Marketing and Equipment Authorizations

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 2

[ET Docket No. 94-45; FCC 97-31]

Marketing and Equipment Authorizations

AGENCY: Federal Communications Commission

ACTION: Final rule

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SUMMARY: By this Report and Order, the Commission amends its

regulations to consolidate and harmonize the marketing rules, as

proposed in the Notice of Proposed Rule Making in this proceeding. This

amendment permits radio frequency devices, prior to authorization or a

determination of compliance with the technical standards, to be

announced, advertised, displayed, and operated for compliance testing,

demonstrated at trade shows, or evaluated at the manufacturer's

facilities. In addition, non-consumer devices that have not been tested

or authorized can be offered for conditional sale or supplied to the

user for evaluation or compliance testing. The equipment authorizations

regulations are also amended to provide clarification, to resolve

inconsistencies, to remove unnecessary restrictions and obsolete

regulations, and to incorporate several interpretations. These

amendments will stimulate economic growth by permitting products to be

developed on a cooperative basis by manufacturers and retailers, and by

potentially decreasing the time for a product to reach the marketplace.

EFFECTIVE DATE: April 7, 1997.

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 Report

and Order in ET Docket No. 94-45, adopted February 3, 1997, and

released February 12, 1997.

The complete text of this Report 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 copy contractor,

International Transcription Services, Inc., (202) 857-3800, 2100 M

Street, NW, Suite 140, Washington, D.C. 20037.

Summary of the Report and Order

1. In the Report and Order, the Commission amended Part 2 of its

rules regarding the marketing and operation of radio frequency (RF)

devices.

[[Page 10467]]

Marketing includes the sale or lease, offer for sale or lease,

including advertising for sale or lease, and importation, shipment or

distribution for the purpose of sale or lease or offering for sale or

lease. Previously, the rules prohibited the marketing and operation of

an RF device unless it complies with all of the standards and the

equipment authorization procedures. Certain exceptions to these rules

were provided for verified digital devices and non-consumer ISM

products operated under Part 18 of the rules.

2. The order harmonizes the marketing rules by permitting RF

devices, prior to authorization or a determination of compliance with

the technical standards, to be announced, advertised, displayed, and,

if compliant with any Commission license requirements, operated for

compliance testing, demonstrated at trade shows, or evaluated at the

manufacturer's facilities. In addition, non-consumer RF devices, i.e.,

products employed at business, commercial, industrial, scientific or

medical sites, prior to testing or authorization, may be offered for

conditional sale or supplied to the user for evaluation or compliance

testing. As under the previous rules, no products may be marketed or

supplied to the general public prior to testing or authorization.

Further, these products must be designed with the intent of complying

with all applicable regulations.

3. On its own motion, the Commission also adopted several

additional changes to the equipment authorization rules to resolve

inconsistencies, to provide clarification, to remove unnecessary

restrictions and obsolete regulations, and to incorporate several

interpretations. Specifically, the Commission amended the rules to

indicate, explicitly, that, as with any request for authorization, an

anti-drug abuse statement is required with requests for permissive

changes. In addition, the rules now state that proper labelling of a

product is a condition of the grant of equipment authorization and is

required prior to marketing. The Commission also clarified that a

product is considered to be ``electrically identical'' if no changes

are made to the product or if any changes to the product could be

treated as Class I permissive changes. Further, duplicative or outdated

regulations, e.g., references to type approval which is no longer

employed, were removed, and erroneous rule citations were corrected.

4. The Commission amended its rules to state that any party that

modifies an authorized RF device becomes responsible for ensuring that

the modified product continues to comply with the appropriate standards

and must maintain whatever records are required to demonstrate such

compliance. In order to facilitate identification, the Commission also

stated that a product modified by someone other than the original

responsible party be labelled with the name, address and telephone

number of the new responsible party along with a statement that the

product has been modified. Alternatively, the party modifying the

equipment could obtain a new equipment authorization.

5. Finally, the Commission amended the regulations regarding

authorization under the verification procedure to clarify what

information needs to be retained by the responsible party, to indicate

the time period within which requests by the Commission for product

samples must be submitted, and to identify the party that is

responsible for submitting those samples.

Final Regulatory Flexibility Analysis

6. As required by Section 603 of the Regulatory Flexibility Act, 5

U.S.C. 603 (``RFA''), an Initial Regulatory Flexibility Analysis

(``IRFA'') was incorporated into the Notice of Proposed Rule Making

(``NPRM''), in ET Docket No. 94-45.1 The Commission sought written

public comments on the proposals in the Notice, including the IRFA. The

Commission's Final Regulatory Flexibility Analysis (``FRFA'') in this

Report and Order conforms to the RFA, as amended by the Contract With

America Advancement Act of 1996 (CWAAA), Public Law 104-121, 110 Stat.

847 (1996).2

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\1\ See 9 FCC Rcd 2702 (1994), 59 FR 31966, June 21, 1994.

