[Federal Register Volume 63, Number 126 (Wednesday, July 1, 1998)]
[Proposed Rules]
[Pages 35901-35902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17491]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[CI Docket No. 98-69; FCC 98-97]


Importation of Radio Frequency Devices Capable of Causing Harmful 
Interference

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission has issued an Order and Notice of Proposed Rule 
Making. The Notice of Proposed Rulemaking (NPRM) proposes that entities 
submit FCC Form 740 directly to the U.S. Customs Service (Customs) 
rather than be required to file duplicate declarations with the FCC and 
Customs and to modify the marketing rules affecting devices imported 
solely for export. Under the first proposal, only the few remaining 
entities that do not file the Form 740 electronically with Customs will 
be affected. These entities will be required to file Form 740 with 
Customs only. Eliminating the requirement to file duplicative 
information with the FCC reduces the administrative burden on filers, 
particularly small businesses, and eliminates an FCC record process 
that is no longer necessary. The modification under the second proposal 
will improve our ability to enforce the equipment authorization rules 
by eliminating a loophole that has resulted in the marketing and 
selling of devices that could not be authorized in the U.S.

DATES: Comments are due July 31, 1998, reply comments are due August 
17, 1998.

FOR FURTHER INFORMATION CONTACT: Dan Emrick of the Compliance and 
Information Bureau at (202) 418-1175.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Notice 
of Proposed Rule Making, CI Docket No. 98-69, FCC 98-97, adopted May 
18, 1998, and released June 5, 1998. The full text of this Order and 
Notice of Proposed Rulemaking is available for inspection and copying 
during normal business hours in the FCC Reference Center (Room 239) 
1919 M Street, NW, Washington, DC. The complete text may be purchased 
from the Commission's copy contractor, International Transcription 
Services, 2100 M Street NW, Washington, DC 20037, telephone (202) 857-
3800 (phone), (202) 857-3805 (facsimile), 1231 20th St., N.W., 
Washington, D.C. 20036.

Summary of Proposed Rule Making

    1. In this Notice of Proposed Rulemaking, we seek comment on two 
proposals involving the importation of radio frequency devices. First, 
we propose that entities submit FCC Form 740 directly to the U.S. 
Customs Service (Customs) rather than be required to file duplicate 
declarations with the FCC and Customs. Under this proposal, only the 
few remaining entities that do not file the Form 740 electronically 
with Customs will be affected. These entities will be required to file 
Form 740 with Customs only. Any compliance information needed by the 
FCC is infrequently needed on a case by case basis and would be readily 
available from Customs. Eliminating the requirement to file duplicative 
information with the FCC reduces the administrative burden on filers, 
particularly small businesses, and eliminates an FCC record process 
that is no longer necessary.
    2. Next, we seek comment on our proposal to modify the marketing 
rules affecting devices imported solely for export. This modification 
will improve our ability to enforce the equipment authorization rules 
by eliminating a loophole that has resulted in the marketing and 
selling of devices that could not be authorized in the U.S.

Initial Regulatory Flexibility Analysis

    3. As required by the Regulatory Flexibility Act (RFA),\1\ the 
Commission has prepared an Initial Regulatory Flexibility Analysis 
(IRFA) of the expected economic impact on small entities by the 
policies and rules proposed in this Order and Notice of Proposed Rule 
Making (Notice). Written public comments are requested on the IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadlines for comments in the Notice. The Office of Public 
Affairs, Reference Operations Division will send a copy of this Notice, 
including the IRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration.\2\
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Contract with America Advancement Act of 1996 
Public Law No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of 
the CWAAA is ``The Small Business Regulatory Enforcement Fairness 
Act of 1996'' (SBREFA).
    \2\ See 5 U.S.C. 604.
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I. Need For and Purpose of This Action

    4. This Notice reexamines the rules specifying procedures for 
importation of radio frequency devices. It seeks information that will 
assist the Commission in determining whether current rules can be 
simplified and made more easy to enforce. It will also reduce the 
administrative burden on both the Commission and the public.

II. Description and Estimate of Number of Small Businesses to Which 
Rules Will Apply

    5. The RFA directs agencies to provide a description of, and, where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted.\3\ The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organizations,'' and ``small 
governmental jurisdiction''.\4\ In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act.\5\ A small business concern is one which: 
(1) Is independently owned and operated; (2) is not dominant in its 
field of operation; and (3) satisfies any additional criteria 
established by the Small Business Administration (SBA).\6\ The 
Commission will need to receive more data regarding the brokers who 
currently file Forms 740 with the Commission, rather than filing them 
electronically through the U.S. Customs Service (Customs). We estimate 
that 800 of these forms are filed per month, presumably by smaller 
firms that do not subscribe to the Customs electronic filing system due 
to the relatively small number of FCC declarations that they handle. 
While there is no readily apparent link between the number of paper 
filings per month and the number of entities submitting the 
declarations, we presume most of the entities involved are small 
businesses or individuals. These entities will continue to be subject 
to the requirement to submit FCC Form 740 documents, but only to one 
government agency, not two. They will address and mail only one

[[Page 35902]]

form per declaration, not two, thereby reducing at least their mailing 
cost by half. Other administrative costs, such as staff time required 
to complete the form, will also be significantly reduced.
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    \3\ 5 U.S.C. 603(b)(3).
    \4\ Id.; 5 U.S.C. 601(6).
    \5\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, the statutory definition of a small business applies ``unless 
an agency, after consultation with the Office of Advocacy of the 
Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such terms which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register. 5 U.S.C. 601(3).
    \6\ Small Business Act, 15 U.S.C. 632 (1996).
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IV. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements

    6. There will be no new requirements. The Notice proposes to 
eliminate the requirement to file a copy of Form 740 with the 
Commission for entities that do not use the Customs electronic filing 
procedures. Those entities will provide an original Form 740 to Customs 
with the shipment, but will not be required to file a second copy with 
the FCC.

V. Significant Alternatives and Steps Taken by Agency To Minimize 
Significant Economic Impact on a Substantial Number of Small 
Entities Consistent With Stated Objectives

    7. The impact of this Notice will be, by its nature, a reduction of 
the burden on small entities. For example, eliminating the duplicative 
filing of the Form 740 should reduce administrative overhead, such as 
processing and mailing costs for small businesses.

VI. Commission's Outreach Efforts To Learn of and Respond to the 
Views of Small Entities Pursuant to SBREFA 5 U.S.C. 609

Report to Congress

    The Commission will send a copy of this Order and Notice of 
Proposed Rulemaking, including this Final Regulatory Flexibility 
Analysis, to Congress pursuant to the Small Business Regulatory 
Enforcement Act of 1996, 5 U.S.C. 801(a)(1)(A). A summary of the Order 
and Notice of Proposed Rulemaking and this FRFA will also be published 
in the Federal Register pursuant to 5 U.S.C. 604(b), and it will also 
be sent to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 2

    Imports.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-17491 Filed 6-30-98; 8:45 am]
BILLING CODE 6712-01-P