Federal Communications Commission § 2.1400

phone solely capable of functioning and will not be offered for sale or lease outside the U.S. in the United States. (6) The radio frequency device is (b) The ultimate consignee must be being imported for use exclusively by able to document compliance with the the U.S. Government. selected import condition and the basis (7) Three or fewer radio frequency de- for determining the import condition vices are being imported for the indi- applied. vidual’s personal use and are not in- [56 FR 26619, June 10, 1991, as amended at 57 tended for sale. Unless exempted other- FR 38286, Aug. 24, 1992; 61 FR 8477, Mar. 5, wise in this chapter, the permitted de- 1996; 63 FR 31646, June 10, 1998; 64 FR 69929, vices must be from one or more of the Dec. 15, 1999; 64 FR 72572, Dec. 28, 1999; 69 FR following categories: 5709, Feb. 6, 2004; 74 FR 22704, May 14, 2009; 78 (i) Unintentional radiator as defined FR 25162, Apr. 29, 2013; 82 FR 50830, Nov. 2, 2017] in part 15 of this chapter which may in- clude radio receivers, computers or § 2.1207 Examination of imported other Class B digital devices in part 15 equipment. of this chapter. In order to determine compliance (ii) Consumer ISM equipment as de- with its regulations, Commission rep- fined in part 18 of this chapter. resentatives may examine or test any (iii) Intentional radiators subject to radio frequency device that is im- part 15 rules only if they can be used in ported. If such radio frequency device client modes as specified in § 15.202 of has already entered the U.S., the ulti- this chapter. mate consignee or subsequent owners (iv) Transmitters operating under of that device must, upon request, rules which require a station license as made within one year of the date of subscribers permitted under § 1.903 of entry, make that device available for this chapter and operated under the au- examination or testing by the Commis- thority of an operator license issued by sion. the Commission. (8) The radio frequency device is [56 FR 26620, June 10, 1991] being imported for repair and will not be offered for sale or marketed. Subpart L [Reserved] (9) The radio frequency device is a medical implant transmitter inserted Subpart M—Advance Approval of in a person or a medical body-worn Subscription TV Transmission transmitter as defined in part 95, Systems granted entry into the United States or is a control transmitter associated ADVANCE APPROVAL PROCEDURE with such an implanted or body-worn transmitter, provided, however that § 2.1400 Application for advance ap- the transmitters covered by this provi- proval under part 73. sion otherwise comply with the tech- (a) An original application for ad- nical requirements applicable to trans- vance approval of a subscription TV mitters authorized to operate in the (STV) system and one copy thereof Medical Device Radiocommunication must be filed by the party who will be Service (MedRadio) under part 95 of responsible for the conformance of the this chapter. Such transmitters are system with the subscription TV stand- permitted to be imported without the ards specified in part 73 of the Rules. issuance of a grant of equipment au- The application must include informa- thorization only for the personal use of tion to show that the system conforms the person in whom the medical im- to the requirements of § 73.644(b). plant transmitter has been inserted or (b) Advance approval may be applied on whom the medical body-worn trans- for and granted in accordance with and mitter is applied. subject to the following conditions and (10) Three or fewer portable earth- limitations: station transceivers, as defined in (1) A separate request for each dif- § 25.129 of this chapter, are being im- ferent technical system must be made ported by a traveler as personal effects by the applicant in writing.


