[Federal Register: May 24, 2004 (Volume 69, Number 100)]
[Rules and Regulations]               
[Page 29459-29464]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24my04-13]                         

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 0 and 15

[ET Docket No. 01-278; FCC 04-98]

 
Radio Frequency Identification

AGENCY: Federal Communications Commission

ACTION: Final rule.

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SUMMARY: This document allows for operation of improved radio frequency 
identification (RFID) systems in the 433.5-434.5 MHz (``433 MHz'') 
band. Specifically, we are increasing the maximum permitted field 
strength and transmission duration for 433 MHz RFID systems used to 
identify the contents of commercial shipping containers in commercial 
and industrial areas to allow more rapid and reliable data 
transmission. Such improved RFID systems could benefit commercial 
shippers and have significant homeland security benefits by enabling 
the entire contents of shipping containers to be easily and immediately 
identified, and by allowing a determination of whether tampering with 
their contents has occurred during shipping.

DATES: Effective June 23, 2004, except for Sec.  15.240 which contains 
information collection requirements that have not been approved by the 
Office of Management and Budget. Written comments by the public on the 
new or modified information collection requirements must be submitted 
on or before July 23, 2004. Written comments must be submitted by the 
Office of Management and Budget on the information collection 
requirements on or before July 23, 2004. The Federal Communications 
Commission will publish a document in the Federal Register announcing 
the effective date of Sec.  15.240.

ADDRESSES: Comments on the information collection requirements should 
be addressed to the Office of the Secretary, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554. In addition to 
filing comments with the Secretary, a copy should be submitted to 
Leslie Smith, Federal Communications Commission, Room 1-C804, 445 12th 
Street, SW., Washington, DC 20554, or via Internet to 
Leslie.Smith@fcc.gov, and to Kristy L. LaLonde, OMB Desk Officer, 10234 

NEOB, 725 17th Street, NW., Washington, DC 20503 or via the Internet to 
Kristy_L._LaLonde@omb.eop.gov.


FOR FURTHER INFORMATION CONTACT: Hugh Van Tuyl, Office of Engineering 
and Technology, (202) 418-7506, e-mail Hugh.VanTuyl@fcc.gov, TTY (202) 
418-2989. For additional information concerning the information 
collection requirements, contact Leslie Smith, Federal Communications 
Commission, Room 1-C804, 445 12th Street, SW., Washington, DC 20554, at 
(202) 418-0217 or via the Internet to Leslie.Smith@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third 
Report and Order, ET Docket No. 01-278, FCC 04-98, adopted April 15, 
2004 and released April 23, 2004. The full text of this document is 
available on the Commission's Internet site at http://www.fcc.gov. It is also 

available for inspection and copying during regular business hours in 
the FCC Reference Center (Room CY-A257), 445 12th Street., SW., 
Washington, DC 20554. The full text of this document also may be 
purchased from the Commission's duplication contractor, Qualex 
International, Portals II, 445 12th St., SW., Room CY-B402, Washington, 
DC 20554; telephone (202) 863-2893; fax (202) 863-2898; e-mail 
qualexint@aol.com.


Summary of the Third Report and Order

    1. In the Third Report and Order, the Commission adopted 
regulations to allow for operation of improved radio frequency 
identification (RFID) systems in the 433.5-434.5 MHz (``433 MHz'') 
band. Specifically, we are increasing the maximum permitted field 
strength and transmission duration for 433 MHz RFID systems used to 
identify the contents of commercial shipping

[[Page 29460]]

