Changes to FCC Import Rules Could Help Companies Meet Demand for High-Profile Devices, Google Says

Due to the possibility of reverse engineering and news-media speculation from certification filings for new products, the certification requests are often made at "the last possible moment," Google said. Companies pay for such devices to be stored at customs-bonded warehouses or foreign-trade zones until an FCC ID is issued, Google said. "A process to issue provisional grants of certification for devices meeting all certification requirements would help." Under the provisional process, "devices with provisional grants should be eligible for shipment to the grantees or designated importer" and the provisional grants should remain confidential, Google said.

While the addition of a provisional certification process would reduce the need for bonded warehouses, the FCC should continue to allow that option, CTIA said. "There could be circumstances where an importer may still want to take advantage of the option to use a bonded warehouse to provide flexibility in its importation and distribution processes." CTIA and other commenters mostly focused on other RF device certification changes.

The FCC should be careful not to add new regulatory requirements if it eliminates use of FCC Form 740, currently required for imported RF devices, TIA commented. "Simply eliminating Form 740 will not achieve the FCC’s goal" to reduce administrative burdens "if the proposal simply shifts the obligation to importers to provide the same data elements to" Customs and Border Protection (CBP), the trade group said. The FCC ought to simply remove regulations in 47 CFR 2.1203 -- which spell out general FCC requirements for imports -- "in its entirety as the current rule results in duplicative data collection," TIA said. The FCC should also provide information on what data importers would be required to submit to CBP to satisfy FCC requirements so that the industry can consider specifically how the change would affect administrative burdens, TIA said. "Companies are receiving conflicting information regarding exactly which data elements CBP would collect once Form 740 is eliminated."

Industry members also should be closely involved in "any dialogue between FCC and CBP to determine the parameters and implementation of any changes to the current data collection regime, as industry has significant information and experience to contribute, including with respect to the construction of trusted trader programs that can greatly facilitate trade by rationalizing data collection," TIA said. CBP's "trusted trader" program allows faster import processing for pre-approved companies. Any regulatory changes should go through sufficient coordination and testing, to make sure there are no glitches in the shipment process, TIA said. Information Technology Industry Council comments asked that the FCC also consult with CBP to "clarify what obligations fall on the importer, and what obligations fall on the responsible party."

The elimination of Form 740 won't reduce the FCC's ability to deter illegal imports, CEA said. "Importers should maintain their own records and make them available upon request by the FCC or CBP," the association said. "The Commission also should coordinate with CBP to reduce the data it collects and otherwise to streamline the importation process, especially for those importers eligible for the trusted trader program." While the FCC proposed to increase the number of devices that can be imported without authorization for demo at trade shows, from 200 to 400, the agency should go even further, CEA said. The commission "should increase the total number of uncertified devices that can be imported for trade shows from 200 to 800 for devices that are used solely in licensed services and from 10 to 800 for other products," it said.

Boeing agreed that the Form 740 is no longer needed, but asked that the FCC make sure the government continues to collect similar information for RF devices. "The existence of some official government collection of this information continues to serve a valuable role for importers, however, as a compliance tool or administrative checkpoint to ensure that United States import and electronic device regulations are being followed," the company said. "For example, Boeing routinely reviews the information that is reported to CBP regarding RF devices that are being imported by foreign suppliers for ultimate delivery to Boeing."