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(2) The applicant must certify that personnel. This may include the actual the application was prepared by or submission of equipment for system under the direction of the applicant testing under the provisions of § 2.945 of and that the facts set forth are true part 2 of the Rules. and correct to the best of the appli- (9) No technical system will be cant’s knowledge and belief. deemed approved unless and until the (3) The applicant must identify the FCC has notified the applicant in writ- technical system by a name or type ing of the approval. Such notification number and define the system in terms of approval will be by letter to the ap- of its technical characteristics; a func- plicant. tional block diagram must be included. (10) Approval by the FCC is limited In addition, a complete description of to a determination that the particular the encoded aural and visual baseband technical system (the scheme for en- and transmitted signals and of the en- coding and decoding the subscription coding equipment used by the appli- TV signal) is capable of meeting the cant must be supplied. These descrip- criteria given in § 73.644(b). tions must include equipment circuit (11) The FCC will maintain a listing diagrams and photographs, and dia- of approved technical systems. grams or oscillographs of both (c) Multichannel sound may be trans- baseband and transmitted aural and mitted for stereophonic or bilingual visual signal waveforms and of the sig- service with encoded subscription pro- nal basebands and occupied grams provided the technical operating bandwidths. If aural subcarriers are to specifications for this service are in- be used for transmitting aural portion cluded in the application for advance of the subscription program, for de- system approval. coder control, or for other purposes, a (d) Subscriber decoder devices must full description and specifications of comply with any applicable provisions the multiplex subcarrier signals and all of subpart H, part 15 of the FCC Rules modulation levels must be included. for TV interface devices. (4) Preliminary test data must be (e) No modifications may be made by submitted to show system capability either the applicant or the user of a with regard to compliance with the cri- system having advance FCC approval teria set forth in § 73.644(b). that would change any of the operating (5) The applicant must identify the conditions as submitted in the applica- specific requirements of §§ 73.682, 73.687 tion for advance approval. Should sys- and 73.699 (Figures 6 and 7) from which tem modifications be necessary, a new the transmitted signal will normally application must be submitted in ac- deviate. cordance with the requirements of this (6) The applicant must specify the section. method to be used in determining and maintaining the operating power of the [48 FR 56391, Dec. 21, 1983] transmitter if the procedures given in § 73.663 cannot be used due to suppres- Subpart N [Reserved] sion of the synchronizing pulses or for other reasons. If the operating power of PART 3—AUTHORIZATION AND AD- the station must be reduced to accom- MINISTRATION OF ACCOUNTING modate the encoded aural or video sig- nal, the operating power limitations AUTHORITIES IN MARITIME AND must be specified. MARITIME MOBILE-SATELLITE (7) The applicant must supply any ad- RADIO SERVICES ditional information and test data re- quested by the FCC, to show to its sat- GENERAL isfaction that the criteria given in Sec. § 73.644(b) are met. 3.1 Scope, basis, purpose. (8) The information submitted by the 3.2 Terms and definitions. applicant may be subject to check by field tests conducted without expense ELIGIBILITY to the FCC or, if deemed necessary, at 3.10 Basic qualifications. the laboratory or in the field by FCC 3.11 Location of settlement operation.


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APPLICATION PROCEDURES entities settle accounts for public cor- 3.20 Application form. respondence due to foreign administra- 3.21 Order of consideration. tions for messages transmitted at sea 3.22 Number of accounting authority identi- by or between maritime mobile sta- fication codes per applicant. tions located on board ships subject to 3.23 Legal applicant. U.S. registry and utilizing foreign 3.24 Evidence of financial responsibility. coast and coast earth station facilities. 3.25 Number of copies. 3.26 Where application is to be mailed. These rules are intended to ensure that 3.27 Amended application. settlements of accounts for U.S. li- 3.28 Denial of privilege. censed ship radio stations are con- 3.29 Notifications. ducted in accordance with the Inter- national Telecommunication Regula- SETTLEMENT OPERATIONS tions (ITR), taking into account the 3.40 Operational requirements. applicable ITU-T Recommendations. 3.41 Amount of time allowed before initial settlements. § 3.2 Terms and definitions. 3.42 Location of processing facility. 3.43 Applicable rules and regulations. (a) Accounting Authority. The Admin- 3.44 Time to achieve settlements. istration of the country that has issued 3.45 Amount of charges. the license for a mobile station or the 3.46 Use of gold francs. recognized operating agency or other 3.47 Use of SDRs. entity/entities designated by the Ad- 3.48 Cooperation with the Commission. 3.49 Agreement to be audited. ministration in accordance with ITR, 3.50 Retention of settlement records. Appendix 2 and ITU-T Recommenda- 3.51 Cessation of operations. tion D.90 to whom maritime accounts 3.52 Complaint/inquiry resolution proce- in respect of mobile stations licensed dures. by that country may be sent. 3.53 FCC notification of refusal to provide (b) Accounting Authority Certification telecommunications service to U.S. reg- Officer. The official designated by the istered vessel(s). 