containers in commercial and industrial areas to allow more rapid and 
reliable data transmission. Such improved RFID systems could benefit 
commercial shippers and have significant homeland security benefits by 
enabling the entire contents of shipping containers to be easily and 
immediately identified, and by allowing a determination of whether 
tampering with their contents has occurred during shipping.
    2. RFID systems use radio signals to track and identify items such 
as shipping containers and merchandise in stores. A system typically 
consists of a tag mounted on the item to be identified, and a 
transmitter/receiver unit that interrogates the tag and receives 
identification data back from the tag. The tag may be a self-powered 
transmitter, or it may receive power from the interrogating transmitter 
and re-radiate an RF signal to the receiver. RFID systems can operate 
in a number of frequency bands under part 15 of the rules, such as the 
13.110-14.010 MHz (13.56 MHz) and 902-928 MHz bands. RFID systems can 
also operate in the 40.66-40.70 MHz band and above 70 MHz.
    3. On October 15, 2001, the Commission adopted a Notice of Proposed 
Rule Making and Order, (NPRM), 66 FR 59209, November 27, 2001, in this 
proceeding that proposed a number of changes to part 15 and other parts 
of the rules. These proposals were based on recommendations contained 
within the Biennial Regulatory Review 2000 Updated Staff Report, staff 
recommendations, and two petitions for rule making concerning RFID 
systems. The petitions for rule making were filed by the National 
Council for Information Technology Standardization Technical Committee 
B10 (``NCITS B10'') and Savi Technology, Inc. (Savi). The NCITS B10 
petition requested rule changes for RFID systems operating in the 13.56 
MHz band, and the Savi petition requested rule changes for RFID systems 
operating at 433 MHz.
    4. Savi requests that the Commission modify the requirements in 
Sec.  15.231 of the rules for RFID systems operating at 433 MHz. This 
section allows the operation of intentional radiators, including RFID 
systems, in the 40.66-40.70 MHz band and at any frequency above 70 MHz, 
except in designated restricted bands. There are two separate 
provisions for operation under this section. The first provision, in 
paragraph (a) of this rule section, contains operational requirements 
for devices that transmit control signals, such as those used with 
alarm systems, door openers and remote switches. A device operated 
under this paragraph must cease transmission within 5 seconds after 
being activated automatically or after a manually operated switch is 
released. Continuous transmissions such as voice and video are not 
permitted. Data is permitted to be transmitted with a control signal. 
Periodic transmissions at regular predetermined intervals are not 
permitted except for transmissions of not more than two seconds per 
hour per transmitter to verify the integrity of security transmitters 
in a system. The second provision, in Sec.  15.231(e), allows any type 
of transmission, including data and transmissions at regular periodic 
intervals. However, the field strength limits for devices operating 
under the provisions of paragraph (e) are lower than the field strength 
limits for devices operating under the provisions of paragraph (a). In 
addition, the provisions of paragraph (e) limit transmissions to no 
more than one second, with a silent period between transmissions of at 
least 30 times the duration of the transmission, but in no case less 
than 10 seconds. The field strength limits for intentional radiators 
operating under either provision in this section are based on the 
average value of the measured emissions. The peak level of emissions 
must comply with a limit of 20 dB (ten times) higher than emission 