\2\ Subtitle II of the CWAAA is ``The Small Business Regulatory

Enforcement Fairness Act of 1996'' (SBREFA), codified at 5 U.S.C.

601 et seq.

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7. Need For and Objective of the Rules

Our objectives are to facilitate the marketing and early use of

radio frequency (RF) devices by permitting vendors, manufacturers, and

importers to market such devices prior to a demonstration of compliance

with applicable technical standards and equipment authorization

procedures, and to promote efficiency and equity in our rules by

requiring that any party that modifies an RF device be responsible for

ensuring compliance with applicable technical standards. This action

will also facilitate the retrieval of RF device test records by the

Commission, remove outdated regulations, and correct existing errors

and ambiguities in the rules.

8. Summary of Significant Issues Raised by Public Comments in Response

to the IRFA

No comments were submitted in direct response to the IRFA. However,

Alcatel Network Systems, Inc. (ANS), AT&T Corp., Computer and Business

Equipment Manufacturer's Association (CBEMA) and International Business

Machines Corp. (IBM) suggested changes to our proposed reporting and

record keeping requirements for modified RF devices. ANS and CBEMA

oppose the proposal that a party modifying equipment be required to

label the modified equipment with additional information, i.e., the

name, address and telephone number of the party performing the

modifications. AT&T, with support from ANS, CBEMA and IBM, requests

that the party modifying the equipment not be required to obtain and

retain the original equipment design drawings.

9. Description and Estimate of the Number of Small Entities to Which

the Rules Will Apply

For the purposes of this Order, the RFA defines a ``small

business'' to be the same as a ``small business concern'' under the

Small Business Act, 15 U.S.C. 632, unless the Commission has developed

one or more definitions that are appropriate to its activities.3

Under the Small Business Act, a ``small business concern'' is one that:

(1) is independently owned and operated; (2) is not dominant in its

field of operation; and (3) meets any additional criteria established

by the Small Business Administration (SBA).4 These new rules will

apply to computer manufacturers and other RF device manufacturers as

well as those entities that modify and market RF equipment.

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\3\ See 5 U.S.C. 601(3) (incorporating by reference the

definition of ``small business concern'' in 5 U.S.C. 632).

\4\ See 15 U.S.C. 632.

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(a) Computer Manufacturers: According to SBA regulations, a

computer manufacturer must have 1,000 or fewer employees in order to

qualify as a small entity.5 Census Bureau data indicates that

there are 716 firms that manufacture electronic computers and of those,

659 have fewer than 500 employees and qualify as small entities.6

The remaining 57 firms have 500 or more employees; however, we are

unable to determine how many of those have fewer than 1,000 employees

[[Page 10468]]

and therefore also qualify as small entities under the SBA definition.

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\5\ See 13 CFR 121.201, (SIC) code 3571.

\6\ See U.S. Small Business Administration 1995 Economic Census

Industry and Enterprise Report, Table 3, SIC Code 3571, (Bureau of

the Census data adapted by the Office of Advocacy of the U.S. Small

Business Administration).

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(b) RF Equipment Manufacturers: The Commission has not developed a

definition of small entities applicable to RF equipment manufacturers.

Therefore, we will utilize the SBA definition applicable to

manufacturers of Radio and Television Broadcasting and Communications

Equipment. According to the SBA's regulations, an RF equipment

manufacturer must have 750 or fewer employees in order to qualify as a

small business concern.7 Census Bureau data indicates that there

are 858 U.S. companies that manufacture radio and television

broadcasting and communications equipment, and that 778 of these firms

have fewer than 750 employees and would be classified as small

entities.8 The Census Bureau category is very broad, and specific

figures are not available as to how many of these firms are

manufacturers of RF devices. However, we believe that many of them may

qualify as small entities.

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\7\ See 13 CFR 121.201, (SIC) Code 3663.

\8\ See U.S. Dept. of Commerce, 1992 Census of Transportation,

Communications and Utilities (issued May 1995), SIC category 3663.

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10. The Commission has not developed a definition of small entities

applicable to services which are related specifically to RF devices.

Therefore, the applicable definition of small entity is the definition

under the Small Business Administration (SBA) rules applicable to

Communications Services, Not Elsewhere Classified. This definition

provides that a small entity is expressed as one with $11.0 million or

less in annual receipts.9 The Census Bureau data indicates that of

the 848 firms in the ``Communications Services, Not Elsewhere

Classified'' category, 775 are small businesses.10 We estimate

that under this definition the majority of entities that market and

modify RF devices may be small entities.

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\9\ See 13 CFR 121.201, Standard Industrial Classification (SIC)

Code 4899.

\10\ See U.S. Small Business Administration 1995 Economic Census

Industry and Enterprise Report, Table 2D, SIC Code 3571, (Bureau of

the Census data adapted by the Office of Advocacy of the U.S. Small

Business Administration).