3.54 Notification of change in address. Managing Director, Federal Commu- nications Commission, who is respon- REPORTING REQUIREMENTS sible, based on the coordination and re- 3.60 Reports. view of information related to appli- 3.61 Reporting address. cants, for granting certification as an 3.62 Request for confidentiality. accounting authority in the maritime mobile and maritime mobile-satellite ENFORCEMENT radio services. The Accounting Author- 3.70 Investigations. ity Certification Officer may initiate 3.71 Warnings. action to suspend or cancel an account- 3.72 Grounds for further enforcement ac- ing authority certification if it is de- tion. 3.73 Waiting period after cancellation. termined to be in the public’s best in- 3.74 Ship stations affected by suspension, terest. cancellation or relinquishment. (c) Accounting Authority Identification 3.75 Licensee’s failure to make timely pay- Codes (AAICs). The discrete identifica- ment. tion code of an accounting authority 3.76 Licensee’s liability for payment. responsible for the settlement of mari- AUTHORITY: 47 U.S.C. 154(i), 154(j) and time accounts (Annex A to ITU-T Rec- 303(r). ommendation D.90). SOURCE: 61 FR 20165, May 6, 1996, unless (d) Administration. Any governmental otherwise noted. department or service responsible for discharging the obligations undertaken GENERAL in the Convention of the International Telecommunication Union and the § 3.1 Scope, basis, purpose. Radio Regulations. For purposes of By these rules the Federal Commu- these rules, ‘‘Administration’’ refers to nications Commission (FCC) is delin- a foreign government or the U.S. Gov- eating its responsibilities in certifying ernment, and more specifically, to the and monitoring accounting authorities Federal Communications Commission. in the maritime mobile and maritime (e) Authorization. Approval by the mobile-satellite radio services. These Federal Communications Commission


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to operate as an accounting authority. family organizations headquartered in Synonymous with ‘‘certification’’. Geneva, Switzerland along with several (f) CCITT. The internationally recog- other United Nations (UN) family orga- nized French acronym for the Inter- nizations. The ITU is the UN agency national Telegraph and Telephone Con- responsible for all matters related to sultative Committee, one of the former international telecommunications. The sub-entities of the International Tele- ITU has over 180 Member Countries, in- communication Union (ITU). The cluding the United States, and provides CCITT (ITU-T) 1 is responsible for de- an international forum for dealing with veloping international telecommuni- all aspects of international tele- cations recommendations relating to communications, including radio, standardization of international tele- telecom services and telecom facilities. communications services and facilities, (m) Linking Coefficient. The ITU man- including matters related to inter- dated conversion factor used to convert national charging and accounting prin- gold francs to Special Drawing Rights ciples and the settlement of inter- (SDRs). Among other things, it is used national telecommunications accounts. to perform accounting settlements in Such recommendations are, effec- the maritime mobile and the maritime tively, the detailed implementation mobile-satellite services. provisions for topics addressed in the International Telecommunication Reg- (n) Maritime . A mobile ulations (ITR). service between coast stations and ship (g) Certification. Approval by the FCC stations, or between ship stations, or to operate as an accounting authority. between associated on-board commu- Synonymous with ‘‘authorization’’. nication stations. Survival craft sta- (h) Coast Earth Station. An earth sta- tions and emergency position- indi- tion in the fixed-satellite service or, in cating radiobeacon stations may also some cases, in the maritime mobile- participate in this service. satellite service, located at a specified (o) Maritime Mobile-Satellite Service. A fixed point on land to provide a feeder mobile-satellite service in which mo- link for the maritime mobile-satellite bile earth stations are located on board service. ships. Survival craft stations and emer- (i) Coast Station. A in the gency position-indicating radiobeacon maritime mobile service. stations may also participate in this (j) Commission. The Federal Commu- radio service. nications Commission. The FCC. (p) Public Correspondence. Any tele- (k) Gold Franc. A monetary unit rep- communication which the offices and resenting the value of a particular na- stations must, by reason of their being tion’s currency to a gold par value. One at the disposal of the public, accept for of the monetary units used to effect ac- transmission. This usually applies to counting settlements in the maritime maritime mobile and maritime mobile- mobile and the maritime mobile-sat- satellite stations. ellite services. (q) Recognized Operating Agencies (l) International Telecommunication (ROAs).2 Individuals, companies or cor- Union (ITU). One of the United Nations porations, other than governments or agencies, recognized by administra- 1 At the ITU Additional Plenipotentiary tions, which operate telecommuni- Conference in Geneva (December, 1992), the cations installations or provide tele- structure, working methods and construct of communications services intended for the basic ITU treaty instrument were modi- international use or which are capable fied. The result is that the names of the sub- entities of the ITU have changed (e.g., the of causing interference to inter- CCITT has become the Telecommunication national telecommunications. ROAs Standardization Sector—ITU-T and Recog- which settle debtor accounts for public nized Private Operating Agency has become correspondence in the maritime mobile Recognized Operating Agency-ROA). The and maritime mobile-satellite radio changes were placed into provisional effect services must be certified as account- on March 1, 1993 with the formal entry into ing authorities. force of these changes being July 1, 1994. We will refer to the new nomenclatures within these rules, wherever practicable. 2 Id.


