The 5th U.S. Circuit Court of Appeals denied Huawei’s challenge to the FCC ban of the Chinese telecom gear vendor's equipment from networks funded by the Universal Service Fund under its national security supply chain rules (see 1911220064). Huawei sought the review in December. “If we were convinced that the FCC is here acting as ‘a sort of junior-varsity’ State Department,” the court “would set the rule aside,” Judge Stuart Kyle Duncan said Friday for the three-judge panel. “But no such skullduggery is afoot. Assessing security risks to telecom networks falls in the FCC’s wheelhouse.” Huawei is “disappointed” by the ruling and is “assessing” its “options to respond,” a spokesperson emailed: The company continues “to believe the FCC acted without authority in changing” its USF rules. The FCC didn’t comment. Wiley’s Tom Johnson, former FCC general counsel, said he’s “proud to have represented” the U.S. “in this important case.” Matthew Berry, who was chief of staff to then-FCC Chairman Ajit Pai, also praised the ruling.
The Federal Communications Commission is exploring whether untrusted vendors should be excluded from the FCC equipment authorization program, acting Chairwoman Jessica Rosenworcel said April 26 at a virtual workshop on supply chain security, held in conjunction with the Office of the Director of National Intelligence. “When it comes to network security, the threats are real, the stakes are high, and our defenses need to constantly evolve and improve,” Rosenworcel said. Just saying no isn’t a strategy, “so we’re moving fast,” she said.
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The Federal Communications Commission should strengthen the agency’s equipment authorization process to make sure no devices enter the U.S. that are produced with forced labor in China, Commissioner Brendan Carr said in a March 30 speech. The FCC's approach should align with legislation introduced by Sen. Marco Rubio, R-Fla., earlier this year (see 2101290045), Carr said, according to a news release from his office. “We should do our part at the FCC by launching a proceeding that would update our equipment authorization rules to ensure that we are not approving any devices that have been produced with forced labor,” Carr said. “One way we can do this is by requiring every company that procures any devices or components from the [Xinjiang Uyghur Autonomous Region (XUAR)] to meet a heightened burden to ensure that their supply chain does not rely on any forced labor. Communist China must not profit from their human rights abuses.”
The Federal Communications Commission should “allow an exception to the import rules for purposes of device advertising and retail display preparation,” said FCC Commissioner Michael O'Rielly in a June 2 blog post. FCC rules prohibit imports of radiofrequency devices that haven't received agency authorization. “While there are exceptions for the very limited importation of devices for trade shows, testing and evaluation, and a few other specific uses, this doesn’t accommodate the large percentage of consumers that simply want to see and touch products prior to purchase,” O'Rielly said.
CBP in Detroit seized about 4,600 remote-controlled helicopter drones worth some $69,000 that didn't “meet Federal Communications Commission labeling requirements,” the agency said in a June 3 news release. The goods, which were imported from China and were subject to Section 301 tariffs, were also found to be undervalued by about $62,000, CBP said. The imports “were seized June 1 in conjunction with a previous shipment containing more than $400,000 in counterfeit merchandise” that was seized in late May, the agency said.
The Federal Communications Commission granted a waiver for GE Healthcare to import, market and operate medical devices from new suppliers for use in healthcare facilities. The devices hadn’t been cleared under FCC equipment authorization rules. The order “benefits the public interest by allowing GEHC to overcome disruptions in the medical device supply chain as it addresses the surge in demand caused by the COVID-19 pandemic and the declared state of national emergency,” a May 11 order by the Wireless Bureau and Office of Engineering and Technology said.
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.