Federal Communications Commission (FCC)

The Federal Communications Commission approved national security supply chain rules on Nov. 22, barring equipment from Chinese vendors Huawei and ZTE from networks funded by the Universal Service Fund and establishing rules that could block other providers (see 1910300036). “Both Huawei and ZTE have close ties to the Chinese government and military apparatus and are subject to Chinese laws requiring them to assist with espionage, a threat recognized by other federal agencies and the governments of other nations,” an FCC news release said: “The public funds in the FCC’s USF … must not endanger national security through the purchase of equipment from companies posing a national security risk.”

The Federal Communications Commission released a draft proposal Oct. 29 to ban equipment from Chinese vendors Huawei and ZTE from networks funded by the Universal Service Fund. Huawei signaled it will fight. Commissioners are scheduled to vote Nov. 19. President Donald Trump issued an executive order in May that bars imports and other "transactions involving information and communications technology [ICT] or services" without a broad interagency review (see 1905160019).

A Federal Communications Commission enforcement advisory warns that TV set-top boxes, including those that stream internet content, must comply with equipment authorization requirements. Such devices must not be marketed in the U.S. without “FCC-required labeling and user manual disclosures,” the April 9 public notice said. Penalties could total more than $147,000 per violation, the PN said. The advisory notes that under Section 302 of the Communications Act and Part 2 and Part 15 rules, set-tops must be properly authorized by the FCC before being imported, advertised, sold or operated. It said devices must display an FCC ID of letters, numbers and symbols “unique to the device,” and user manuals must warn consumers of the device’s potential for causing interference.

Arris emphasized “serious concerns” in meetings with aides to Federal Communications Commission Commissioners Mike O’Rielly and Jessica Rosenworcel about “harmful effects” the third tranche of Section 301 tariffs will have on “U.S. 5G leadership" and broadband deployment, it said in a filing posted Oct. 23. The 10 percent tariffs took effect Sept. 24 on “core broadband infrastructure and networking equipment and other critical inputs for wireless and wireline connectivity, as well as consumer broadband equipment,” and “automatically increase” to 25 percent Jan. 1, Arris said. “At just the 10 percent level,” Arris estimates the fees will impose $200 million a year “in additional costs on its equipment and devices.” The levies already have had “serious business implications,” noting that an analyst downgraded Arris stock because of the higher expected tariff-related costs, the filing said. The tariffs “risk slowing deployment of 5G and broadband more generally, diverting resources away from 5G and other broadband research and development efforts,” it said. Arris also noted in the meeting the need for an “exclusion process” for the third tranche of duties to give affected companies “additional time to make adjustments to their operations and mitigate the harms.”

The Federal Communications Commission has noted an uptick in illegal imports of two-way radios that don’t comply with FCC rules, it said in an enforcement bulletin issued Sept. 24. A “growing number of conventional retailers and websites” are advertising and selling low-cost unauthorized two-way radios, many of which have been imported from abroad. “These radios must be authorized by the FCC prior to being imported, advertised, sold, or operated in the United States,” the agency said.

Nokia officials met with Federal Communications Commission commissioners Mike O’Rielly and Jessica Rosenworcel, and aides to the other commissioners, to talk about new mobile technologies known as 5G and potential issues created by tariffs. “Of particular concern to Nokia are the recent tariffs imposed on trade with China, which specifically target a wide range of components that are critical to 5G," Nokia said. “Unless exemptions are provided for these products, these latest duties threaten to raise the cost of 5G infrastructure in the U.S. by hundreds of millions of dollars. This is an important context that further emphasizes the need for the Commission to lower barriers to deployment where it can.”

The Federal Communications Commission Enforcement Bureau is starting to clamp down on the distribution of noncompliant Asian radios. “I’ve heard from multiple parties that some equipment entering the United States is either fraudulently displaying the FCC logo, improperly displaying our logo, or simply not in compliance with our radiofrequency emission and interference rules,” FCC Commissioner Mike O’Rielly said on Aug. 3. “While it’s a difficult problem, I trust the Enforcement Bureau is looking into all of these situations. I have had a particular interest in looking into this issue as it relates to set-top boxes, and it is my hope that the agency can take action here, and elsewhere, in the very near future.” He had asked Amazon and eBay for help with the issue (see 1805290027). Last week, the bureau issued a citation and order against Amcrest Industries for marketing a handheld radio that allegedly doesn’t comply with rules.

Federal Communications Commission Commissioner Mike O'Rielly asked the CEOs of Amazon and eBay for those companies' help in cracking down on video set-top boxes that fraudulently carry the FCC's logo indicating they comply with the agency's equipment authorization or boxes that don't comply with those authorization requirements. In a letter to Amazon's Jeff Bezos and eBay's Devin Wenig dated May 25, O'Rielly said the FCC doesn't have an obligation to crack down on unauthorized set-tops, but many such boxes are being used in pirating of video content. He asked that the online retailers commit to removing from their sites any devices with fraudulent FCC logos or devices that haven't been certified if the agency brings those devices to the companies' attention, with supporting evidence. He also asked the companies to give the FCC names of device manufacturers, distributors and suppliers "if the situation arises."

The Federal Communications Commission recently posted some guidance on the use of the Suppliers Declaration of Conformity by radio frequency device importers. The April 5 guidance from the FCC Office of Engineering and Technology details the SDoC procedures created last year when the agency ended Form 740 filing requirements (see 1711010011).

The National Customs Brokers & Forwarders Association of America filed a petition for reconsideration with the Federal Communications Commission over recent agency rule changes involving radiofrequency device imports.