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(r) . A mobile station in The lack of such expertise, however, the maritime mobile service located on will not automatically disqualify an board a vessel which is not perma- individual, partnership, corporation or nently moored, other than a survival other entity from becoming an ac- craft station. counting authority. (s) Special Drawing Right (SDR). A (d) Applicants must provide formal monetary unit of the International financial statements or documentation Monetary Fund (IMF) currently based proving all assets, liabilities, income on a market basket of exchange rates and expenses. for the United States, West Germany, (e) Applicants must offer their serv- Great Britain, France and Japan but is ices to any member of the public mak- subject to IMF’s definition. One of the ing a reasonable request therefor, with- monetary units used to effect account- out undue discrimination against any ing settlements in the maritime mobile customer or class of customer, and fees and maritime mobile-satellite services. charged for providing such services (t) United States. The continental shall be reasonable and non-discrimi- U.S., Alaska, Hawaii, the Common- natory. This requirement will be wealth of Puerto Rico, the Virgin Is- waived for applicants who settle their lands or any territory or possession of own accounts only and are eligible to the United States. be ‘‘grandfathered’’ during the initial application period. However, should the ELIGIBILITY need for additional accounting authori- ties be proven, these accounting au- § 3.10 Basic qualifications. thorities will be required to offer their (a) Applicants must meet the require- services to the public or relinquish ments and conditions contained in their certification. these rules in order to be certified as an accounting authority. No individual [61 FR 20165, May 6, 1996, as amended at 64 or other entity, including accounting FR 40776, July 28, 1999] authorities approved by other adminis- § 3.11 Location of settlement oper- trations, may act as a United States ation. accounting authority and settle ac- counts of U.S. licensed vessels in the (a) Within the United States. A cer- maritime mobile or maritime mobile- tified accounting authority maintain- satellite services without a certifi- ing all settlement operations, as well cation from the Federal Communica- as associated documentation, within tions Commission. Accounting authori- the United States will be assigned an ties with interim certification as of the AAIC with a ‘‘US’’ prefix. effective date of this rule must submit (b) Outside the United States. A cer- to the application process discussed in tified accounting authority maintain- § 3.20. They will be ‘‘grandfathered’’, ing settlement operations outside the i.e, granted permanent certification United States will be assigned the provided they demonstrate their eligi- same AAIC as that originally assigned bility and present a proper application. to such entity by the administration of (b) U.S. citizenship is not required of the country of origin. However, in no individuals in order to receive certifi- case will an entity be certified as an cation from the Commission to be an accounting authority for settlement of accounting authority. Likewise, joint U.S. licensed vessel accounts unless the ventures need not be organized under entity is requesting to conduct a set- the laws of the United States in order tlement operation in the United States to be eligible to perform settlements or has already been issued an AAIC by for U.S. licensed vessels. See, however, another administration. § 3.11. (c) Prior experience in maritime ac- APPLICATION PROCEDURES counting, general commercial account- ing, international shipping or any § 3.20 Application form. other related endeavor will be taken Written application must be made to into consideration by the Commission the Federal Communications Commis- in certifying accounting authorities. sion on FCC Form 44, ‘‘Application For


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Certification As An Accounting Au- § 3.22 Number of accounting authority thority’’ in order to be considered for identification codes per applicant. certification as an accounting author- (a) No entity will be entitled to or as- ity. No other application form may be signed more than one AAIC. used. No consideration will be given to (b) AAICs may not be reassigned, applicants not submitting applications sold, bartered or transferred and do not in accordance with these rules or in ac- convey upon sale or absorption of a cordance with any other instructions company or firm without the express the Commission may issue. FCC Form written approval of the Commission. 