limits specified in Sec.  15.231.
    5. In the NPRM, the Commission proposed to create a new rule 
section for RFID systems operating in the 425-435 MHz band. The 
proposed rule would allow RFID tags to transmit data at the higher 
level normally permitted for control signals, with an average field 
strength of 11,000 [mu]V/m and a peak field strength of 110,000 [mu]V/m 
measured at a distance of 3 meters. Out-of-band emissions would have to 
meet the current limit in Sec.  15.209. The Commission proposed to 
limit transmissions to 120 seconds with at least a 10 second silent 
period between transmissions, and to permit retransmissions in case of 
data errors. It also proposed to allow powered tags and readers to be 
approved either separately or under a single application, as proposed 
in the NPRM for RFID devices operating in the 13.56 MHz band. These 
proposals were intended to allow greater range for 433 MHz RFID systems 
and to allow data to be transferred from an RFID tag more quickly.
    6. We are implementing these changes by adding a new rule section 
specifically for RFID systems operating in the band 433.5-434.5 MHz 
that contains the technical and operational requirements for these 
devices. The field strength limits will be 11,000 [mu]V/m average and 
55,000 [mu]V/m peak, measured at a distance of 3 meters. The maximum 
permitted transmission duration will be 60 seconds rather than 120 
seconds as proposed in the NPRM, with a ten second silent period 
between transmissions. While this change will result in somewhat slower 
data transmission speeds in cases where all the data in a device cannot 
be transmitted within 60 seconds, it represents a substantial 
improvement in speed over that which the current rules allow. In 
recognition of the fact that data transmission errors may occasionally 
occur, re-transmission of data will be permitted in case of 
transmission error without the need for a ten second silent period. As 
proposed in the NPRM, we are adopting the current out-of-band emission 
limits in Sec.  15.209 for 433 MHz RFID devices because these limits 
have a long and successful history of controlling interference.
    7. We recognize that the interference concerns raised with respect 
to 433 MHz RFID systems can be largely ameliorated by restricting the 
locations where they operate and the types of uses permitted. Such 
restrictions will limit the use of 433 MHz RFID systems to locations 
where they will not operate in close proximity to other users on the 
same frequency. Accordingly, we are restricting operation under the new 
RFID rule to the identification of the contents of commercial shipping 
containers. Voice communications will not be permitted. Further, we 
will require that operations be limited to commercial and industrial 
areas such as ports, rail terminals and warehouses. These requirements 
are essentially consistent with the conditions that Savi proposed and 
with which NTIA agreed that limit the types of devices and their 
operating locations to RFID systems used in commercial and industrial 
areas. We do not believe that these restrictions will inhibit the 
development of this technology for important homeland security 
applications. We are permitting two-way operation by 433 MHz RFID 
devices as currently allowed for remote control devices. Two-way 
operation will make RFID devices more useful by allowing a single 
device to both read data from, and write data to, remote devices. For 
example, an interrogator that reads data from a tag in a shipping 
container could also be used to update the data stored in the tag when 
items are added to or removed from the container. As proposed in the 
NPRM and consistent with our actions in the Second Report and Order, 68 
FR 68531, December 9, 2003, for 13.56 MHz

