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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554



In the Matter of                )       
                                )       
Palco Electronics, Inc.         )            File  No.  EB-04-DT-
062
                                )
Southgate, Michigan             )            Citation         No. 
C20043236003                            )    

                            CITATION
                                             Released: February 
20, 2004
                                                                                                     

By the Enforcement Bureau, Detroit Office:

  1.      This is an official Citation issued pursuant to Section 
     503(b)(5) of  the Communications  Act  of 1934,  as  amended 
     (``Act''),1  to  Palco  Electronics,  Inc.  (``Palco'')  for 
     violation of  Section  302(b)  of  the  Act,2   and  Section 
     2.803(a)(1) of the Commission's Rules (``Rules'').3

  2.      On February 10, 2004, Palco  offered for sale at  their 
     store located at 18676 Eureka Road, Southgate, Michigan, the 
     following non-certified Citizens Band (``CB'') transceivers:

           NAME                    MODEL                    COST
       President                   Lincoln                       
     $269.99
       Ranger Communications       American    Spirit    (SS-3900 
  EGHPA)  $199.99
       Ranger                 RCI 2950 DX                   
  $269.99
       Ranger                 RCI 2970 DX                   
  $399.99
       Ranger                 RCI 6900F Turbo               
  $454.99
       Ranger                 RCI 2985 DX                   
  $439.99
       Ranger                 RCI 2995 DX                   
  $589.99

According to  the Commission's  records, these  devices have  not 
received an  FCC equipment  authorization which  is required  for 
Citizens Band transmitters marketed in the United States.

  3.      Section 302(b) of  the Act provides  ``No person  shall 
     manufacture, import, sell, offer  for sale, or ship  devices 
     or home electronic  equipment and systems,  or use  devices, 
     which fail to comply  with regulations promulgated  pursuant 
     to  this  section.''   Section  2.803(a)(1)  of  the   Rules 
     provides that ``... no person shall sell or lease, or  offer 
     for sale or lease (including advertising for sale or lease), 
     or import, ship or distribute for the purpose of selling  or 
     leasing or offering for sale  or lease, any radio  frequency 
     device unless:  (1)  In the  case  of a  device  subject  to 
     certification,  such  device  has  been  authorized  by  the 
     Commission in accordance with the rules in this chapter  and 
     is properly identified and labeled....''  Palco's offer  for 
     sale of these devices violates both sections.

  4.      Palco marketed these  devices as amateur  transceivers.  
     The Commission has evaluated radiofrequency devices  similar 
     to those  listed  in  paragraph 2  and  concluded  that  the 
     devices at issue are not only amateur radios but can  easily 
     be altered for use as CB devices as well.  A CB  transmitter 
     is a transmitter that operates or is intended to operate  at 
     a station  authorized for  the CB  service, and  it must  be 
     certificated by the FCC prior to marketing or  importation.4  
     The Commission has further concluded that these devices fall 
     within the  definition of  a  CB transmitter  and  therefore 
     cannot legally be imported or marketed in the United States.  
     See Response from the  Commission's General Counsel to  U.S. 
     Customs Service dated May 17, 1999, 14 FCC Rcd 7797 (1999).

  5.      Additionally, dual  use CB  and amateur  radios of  the 
     kind at  issue  here  may  not  be  certificated  under  the 
     Commission's rules.  Section 95.655(a) of the Rules5  states 
     ``....([CB] Transmitters with  frequency capability for  the 
     Amateur Radio Services....will  not be certificated.''   See 
     also FCC  88-256, 1988  WL488084  (August 17,  1988).   This 
     clarification  was   added  to   explicitly  foreclose   the 
     possibility of  certification of  dual  use CB  and  amateur 
     radios, see id., and  thereby deter use  by CB operators  of 
     frequencies allocated for amateur radio use.