44 may be obtained from the Commis- Only the FCC may certify accounting sion by writing to the address shown in authorities and assign U.S. AAICs for § 3.61. entities settling accounts of U.S. li- censed vessels in the maritime mobile § 3.21 Order of consideration. and maritime mobile-satellite services. (c) Accounting authorities who are (a) Accounting Authority applica- ‘‘grandfathered’’ during the initial ap- tions will be processed on a first-come, plication period may retain their in- first-served basis. When applications terim AAIC. are received on the same day, the ap- plication with the earliest mailing § 3.23 Legal applicant. date, as evidenced by the postmark, The application shall be signed by will be processed first. Interim ac- the individual, partner or primary offi- counting authorities seeking perma- cer of a corporation who is legally able nent certifications through the to obligate the entity for which he or ‘‘grandfathering’’ process will not com- she is a representative. pete with other applicants during the first 60 days following the effective § 3.24 Evidence of financial responsi- bility. date of these rules which is allowed for submission of their applications. After All applicants must provide evidence the ‘‘grandfathering’’ process is com- of sound financial status. To the extent pleted, all other applicants will be that the applicant is a business, formal financial statements will be required. processed as in paragraph (a) of this Other applicants may submit docu- section. mentation proving all assets, liabil- (b) At any given time, there will be ities, income and expenses which sup- no more than 25 certified accounting ports their ability to meet their per- authorities with a minimum of 15 ‘‘US’’ sonal obligations. Applicants must pro- AAICs reserved for use by accounting vide any additional information authorities conducting settlement op- deemed necessary by the Commission. erations within the United States. The Commission will retain all valid appli- § 3.25 Number of copies. cations received after the maximum One original and one copy of FCC number of accounting authorities have Form 44, ‘‘Application For Certifi- been approved and will inform such ap- cation As An Accounting Authority’’ plicants that should an AAIC become will be required. Only applications available for reassignment in the fu- mailed to the Commission on official, ture, the Commission will condi- Commission approved application tionally certify as an accounting au- forms will be considered. Applications thority the oldest of the qualified pend- should be mailed at least 90 days prior ing applicants, as determined by the to planned commencement of settle- order of receipt. Final certification ment activities to allow time for the would be conditional upon filing of an Commission to review the application amended application (if necessary). and to allow for the informal public The Commission will inform the appli- comment period. cant of his/her conditional selection in § 3.26 Where application is to be writing to confirm the applicant’s con- mailed. tinued interest in becoming an ac- All applications shall be mailed to counting authority. the Accounting Authority Certification


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Officer in Washington, D.C. The des- by the Commission in making its de- ignated address will be provided on the termination as to whether to approve FCC Form 44, ‘‘Application for Certifi- an applicant as an accounting author- cation As An Accounting Authority’’. ity. Thirty days will be allowed for submission of comments. § 3.27 Amended application. (b) The Commission will notify each Changes in circumstances that cause applicant in writing as to whether the information previously supplied to the applicant has been approved as an ac- FCC to be incorrect or incomplete and counting authority. If the application that could affect the approval process, is not approved, the Commission will require the submission of an amended provide a brief statement of the application. The amended application grounds for denial. should be mailed to the Commission (c) The names and addresses of all immediately following such change. newly certified accounting authorities See also §§ 3.24 and 3.51. will be published in a Public Notice issued by the Commission. Addition- § 3.28 Denial of privilege. ally, the Commission will notify the (a) The Commission, in its sole dis- ITU within 30 days of any changes to cretion, may refuse to grant an appli- its approved list of accounting authori- cation to become an accounting au- ties. thority for any of the following rea- sons: SETTLEMENT OPERATIONS (1) Failure to provide evidence of ac- ceptable financial responsibility; § 3.40 Operational requirements. (2) If the applicant, in the opinion of All accounting authorities must con- the FCC reviewing official, does not duct their operations in conformance possess the qualifications necessary to with the provisions contained in this the proper functioning of an account- section and with relevant rules and ing authority; guidance issued from time to time by (3) Application is not personally the Commission. signed by the proper official(s); (4) Applicant does not provide evi- § 3.41 Amount of time allowed before dence that accounting operations will initial settlements. take place in the United States or its An accounting authority must begin territories and the applicant does not settling accounts no later than six already possess an AAIC issued by an- months from the date of certification. other administration; Failure to commence settlement oper- (5) Application is incomplete, the ap- ations is cause for suspension or can- plicant