FCC Unleashes New Regulations to Prevent “Prohibited Entities” Participating in Equipment Authorization Program

On May 22, the FCC voted unanimously to adopt new rules explicitly prohibiting Telecommunication Certification Bodies (TCBs), testing labs, and lab certicication bodies that are owned, controlled, or directed by "prohibited entities" from participating in the FCC's equipment authorization program. The core motivation behind this decision was to safeguard US national security.

Identifying "Prohibited Entities”

"prohibited entities" have been defined based on the following lists and determinations by various US federal agencies and statutes:

• FCC’s Covered List
• Department of Commerce Bureau of Industry and Security (BIS) Entity List
• BIS Military End-User List
• Department of Homeland Security Uyghur Forced Labor Prevention Act Entity List
• Department of Defense 1260H List of Chinese Military Companies (1260H List)
• Department of Treasury NS-CMIC List of Chinese military companies (NS-CMIC List)
• Chinese semiconductor companies, including their subsidiaries and affiliates, listed in Section 5949 of the National Defense Authorization Act for Fiscal Year 2023:
  • ChangXin Memory Technologies
  • Semiconductor Manufacturing International Corporation
  • Yangtze Memory Technologies Corporation
• Foreign adversaries according to the Department of Commerce, please search：Determination of foreign adversaries. (website: https://www.ecfr.gov/current/title-15/section-791.4)

Ownership and Control Definitions

• Direct or indirect ownership or control of 10% or more equity, voting interests, or stock.
• Direct or indirect possession of, or the power to determine, direct, or decide important matters.
• The subject entity acts as an agent, representative, or in any other capacity at the order or request of the prohibited entity.
• Direct or indirect supervision, direction, control, financing, or subsidizing activities in whole or in majority part, including being part of a governmental structure or hierarchy.

Enhanced Reporting Requirements

All recognized TCBs, test labs, and lab cerficication bodies must provide the FCC with documentation identifying any entity that has equity or voting interests of 5% or greater. The FCC will revoke the recognition of any TCB, test lab, or laboratory certification body that fails to comply or provides false or inaccurate information.

Further Notice of Proposed Rulemaking (FNPRM)

The FCC is seeking comments on several potential future actions:

• Extending prohibitions to include entities physically or legally located within the geographical jurisdiction of a foreign adversary countries and regions.
• Adding more federal agency or statutory lists to the definition of prohibited entities.
• Strengthening post-market surveillance procedures.
• Prohibiting TCBs from reviewing applications with test data from a lab that is owned, controlled, or directed by the same entity that also owns, controls, or directs the TCB.

If you want to know more about FCC certification requirements, please contact us:

📧  twwireless.MKT@sgs.com  ☎ (02) 2299-3279 # 1530 / 1522