[[Page 29461]]

RFID tags, we will allow 433 MHz RFID tags to be approved either as 
part of a system with a tag reader under one FCC identification number, 
or under separate FCC identification numbers. Allowing powered tags and 
readers to be approved together will simplify the filing requirements 
in cases where the devices are always sold together, and permitting 
tags and readers to be approved separately will provide increased 
flexibility to manufacturers by permitting the sale of different 
combinations of tags and readers.
    8. In the NPRM, the Commission proposed to require that 433 MHz 
RFID devices be self-contained with no external or readily accessible 
controls that may be adjusted to cause operation out of compliance with 
the rules, and proposed to require that devices have permanently 
attached antennas that are not readily modifiable by the user. Upon 
further consideration, we find that it is not necessary to specify 
these requirements in the final rules. Section 15.15(b) already 
prohibits readily accessible controls that can cause a device to 
operate in violation of the rules. Further, Sec.  15.203 specifies that 
intentional radiators must have either a permanently attached antenna 
or other means to prevent a user from installing an antenna that causes 
a device to operate in violation of the rules. Because the existing 
rules provide adequate safeguards against these types of changes, the 
proposed requirements concerning external adjustments and antenna 
substitutions are not necessary.
    9. NTIA requested that operation of 433 MHz RFID systems be 
prohibited for a distance of 40 kilometers around five Federal 
Government radar sites to prevent harmful interference to radar 
operations. NTIA supplied a list of these locations and their 
geographic coordinates that is shown in Appendix A of the Third Report 
and Order. None of the five sites are within 40 kilometers of large 
metropolitan areas. Such a prohibition will still allow 433 MHz RFID 
tags to be used in the vast majority of commercial and industrial areas 
in the United States. In light of the need to protect government radar 
operations from interference, we are prohibiting 433 MHz RFID operation 
within 40 kilometers of these five radar sites. The coordinates of 
these sites are specified in rule changes.
    10. Consistent with NTIA's letter stating the need to protect 
critical government radar operations from interference, we are 
requiring grantees to register the locations of users of 433 MHz RFID 
systems with the Commission. Registration of 433 MHz RFID systems is 
not a coordination, pre-approval, or licensing process, and it is not 
intended to give unlicensed devices protection from interference from 
other unlicensed devices. Rather, registration will allow the 
Commission and NTIA to monitor the deployment of 433 MHz RFID systems 
and help pinpoint the source of interference to government operations 
in case such interference occurs. The information that the grantee must 
supply to the Commission in registering the devices shall include the 
name, address, telephone number and e-mail address of the user, the 
address and geographic coordinates of the operating location, and the 
FCC identification number of the device. The user will be responsible 
for submitting updated information in the event the operating location 
or other information changes after the initial registration. The 
registration information must be submitted to the Commission's Office 
of Engineering and Technology at the address provided in Sec.  15.240 
of the rules. The Commission will provide this information to NTIA. As 
a condition of the grant, we will require the grantee of an equipment 
authorization for a 433 MHz RFID device to inform purchasers of the 
locations where the devices may and may not be used, i.e., that they 
may be used only in commercial and industrial areas, and that they may 
not be used within 40 kilometers of the five Federal Government radar 
sites specified in the rules. We are also requiring grantees to notify 
users of their responsibility to register any changes in the operating 
location of devices or other registration information with the 
Commission.
    11. We are also requiring grantees to register the locations of 433 
MHz RFID system users as NTIA requests raises confidentiality issues 
for grantees. Savi states that a list of users and locations where 
equipment is used would likely be company sensitive information and 
that access should be restricted by password protection or otherwise 
limited to personnel at NTIA, the Department of Defense (DoD) or the 
Commission. We recognize Savi's concern that such a list would be 
commercial and/or financial information that a manufacturer would want 
to remain confidential because it would be the manufacturer's customer 
list and could indicate approximately how many units of a device have 
been sold. Consistent with statute, the Commission does not make 
certain information available for public inspection, including trade 
secrets and commercial and financial information that are privileged 
and confidential. The rules explicitly list certain types of materials 
in the category of trade secrets and commercial and financial 
information that are automatically afforded certain degrees of 
protection from public inspection. If material in this category is not 
explicitly listed as being protected from public inspection, the party 
submitting the material to the Commission must accompany it with a 
request for non-disclosure if it wants the material to remain 
confidential.
    12. Because 433 MHz RFID registration information does not fall 
into a category that is explicitly listed as being protected from 
public inspection, the party supplying registration information would 
have to submit a request for confidentiality each time it files with 
the Commission, and the Commission would have to act upon each 
individual request. We expect that grantees would routinely request 
confidentiality for registration information filed with the Commission 
because they would consider this to be commercial and financial 
information that they do not want made available for public inspection. 
Each of these requests would be essentially identical and we expect 
that the Commission would grant them because the required registration 
information would fall into a category of information that the rules 
allow to be held confidential. Rather than process individual 
confidentiality requests each time a grantee registers a user's 
location or submits updated information, we find that it would be more 
efficient to adopt a change to Sec.  0.457(d) of the rules to state 
that 433 MHz RFID registration information is not routinely available 
for public inspection. This action would save Commission resources that 
would be used for processing numerous confidentiality requests and 
would be less burdensome on grantees because grantees will not have to 
file a request for confidentiality each time new or updated 
registration information is submitted to the Commission. Therefore, we 
are adding 433 MHz RFID registration information to the list of 
materials that are automatically afforded protection from public 
inspection. We will, however, make this information available to NTIA, 
DoD or other Federal Government entities with a need for it.
    13. We have made a number of adjustments from our proposal that 
will eliminate any significant risk of interference to garage door 
controls. First, we have restricted installation to use at only 
commercial and industrial areas for the express purpose of identifying 
the contents of shipping containers. Therefore, we do not anticipate 
widespread deployment in close proximity to door opener controls.