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11. Description of Projected Reporting, Recordkeeping and Other

Compliance Requirements

Our new rules transfer the responsibility for ensuring that a

modified RF device complies with our technical standards from the

vendor, manufacturer, or importer to the modifying party. However,

requirements to measure the equipment to show that it continues to

comply with these standards are consistent with the former rules.

Further, even under the former rules--while they were not clearly

defined--a party modifying an RF device was required to retain its

measurement data showing that the modified device complied with these

standards. A modifying party must also label the equipment with its

name, address and telephone number, unless it obtains a new

authorization for the modified equipment. The type of skills needed to

label equipment is usually clerical.

12. Under our new rules greater flexibility will be provided to

vendors, manufacturers, and importers, thus decreasing the regulatory

burden on such entities. Further, when an RF device is modified, any

increased reporting and record keeping requirement imposed on the

modifying party will be offset by a decreased reporting requirement on

the vendor, manufacturer, or importer. Moreover, there is no

requirement that any RF device be modified. Therefore, to the extent

that a small entity chooses to modify an RF device, it is because that

entity believes the benefits of modifying the device outweigh its

costs, including reporting and record keeping requirements.

13. Significant Alternatives and Steps Taken to Minimize Significant

Economic Impact on a Substantial Number of Small Entities Consistent

with Stated Objectives

As proposed in the NPRM, any entity that remanufactures or

otherwise modifies an authorized RF device would be designated as

responsible for ensuring that the device continues to comply with our

applicable technical standards, and would be required to retain records

of its modification relative to the original design drawings. However,

after reviewing comments, we conclude that it is unnecessary for the

modifying party to obtain the original design drawings. Accordingly, in

this Report and Order, we are requiring only that the modifying party

retain records showing the changes made to the device, together with

test records demonstrating that the device continues to comply with the

applicable standards.11 We also are changing another proposal in

the NPRM by not requiring that a modified RF device be labelled with

the name, address, and telephone number of the modifying party,

provided the party performing the modifications obtains a new equipment

authorization. These changes will reduce the impact of our new

regulations on small entities.

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\11\ See paras. 28-29 of this Report and Order.

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14. Report to Congress

The Commission shall send a copy of this Final Regulatory

Flexibility Analysis, along with this Report and Order, in a report to

Congress pursuant to the Small Business Regulatory Enforcement Fairness

Act of 1996, 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 2

Communications equipment, Radio, Reporting and recordkeeping

requirements.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

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

follows:

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

RULES AND REGULATIONS

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

Authority: Sections 4, 302, 303, and 307 of the Communications

Act of 1934, as amended, 47 U.S.C. Sections 154, 302, 303, and 307,

unless otherwise noted.

2. Section 2.803 is revised to read as follows:

Sec. 2.803 Marketing of radio frequency devices prior to equipment

authorization.

(a) Except as provided elsewhere in this section, no person shall

sell or lease, or offer for sale or lease (including advertising for

sale or lease), or import, ship, or distribute for the purpose of

selling or leasing or offering for sale or lease, any radio frequency

device unless:

(1) In the case of a device subject to type acceptance,

certification, or notification, such device has been authorized by the

Commission in accordance with the rules in this chapter and is properly

identified and labelled as required by Sec. 2.925 and other relevant

sections in this chapter; or

(2) In the case of a device that is not required to have a grant of

equipment authorization issued by the Commission, but which must comply

with the specified technical standards prior to use, such device also

complies with all applicable administrative (including verification of

the equipment or authorization under a Declaration of Conformity, where

required), technical, labelling and identification requirements

specified in this chapter.

(b) The provisions of paragraph (a) of this section do not prohibit

conditional sales contracts between manufacturers

[[Page 10469]]

and wholesalers or retailers where delivery is contingent upon

compliance with the applicable equipment authorization and technical

requirements, nor do they prohibit agreements between such parties to

produce new products, manufactured in accordance with designated

specifications.

(c) Notwithstanding the provisions of paragraphs (a), (b), (d) and

(f) of this section, a radio frequency device may be advertised or

displayed, e.g., at a trade show or exhibition, prior to equipment

authorization or, for devices not subject to the equipment

authorization requirements, prior to a determination of compliance with

the applicable technical requirements provided that the advertising

contains, and the display is accompanied by, a conspicuous notice

worded as follows:

This device has not been authorized as required by the rules of

the Federal Communications Commission. This device is not, and may

not be, offered for sale or lease, or sold or leased, until

authorization is obtained.

(1) If the product being displayed is a prototype of a product that

has been properly authorized and the prototype, itself, is not

authorized due to differences between the prototype and the authorized

product, the following disclaimer notice may be used in lieu of the

notice stated in paragraph (c) introductory text of this section:

Prototype. Not for sale.

(2) Except as provided elsewhere in this chapter, devices displayed

under the provisions of paragraphs (c) introductory text, and (c)(1) of

this section may not be activated or operated.

