FCC Leads Expanding Federal Restrictions On Foreign Drones

The federal government has created an expansive regulatory regime aimed at restricting foreign drone manufacturers' access to the US market. 

The Federal Communications Commission (FCC) has taken the lead, but other federal agencies are imposing additional restrictions (including tariffs, procurement restrictions, and supply chain scrutiny). An existing approval or a US distribution partner may no longer be enough to preserve access to the US market. And additional proposed rules, if adopted, would tighten the requirements even further. These measures make a drone manufacturer's location of production central to its ability to access to the US market.

The FCC's conditional approval process, however, provides a pathway to continue importing foreign-produced equipment pending completion of a US onshoring plan. Manufacturers submit applications through the FCC for review by Department of War (DoW) or Department of Homeland Security (DHS). If the reviewing agency determines that the products do not pose national security risks and approves the US onshoring plan, the FCC excludes those products from the Covered List. A little-noticed facet of the Trump Administration's 100% tariffs on certain drones is the role of the conditional approval process in obtaining tariff relief while bringing production to the United States. The Commerce Department is to consider existing conditional approvals when evaluating onshoring plans for purposes of tariff relief during construction of US manufacturing facilities.

The FCC Covered List

The FCC added foreign-produced uncrewed aircraft systems (UAS) and critical components to its Covered List on December 22, 2025. This was based on a National Security Determination (NSD) issued by the Department of War regarding the security risks of foreign-produced drones. Equipment on the Covered List generally cannot receive a new FCC equipment authorization, which prevents new models from being imported, marketed, or sold in the United States. This includes authorization via the streamlined SDoC (Supplier's Declaration of Conformity) process. Limited importation of a covered UAS is allowed for purposes of demonstration at an industry trade show.

For purposes of the Covered List, an "uncrewed aircraft" is defined as "an aircraft operated without the possibility of direct human intervention from within or on the aircraft." The associated UAS "critical components" are broadly defined to include data transmission devices, communications systems, flight controllers, ground control stations and controllers, navigation systems, sensors and cameras, batteries, and motors. Docks are also considered a UAS critical component. Note that UAS critical components means components designed and intended primarily for use in UAS.

There are several exceptions. First, DoW issued a subsequent National Security Determination clarifying that toy drones should be removed from the Covered List. To qualify as a toy drone, the device must have a maximum weight of 150 grams, a maximum sustained altitude of less than 300 feet, and no wifi or cellular capability, among other requirements. Second, UAS and UAS critical components that are on the Defense Contract Management Agency's (DCMA) Blue UAS Cleared List are exempt until January 1, 2028. Third, UAS and UAS critical components that qualify as "domestic end products" under the Buy American standard of 48 CFR § 25.101(a) are also exempt until January 1, 2028. 

Finally, the FCC established a pathway called a "conditional approval" to allow manufacturers to continue to import foreign-made products subject to an approved onshoring plan and the conditions of the approval. To obtain a conditional approval, an applicant must submit detailed information regarding its corporate structure, manufacturing and supply chain, and plan to establish or expand its US manufacturing operations.

Tariffs combined with onshoring incentives

President Trump issued proclamation 11055 on August 13, 2026, which establishes significant tariffs on drones and UAS components. Beginning September 3, 2026, drones weighing more than 25 kilograms, drones with thermal-imaging equipment, docking stations, and designated components generally face a 100 percent additional duty, while drones weighing less than 25 kilograms (without thermal imaging) generally face a 25 percent tariff. Additional specified components are scheduled for a 25 percent duty beginning February 9, 2027.

Under the proclamation, the Commerce Department can review onshoring plans from companies that propose to "build, refurbish, or expand a facility" in the United States that will produce UAS. Construction must begin by January 20, 2029. Companies that have a Commerce-approved onshoring plan would not need to pay the extra tariff while the facility is under construction.