[[Page 29462]]

Further, we have narrowed the frequency range for RFID systems from the 
proposed 10 MHz to 1 MHz. We note that garage door controls can operate 
anywhere in the 425-435 MHz band where we originally proposed operation 
for RFIDs, thus reducing the likelihood of interference to such 
controls. In addition, we have reduced both the peak signal level and 
the maximum permitted transmission duration for 433 MHz RFID systems by 
a factor of two from the proposed levels, further reducing the 
likelihood of interference. We find the arguments that 433 MHz RFID 
systems would cause interference unpersuasive in any event because the 
signal levels proposed in the NPRM are no greater than the rules permit 
for garage door controls. Further, users of unlicensed devices have no 
protection from interference from other devices and no vested right to 
the continued use of any frequency by virtue of prior certification of 
equipment. Because operation of 433 MHz RFID systems will be limited to 
commercial and industrial areas such as ports, rail yards and 
warehouses, there will generally be substantial geographic separation 
between 433 MHz RFID devices and most other devices such as residential 
garage door openers that could receive interference. Door opener 
controls used in close proximity to 433 MHz RFID devices would most 
likely be under the control of the party operating the RFID devices, 
who could take appropriate steps in the event interference occurs, 
including changing the frequency of a door opener control, if possible, 
or ceasing operation of a device that causes interference.
    14. We observe that any potential interference to amateur 
operations is mitigated for the same reasons discussed for door opener 
controls. ARRL expressed concern that the 425-435 MHz band originally 
proposed for RFID systems encompasses several bands that it has 
designated for weak signal use in its band plan. However, the rules we 
are adopting limit 433 MHz RFID systems to the 433.5-434.5 MHz band. 
This band is separated by 500 kHz from the nearest weak signal band 
listed in ARRL's band plan, thus addressing ARRL's concern about RFID 
operation in weak signal bands.
    15. The 433.5-434.5 MHz RFID band we are adopting falls within the 
433-435 MHz band that ARRL has designated for auxiliary and repeater 
links. Auxiliary stations are required by the Commission's rules to 
operate on a point-to-point basis and are permitted to operate with a 
maximum power of 50 watts. Because point-to-point operations typically 
use directional antennas, there is less likelihood of interference from 
other sources. The rules we are adopting for 433 MHz RFID systems 
reduce the peak transmit level by a factor of 6 dB (two times) from the 
proposal, to a level 47 dB (55,000 times) lower than the level 
permitted for amateur auxiliary stations, further reducing the 
likelihood of interference. Additionally, the rules we are adopting 
limit operation to commercial and industrial areas such as ports and 
rail yards, so operation will not be permitted in residential areas and 
on delivery trucks as many parties expressed concern. While there are 
other bands besides 433 MHz where RFID systems could operate, such as 
the 902-928 MHz and 2400-2483.5 MHz bands, we recognize that there are 
advantages to allowing operation in the 433 MHz band. Signals at lower 
frequencies, i.e., 433 MHz, are attenuated less passing through 
objects, thus allowing more reliable operation. Further, although the 
433 MHz band may not be available for use by unlicensed devices 
worldwide with the same technical parameters we are adopting for RFID 
systems, operation in the 433.05-434.79 MHz band is permitted in 
Europe, potentially allowing the development of RFID systems that are 
capable of operating in multiple countries.
    16. We disagree with ARRL that the Commission lacks authority under 
Sec.  301 of the Communications Act to authorize 433 MHz RFID devices 
to operate at the power levels adopted on an unlicensed basis because 
they will pose a significant potential for interference to licensed 
services. ARRL advanced a similar argument in a proceeding concerning 
certification of transmitters in the 24.05-24.25 GHz band. The 
Commission stated in that proceeding that it need not reach this 
statutory argument when it finds no significant interference potential. 
It also noted that ARRL concurs that it is appropriate for the 
Commission to make reasonable regulations regarding part 15 devices 
pursuant to Sec.  302(a) of the Act. Because we find that the rules we 
are adopting for 433 MHz RFID systems will not result in an 
interference risk to amateur services, we reject ARRL's argument in 
this proceeding that the Commission lacks legal authority to adopt such 
rules.

Procedural Matters

    17. The Third Report and Order contains new or modified information 
collections subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. It will be submitted to the Office of Management and 
Budget (OMB) for review under Sec.  3507(d) of the PRA. OMB, the 
general public, and other Federal agencies are invited to comment on 
the new or modified information collection(s) contained in this 
proceeding.