fails to provide additional in- cellation of an accounting authority formation requested by the Commis- certification. sion or the applicant indicates that it cannot meet a particular provision; or § 3.42 Location of processing facility. (6) When the Commission determines that the grant of an authorization is Settlement of maritime mobile and contrary to the public interest. maritime mobile-satellite service ac- (b) These rules provide sufficient counts must be performed within the latitude to address defects in applica- United States by all accounting au- tions. Entities seeking review should thorities possessing the ‘‘US’’ prefix. follow procedures set forth in § 1.106 or Other accounting authorities approved § 1.115 of this chapter. by the Commission may settle ac- counts either in the U.S. or elsewhere. § 3.29 Notifications. See also §§ 3.11 and 3.21(b). (a) The Commission will publish the name of an applicant in a Public Notice § 3.43 Applicable rules and regula- before granting certification and will tions. invite informal public comment on the Accounting authority operations qualifications of the applicant from must be conducted in accordance with any interested parties. Comments re- applicable FCC rules and regulations, ceived will be taken into consideration the International Telecommunication


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Regulations (ITR), and other inter- currence by the FCC, an accounting au- national rules, regulations, agree- thority may make separate agree- ments, and, where appropriate, ITU-T ments, in writing, with foreign admin- Recommendations. In particular, the istrations or their agents for alter- following must be adhered to or taken native settlement methods, in accord- into account in the case of ITU-T. ance with ITU-T Recommendation (a) The latest basic treaty instru- D.195. ment(s) of the International Tele- communication Union (ITU); § 3.47 Use of SDRs. (b) Binding agreements contained in An accounting authority must accept the Final Acts of World Administrative accounts presented to it from foreign Radio Conferences and/or World Inter- administrations in Special Drawing national Telecommunication Con- Rights (SDRs). These SDRs must be ferences; converted to dollars on the date of re- (c) ITU Radio Regulations; (d) ITU International Telecommuni- ceipt by the accounting authority and cation Regulations (ITR); an equivalent amount in US dollars (e) ITU-T Recommendations (particu- must be paid to the foreign administra- larly D.90 and D.195); and tion. The conversion rate will be the (f) FCC Rules and Regulations (47 applicable rate published by the Inter- CFR part 3). national Monetary Fund (IMF) for the date of receipt of the account from the § 3.44 Time to achieve settlements. foreign administration. Upon written All maritime telecommunications ac- concurrence by the FCC, any account- counts should be timely paid in accord- ing authority may make separate ance with applicable ITU Regulations, agreements, in writing, with foreign Article 66 and International Tele- administrations or their agents for al- communication Regulations (Mel- ternative settlement methods, pro- bourne, 1988). Accounting authorities vided account is taken of ITU-T Rec- are deemed to be responsible for remit- ommendation D.195. ting, in a timely manner, all valid amounts due to foreign administra- § 3.48 Cooperation with the Commis- sion. tions or their agents. Accounting authorities must cooper- § 3.45 Amount of charges. ate fully with the FCC in all respects Accounting Authorities may charge concerning international maritime set- any reasonable fee for their settlement tlements issues, including the resolu- services. Settlements themselves, how- tion of questions of fact or other issues ever, must adhere to the standards set arising as a result of settlement oper- forth in these rules and must be in ac- ations. cordance with the International Tele- communication Regulations (ITR) tak- § 3.49 Agreement to be audited. ing into account the applicable ITU-T Accounting authorities accept their Recommendations and other guidance certifications on condition that they issued by the Commission. are subject to audit of their settlement activities by the Commission or its § 3.46 Use of gold francs. representative. Additionally, the Com- An accounting authority must accept mission reserves the right to verify any accounts presented to it from foreign statement(s) made or any materials administrations in gold francs. These submitted to the Commission under gold francs must be converted on the these rules. Verification may involve date of receipt of the bill to the appli- discussions with ship owners or others cable Special Drawing Right (SDR) as well as the requirement to submit rate (as published by the International additional information to the Commis- Monetary Fund) on that date utilizing sion. Failure to respond satisfactorily the linking coefficient of 3.061 gold to any audit findings is grounds for for- francs = 1 SDR. An equivalent amount feiture or suspension or cancellation of in U.S. dollars must be paid to the for- authority to act as an accounting au- eign administration. Upon written con- thority for U.S. vessels.


