[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72571-72572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33582]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[CI Docket 98-69; FCC 99-326]


Importation of Devices Capable of Causing Harmful Interference

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document amends the Commission's rules in order to 
prevent the importation of illegal radio frequency (RF) devices. It 
also eliminates the need for importers to file a duplicate FCC Form 740 
with the FCC when importing devices into the United States.

EFFECTIVE DATE: February 28, 2000.

FOR FURTHER INFORMATION CONTACT: David Sturdivant, Enforcement Bureau, 
202-418-1160.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Second Report and 
Order, CI Docket 98-69, adopted October 29, 1999 and released November 
5, 1999.
    The full text of this Second Report and Order is available for 
inspection and copying during normal business hours in the FCC's Public 
Reference Center Room CY-A257, 445 12th Street, S.W., Washington, D.C. 
20554. The complete text may also be purchased from the Commission's 
duplication contractor, International Transcription Service, Inc., 1231 
20th Street, NW, Washington, D.C. 20036; phone (202) 857-3800, 
facsimile (202) 857-3805.

Synopsis of the Second Report and Order

    The Second Report and Order amends the Commission's rules 
concerning the importation of devices capable of causing harmful 
interference. These rule amendments simplify the process importers use 
to import radio frequency devices into the United States.
    The Federal Communications Commission (FCC) requires that radio 
frequency (RF) devices imported into the United States comply with FCC 
rules. The FCC released an Order and Notice of Proposed Rule Making [63 
FR 53901] on June 5, 1998. This document sought to clarify rule 
language that could allow the importation of illegal RF devices. The 
FCC, working in conjugation with the United States Customs Service, 
help to prevent the importation of illegal RF devices. The FCC Form 740 
is used by importers to declare that imported RF devices comply with 
applicable FCC technical requirements. This form, along with its 
electronic equivalent, is filed with the U.S. Customs Service.
    In order to curtail abuse of the import-for-export provision of the 
Commission's rules, we have modified the rule to prevent the entry of 
illegal RF devices. This rule allows the importation of devices that do 
not have FCC authorization under the condition the devices will be 
exported. A provision of the rule prevented a device from being 
marketed or offered for sale for use in the United States. It was the 
Commission experience that some unscrupulous importers would take 
advantage of this provision in order to import and sell illegal RF 
devices to customers for use in the United States. By using simple 
collusion to exploit the rule provision, the importer could increase 
his likelihood of avoiding punitive action from the Commission. Our 
amended import-for-export rule will continue to allow non-authorized 
devices to enter the U.S. solely for export but does not allow the 
devices to be offered for sale in the U.S. The rule does make an 
exemption for cellular phones and similar telephone devices that 
operate on standards not used in the U.S. and, as a result, are unable 
to function in the U.S. These types of devices may continue to be 
imported and marketed for use outside of the U.S. This rule amendment 
makes it less problematic for importers, U.S. Customs officials and FCC 
officials, to determine when importation of a radio frequency device is 
illegal. It will also minimize any effect on vendors that legitimately 
import devices for export.
    Our rule amendments also streamline the declaration process for 
importers unable to file the FCC Form 740 electronically. Due to the 
successful implementation of U.S. Custom's electronic filing system, 
the FCC will eliminate the requirement for importers to file a 
duplicate FCC Form 740 with the Commission when they are unable to file 
electronically. Although the majority of FCC Form 740 filings occur 
electronically via U.S. Custom's electronic filing system, importers 
must currently file a paper FCC Form 740 with U.S. Customs and with the 
FCC when they are unable to use the electronic system. FCC Form 740 
information is available to the FCC via the U.S. Customs Service upon 
request. Thus, requiring the duplicative filing of the FCC Form 740 
with the FCC puts an unnecessary burden on the importer. We will no 
longer require an importer to file the FCC Form 740 with the FCC when 
an importer is unable to use the electronic system provided by the U.S. 
Customs Service. Importers will continue to submit the FCC Form 740 to 
the U.S. Customs Service.

Final Regulatory Flexibility Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended, 
the Second Report and Order contains a final regulatory flexibility 
analysis. No comments were submitted in response to the Initial 
Regulatory Flexibility Analysis. The Commission does not anticipate any 
adverse economic impact on small business entities resulting from these 
rule amendments. This Second Report and Order will reduce the burden on 
small entities. This item eliminates the duplicative filing of the FCC 
Form 740 and, as a result, should reduce administrative overhead, such 
as processing and mailing costs for small businesses. Secondly, 
revisions to the rule to amend language in order to improve enforcement 
by prohibiting entry of devices that are not approved for use in the 
United States is essential. The Commission had originally

[[Page 72572]]

intended to delete the words ``for use'' from Sec. 2.1204(a)(5). 
Instead, after comment on this proposed revision, the Commission 
deleted the words ``for use'' but added a qualifier to allow for the 
importation of foreign standard cellular handsets that are incapable of 
operating in the United States. It is believed that this amendment of 
the rule both closes the ``loophole'' and allows businesses to conduct 
business such as the importing and selling of cellular handsets to the 
United States.

Legal Basis

    Pursuant to the authority contained in sections 4(i), 4(j), 7(a), 
302, 303(b), 303(f), 303(g), and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 154(j), 157(a), 302a, 303(b), 
303(f), 303(g), 303(r), part 2, subpart K, Secs. 2.1204(a)(5), 
2.1205(a), 47 CFR 2.1204(a)(5) and 2.1205(a) are amended.

List of Subjects in 47 CFR Part 2

    Imports.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    Part 2 of Title 47 of the Code of Federal Regulations is amended as 
follows:

PART 2--FREQUENCY ALLOCATIONS AND RADIO TREATY MATTERS; GENERAL 
RULES AND REGULATIONS

    1. The authority citation for Part 2 is amended to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, and 336, unless otherwise 
noted.

    2. Section 2.1204 is revised by amending paragraph (a)(5) to read 
as follows:


Sec. 2.1204  Import conditions.

    (a) * * *
    (5) The radio frequency device is being imported solely for export. 
The device will not be marketed or offered for sale in the U.S., 
except:
    (i) If the device is a foreign standard cellular phone solely 
capable of functioning outside the U.S.
    (ii) If the device is a multi-mode wireless handset that has been 
certified under the Commission's rules and a component (or components) 
of the handset is a foreign standard cellular phone solely capable of 
functioning outside the U.S.
* * * * *
    3. Section 2.1205 is revised by removing the note and revising 
paragraph (a) to read as follows:


Sec. 2.1205  Filing of required declaration.

    (a) For points of entry where electronic filing with Customs has 
not been implemented, use FCC Form 740 to provide the needed 
information and declarations. Attach a copy of the completed FCC Form 
740 to the Customs entry papers.
* * * * *
[FR Doc. 99-33582 Filed 12-27-99; 8:45 am]
BILLING CODE 6712-01-P