(d) Notwithstanding the provisions of paragraph (a) of this

section, the offer for sale solely to business, commercial, industrial,

scientific or medical users (but not an offer for sale to other parties

or to end users located in a residential environment) of a radio

frequency device that is in the conceptual, developmental, design or

pre-production stage is permitted prior to equipment authorization or,

for devices not subject to the equipment authorization requirements,

prior to a determination of compliance with the applicable technical

requirements provided that the prospective buyer is advised in writing

at the time of the offer for sale that the equipment is subject to the

FCC rules and that the equipment will comply with the appropriate rules

before delivery to the buyer or to centers of distribution. If a

product is marketed in compliance with the provisions of this

paragraph, the product does not need to be labelled with the statement

in paragraph (c) of this section.

(e)(1) Notwithstanding the provisions of paragraph (a) of this

section, prior to equipment authorization or determination of

compliance with the applicable technical requirements any radio

frequency device may be operated, but not marketed, for the following

purposes and under the following conditions:

(i) Compliance testing;

(ii) Demonstrations at a trade show provided the notice contained

in paragraph (c) of this section is displayed in a conspicuous location

on, or immediately adjacent to, the device;

(iii) Demonstrations at an exhibition conducted at a business,

commercial, industrial, scientific, or medical location, but excluding

locations in a residential environment, provided the notice contained

in paragraphs (c) or (d) of this section, as appropriate, is displayed

in a conspicuous location on, or immediately adjacent to, the device;

(iv) Evaluation of product performance and determination of

customer acceptability, provided such operation takes place at the

manufacturer's facilities during developmental, design, or pre-

production states; or

(v) Evaluation of product performance and determination of customer

acceptability where customer acceptability of a radio frequency device

cannot be determined at the manufacturer's facilities because of size

or unique capability of the device, provided the device is operated at

a business, commercial, industrial, scientific, or medical user's site,

but not at a residential site, during the development, design or pre-

production stages. A product operated under this provision shall be

labelled, in a conspicuous location, with the notice in paragraph (c)

of this section.

(2) For the purpose of paragraphs (e)(1)(iv) and (e)(1)(v) of this

section, the term ``manufacturer's facilities'' includes the facilities

of the party responsible for compliance with the regulations and the

manufacturer's premises, as well as the facilities of other entities

working under the authorization of the responsible party in connection

with the development and manufacture, but not marketing, of the

equipment.

(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.

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.

(4) Marketing, as used in this section, includes sale or lease, or

offering for sale or lease, including advertising for sale or lease, or

importation, shipment, or distribution for the purpose of selling or

leasing or offering for sale or lease.

(5) Products operating under the provisions of this paragraph (e)

shall not be recognized to have any vested or recognizable right to

continued use of any frequency. Operation is subject to the conditions

that no harmful interference is caused and that any interference

received must be accepted. Operation shall be required to cease upon

notification by a Commission representative that the device is causing

harmful interference and shall not resume until the condition causing

the harmful interference is corrected.

(f) For radio frequency devices subject to verification and sold

solely to business, commercial, industrial, scientific, and medical

users (excluding products sold to other parties or for operation in a

residential environment), parties responsible for verification of the

devices shall have the option of ensuring compliance with the

applicable technical specifications of this chapter at each end user's

location after installation, provided that the purchase or lease

agreement includes a proviso that such a determination of compliance be

made and is the responsibility of the party responsible for

verification of the equipment. If the purchase or lease agreement

contains this proviso and the responsible party has the product

measured to ensure compliance at the end user's location, the product

does not need to be labelled with the statement in paragraph (c) of

this section.

(g) The provisions in paragraphs (b) through (f) of this section

apply only to devices that are designed to comply with, and to the best

of the responsible party's knowledge will, upon testing, comply with

all applicable requirements in this chapter. The provisions in

paragraphs (b) through (f) of this section do not apply to radio

frequency devices that could not be authorized or legally operated

under the current rules. Such devices shall not be operated,

advertised, displayed, offered for sale or lease, sold or leased, or

otherwise marketed absent a license issued under part 5 of this chapter

or a special temporary authorization issued by the Commission.

[[Page 10470]]

(h) The provisions in subpart K of this part continue to apply to

imported radio frequency devices.

Sec. 2.805 [Removed]

3. Section 2.805 is removed.

Sec. 2.806 [Removed]

4. Section 2.806 is removed.

5. Section 2.807 is amended by revising the introductory paragraph

to read as follows:

Sec. 2.807 Statutory exceptions.

As provided by Section 302(c) of the Communications Act of 1934, as

amended, Sec. 2.803 shall not be applicable to:

* * * * *

Sec. 2.809 [Removed]

6. Section 2.809 is removed.

7. Section 2.811 is revised to read as follows:

Sec. 2.811 Transmitters operated under part 73 of this chapter.