Final Regulatory Flexibility Analysis

    18. As required by the Regulatory Flexibility Act (RFA),\1\ an 
Initial Regulatory Flexibility Analysis (IRFA) was incorporated in the 
Notice of Proposed Rule Making and Order, Review of Part 15 and other 
Parts of the Commission's Rules (NPRM).\2\ The Commission sought 
written public comments on the proposals in the NPRM, including comment 
on the IRFA.\3\ The Final Regulatory Flexibility Analysis conforms to 
the RFA.\4\
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    \1\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601-612, has been 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 (1996).
    \2\ See Notice of Proposed Rule Making and Order in ET Docket 
No. 01-278, 16 FCC Rcd 18205 (2001).
    \3\ Id.
    \4\ See 5 U.S.C. 604.
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A. Need for, and Objectives of, the Third Report and Order

    19. Section 11 of the Communications Act of 1934, as amended, and 
Sec.  202(h) of the Telecommunications Act of 1996 require the 
Commission (1) to review biennially its regulations pertaining to 
telecommunications service providers and broadcast ownership; and (2) 
to determine whether economic competition has made those regulations no 
longer necessary in the public interest. The Commission is directed to 
modify or repeal any such regulations that it finds are no longer in 
the public interest.
    20. As part of the biennial review for the year 2000, the 
Commission reviewed its regulations pertaining to telecommunications 
service providers and broadcast ownership and recommended a number of 
changes to those rules. While not specifically required by statute, the 
Commission also reviewed parts 2, 15 and 18 as part of this process.
    21. The Third Report and Order increases the maximum permitted 
field strength and transmission duration for radio frequency 
identification (RFID) systems operating in the 433.5-434.5 MHz band to 
allow more rapid and reliable data transmission. Operation of such 
systems is limited to commercial shipping containers in commercial and 
industrial areas. Improved RFID systems could benefit commercial 
shippers and have significant homeland security benefits by enabling 
the entire contents of shipping containers to be easily and immediately 
identified, and by allowing

[[Page 29463]]

a determination of whether tampering with the contents has occurred 
during shipping.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    22. None.

C. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply

    23. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the rules adopted herein.\5\ The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' \6\ In addition, the term ``small business'' has the 
same meaning as the term ``small business concern'' under the Small 
Business Act.\7\ A small business concern is one which: is 
independently owned and operated; is not dominant in its field of 
operation; and satisfies any additional criteria established by the 
SBA.\8\
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    \5\ 5 U.S.C. 604.
    \6\ 5 U.S.C. 601(6).
    \7\ 5 U.S.C. 601(3) (incorporating by reference the definition 
of ``small business concern'' in 15 U.S.C. 632). Pursuant to the 
RFA, the statutory definition of a small business applies ``unless 
an agency, after consultation with the Office of Advocacy of the 
Small Business Administration and after opportunity for public 
comment, establishes one or more definitions of such term which are 
appropriate to the activities of the agency and publishes such 
definition(s) in the Federal Register.'' 5 U.S.C. 601(3).
    \8\ Small Business Act, 15 U.S.C. 632 (1996).
---------------------------------------------------------------------------