  6.      Furthermore,  the   Commission  has   revised   Section 
     2.1204(a)(5) of its Rules6 to prohibit all marketing  and/or 
     offering for sale in the United States of such devices  even 
     when the  purchaser(s)  had  provided  assurances  that  the 
     transceivers  are  being  bought  solely  for  export.   ALL 
     DOMESTIC   MARKETING   OF   SUCH   DEVICES   VIOLATES    THE 
     COMMUNICATIONS ACT OF 1934, AS AMENDED, AND THE COMMISSION'S 
     RULES.

  7.      In addition  to  the  marketing  of  the  non-certified 
     transceivers addressed above,  Palco is  hereby warned  that 
     Section 302(b) of the Act and Section 2.815(c) of the Rules7 
     requires FCC Type Acceptance (or Certification) of  External 
     Radio Frequency Power Amplifiers (or amplifier kits) capable 
     of operation on any frequency or frequencies below 144  MHz.  
     Furthermore, Section 2.815(b)  of the  Rules8 prohibits  the 
     marketing of External Radio  Frequency Power Amplifiers  (or 
     amplifier kits)  capable of  operation on  any frequency  or 
     frequencies between 24 and 35 MHz.

  8.      Subsequent violations of the Communications Act  and/or 
     the  Commission's  Rules   may  subject   the  violator   to 
     substantial monetary forfeitures not  to exceed $11,000  for 
     each such violation or each day of a continuing  violation,9 
     seizure of equipment through  in rem forfeiture action,  and 
     criminal sanctions including imprisonment.10 

  9.      Palco  may  request   a  personal   interview  at   the 
     Commission's Field Office  nearest your  place of  business.  
     The nearest  office is  the Detroit  Office, 24897  Hathaway 
     Street, Farmington Hills, Michigan 48335-1552, which you may 
     contact by telephone at    XXX XXX-XXXX.  You must  schedule 
     this interview to  take place within  fourteen (14) days  of 
     the date of this Citation.  Alternatively, you may submit  a 
     written statement to the above address within fourteen  (14) 
     days of the  date of  this Citation.  Any written  statement 
     should specify what actions have  been taken to correct  the 
     violations outlined above.  Please reference case number EB-
     04-DT-062 when corresponding with the Detroit Office.

  10.     This Citation shall be sent First Class U.S. Mail  and, 
     Certified  Mail,   Return   Receipt  Requested,   to   Palco 
     Electronics, Inc.,  18676 Eureka  Road, Southgate,  Michigan 
     48195.

  11.     The Privacy Act of 197411  requires that we advise  you 
     that  the  Commission   will  use   all  relevant   material 
     information before it,  including any information  disclosed 
     in your reply, to determine what, if any, enforcement action 
     is required to ensure compliance.  Any false statement  made 
     knowingly  and  willfully  in  reply  to  this  Citation  is 
     punishable by fine  or imprisonment  under Title  18 of  the 
     U.S. Code.12  Please be  advised that if  you choose not  to 
     respond to this  Citation and a  forfeiture is issued,  your 
     unresponsiveness will be considered  in our assessment of  a 
     forfeiture amount.


                                                          FEDERAL 
     COMMUNICATIONS COMMISSION



                                                      James A. 
                            Bridgewater
                                                      District 
                            Director
                                                      Detroit 
                            Office

_________________________

1 47 U.S.C.  503(b)(5)
2
 47 U.S.C.  302(b)
3
 47 C.F.R.  2.803(a)(1)
4 See 47 C.F.R,  95.603(c), 2.803
5
 47 C.F.R.  95.655(a)

6 47 C.F.R.  2.1204(a)(5) revised effective February 28, 2000

7 47 C.F.R.  2.815(c)

8 47 C.F.R.  2.815(b)
9
 See 47 C.F.R.  1.80(b)(3)
10
 See 47 U.S.C.  401, 501, 503, 510
11
 P.L. 93-579, 5 U.S.C.  552a(e)(3)
12
 18 U.S.C.  1001 et seq.