Section 2.803(a) through (d) shall not be applicable to a

transmitter operated in any of the Radio Broadcast Services regulated

under part 73 of this chapter, provided the conditions set out in part

73 of this chapter for the acceptability of such transmitter for use

under licensing are met.

8. Section 2.813 is revised to read as follows:

Sec. 2.813 Transmitters operated in the Instructional Television Fixed

Service.

Section 2.803(a) through (d) shall not be applicable to a

transmitter operated in the Instructional Television Fixed Service

regulated under part 74 of this chapter, provided the conditions in

Sec. 74.952 of this chapter for the acceptability of such transmitter

for licensing are met.

9. Section 2.815 is amended by revising paragraphs (d) and (e) to

read as follows:

Sec. 2.815 External radio frequency power amplifiers.

* * * * *

(d) The proscription in paragraph (b) of this section shall not

apply to the marketing, as defined in paragraph (b) of this section, by

a licensed amateur radio operator to another licensed amateur radio

operator of an external radio frequency power amplifier fabricated in

not more than one unit of the same model in a calendar year by that

operator provided the amplifier is for the amateur operator's personal

use at his licensed amateur radio station and the requirements of

Secs. 97.315 and 97.317 of this chapter are met.

(e) The proscription in paragraph (c) of this section shall not

apply in the marketing, as defined in paragraph (c) of this section, by

a licensed amateur radio operator to another licensed amateur radio

operator of an external radio frequency power amplifier if the

amplifier is for the amateur operator's personal use at his licensed

amateur radio station and the requirements of Secs. 97.315 and 97.317

of this chapter are met.

Sec. 2.901 [Amended]

10. Section 2.901 is amended by removing the words in paragraphs

(a) and (b) ``type approval,''.

Sec. 2.903 [Removed]

11. Section 2.903 is removed.

12. Section 2.909 is amended by adding a last sentence to

paragraphs (a) and (b) and by adding new paragraphs (c)(3) and (d) to

read as follows:

Sec. 2.909 Responsible party.

* * * * *

(a) * * * If the radio frequency equipment is modified by any party

other than the grantee and that party is not working under the

authorization of the grantee pursuant to Sec. 2.929(b), the party

performing the modification is responsible for compliance of the

product with the applicable administrative and technical provisions in

this chapter.

(b) * * * If subsequent to manufacture and importation, the radio

frequency equipment is modified by any party not working under the

authority of the responsible party, the party performing the

modification becomes the new responsible party.

(c) * * *

(3) If the radio frequency equipment is modified by any party not

working under the authority of the responsible party, the party

performing the modifications, if located within the U.S., or the

importer, if the equipment is imported subsequent to the modifications,

becomes the new responsible party.

(d) If, because of modifications performed subsequent to

authorization, a new party becomes responsible for ensuring that a

product complies with the technical standards and the new party does

not obtain a new equipment authorization, the equipment shall be

labelled, following the specifications in Sec. 2.925(d), with the

following: ``This product has been modified by [insert name, address

and telephone number of the party performing the modifications].''

13. Section 2.913 is amended by revising paragraph (a) to read as

follows:

Sec. 2.913 Submittal of equipment authorization application or

information to the Commission.

(a) Unless otherwise directed, applications with fees attached for

the equipment authorization, pursuant to Sec. 1.1103 of this chapter,

must be submitted following the procedures described in Sec. 0.401(b)

of this chapter. The address for applications submitted by mail is:

Federal Communications Commission, Equipment Approval Services, P. O.

Box 358315, Pittsburgh, PA 15251-5315. If the applicant chooses to make

use of an air courier/package delivery service, the following address

must appear on the outside of the package/envelope: Federal

Communications Commission, c/o Mellon Bank, Three Mellon Bank Center,

525 William Penn Way, 27th floor, Room 153-2713, Pittsburgh,

Pennsylvania 15259-0001, Attention: Wholesale Lockbox Supervisor.

* * * * *

Sec. 2.915 [Amended]

14. Section 2.915 is amended by removing the words ``type

approval,'' in paragraphs (a) introductory text and (c).

Sec. 2.917 [Amended]

15. Section 2.917 is amended by removing paragraph (d).

16. Section 2.924 is revised to read as follows:

Sec. 2.924 Marketing of electrically identical equipment having

multiple trade names and models or type numbers under the same FCC

Identifier.

The grantee of an equipment authorization may market devices having

different model/type numbers or trade names without additional

authorization from the Commission, provided that such devices are

electrically identical and the equipment bears an FCC Identifier

validated by a grant of equipment authorization. A device will be

considered to be electrically identical if no changes are made to the

device authorized by the Commission, or if the changes made to the

device would be treated as class I permissive changes within the scope

of Secs. 2.1001(b)(1) and 2.1043(b)(1). Changes to the model number or

trade name by anyone other than the grantee, or under the authorization

of the grantee, shall be performed following the procedures in

Sec. 2.933.