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§ 3.50 Retention of settlement records. solve the issue. If accounts are in dis- Accounting authorities must main- pute, the Commission will determine tain, for the purpose of compliance the amount due the foreign administra- with these rules, all settlement records tion, accounting authority or ROA, and for a period of at least seven years fol- may direct the accounting authority to lowing settlement of an account with a pay the accounts to the foreign admin- foreign administration or agent. istration. If the accounting authority does not pay the disputed accounts § 3.51 Cessation of operations. within a reasonable timeframe, the Commission may take action to levy a The FCC must be notified imme- forfeiture, cancel the AAIC privilege diately should an accounting authority and/or to revoke any operating author- plan to relinquish its certification or ity or licenses held by that accounting cease to perform settlements as au- authority. (See also § 3.72). thorized. Additionally, the Commission must be advised in advance of any pro- § 3.53 FCC notification of refusal to posed transfer of control of an account- provide telecommunications service ing authority’s firm or organization, to U.S. registered vessel(s). by any means, to another entity. An accounting authority must in- (a) When an accounting authority is form the FCC immediately should it transferred, merged or sold, the new receive notice from any source that a entity must apply for certification in foreign administration or facility is re- its own right if it is interested in be- fusing or plans to refuse legitimate coming an accounting authority. Pro- public correspondence to or from any vided the new applicant is eligible and U.S. registered vessel. completes the application process sat- isfactorily, the AAIC will be trans- § 3.54 Notification of change in ad- ferred to the new applicant. In the case dress. of a merger of two accounting authori- The Commission must be notified in ties, the merged entity must decide writing within 15 days of any change in which AAIC to retain. address of an accounting authority. (b) Section 3.21(a) will be waived for Such written notification should be these applicants. sent to the address shown in § 3.61. (c) The applicant must comply with application process including public REPORTING REQUIREMENTS comment. (d) The applicant must certify ac- § 3.60 Reports. ceptance of all accounts and must fur- (a) Initial Inventory of Vessels. Within nish a list of the accounts to the Com- 60 days after receiving final approval mission at the time of application. from the FCC to be an accounting au- thority, each certified accounting au- § 3.52 Complaint/inquiry resolution procedures. thority must provide to the FCC an ini- tial list of vessels for which it is per- (a) Accounting authorities must forming settlements. This list should maintain procedures for resolving com- contain only U.S. registered vessels. plaints and/or inquiries from its con- Such list shall be typewritten or com- tractual customers (vessels for which it puter generated, be annotated to indi- performs settlements), the FCC, the cate it is the initial inventory and be ITU, and foreign administrations or in the general format of the following their agents. These procedures must be and provide the information shown: available to the Commission upon re- quest. (b) If a foreign administration re- (b) Semi-Annual Additions/Modifica- quests assistance in collection of ac- tions/Deletions to Vessel Inventory. Be- counts from ships licensed by the FCC, ginning with the period ending on the the appropriate accounting authority last day of March or September fol- will provide all information requested lowing submission of an accounting by the Commission in a timely manner authority’s Initial Inventory of Vessels to enable the Commission to determine (See paragraph (a) of this section.) and the cause of the complaint and to re- each semi-annual period thereafter,


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each accounting authority is required ministration, during the preceding to submit to the FCC a report on addi- twelve months. Information contained tions, modifications or deletions to its in this report provides statistical data list of vessels for which it is per- that will enable the Commission to forming or intending to perform settle- monitor operations to ensure adher- ments, whether or not settlements ac- ence to these rules and to appropriate tually have taken place. The list international settlement procedures. should contain only U.S. registered FCC Form 45 can be obtained by writ- vessels. The report shall be typewritten ing to the address in 3.61 of these rules. or computer generated and be in the following general format: § 3.61 Reporting address.

