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 500C Model is a non-programmable wall mounted mechanical thermostat to control heat and air 

conditioning in the home, and is compatible to single state gas, oil or electric heating or cooling systems, single stage 

heat pump systems, and 250my — 750my millivolt heating systems. This model features dependable switch 

performance, integrated sub-based and front mounted wiring terminals, and separate 0 & B terminals. This model 

also is mercury free, and has plated terminals to reduce corrosion, and a heavy-duty heat anticipator. The products 

dimensions are 4.60" x 3.13" x 1.25. 

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 

Bracbu m 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 
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: $15,747.36 2017 Quantity: 2,544 

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 
BRAUMILLER 

LAW GROUP, PLLC 

INTERNATIONAL TRADE I AW 

Submitted Via WWW.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, Braebum Builders Series Model 500C (Celsius), 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 

mechanical thermostat to control heat and air conditioning in the home, and is compatible to single 

state gas, oil or electric heating or cooling systems, single stage heat pump systems, and 250my 

- 750my millivolt heating systems. This model features dependable switch performance, 

integrated sub-based and front mounted wiring terminals, and separate 0 & B terminals. This 

model also is mercury free, and has plated terminals to reduce corrosion, and a heavy-duty heat 

anticipator. The products dimensions are 4.60" x 3.13" x 1.25. 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 

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

. ; ; ;, ; ; 1,..11AS, Tf.x.O. lcol Of( (.114) 08 9306 FAX 1214) 111-9303 TOUTREL: (877) 277 5987 

WWW.BRAUMILLERLAW.COM 
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 $15,000 to $49,000 

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 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" program 

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 

transfer of technology, which transfer is the focus of the Section 301 tariffs as discussed in the 

Page 2 

WWW.BRAUMILLERLAW.COM 
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 Builders Series 

Model 500C (Celsius) 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=Braurniller Law Group, PLLC, ou, 

B

raurniller eztl=uasdrienne@braurnillerlaw.co 

Date: 2018.09.27 16:03:51 -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://ustr.gov/sites/default/files/Section%20301%20FI NAL. PDF. 

Page 3 

WWW.BRAUMILLERLAW.COM 
ATTACHMENT A 
[41 

Braeburn 

5000 1 Heat / 1 CoolMechanical 

505C Heat Only Thermostats 

10 • 15 • 20 - 25 • 30 

1 

1-• " 

Braeburn 

f 

Inside of Model 500C Shown 

Features 

• Dependable Switch Performance 

• Environmentally Safe - Mercury-Free 

• Integrated Sub-Base and Front 

Mounted Wiring Terminals Helps 

Make Installation Easy 

• Separate 0 & B Terminals 

(Model 500C Only) 

BUILDER 

SERIES FREE Contractor Branding! 

Visit braeburnonline.com 

• Plated Terminals 

Reduce Corrosion 

• No Leveling Required 

During Installation 

• Heavy Duty Heat Anticipator 

mecaswitch® 

Magnetic Switch Technology 

/1YEAR a LÍM Rod-IS k ITED 

WARRANTY 

COMPLIANT 

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

Designations 

Rh 

Heat 24 Volt 

JAC Transformer 

500C 505C 0 Rh 

Reversing 

Valve 

Cool 24 Volt 

AC Transformer 

Reversing Heat 

Valve Control 

Heat 

Control 

Fan 

Control 

Heat 24 Volt 

AC Transformer 

Cool 

Control 

Braeburn 

Architectural Specifications 

The megaswitch® mechanical thermostat shall be a Braeburn®, model number 500C or 505C, 11.68 high x 7.95 wide x 3.18 cm. deep. The thermostat 

shall be compatible with single stage gas, oil or electric heating or cooling systems including single stage heat pumps and 250mv — 750mv millivolt 

heating systems". The thermostat shall have a separate sub-base and front mounted wiring terminals for trouble free installation. Temperature control 

range shall be between 10° and 32° C (50° and 90° F), heat anticipation of 0.15 to 1.2 amps, humidity range between 5% and 95% relative humidity. 

The thermostat shall be mercury free, have plated terminals to prevent corrosion and require no leveling during installation. The thermostat can be 

mounted to a vertical junction box. * The model 505C is compatible with single stage gas, oil or electric heating systems including 250mv — 750mv 

millivolt heating systems. 

Shipping information 

INDIVIDUAL CARTON MASTER CARTON 

Dimensions: 12.95 x 7.87 x 3.30 cm Quantity: 12 

Weight: .14 kg Dimensions: 22.86 x 10.16 x 26 16 cm 

(Models 500C & 505C) Cubic Meter: .004 

Weight: 1.93 kg (Models 500C & 505C) 

Braeburn 500C Replaces 

Honeywell° T87F, T812C, T834 

Emerson. 1C26, 1F56, 1E56, 1D56 

Braeburn 505C Replaces 

Honeywell° T87F, T812A, T834 

Emerson° 1F30, 1E30, 1D30, 1C30, 1C20 

All trademarks are the properly of their respective owners. 

Accessories 

5970 Universal Thermostat Guard 

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 

Dimensions: 11.68 x 7.95 x 3.18 cm 

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

Heat Anticipation: 0.15 to 1.2 amps 

Compatibility: Model 500C — Single stage gas, oil or electric 

heating or cooling systems, single stage 

heat pump systems, 250mv — 750mv 

millivolt heating systems 

Model 505C — Single stage gas, oil or electric 

heating systems, 250mv — 750mv millivolt 

heating systems 

Control Range: 10° to 32° C (50° to 90° F) 

Storage Temperature: -10° to 60° C (14° to 140° F) 

Operating Humidity: 5% to 95% Relative Humidity 

System Lever: Model 500C — COOL/OFF/HEAT 

Model 505C — OFF/HEAT 

Fan Control Lever: Model 500C —AUTO/ON 

Terminations: Model 500C — 0, G, Rc, Rh, B, Y, W 

Model 505C — Rh, W 

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.) 

CY2017 Braeburn Systems LIC • AI Rights Reserved • 500C-300-01