Google, Telecom Groups Support Changes to FCC Import Requirements

The Federal Communications Commission should be careful not to add new regulatory requirements if it eliminates use of FCC Form 740, the Telecommunications Industry Association said in comments to the FCC (here) on the agency's proposal to revise import requirements, among other things (see 1508110024). "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 CBP," the trade group said. TIA and other filers, including Google and the CEA, offered general support for the end of Form 740, while seeking various tweaks to the FCC's proposal.

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," said the TIA. The FCC should 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, said TIA. "Companies are receiving conflicting information regarding exactly which data elements CBP would collect once Form 740 is eliminated," it said.

Industry members should also 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," the association said. Any changes should go through sufficient coordination and testing, to make sure there's no glitches in shipment process, said TIA. "For example, prior to the effective date of any rule change, CBP will need to deactivate the 'Other Government Authority' flag" within the Automated Commercial Environment, it said. The Information Technology Industry Council in its comments (here) asked that the FCC also consult with CBP to "clarify what obligations fall on the importer, and what obligations fall on the responsible party."

Boeing agreed that the Form 740 is no longer needed (here), but asked that the FCC to make sure similar information for RF devices is collected by the government. "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."

The elimination of Form 740 won't mean a reduction to the FCC's ability to deter illegal imports, said the Consumers Electronics Association (here). "Importers should maintain their own records and make them available upon request by the FCC or CBP," said the association. "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 FCC authorization for demonstration at trade shows from 200 to 400, the agency should go even further, said the CEA. The FCC "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.

A provisional certification process for imports regulated by the FCC would make it easier for electronics companies to meet consumer demand following high-profile product announcements, Google said (here). "Manufacturers struggle with importation of new technologies under the current certification rules," Google said. Due to the possibility of reverse engineering and press speculation from certification filings, the certification requests are often made at "the last possible moment," it said. As a result, the devices are left at customs-bonded warehouses or foreign trade zones until an FCC ID is issued, said Google. "A process to issue provisional grants of certification for devices meeting all certification requirements would help," it said. 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, said CTIA (here), a wireless company trade association. "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," it said.