FCC Excludes Certain Foreign-Produced UAS And UAS Critical Components From Covered List And Provides Guidance For DoD And DHS Conditional Approvals

Key Takeaways:

• Effective January 7th, the FCC revised the "Covered List" to categorically exempt all UAS and UAS critical components included on the DCMA's Blue UAS list and those that qualify as "domestic end products" under the Buy American Standard.
• The FCC released guidance for entities to seek Conditional Approval from the DoD or DHS that would exempt the approved entity from restrictions imposed by inclusion on the FCC's Covered List.
• Neither the FCC's Covered List update nor its Conditional Approval guidance have any impact on its inclusion of all communications and video surveillance equipment and services, including software, produced by DJI Technologies and Autel Robotics to the Covered List, as directed by the FY25 NDAA.

As explained in greater detail in our December 24th alert, the Federal Communications Commission's (FCC) Public Safety and Homeland Security Bureau (PSHSB) announced on December 22, 2025, the additions of (1) all foreign-produced uncrewed aircraft systems (UAS) and UAS critical components, which includes drones; and (2) all communications and video surveillance equipment and services listed in Section 1709(a)(1) of fiscal year (FY) 2025 National Defense Authorization Act (NDAA) to the FCC's Covered List. The underlying National Security Determination authorized the Department of Defense (DoD) (also known as the Department of War) and Department of Homeland Security (DHS) on a going forward basis to exclude specific UAS, class of UAS or UAS critical components from the Covered List.

Blue UAS list and Buy American Standard Covered List Exemptions

In a January 7th Public Notice, PSHSB revised the Covered List to provide exemptions for all UAS and UAS critical components that are included on the Defense Contract Management Agency's (DCMA) Blue UAS list and for all UAS and UAS critical components that qualify as "domestic end products" under the Buy American Standard.¹ The FCC took this action pursuant to a "Subsequent National Security Determination" made by the DoD. That Subsequent National Security Determination found that the UAS and UAS critical components included on the Blue UAS list do not pose an unacceptable risk to national security because this equipment has undergone "rigorous cyber and hardware assessments" and "are compliant with current U.S. law and regulations and validated as cyber secure." The DoD found that UAS and UAS critical components that qualify as "domestic end products" currently support the Administration's national security imperative to build an American drone industrial base and do not present unacceptable risks to U.S. national security. DoD found that the term "domestic end product" has the meaning found in 48 CFR § 25.101(a). DoD likewise found that a UAS or UAS critical component qualifies as a "domestic end product" where (1) it is manufactured in the United States; and (2) the cost of the domestic components exceeds 65% of the total cost of the finished product. These exceptions will be effective until January 1, 2027, at which time the DoD will reassess whether this equipment poses an unacceptable risk to the national security of the United States or to the safety and security of U.S. persons.

DoD and DHS Conditional Approval Procedures

In a simultaneously released item, the FCC provided guidance for entities that do not fall within the Blue UAS list or Buy American Standard exceptions to apply for individual Conditional Approvals for their covered UAS and UAS critical components. The Conditional Approval procedures require the "UAS and UAS critical component producer[]" to undergo an individualized assessment of "unacceptable risks" that would exempt the approved entity from restrictions imposed by inclusion on the FCC's Covered List. If approved by DoD or DHS, the Conditional Approval(s) will be granted for periods of up to 12 months. Prospective applicants are warned that their Conditional Approval will be terminated (if granted), and they will be precluded from applying again, if they knowingly violate the terms of the Conditional Approval or materially misrepresent information provided to the United States government.

To be considered for Conditional Approval from DoD or DHS, UAS and UAS critical component producers must submit the request to drones@fcc.gov and abide by submission procedures that require the inclusion of:

• A certification by an authorized corporate officer that all the information is complete, accurate and that any material change will be promptly disclosed.
• Information regarding the entity's corporate structure, which includes beneficial owners holding 5% or greater equity and any foreign government ownership, control, influence, financing or material support (applicants must identify any arrangements that allow foreign persons or governments to influence operations, decision-making or access to technology).
• Disclosures relating to manufacturing and supply chain, which includes justification on why any foreign manufactured critical components or UAS are not currently manufactured in the United States, including why these foreign sources were selected and whether alternatives exist and cost of U.S. sourced components as a percentage of the overall cost of the UAS or UAS critical component.
• A U.S. manufacturing and onshoring plan, which includes a detailed, time-bound plan to establish or expand manufacturing in the United States for the UAS or UAS critical components for which the applicant is seeking Conditional Approval and a description of committed and planned capital expenditures, financing, or other investments dedicated to U.S.-based manufacturing and assembly over the next 1-5 years, including expected timelines and milestones.

Once submitted, the FCC will forward the request to the DoD and DHS for a determination. DoD and DHS reserved the right to request additional information as necessary. The Conditional Approval Guidance does not provide any information relating to review timeframes.

Conclusion

As noted above, the three mechanisms—the Blue UAS list, the Buy American Standard and Conditional Approvals—for receiving an exception from the UAS and UAS critical components Covered List designation include different procedures and requirements. Manufacturers needing Conditional Approvals likely would benefit from engaging with the FCC, DoD and DHS now.

Footnote

1. The FCC released a detailed list of FAQs on these updates, which can be found here.

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