Today, the Federal Communications Commission announced critical news for the communications and Certification industry.
A Report and Order (R&O) is in-place that restricts Testing, Certification and Accreditation of Laboratories, Certification Bodies and Accreditation Bodies [under foreign adversary control].
This affects, “…approximately 16% of our economy, and the volume of international trade for the United States (exports and imports) was $7.3 trillion in 2024. “(See Press Release, Bureau of Economic Analysis, U.S. Department of Commerce, U.S. International Trade in Goods and Services, December and Annual 2024 (Feb. 5, 2025).”
From the recent notice, presently ensconced in the “Federal Register,” (kind of the big operational channel of everything FEDGOV):
The FCC notes:
“Today, we adopt new rules to help ensure that the telecommunication certification bodies (TCBs), measurement facilities (test labs), and laboratory accreditation bodies…”
The crux of the matter is here (FCC): “…we determine that certain entities deemed to be national security threats have the potential to undermine the integrity of our equipment authorization program and American national security through ownership, direction, or control of TCBs, test labs, and laboratory accreditation bodies…”
And here is the biggie: enacts restrictions on entities to ensure “…that participate in our equipment authorization program are not subject to ownership, direction, or control by untrustworthy actors that pose a risk to national security.”
Note that this action passed through several administrations, first surfacing in the 1990s with certain telecommunications equipment manufacturers. It is not **new**news, if you follow these kinds of activities.
Well, Test and Certification and Accreditation folks: We must recognize a new reality for our industry because, in the ensuing verbiage of the FCC Notice are further potential outcomes that push to the heart of the “Build America” campaign, so to speak. Within the RULES published very recently is a new Notice of Proposed Rulemaking (NPRM), which outlines these actions.
A review of the Rules recently adopted is summarized below (note that caveats are reserved for mistakes or mis-interpretations.
FCC ET Docket No. 24-136 Section 1.2:
We therefore prohibit FCC recognition of any TCB, test lab, or laboratory accreditation body owned by, controlled by, or subject to the direction of a prohibited entity (as defined by the Order), and prohibit such TCBs, test labs, and laboratory accreditation bodies from participating in our equipment authorization program, not only with regard to the equipment certification process but also the Supplier’s Declaration of Conformity (SDoC) process. This prohibition applies regardless of the location of the TCB, test lab, or laboratory accreditation body.”
“We will deem a TCB, test lab, or laboratory accreditation body as “owned by” a prohibited entity when any such prohibited entity, has, possesses, or otherwise controls an equity or voting interest of 10% or more in the relevant TCB, test lab, or laboratory accreditation body. We also provide further clarity on what it means for a TCB, test lab, or laboratory accreditation body to be controlled by or subject to the direction of a prohibited entity.
“29. We find that excluding from participation in our equipment authorization program entities that threaten to undermine national security is necessary to effectively promote the integrity of our equipment authorization program and to protect national security interests. To implement this finding, we take several actions to ensure the integrity of those entities we recognize for participation in our equipment authorization program or upon which entities seeking authorization may rely. First, we identify, pursuant to federal agency or congressional determinations, a class of “prohibited entities” that pose national security threats and therefore could adversely affect the trustworthiness of, or otherwise undermine the public’s confidence in, a TCB, test lab, or laboratory accreditation body that is owned by, controlled by, or subject to the direction of a prohibited entity. Second, we prohibit from participation in our equipment authorization process, any TCB, test lab, or laboratory accreditation body that is owned by, controlled by, or subject to the direction of a prohibited entity. This includes a prohibition on the reliance on or use of, for purposes of equipment authorization, any such TCB or test lab, for both certification and supplier’s declaration of conformity (SDoC). Third, we explain that we will consider a TCB, test lab, or laboratory accreditation body as “owned by” a prohibited entity when a prohibited entity has, possesses, or otherwise controls an equity or voting interest of 10% or more in the TCB, test lab, or laboratory accreditation body.”
Further NPRM, further potential restrictions:
“7. In the Further Notice of Proposed Rulemaking, we propose and seek comment on further measures to safeguard the integrity of our equipment authorization program. Namely, we seek comment on whether to extend the prohibitions adopted today to also include entities subject to the jurisdiction of a foreign adversary.”
NOTE: “Approximately 75% of certified devices are tested in recognized labs located in China.”
“72. We conclude that it is appropriate to prohibit any TCB, test lab, laboratory accreditation body from participating in the equipment authorization process if a prohibited entity directly or indirectly owns 10% or more of the equity or voting stock.”
TIMELINE
“77. We adopt a requirement for all recognized TCBs, test labs, and laboratory accreditation bodies to certify to the Commission, within 30 days after the effective date of the relevant rules, and
thereafter with each request for recognition, that they are not owned by, controlled by, or subject to the direction of a prohibited entity.”
SDoC permitted by non-Recognized Test Labs p.52:
“We have determined that we will not at this time require the use of accredited, FCC-recognized labs in the SDoC process.”
Further Requirements Under ISO 17025 p.53:
“117…The Commission proposed that if we were to adopt clarifications of any ISO/IEC 17025 principles, we would require that the laboratory accreditation bodies reassess test labs under the new requirements or procedures.150
“…119. Based on the record, in which commenters argue that the laboratory accreditation process is adequate, we will not at this time adopt any rules related to these inquiries, but we seek additional comment in the FNPRM portion of this proceeding on certain proposals that were not substantially addressed by commenters.”
MORE EQUIPMENT AUTHORIZATION in the US and ALLIED COUNTRIES p. 4
“We also seek further comment on ways the Commission can facilitate and encourage more equipment authorization testing to occur at test labs located within the United States or United States allied countries.”
VOLUME of TRADE p.54
“Given that our national gross domestic product was over $29 trillion in 2024,156 the digital economy accounted for approximately 16% of our economy,157 and the volume of international trade for the United States (exports and imports) was $7.3 trillion in 2024,158 even a temporary disruption in communications could cause billions of dollars in economic losses. The harms by foreign adversaries or other untrustworthy actors thus could be significant, causing disruption to the U.S. economy, residential and government communications, and critical infrastructure.”
REPORTING of 5%+ FOREIGN INTERESTS p. 55
“123. By adopting the proposed rules, the Commission requires TCBs, test labs, and laboratory accreditation bodies to: (1) certify that they are not owned by or subject to the direction or control of, a prohibited entity; and (2) report all equity or voting interests of 5% or greater by any entity.
If you have questions about how these changes affect your operations or need guidance on compliance, Washington Laboratories is here to help. Contact us
View more about the proposed rule by the Federal Communications Commission at The Office of the Federal Register website. [ET Docket No. 24-136; FR ID 302403] Promoting the Integrity and Security of Telecommunications Certification Bodies, Measurement Facilities, and the Equipment Authorization Program