    24. The SBA has developed small business size standards for two 
pertinent Economic Census categories, ``Radio and Television 
Broadcasting and Communications Equipment'' (RTB) and ``Other 
Communications Equipment,'' both of which consist of all such companies 
having 750 or fewer employees.\9\ According to Census Bureau data for 
1997, there were a total of 1,215 establishments in the first category, 
total, that had operated for the entire year.\10\ Of this total, 1,150 
had 499 or fewer employees, and an additional 37 establishments had 500 
to 999 employees.\11\ Consequently, we estimate that the majority of 
businesses in the first category are small businesses that may be 
affected by the rules and policies adopted herein. Concerning the 
second category, the data for 1997 show that there were a total of 499 
establishments that operated for the entire year.\12\ Of this total, 
491 had 499 or fewer employees, and an additional 3 establishments had 
500 to 999 employees.\13\ Consequently, we estimate that the majority 
of businesses in the second category are small businesses that may be 
affected by the rules and policies adopted in the Third Report and 
Order.
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    \9\ 13 CFR 121.201, NAICS codes 334220, 334290.
    \10\ U.S. Census Bureau, 1997 Economic Census, Industry Series: 
Manufacturing, Radio and Television and Wireless Communications 
Equipment Manufacturing, ``Industry Statistics by Employment Size: 
1997,'' Table 4, NAICS code 334220 (issued Aug. 1999). The number of 
``establishments'' is a less helpful indicator of small business 
prevalence in this context than would be the number of ``firms'' or 
``companies,'' because the latter take into account the concept of 
common ownership or control. Any single physical business location 
is an establishment, and that location and others may be under the 
common ownership of a given firm. Thus, the numbers given in text 
may reflect inflated numbers of businesses in this category, 
including the numbers of small businesses. Census data in this 
context are available only for establishments.
    \11\ Id.
    \12\ U.S. Census Bureau, 1997 Economic Census, Industry Series: 
Manufacturing, Other Communications Equipment Manufacturing, 
``Industry Statistics by Employment Size: 1997,'' Table 4, NAICS 
code 334290 (issued Sept. 1999).
    \13\ Id.
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D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    25. Manufacturers of 433 MHz RFID systems will have to obtain 
certification for the equipment before it can be marketed. This 
requires the manufacturer to have the equipment tested for compliance, 
file an application with the Commission or a designated 
Telecommunication Certification Body (TCB) and wait for an approval 
before the equipment may be imported into or marketed within the United 
States. There will be no change to the certification procedure from 
what the rules currently require. There will be a new requirement for 
the grantee of certification to supply information to the Commission on 
where the devices are used. The information that must be submitted 
includes the name, address and other pertinent contact information of 
the user, the address and geographic coordinates of the operating 
location, and the FCC identification number of the device. In addition, 
the user of the device will have to notify the Commission of any 
changes to this information after the initial registration by the 
grantee.

Steps Taken To Minimize Significant Economic Impact on Small Entities, 
and Significant Alternatives Considered

    26. 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): the 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
the use of performance, rather than design, standards; and an exemption 
from coverage of the rule, or any part thereof, for small entities.\14\
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    \14\ See 5 U.S.C. 603(c).
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    27. The rules specify performance standards for RFID equipment such 
as emission levels, as opposed to design standards. Because the rules 
are intended to minimize the potential for interference to authorized 
services in the 433 MHz band, and it is not possible to exempt small 
entities from complying with any requirements without increasing the 
risk of harmful interference. We note that a number of entities 
expressed concern about the possibility of interference from 433 MHz 
RFID systems to door opener controls. As discussed in paragraph 23 of 
the Third Report and Order, we have made a number of changes from our 
proposals that will eliminate any significant risk of interference to 
door opener controls.
    28. Report to Congress: The Commission will send a copy of the 
Third Report and Order, including this FRFA, in a report to be sent to 
Congress pursuant to the Congressional Review Act, see 5 U.S.C. 
801(a)(1)(A). In addition, the Commission will send a copy of the Third 
Report and Order, including FRFA, to the Chief Counsel for Advocacy of 
the Small Business Administration.

Ordering Clauses

    29. Pursuant to the authority contained in sections 4(i), 301, 302, 
303(e), 303(f) and 303(r) of the Communications Act of 1934, as 
amended, 47 U.S.C. sections 154(i), 301, 302, 303(e), 303(f) and 
303(r), the Third Report and Order is hereby adopted. The rule changes 
set forth in the Third Report and Order contains an information 
collection requirement that has not yet been approved by OMB. The FCC 
will publish a document in the Federal Register announcing the 
effective date of these rule changes.
    30. The Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, Shall send a copy of the Third Report and 
Order, including the Final Regulatory Flexibility Analysis, to the 
Chief Counsel for Advocacy of the Small Business Administration.

[[Page 29464]]

List of Subjects

47 CFR Part 0

    Privacy, Reporting and recordkeeping requirements.

47 CFR Part 15

    Communications equipment, Reporting and recordkeeping requirements.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Rule Changes

0
For the reasons discussed in the preamble, the Federal Communications 
Commission amends 47 CFR parts 0 and 15 as follows:

PART 0--COMMISSION ORGANIZATION

0
1. The authority citation for part 0 continues to read as follows:

    Authority: Sec. 5, 48 Stat. 1068, as amended; 47 U.S.C. 155, 
225, unless otherwise noted.

