Closing Component Part Loopholes on Covered Equipment
On July 1, 2026, Federal Communications Commission (FCC) Chairman Brendan Carr proposed new regulatory measures designed to strengthen oversight of electronic devices and close existing loopholes under the Covered List. While the Covered List has prohibited finished products produced by covered entities that pose national security risks, the proposed Order extends those prohibitions directly to component parts.
Under previous frameworks, devices produced by third parties incorporating components from Covered List entities faced no restrictions, even if those components could technically compromise the overall device. The circulated Order closes this loophole for all logic-bearing hardware components while omitting passive components such as screws and nails. This action builds on initial steps taken in October addressing modular transmitters produced by Covered List entities.
E-Commerce Oversight and FCC ID Listing Requirements
The proposed Order also introduces specific compliance mandates for online marketplaces, building on the FCC's Operation Clean Carts initiative which resulted in the removal of over 4 million unauthorized devices from online platforms.
If adopted by the full Commission during the July 22 Open Meeting, the Order will establish explicit requirements for e-commerce entities:
- Clarification that e-commerce platforms must comply with FCC rules when marketing or selling third-party products.
- A requirement for e-commerce platforms to display FCC IDs for all FCC-certified devices to improve consumer awareness and regulatory oversight.
Modernizing Equipment Authorization and Covered List Structure
Alongside the Order, Chairman Carr circulated a Further Notice of Proposed Rulemaking (FNPRM) proposing broader updates to modernize FCC equipment authorization rules in response to recent Covered List developments.
The FNPRM seeks comment on several structural and procedural reforms:
- Bifurcating the Covered List into producer/provider-based entries and production location-based entries, specifically addressing Uncrewed Aircraft Systems (UAS), UAS critical components, and consumer routers.
- Expanding supply chain disclosures at the application stage for covered equipment categories.
- Permitting certain modifications to ensure installed equipment can continue receiving software and hardware updates.
- Strengthening oversight of the self-attestation Supplier's Declaration of Conformity (SDoC) process.
- Closing existing loopholes within FCC importation and marketing regulations.