[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Rules and Regulations]
[Pages 31645-31647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15395]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[ET Docket No. 94-45; FCC 98-96]


Marketing and Equipment Authorizations

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: By this Memorandum Opinion and Order, the Commission amends 
its regulations to increase the number of radio frequency products that 
can be imported, prior to receiving a grant of equipment authorization, 
for the purpose of testing and evaluation or demonstration at industry 
trade shows. This increase applies only to products designed to be 
operated within one of the allocated radio services and under the 
provisions of license issued by the Commission. In addition, 
manufacturers operating equipment for demonstration or evaluation 
purposes will be permitted to operate under the authority of a local 
FCC licensed service provider on the condition that the licensee gives 
the manufacturer permission to operate in this manner and accepts 
responsibility for the operation of the equipment. These amendments to 
the regulations respond to a Petition for Reconsideration and 
Clarification, filed by Ericsson, Inc.

EFFECTIVE DATE: August 10, 1998.

FOR FURTHER INFORMATION CONTACT: John A. Reed, Office of Engineering 
and Technology, (202) 418-2455.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order in ET Docket No. 94-45, adopted May 14, 
1998, and released May 28, 1998. The complete text of this Memorandum 
Opinion and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center (Room 239), 1919 M Street, 
N.W., Washington, D.C., and also may be purchased from the Commission's 
duplication contractor, International Transcription Services, Inc., 
(202) 857-3800, 1231 20th Street, N.W., Washington, D.C. 20036.

Summary of the Memoranudum Opinion and Order

    1. In the Memorandum Opinion and Order, the Commission amended part 
2 of its rules regarding the importation and operation of radio 
frequency (RF) devices. Previously, the rules limited the importation 
of RF products, prior to receiving a grant of equipment authorization, 
to no more than 200 units for testing and evaluation purposes and to no 
more than 10 units for demonstrations at trade shows. A greater number 
could be imported only if written authorization was first obtained from 
the Chief, Office of Engineering and Technology, FCC.
    2. Ericsson, Inc. filed a Petition for Reconsideration and 
Clarification to the Report and Order (``R&O'') in this proceeding, 62 
FR 10466, March 7, 1997. It requested that the above

[[Page 31646]]

importation limits be eliminated, stating that these limits unfairly 
restrict the ability of foreign manufacturers to compete with domestic 
manufacturers. Ericsson also requested that the Commission eliminate 
its requirement that manufacturers obtain a license to operate 
transmitters for demonstrations at trade shows, demonstrations at 
exhibitions, or evaluation of product performance. Ericsson adds that 
the requirement to obtain a license should apply only to entities that 
intend to provide services using the product.
    3. In the R&O in this proceeding, the Commission chose not to amend 
its rules limiting the importation of RF devices that had not yet 
received a grant of equipment authorization because of the difficulties 
sometimes associated with identifying the responsible party, e.g., the 
importer. With many products, especially low-power, unlicensed, 
consumer devices, the name of the responsible party may not be on the 
product. Thus, it may not be possible to trace a product to a specific 
importer or to have a product recalled should it later be found to be a 
source of harmful interference.
    4. The Commission continues to believe that importation limits for 
unauthorized devices are necessary and that these limits do not impose 
a significant barrier to foreign trade. However, Ericsson has made a 
compelling argument that the current limits are inappropriate for 
equipment intended to be used in the authorized radio services where a 
license to operate is required to be obtained from the Commission. In 
some authorized services, there are several hundred licensees, each of 
which may be interested in evaluating small quantities of sample base 
and mobile units before making larger purchases. This could result in 
frequent requests to import larger quantities. In order to reduce 
administrative burden, the rules are amended to allow the routine 
importation of up to 2000 units for test and evaluation and up to 200 
units for display at trade shows, but only for equipment intended to be 
operated in an authorized radio service and under a Commission-issued 
license.
    5. The Commission does not agree with Ericsson that the requirement 
to obtain a license, where currently required, should be eliminated for 
equipment manufacturers. However, the Commission is amending its 
regulations to permit a manufacturer to operate its product for 
demonstration or evaluation purposes under the authority of a local FCC 
licensed service provider. The licensee must grant permission to the 
manufacturer to operate in this manner. Further, the licensee continues 
to remain responsible for complying with all of the operating 
conditions and requirements associated with its license.
    6. The changes to the regulations shown in this document 
incorporate the changes adopted in this proceeding as well as the 
changes to 47 CFR 2.1204(a)(3) and (a)(4) that were adopted by the 
Commission on May 18, 1998 in CI Docket No. 98-69, FCC 98-97. The 
changes to these paragraphs were made in separate orders adopted in 
close proximity to each other. For clarity, we are showing all of the 
resulting rule changes.
    7. Final Regulatory Flexibility Analysis. As required by Section 
603 of the Regulatory Flexibility Act (RFA), 5 U.S.C. 603, an Initial 
Regulatory Flexibility Analysis (IRFA) was incorporated in the Notice 
of Proposed Rule Making (Notice) in ET 94-45. The Commission sought 
written Comments on the proposals in the Notice including the IRFA. No 
commenting parties raised issues specifically in response to the IRFA 
and a Final Regulatory Flexibility Analysis (FRFA) as included in the 
Report and Order in this proceeding. The rules adopted in this 
Memorandum Opinion and Order (MO&O) provide clarification and further 
relaxation of the marketing regulations adopted in the Report and 
Order. We therefore certify, pursuant to section 605(b) of the RFA, 
that the rules adopted in this MO&O do not have a significant economic 
impact on a substantial number of small entities.
    8. The Commission's Office of Public Affairs, Reference Operations 
Division, will send a copy of this final certification, along with this 
Memorandum Opinion and Order, in a report to Congress pursuant to the 
Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 
605(b).
    9. It Is Further Ordered that this proceeding is Terminated.

