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Federal Register / Vol. 86, No. 179 / Monday, September 20, 2021 / Rules and Regulations compliance requirements for small entities. Regarding marketing of RF
devices, the Report and Order will require that the seller of a conditionallypurchased RF device advise the conditional purchaser that the device is subject to FCC rules, and that delivery of the device to the purchaser is contingent upon device compliance with applicable FCC equipment authorization and technical requirements. Regarding importation of RF devices into the United States prior to equipment authorization for pre-sale activitiesincluding imaging, packaging, and delivery to retail locationsthe Report and Order will require that each imported RF device display a temporary removable label stating that it cannot be displayed, operated, offered for sale, marketed to consumers, or sold prior to proper FCC
equipment authorization has been granted, and will further require that importing manufacturers have processes in place to retrieve any equipment transferred to a conditional purchaser, in the event that such authorization is denied by the FCC. Moreover, importing manufacturers will be required to maintain, for a period of 60 months, records identifying the recipients of RF
devices imported for pre-sale activities.
Such records must identify several factors such as the device name and product identifier, the quantity shipped, the date on which the device authorization was sought, the expected FCC ID number, and the identity of the recipient, including address and telephone number.
The Report and Order also particular recordkeeping requirements that will be imposed on RF manufacturers so that RF equipment that is conditionally sold can be accounted for if equipment authorization is ultimately not granted or enforcement action needs to be taken, and the period of time that manufacturers should be required to retain those records and provide them to the FCC upon request. Additionally, the Report and Order requests that a manufacturer that imports an RF device should be required to document and provide such documentation to the FCC
upon request the basis for its belief that the FCC will authorize that device.
F. Steps Taken To Minimize the Significant Economic Impact on Small Entities, and Significant Alternatives Considered The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives among others: 1 The establishment of
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differing compliance or reporting requirements or timetables that take into account the resources available to small entities; 2 the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; 3 the use of performance, rather than design, standards; and 4 an exemption from coverage of the rule, or any part thereof, for small entities.
The Report and Order rules set forth are minimal, and the Commission believes would significantly assist RF
equipment manufacturers, some of which may be small entities, to market and import RF equipment. Although the Commission believe that the Commissions rules are not unduly burdensome, the Commission sought comment on a number of alternatives or supplements to those rules and procedures, such as whether the Commission should require marketing disclosures at all or just some points of the pre-authorization process, whether the Commission should require specific language or instead permit parties to choose how they word their disclosures, and whether all or only certain importation safeguards are needed.
The Commission believes that the regulatory burdens that the Commission is implementing are necessary in order to ensure that the public receives the benefits of innovative products and technologies in a prompt and efficient manner, and those burdens apply equally to large and small entities, thus without differential impact. The Commission will continue to examine alternatives in the future with the objectives of eliminating unnecessary regulations and minimizing any significant impact on small entities.
IV. Ordering Clauses It is ordered that, pursuant to sections 4i, 301, 302, 303c, 303f, and 303r of the Communications Act of 1934, as amended, 47 U.S.C. 154i, 301, 302a, 303c, 303f, and 303r, this Report and Order is adopted as set forth above.
It is further ordered that the amendments of the Commissions rules as set forth in Appendix A are adopted, effective thirty days from the date of publication in the Federal Register, except for 2.803c2 and 2.1204a11, which contain new or modified information collection requirements that require approval by the Office of Management and Budget under the Paperwork Reduction Act and will become effective after the Commission publishes a notice in the Federal Register announcing such approval and the relevant effective date.

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It is further ordered that the Commissions Consumer &
Governmental Affairs Bureau, Reference Information Center, shall send a copy of this Report and Order, including the Final Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.
It is further ordered that the Commission shall send a copy of this Report and Order in a report to be sent to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C.
801a1A.
List of Subjects in 47 CFR Parts 2 and 95
Communications equipment, Radio, Telecommunications.
Federal Communications Commission.
Marlene Dortch, Secretary.

Final Rules For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR parts 2 and 95 as follows:
PART 2FREQUENCY ALLOCATIONS
AND RADIO TREATY MATTERS;
GENERAL RULES AND REGULATIONS
1. The authority citation for part 2
continues to read as follows:

Authority: 47 U.S.C. 154, 302a, 303, and 336, unless otherwise noted.

2. Amend 2.803 by revising paragraph c2i and removing and reserving paragraph c2ii to read as follows:

2.803 Marketing of radio frequency devices prior to equipment authorization.

c
2
i Conditional sales contracts including agreements to produce new devices manufactured in accordance with designated specifications, and advertisements for such sales, are permitted under the following conditions:
A The initiating party must provide to the prospective buyer at the time of marketing, through a prominent disclosure:
1 Notification that the equipment is subject to the FCC rules and delivery to the end user is conditional upon successful completion of the applicable equipment authorization process;
2 Notification that FCC rules do not address the applicability of consumer protection, contractual, or other provisions under federal or state law;
and
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