[Reminder] Beware of using non-compliant U.S. agent

Starting from February 6, 2023, all FCC equipment authorizations (FCC ID applications), whether the applicant is a domestic or overseas company, must designate a contact person in the United States to serve legal documents as the applicant's agent. That is, starting from February 6, 2023, FCC ID applications will have mandatory US agent requirements. This requirement has been in place for almost 2 years, but there are still manufacturers who use agents that do not meet the requirements, resulting in comments on FCC ID applications, and even worse, fines by the FCC. Let's take a look at the following news recently released by the FCC.

WASHINGTON, November 21, 2024—The Federal Communications Commission today proposed a $734,872 fine against Hong Kong, China-based a smart home device manufacturer for apparent violations for apparent violations for apparent violations of FCC rules that require the company to designate an agent located in the United States.  In addition, the FCC’s Enforcement Bureau is continuing its investigation into privacy and data security issues related to this company and other Chinese equipment manufacturing companies. FCC Chairwoman Jessica Rosenworcel also announced an audit of hundreds of certifications that used the same U.S. designated agent information as this company, giving them 30 days to respond or face consequences.

Enforcement Bureau investigators sent a formal Letter of Inquiry to the company’s U.S. designated agent—which, under FCC rules, is a required domestic point-of-contact for the agency when it needs to serve or otherwise contact a company that holds FCC device certifications.  In this case, investigators discovered that the agent’s address submitted by the company as recently as March 4, 2024, was a mailbox that had been inactive since 2019. The FCC also emailed and mailed the individual who had signed this company’s documents. To date, the FCC has received no response to the Letter of Inquiry.  Providing a false address for the designated agent on three FCC applications constitutes three apparent violations of FCC rules resulting in three proposed penalties of the maximum forfeiture amount allowed under the law.  When combined with the proposed fine for failing to respond to the Letter of Inquiry, the resulting combined proposed fine equates to $734,872.

As can be seen from the above news, the FCC is becoming more and more strict. Violations of FCC regulations may face serious consequences, so we hope that manufacturers will pay attention to this. FCC agents can be individuals or companies, but they must be located in the United States. Agents must be able to respond to emails and send and receive mailed documents in a timely manner.

In order to let everyone know more about American agents, the editor has selected several common questions in the form of Q/A for your reference.

Q1: FCC ID requires a US agent. Does SDOC require a US agent?

A1: FCC SDOC has had US agent requirements for a long time, but FCC ID requires US agents only from February 6, 2023.

Q2: When applying for an FCC ID, should the US agent not be a TCB organization or an FCC-approved laboratory and its associated individuals or companies?

A2: Yes, see Question 12 and Answer of B. QUESTIONS AND ANSWERS of KDB986446 for details:

Q3: Must the agent for service of process be located in the United States?

A3: Yes. The agent for service of process (an individual or an entity) must be located in the United States.

Q4: Is the agent for service of process required to have an FRN?

A4: If the agent for service of process does business with the FCC, it should have an FRN, and that FRN is required to be included on the attachment/ certification letter designating the agent for service of process. If the agent for service of process does no business with the FCC other than being designated as an U.S agent for service of process, a separate FRN is not required; in such case, only the grantee’s FRN is required to be included on the attachment/certification letter designating the U.S. agent for service of process.

Q5: If the applicant (grantee) is located in the U.S., can it be its own agent for service of process?

A5: Yes. If the applicant (grantee) chooses to be its own agent for service of process, the applicant(grantee) still must submit a certification, including the required contact information for the agent for service of process, designating itself and agreeing to accept service of process.

Q6: What is the minimum required term for an agent for service of process?

A6: The grantee must maintain an agent for service of process at all times that the device is marketed and for at least one year past the termination of marketing of the device. There is no minimum required term for an agent for service of process. The grantee may change the designated agent for service of process at any time in accordance with section 2.929 of the Commission’s rules.

Q7: What happens, and what are the responsibilities of (a) the grantee and (b) the agent for service of process, when the agent for service of process can no longer act as the grantee’s agent for service of process?

A7: It is the responsibility of the grantee to maintain an agent for service of process at all times that the device is marketed and for at least one year past the termination of marketing of the device. See FCC 22-84, paragraph 64. Grantees must promptly, and in any event, within 30 days after changing the agent for service of process, notify the Commission, via the granting TCB, of any change in the agent for service of process. See Section 2.929(c). Keep in mind that service of process on the grantee of the equipment authorization is deemed to be complete when the document is sent to the U.S. physical address, U.S. mailing address (if different), or e-mail address of the U.S.- based agent for service of process on file with the Commission at the time of such service.

If you want to know more about U.S. agent, please refer to KDB 986446, or consult the BTL team, we will serve you wholeheartedly!