List of Subjects in 47 CFR Part 2

    Radio, Reporting and recordkeeping requirements.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons discussed in the preamble part 2 of title 47 of the 
Code of Federal Regulations, is amended as follows:
    1. The authority citation for part 2 continues to read as follows:

    Authority: 47 U.S.C. 154, 302, 303, 307 and 336, unless 
otherwise noted.

    2. Section 2.803 is amended by revising paragraph (e)(3) to read as 
follows:


Sec. 2.803  Marketing of radio frequency devices prior to equipment 
authorization.

* * * * *
    (e)(3) The provisions of paragraphs (e)(1)(i), (e)(1)(ii), 
(e)(1)(iii), (e)(1)(iv), and (e)(1)(v) of this section do not eliminate 
any requirements for station licenses for products that normally 
require a license to operate, as specified elsewhere in this chapter.
    (i) Manufacturers should note that station licenses are not 
required for some products, e.g., products operating under part 15 of 
this chapter and certain products operating under part 95 of this 
chapter.
    (ii) Instead of obtaining a special temporary authorization or an 
experimental license, a manufacturer may operate its product for 
demonstration or evaluation purposes under the authority of a local FCC 
licensed service provider. However, the licensee must grant permission 
to the manufacturer to operate in this manner. Further, the licensee 
continues to remain responsible for complying with all of the operating 
conditions and requirements associated with its license.
* * * * *
    3. Section 2.1204 is amended by revising paragraphs (a)(3) and 
(a)(4) to read as follows:


Sec. 2.1204  Import conditions.

    (a) * * *
    (3) The radio frequency device is being imported in limited 
quantities for testing and evaluation to determine compliance with the 
FCC Rules and Regulations or suitability for marketing. The devices 
will not be offered for sale or marketed. The phrase ``limited 
quantities,'' in this context means:
    (i) 2000 or fewer units, provided the product is designed solely 
for operation within one of the Commission's authorized radio services 
for which an operating license is required to be issued by the 
Commission; or
    (ii) 200 or fewer units for all other products.
    (iii) Prior to importation of a greater number of units than shown 
above, written approval must be obtained from the Chief, Office of 
Engineering and Technology, FCC.
    (iv) Distinctly different models of a product and separate 
generations of a particular model under development are considered to 
be separate devices.
    (4) The radio frequency device is being imported in limited 
quantities for demonstration at industry trade shows and the device 
will not be offered for

[[Page 31647]]

sale or marketed. The phrase ``limited quantities,'' in this context 
means:
    (i) 200 or fewer units, provided the product is designed solely for 
operation within one of the Commission's authorized radio services for 
which an operating license is required to be issued by the Commission; 
or
    (ii) 10 or fewer units for all other products.
    (iii) Prior to importation of a greater number of units than shown 
above, written approval must be obtained from the Chief, Office of 
Engineering and Technology, FCC.
    (iv) Distinctly different models of a product and separate 
generations of a particular model under development are considered to 
be separate devices.
* * * * *
[FR Doc. 98-15395 Filed 6-9-98; 8:45 am]
BILLING CODE 6712-01-P