17. Section 2.925 is amended by removing paragraph (g) and by

revising paragraphs (b)(4), (d) introductory text and (f) to read as

follows:

Sec. 2.925 Identification of equipment.

* * * * *

(b) * * *

[[Page 10471]]

(4) For a transceiver, the receiver portion of which is subject to

verification pursuant to Sec. 15.101 of this chapter, the FCC

Identifier required for the transmitter portion shall be preceded by

the term ``FCC ID''.

* * * * *

(d) In order to validate the grant of equipment authorization, the

nameplate or label shall be permanently affixed to the equipment and

shall be readily visible to the purchaser at the time of purchase.

* * * * *

(f) The term ``FCC ID'' and the coded identification assigned by

the Commission shall be in a size of type large enough to be readily

legible, consistent with the dimensions of the equipment and its

nameplate. However, the type size for the FCC Identifier is not

required to be larger than eight-point.

Sec. 2.926 [Amended]

18. Section 2.926 is amended by removing the reference in paragraph

(e) ``Sec. 15.69'' and adding in its place ``Sec. 15.101 of this

chapter''.

19. Section 2.927 is amended by removing paragraph (d) and by

revising paragraphs (a) and (b) to read as follows:

Sec. 2.927 Limitations on grants.

(a) A grant of equipment authorization is valid only when the FCC

Identifier is permanently affixed on the device and remains effective

until revoked or withdrawn, rescinded, surrendered, or a termination

date is otherwise established by the Commission.

(b) A grant of an equipment authorization signifies that the

Commission has determined that the equipment has been shown to be

capable of compliance with the applicable technical standards if no

unauthorized change is made in the equipment and if the equipment is

properly maintained and operated. The issuance of a grant of equipment

authorization shall not be construed as a finding by the Commission

with respect to matters not encompassed by the Commission's rules,

especially with respect to compliance with 18 U.S.C. 2512.

* * * * *

20. Section 2.929 is amended by revising paragraph (b)(1) and its

Note to read as follows:

Sec. 2.929 Nonassignability of an equipment authorization.

* * * * *

(b) * * *

(1) The equipment manufactured by such second party bears the

identical FCC Identifier as set out in the grant of the equipment

authorization.

Note to paragraph (b)(1): Any change in the FCC Identifier desired

as a result of such production or marketing agreement will require the

filing of a new application for an equipment authorization as specified

in Sec. 2.933.

* * * * *

21. Section 2.931 is revised to read as follows:

Sec. 2.931 Responsibility of the grantee.

In accepting a grant of an equipment authorization, the grantee

warrants that each unit of equipment marketed under such grant and

bearing the identification specified in the grant will conform to the

unit that was measured and that the data (design and rated operational

characteristics) determined by the grantee for notification or filed

with the application for type acceptance or certification continues to

be representative of the equipment being produced under such grant

within the variation that can be expected due to quantity production

and testing on a statistical basis.

22. Section 2.932 is amended by adding new paragraph (f) to read as

follows:

Sec. 2.932 Modification of equipment.

* * * * *

(f) All requests for permissive changes submitted to the Commission

must be accompanied by the anti-drug abuse certification required under

Sec. 1.2002 of this chapter.

23. Section 2.933 is amended by revising paragraphs (a), (b)(7) and

(c) to read as follows:

Sec. 2.933 Change in identification of equipment.

(a) A new application for equipment authorization shall be filed

whenever there is a change in the FCC Identifier for the equipment with

or without a change in design, circuitry or construction. However, a

change in the model/type number or trade name performed in accordance

with the provisions in Sec. 2.924 is not considered to be a change in

identification and does not require additional authorization from the

Commission.

(b) * * *

(7) In the case of certified equipment, the photographs required by

Sec. 2.1033(b)(7) showing the exterior appearance of the equipment,

including the operating controls available to the user and the

identification label. Photographs of the construction, the component

placement on the chassis, and the chassis assembly are not required to

be submitted unless specifically requested by the Commission.

(c) If the change in the FCC Identifier also involves a change in

design or circuitry which falls outside the purview of a permissive

change described in Secs. 2.977, 2.1001 or 2.1043, a complete

application shall be filed pursuant to Sec. 2.911.

Sec. 2.934 [Amended]

24. Section 2.934 is amended by removing the reference

``Sec. 2.910(b)'' and adding in its place ``Sec. 2.913(b)''.

25. Section 2.936 is revised to read as follows:

Sec. 2.936 FCC inspection.

Upon reasonable request, each responsible party shall submit the

following to the Commission or shall make the following available for

inspection:

(a) The records required by Secs. 2.938, 2.955, and 2.1075.

(b) A sample unit of the equipment covered under an authorization.

(c) The manufacturing plant and facilities.

26. Section 2.938 is revised to read as follows:

Sec. 2.938 Retention of records.