0
2. Add new paragraph (d)(1)(vii) to Sec.  0.457 to read as follows:


Sec.  0.457  Records not routinely available for public inspection.

* * * * *
    (d) * * *
    (1) * * *
    (vii) Information on the users and locations of radio frequency 
identification systems submitted to the Commission pursuant to Sec.  
15.240 will be made available to other Federal Government agencies but 
will not otherwise be made available for inspection.
* * * * *

PART 15--RADIO FREQUENCY DEVICES

0
3. The authority citation for part 15 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, 304, 307, 336, and 544a.

0
4. Add Sec.  15.240 to read as follows:


Sec.  15.240  Operation in the band 433.5-434.5 MHz.

    (a) Operation under the provisions of this section is restricted to 
devices that use radio frequency energy to identify the contents of 
commercial shipping containers. Operations must be limited to 
commercial and industrial areas such as ports, rail terminals and 
warehouses. Two-way operation is permitted to interrogate and to load 
data into devices. Devices operated pursuant to the provisions of this 
section shall not be used for voice communications.
    (b) The field strength of any emissions radiated within the 
specified frequency band shall not exceed 11,000 microvolts per meter 
measured at a distance of 3 meters. The emission limit in this 
paragraph is based on measurement instrumentation employing an average 
detector. The peak level of any emissions within the specified 
frequency band shall not exceed 55,000 microvolts per meter measured at 
a distance of 3 meters. Additionally, devices authorized under these 
provisions shall be provided with a means for automatically limiting 
operation so that the duration of each transmission shall not be 
greater than 60 seconds and be only permitted to reinitiate an 
interrogation in the case of a transmission error. Absent such a 
transmission error, the silent period between transmissions shall not 
be less than 10 seconds.
    (c) The field strength of emissions radiated on any frequency 
outside of the specified band shall not exceed the general radiated 
emission limits in Sec.  15.209.
    (d) In the case of radio frequency powered tags designed to operate 
with a device authorized under this section, the tag may be approved 
with the device or be considered as a separate device subject to its 
own authorization. Powered tags approved with a device under a single 
application shall be labeled with the same identification number as the 
device.
    (e) To prevent interference to Federal Government radar systems, 
operation under the provisions of this section is not permitted within 
40 kilometers of the following locations:

------------------------------------------------------------------------
        DoD Radar Site                Latitude            Longitude
------------------------------------------------------------------------
Beale Air Force Base..........  39[deg]08'10'' N     121[deg]21' 04'' W
Cape Cod Air Force Station....  41[deg]45'07'' N     070[deg] 32'17'' W
Clear Air Force Station.......  64[deg]55'16'' N     143[deg] 05'02'' W
Cavalier Air Force Station....  48[deg] 43'12'' N    097[deg] 54'00'' W
Eglin Air Force Base..........  30[deg] 43'12'' N    086[deg] 12'36'' W
------------------------------------------------------------------------

    (f) As a condition of the grant, the grantee of an equipment 
authorization for a device operating under the provisions of this 
section shall provide information to the user concerning compliance 
with the operational restrictions in paragraphs (a) and (e) of this 
section. As a further condition, the grantee shall provide information 
on the locations where the devices are installed to the FCC Office of 
Engineering and Technology, which shall provide this information to the 
Federal Government through the National Telecommunications and 
Information Administration. The user of the device shall be responsible 
for submitting updated information in the event the operating location 
or other information changes after the initial registration. The 
grantee shall notify the user of this requirement. The information 
provided by the grantee or user to the Commission shall include the 
name, address, telephone number and e-mail address of the user, the 
address and geographic coordinates of the operating location, and the 
FCC identification number of the device. The material shall be 
submitted to the following address:
    Experimental Licensing Branch, OET, Federal Communications 
Commission, 445 12th Street, SW., Washington, DC 20554, ATTN: RFID 
Registration.

[FR Doc. 04-11537 Filed 5-21-04; 8:45 am]

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