners. 

Accessories 

2920 Vertical J-Box Adapter Wall Plate (6.5" x 5.1") 5390 Remote Indoor Sensor 

2950 Universal Wall Plate (6.5" x 6.5) 5490 Remote Outdoor Sensor 

5970 Universal Thermostat Guard 

FREE Color 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.). 

Dimensions: 4.13" x 6.13" x 1.38" 

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

1 amp maximum load per terminal 

8 amp total maximum load (all terminals) 

AC Power: 18-30 Volt AC 

DC Power: 3.0 Volts DC 

(2 "AA" Alkaline batteries included) 

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

Conventional systems up to 3 heat/2 cool 

250mv — 750mv 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 - .5°, 1°, or 2° F (0,2°, 0,5°, or 1° C) 

2nd, 3rd and 4th 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 

Terminations: ND, FI, G, Rc, Rh, W2/AUX2, W3/0/B, Yl, Y2, 

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

Braeburn 

Terminal 

Designations 

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

4 '4 

2nd Stage Conventional 

Heat / 2nd Stage 

AUX Heat 

1st Stage 

Conventional Heat / 

Emergency / AUX Heat 

Humidifier 

Output 

Cooling 

Transformer 

1st Stage 

Compressor Output 

Heat Pump 

Check Input 

Economizer Output / 

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 Braeburn®, model number 6425, 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 lockout. Temperature 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 (ARre), 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. 

Meets Energy Aware® Guidelines. 

Product Specifications Shipping Information 

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.) 

©2018 Braehurn Systems LLC • Al[ Rights Reserved • 6425-300-01