(a) For each equipment subject to the Commission's equipment

authorization standards, the responsible party shall maintain the

records listed as follows:

(1) A record of the original design drawings and specifications and

all changes that have been made that may affect compliance with the

standards and the requirements of Sec. 2.931.

(2) A record of the procedures used for production inspection and

testing to ensure conformance with the standards and the requirements

of Sec. 2.931.

(3) A record of the test results that demonstrate compliance with

the appropriate regulations in this chapter.

(b) The provisions of paragraph (a) of this section shall also

apply to a manufacturer of equipment produced under the provisions of

Sec. 2.929(b). The retention of the records by the manufacturer under

these circumstances shall satisfy the grantee's responsibility under

paragraph (a) of this section.

(c) The records listed in paragraph (a) of this section shall be

retained for one year for equipment subject to authorization under the

type acceptance or certification procedure, or for two years for

equipment subject to authorization under any other procedure, after the

manufacture of said equipment has been permanently discontinued, or

until the conclusion of an investigation or a proceeding if the

responsible party (or under paragraph (b) of this section the

manufacturer) is officially notified that an investigation

[[Page 10472]]

or any other administrative proceeding involving its equipment has been

instituted.

(d) If radio frequency equipment is modified by any party other

than the original responsible party, and that party is not working

under the authorization of the original responsible party, the party

performing the modifications is not required to obtain the original

design drawings specified in paragraph (a)(1) of this section. However,

the party performing the modifications must maintain records showing

the changes made to the equipment along with the records required in

paragraphs (a)(3) of this section. A new equipment authorization may

also be required. See, for example, Secs. 2.909, 2.924, 2.933, and

2.1043.

27. Section 2.941 is revised to read as follows:

Sec. 2.941 Availability of information relating to grants.

(a) Grants of equipment authorization, other than for receivers and

equipment authorized for use under parts 15 or 18 of this chapter, will

be publicly announced in a timely manner by the Commission. Information

about the authorization of a device using a particular FCC Identifier

may be obtained by contacting the Commission's Office of Engineering

and Technology Laboratory.

(b) Information relating to equipment authorizations, such as data

submitted by the applicant in connection with an authorization

application, laboratory tests of the device, etc., shall be available

in accordance with Secs. 0.441 through 0.470 of this chapter.

28. Section 2.953 is amended by revising the section heading and

paragraphs (a), (b) and (d) to read as follows:

Sec. 2.953 Responsibility for compliance.

(a) In verifying compliance, the responsible party, as defined in

Sec. 2.909 warrants that each unit of equipment marketed under the

verification procedure will be identical to the unit tested and found

acceptable with the standards and that the records maintained by the

responsible party continue to reflect the equipment being produced

under such verification within the variation that can be expected due

to quantity production and testing on a statistical basis.

(b) The importer of equipment subject to verification may upon

receiving a written statement from the manufacturer that the equipment

complies with the appropriate technical standards rely on the

manufacturer or independent testing agency to verify compliance. The

test records required by Sec. 2.955 however should be in the English

language and made available to the Commission upon a reasonable

request, in accordance with Sec. 2.956.

* * * * *

(d) Verified equipment shall be reverified if any modification or

change adversely affects the emanation characteristics of the modified

equipment. The party designated in Sec. 2.909 bears responsibility for

continued compliance of subsequently produced equipment.

29. Section 2.954 is revised to read as follows:

Sec. 2.954 Identification.

Devices subject only to verification shall be uniquely identified

by the person responsible for marketing or importing the equipment

within the United States. However, the identification shall not be of a

format which could be confused with the FCC Identifier required on

certified, notified or type accepted equipment. The importer or

manufacturer shall maintain adequate identification records to

facilitate positive identification for each verified device.

30. Section 2.955 is amended by revising the introductory text of

paragraph (a) and paragraph (a)(3) to read as follows:

Sec. 2.955 Retention of records.

(a) For each equipment subject to verification, the responsible

party, as shown in Sec. 2.909 shall maintain the records listed as

follows:

* * * * *

(3) A record of the measurements made on an appropriate test site

that demonstrates compliance with the applicable regulations in this

chapter. The record shall:

(i) Indicate the actual date all testing was performed;

(ii) State the name of the test laboratory, company, or individual

performing the verification testing. The Commission may request

additional information regarding the test site, the test equipment or

the qualifications of the company or individual performing the

verification tests;

(iii) Contain a description of how the device was actually tested,

identifying the measurement procedure and test equipment that was used;

(iv) Contain a description of the equipment under test (EUT) and

support equipment connected to, or installed within, the EUT;

(v) Identify the EUT and support equipment by trade name and model

number and, if appropriate, by FCC Identifier and serial number;

(vi) Indicate the types and lengths of connecting cables used and

how they were arranged or moved during testing;

(vii) Contain at least two drawings or photographs showing the test

set-up for the highest line conducted emission and showing the test

set-up for the highest radiated emission. These drawings or photographs

must show enough detail to confirm other information contained in the

test report. Any photographs used must be focused originals without

glare or dark spots and must clearly show the test configuration used;

(viii) List all modifications, if any, made to the EUT by the

testing company or individual to achieve compliance with the

regulations in this chapter;

(ix) Include all of the data required to show compliance with the

appropriate regulations in this chapter; and

(x) Contain, on the test report, the signature of the individual

responsible for testing the product along with the name and signature

of an official of the responsible party, as designated in Sec. 2.909.