In determining whether such an onshoring plan is acceptable, the Commerce Department will consider whether the applicant already has a conditional approval from DoW or DHS (and DoW/DHS are authorized to share the conditional approval application with Commerce). Further, the Commerce Department is to "align the onshoring requirements with the FCC's Conditional Approval application."

Increased scrutiny of previously approved drones

The initial addition of drones to the Covered List allowed continued importation of previously authorized models. However, the FCC is considering prohibiting the continued importation and marketing of foreign-produced UAS and critical components that qualify as "military-grade." A UAS or component would be considered military-grade if it meets any of the following criteria:

• Weighs 55 pounds or more on takeoff;
• Is capable of dispensing hazardous substances;
• Is capable of thermal imaging;
• Is capable of Light Detection and Ranging (LiDAR);
• Is a docking station for autonomous landing, charging, battery swaps or data transfer;
• Is specially designed to incorporate a defense article; or
• Is a swarming drone or swarm control ground station. 

This proposal, if adopted, would affect various types of civilian agricultural, inspection, and public safety drones.

In a separate notice, the FCC proposed to prohibit the continued importation and marketing of UAS and critical components produced by the following entities and their affiliates and subsidiaries: Cogito Tech Company, Limited; Fikaxo Technology Inc.; Lyno Dynamics LLC; Skyhigh Tech LLC; Spatial Hover Inc; SZ Knowact Robot Technology Co., Ltd.; WaveGo Tech LLC; Xtra Technology LLC; and Guangzhou Xaircraft Technology Co. Ltd.

Expanded scrutiny of components

The FCC has tightened its restrictions on importing components manufactured by Covered List entities. In new rules that take effect on October 13, 2026, a new device cannot be imported if it contains a "logic-bearing hardware component" that is manufactured by an entity named on the Covered List, if the device would be prohibited had the Covered List entity made the device itself. For drone manufacturers, this means that components such as flight control processors, communications chipsets, and camera processing boards should be checked to see if they are manufactured by a Covered List entity.

The FCC is also considering broader changes to its equipment authorization rules. It sought comment on restrictions extending beyond logic-bearing hardware to other components and software supplied by Covered List entities, certification requirements for devices in Covered List sectors (including UAS) regardless of manufacturer, and a US-based liable party for FCC-certified equipment.

Federal purchasing restrictions

Federal procurement rules further target foreign-produced drones. Under FAR 52.240-1, implementing the American Security Drone Act, contractors may not deliver a UAS system manufactured or assembled by an entity on the Federal Acquisition Security Council's list of covered foreign entities. The restrictions also prohibit contractors from operating a covered system in performing a federal contract or using federal funds to procure or operate it.

Relaxed UAS export controls

Concurrently with the above restrictions, the Bureau of Industry and Security (BIS) is making it easier for US drone manufacturers to export their products. The interim final rule, effective January 20, eased export control for UAS with endurance below one hour going to Country Group A:1 destinations and allows certain long-range cargo delivery and agricultural spraying drones to be exported to certain US partners and allies (Country Group A:5).

The August final rule, effective August 13, went further. It eliminated wind gust tolerance as a parameter for determining UAV controls under the EAR; increased the threshold for national security controls from an endurance of 30 minutes to an endurance of 3 hours; removed national security controls on software and technology associated with UAVs with an endurance less than 3 hours, and removed national security controls on designed parts, components, accessories, and attachments for UAVs that do not provide any significant military or intelligence capabilities.

FCC considers measures to support domestic manufacturers

Finally, the FCC's "Unleashing American Drone Dominance" proceeding sought comment on how to: reduce regulatory burdens for American drone manufacturers, ensure that American drone manufacturers have sufficient spectrum for drone operations; facilitate American firms' investment in drone capabilities, and streamline the Commission's experimental licensing rules.

Steptoe's Telecom attorneys can help steer companies that have an affected drone through the conditional approval process. Contact the author if you need assistance in this area.