FREQUENTLY ASKED QUESTIONS ABOUT THE FCC RULEMAKING PROCESS

Updated September 14th, 2021

What is Dahua’s response to the Federal Communication Commission’s proposed rules to prohibit future equipment authorization?

As we have stated publicly many times, we respect the right of governments to regulate domestic markets, and we comply as a matter of course with all applicable laws and regulations everywhere we do business.

However, we urge the FCC, and all of our company’s U.S. stakeholders, to recognize that our products and technology pose no threat to the U.S. network or to national security. We are not government owned or directed. Rather, we are a private-sector business, traded on the public markets that adheres to standards for ethical practices in our industry.

We look forward to presenting these facts to the FCC and hope that the Commission will keep an open mind as it embarks on what we expect will be a robust, deliberate process for considering this proposed rule.

What exactly has the FCC decided to do?

  • The FCC has voted to consider proposed rules relating to equipment authorizations for certain devices from certain companies that are on the U.S. Government’s “Covered Entities” list.
  • The FCC has not enacted any new rules at this time – this is simply the start of a process to consider comments from the public about whether or not to implement a new rule.

Does this vote mean that Dahua no longer has FCC approvals?

  • Dahua’s products all remain authorized at this time.
  • All that has happened is that the FCC has decided to start a process to consider a rule that would deal with authorizations of products from companies on the Covered List.
  • At this time, nothing at all has changed in terms of our authorizations.

What does Dahua plan to do to ensure that it does not lose FCC approvals?

  • We intend to file a robust response to this proposal as part of the FCC rulemaking process. The FCC invites all parties to submit comments on proposed rules.

What is the timeline for a final vote?

  • The FCC does not set a hard timeline for these proceedings, which sometimes take many months or even years.
  • What we know at this time is that there will be at least a 60-day Comment Period – which could be even longer – and that the FCC could later vote on an order adopting the new rules sometime thereafter.
  • The 30-day public comment period has begun. If you decide to submit a comment, please make sure to do so before midnight on September 20th, 2021, ET.
  • It is also not uncommon for FCC rules to be the subject of litigation, which can further delay implementation.

What can a dealer do to place a comment to the FCC?

  • The FCC docket is open to comments from any party interested in making their views known.
  • If you are interested in submitting comments for the record, you may do so through the Commission’s Electronic Comment Filing System (Proceedings 21-232, 21-233).

What will be the final outcome if Dahua cannot get FCC approvals for new products?

  • We understand the concerns our partners have about this question, but right now we prefer not to speculate about a hypothetical.
  • Our focus is on making our case to the FCC and doing our part to make sure that any rule reflects the best interests of our customers, business partners and other US stakeholders, and most importantly an accurate and fair assessment of the facts.
  • We are confident that at the end of this process, we will be in a position to continue to operate in the U.S. and to serve our customers as we always have.

If the FCC rule is adopted, what will happen to Dahua products already in service in the U.S.?

  • The proposed rule that was released for comment would not affect products that were already authorized under the existing rules. Those authorizations would remain valid.
  • It is possible that the FCC might conduct further proceedings to consider revoking authorization of some previously approved products, but that step would require an additional public notice and a final FCC decision at some point in the future. Our customers and business partners would have ample advance notice if the FCC decided to go down this path.

Is Congress considering a law to prevent authorization of Dahua products?

  • Not exactly. Bills have been introduced in both houses of Congress (S.1790, H.R.3919) that, if enacted, would require the FCC to complete its equipment authorization rulemaking within a specific time. So far, neither bill has been passed by either house of Congress.
  • On July 21, 2021, the House Energy and Commerce Committee adopted an amendment to H.R.3919 to clarify that, if the FCC does adopt its proposal, it can only have the effect of preventing authorization of any new Dahua equipment, and cannot invalidate existing equipment authorizations. However, this bill has not yet been placed on the calendar for a vote in the House of Representatives.

If the FCC rule is passed as proposed what are Dahua's plans for honoring warranties and continuing to provide support in the U.S.?

  • Regardless of how this process plays out, Dahua will continue to honor warranties and provide support for its customers in the U.S.

Is there any liability for an integrator selling Dahua products in the U.S.?

  • No. Dahua’s products all remain authorized at this time and therefore, there is no liability for an integrator selling Dahua products in the U.S.

What does this mean for buying Dahua equipment for new installations?

  • At this time, nothing at all has changed in terms of buying and selling Dahua’s authorized products. Business continues as usual.
  • All that has happened is that the FCC has decided to start a process to consider a rule that would deal with authorizations of products from companies on the Covered List.

If the proposed FCC rule is passed, what is the chance that it will be allowed to stand?

  • We prefer not to speculate about hypotheticals.
  • It is not uncommon for FCC rules to be challenged in courts, which could block or further delay implementation.