* * * * *

31. Section 2.956 is revised to read as follows:

Sec. 2.956 FCC inspection and submission of equipment for testing.

(a) Each responsible party shall upon receipt of reasonable

request:

(1) Submit to the Commission the records required by Sec. 2.955.

(2) Submit one or more sample units for measurements at the

Commission's Laboratory.

(i) Shipping costs to the Commission's Laboratory and return shall

be borne by the responsible party.

(ii) In the event the responsible party believes that shipment of

the sample to the Commission's Laboratory is impractical because of the

size or weight of the equipment, or the power requirement, or for any

other reason, the responsible party may submit a written explanation

why such shipment is impractical and should not be required.

(b) Requests for the submission of the records in Sec. 2.955 or for

the submission of sample units are covered under the provisions of

Sec. 2.946.

Sec. 2.957 [Removed]

32. Section 2.957 is removed.

Secs. 2.961, 2.963, 2.965, 2.967, 2.969 [Removed]

33. The undesignated centerheading preceding Sec. 2.961 and

Sec. 2.961 are removed.

34. Section 2.963 is removed.

35. Section 2.965 is removed.

36. Section 2.967 is removed.

37. Section 2.969 is removed.

[[Page 10473]]

38. Section 2.975 is amended by revising paragraphs (b) and (g) to

read as follows:

Sec. 2.975 Application for notification.

* * * * *

(b) The statement required in paragraph (a)(6) of this section

shall be signed pursuant to Sec. 2.911(c).

* * * * *

(g) The records of measurement data, measurement procedures,

photographs, circuit diagrams, etc. for a device subject to

notification shall be retained for two years after the manufacture of

said equipment has been permanently discontinued, or, if the

responsible party is officially notified that an investigation or any

other administrative proceeding involving the equipment has been

instituted prior to the expiration of such two year period, until the

conclusion of that investigation or proceeding.

Sec. 2.979 [Removed]

39. Section 2.979 is removed.

Sec. 2.983 [Amended]

40. Section 2.983 is amended by removing and reserving paragraph

(h) and by removing the reference ``subpart C of part 97'' in the last

sentence of paragraph (i) and adding in its place ``subpart D of part

97''.

Sec. 2.1003 [Removed]

41. Section 2.1003 is removed.

42. Section 2.1005 is amended by revising paragraph (a), the

introductory text of paragraphs (c) and (c)(4) and paragraph (d) to

read as follows:

Sec. 2.1005 Equipment for use in the Amateur Radio Service.

(a) The general provisions of Secs. 2.981, 2.983, 2.991, 2.993,

2.997, 2.999, and 2.1001 shall apply to applications for, and grants

of, type acceptance for equipment operated under the requirements of

part 97 of this chapter, the Amateur Radio Service.

* * * * *

(c) Any supplier of an external radio frequency power amplifier kit

as defined by Sec. 97.3(a)(17) of this chapter shall comply with the

following requirements:

* * * * *

(4) The identification label required by Sec. 2.925 shall be

permanently affixed to the assembled unit and shall be of sufficient

size so as to be easily read. The following information shall be shown

on the label:

* * * * *

(d) Type acceptance of external radio frequency power amplifiers

and amplifier kits may be denied when denial serves the public

interest, convenience and necessity by preventing the use of these

amplifiers in services other than the Amateur Radio Service. Other uses

of these amplifiers, such as in the Citizens Band Radio Service, are

prohibited (Sec. 95.411 of this chapter). Examples of features which

may result in the denial of type acceptance are contained in

Sec. 97.317 of this chapter.

Sec. 2.1033 [Amended]

43. Section 2.1033 is amended by removing and reserving paragraph

(b)(10) and by removing the reference ``Sec. 15.257(e)'' in paragraph

(b)(11) and adding in its place ``Sec. 15.247(e)''.

Sec. 2.1045 [Removed]

44. Section 2.1045 is removed.

45. Section 2.1300 is revised to read as follows:

Sec. 2.1300 Cross reference.

The general provisions of this part, Secs. 2.911, 2.923, 2.929,

2.935, 2.936, and 2.946 shall apply to applications for and grants of

registration for telephone terminal equipment pursuant to part 68 of

this chapter.

[FR Doc. 97-5349 Filed 3-5-97; 8:45 am]

BILLING CODE 6712-01-P