ADDITIONS TO CURRENT VESSEL INVENTORY All reports must be received at the following address no later than the re- quired reporting date: MODIFICATIONS TO CURRENT VESSEL INVENTORY Accounting Authority Certification Officer, Financial Operations Center, Federal Com- munications Commission, 445 12th Street, DELETIONS TO CURRENT VESSEL INVENTORY SW., Washington, D.C. 20554 [61 FR 20165, May 6, 1996, as amended at 65 FR 58466, Sept. 29, 2000] The preceding report must be received by the Commission no later than 15 § 3.62 Request for confidentiality. days following the end of the period (March or September) for which the re- Applicants should comply with § 0.459 port pertains. Modifications refer to of this chapter when requesting con- changes to call sign or ship name of fidentiality and cannot assume that it vessels for which the accounting au- will be offered automatically. thority settles accounts and for which fbasic information has previously been ENFORCEMENT provided to the Commission. Reports are to be submitted even if there have § 3.70 Investigations. been no additions, modifications or de- The Commission may investigate any letions to vessel inventories since the complaints made against accounting previous report. If there are no changes authorities to ensure compliance with to an inventory, this should be indi- the Commission’s rules and with appli- cated on the report. cable ITU Regulations and other inter- (c) End of Year Inventory. By Feb- national maritime accounting proce- ruary 1st of each year, each accounting dures. authority must submit an end-of-year inventory report listing vessels for § 3.71 Warnings. which the accounting authority per- The Commission may issue written formed settlements as of the previous warnings or forfeitures to accounting December 31st. The list should contain only U.S. registered vessels. The report authorities which are found not to be must be typewritten or computer gen- operating in accordance with estab- erated and prepared in the same gen- lished rules and regulations. Warnings eral format as that shown in paragraph will generally be issued for violations (a) of this section except it should be which do not seriously or immediately annotated to indicate it is the End of affect settlement functions or inter- Year inventory. national relations. Continued or unre- (d) Annual Statistical Report of Settle- solved violations may lead to further ment Operations. By February 1st of enforcement action by the Commis- each year, each accounting authority sion, including any or all legally avail- settling accounts for U.S. registered able sanctions, including but not lim- vessels must submit to the FCC an An- ited to, forfeitures (Communications nual Statistical Report, FCC Form 45, Act of 1934, Sec. 503), suspension or which details the number and dollar cancellation of the accounting author- amount of settlements, by foreign ad- ity certification.


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§ 3.72 Grounds for further enforce- ments of the circumstances and in- ment action. forming them of the requirement con- (a) The Commission may take further tained in paragraph (b) of this section. enforcement action, including for- (b) Those ship stations utilizing an feiture, suspension or cancellation of accounting authority’s AAIC for which an accounting authority certification, the subject accounting authority cer- if it is determined that the public in- tification has been suspended, can- terest so requires. Reasons for which celled or relinquished, should make such action may be taken include, contractual arrangements with an- inter alia: other properly authorized accounting (1) Failure to initiate settlements authority to settle its accounts. within six months of certification or (c) The Commission will notify the failure to perform settlements during ITU of all accounting authority sus- any subsequent six month period; pensions, cancellations and (2) Illegal activity or fraud; relinquishments, and (3) Non-payment or late payment to a (d) The Commission will publish a foreign administration or agent; Public Notice detailing all accounting (4) Failure to follow ITR require- authority suspensions, cancellations ments and procedures; and relinquishments. (5) Failure to take into account ITU- T Recommendations; § 3.75 Licensee’s failure to make timely (6) Failure to follow FCC rules and payment. regulations; Failure to remit proper and timely (7) Bankruptcy; or payment to the Commission or to an (8) Providing false or incomplete in- accounting authority may result in one formation to the Commission or failure or more of the following actions to comply with or respond to requests against the licensee: for information. (a) Forfeiture or other authorized (b) Prior to taking any of the en- sanction. forcement actions in paragraph (a) of (b) The refusal by foreign countries this section, the Commission will give to accept or refer public correspond- notice of its intent to take the speci- ence communications to or from the fied action and the grounds therefor, vessel or vessels owned, operated or li- and afford a 30-day period for a re- censed by the person or entity failing sponse in writing; provided that, where to make payment. This action may be the public interest so requires, the taken at the request of the Commission Commission may temporarily suspend or independently by the foreign coun- a certification pending completion of try or coast station involved. these procedures. Responses must be (c) Further action to recover forwarded to the Accounting Authority amounts owed utilizing any or all le- Certification Officer. See § 3.61. gally available debt collection proce- § 3.73 Waiting period after cancella- dures. tion. § 3.76 Licensee’s liability for payment. An accounting authority whose cer- tification has been cancelled must wait The U.S. ship station licensee bears a minimum of three years before re- ultimate responsibility for final pay- applying to be an accounting author- ment of its accounts. This responsi- ity. bility cannot be superseded by the con- tractual agreement between the ship § 3.74 Ship stations affected by suspen- station licensee and the accounting au- sion, cancellation or relinquish- thority. In the event that an account- ment. ing authority does not remit proper (a) Whenever the accounting author- and timely payments on behalf of the ity privilege has been suspended, can- ship station licensee: celled or relinquished, the accounting (a) The ship station licensee will authority is responsible for imme- make arrangements for another ac- diately notifying all U.S. ship licensees counting authority to perform future for which it was performing settle- settlements, and


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