Recent regulatory actions by both the Bureau of Industry and Security (BIS) and the Federal Communications Commission (FCC) offer support to U.S. drone and drone-component manufacturers by freeing U.S. exporters from certain controls and making it harder for foreign manufacturers to compete in the U.S. market. As outlined in President Donald J. Trump’s Executive Order 14307 (EO 14307), “Unleashing American Drone Dominance,” the Administration’s aim is to foster “a strong and secure domestic drone sector,” and these actions represent concrete steps towards that goal.[1]
On August 14, 2026, BIS issued a final rule easing export controls on certain UAVs, particularly those intended for commercial use.[2] The final rule explains that existing controls were “outdated” and “ineffective” because UAVs that perform at previously controlled levels are now readily available on the global commercial market, and posits that the rule needed to be updated to reflect commercial realities. Specifically, the rule:
With these changes, manufacturers and re-sellers may now export many civilian drones and associated technology to most destinations worldwide without prior authorization from BIS.[4] The final rule also maintains and clarifies controls for UAVs “specially designed” for military use under the “600 series” control in ECCN 9A610.a. In the rule, BIS noted that smaller, less capable, and commercial UAVs are being modified for military purposes, including military reconnaissance, surveillance, and combat support. BIS accordingly underscored in the rule that if a UAV is “designed or modified to meet the needs of a military customer by adding at least one feature or capability that would not also be included for civil or commercial purposes, regardless of significance,” those UAVs are now captured under ECCN 9A610.a and subject to more onerous “600 series” controls.
BIS’s final rule also expands the availability of License Exception Strategic Trade Authorization (STA). Specifically, STA is now available for 9A610 UAVs to Country Group A:5 destinations, provided the item cannot deliver a payload of at least 500 kg to a range of at least 300 km. This builds on BIS’s January 21, 2026 interim final rule,[5] which first opened STA to Country Group A:5 for certain non-military UAVs under ECCNs 9A012 and 9A120 (namely long-range cargo delivery and agricultural spraying UAVs). It also allowed lower-endurance commercial drones to be exported license-free to most Wassenaar Arrangement participants (Country Group A:1). The August rule leaves those January changes intact and extends comparable STA license requirement relief to the military UAVs category that BIS newly recognizes under ECCN 9A610.a. Expanding STA availability is likely to widen the customer base for U.S.-based suppliers of longer-range drones capable of carrying greater payloads, including those with potential military applications.
The final rule reflects the approach outlined in Executive Order 14307: preserve controls where national security risks remain but reduce controls to align with commercial realities and support U.S. industry.
In December 2025, the FCC tightened restrictions on “foreign-produced” drones and drone components permissible for use in the United States, adding foreign-produced UAS and UAS critical components to its Covered List.[6] The FCC authorizes electronic devices for import, marketing, and sale in the United States,[7] and the FCC Covered List catalogues communications equipment and services deemed to pose an unacceptable risk to the national security of the United States or the safety and security of U.S. persons.[8] Items on the Covered List are generally prohibited from receiving FCC authorization and therefore prevented from entering the U.S. market.[9] These additions to the Covered List apply only to new devices and models and do not prohibit the import, sale, or use of an existing device the FCC previously authorized.[10] However, even minor modifications to existing devices may require new or modified FCC authorizations; thus companies that rely on iterative product improvements or periodic hardware updates should carefully evaluate whether a modification triggers a new authorization requirement.
The National Security Determination underlying the Covered List action references potential dangers posed by adversary use of UAS at large-scale events, such as the World Cup and the 2028 Olympic Games, as well as the potential for surveillance and drug smuggling.[11] The FCC’s action is also likely an effort to curtail Chinese-manufactured drones and further support the U.S. drone industrial base.
The FCC has also shown a willingness to enforce the requirements and prohibitions of its Covered List actions. On August 11, 2026, the FCC revoked the equipment authorizations held by a company for UAS equipment based on the company’s “false statements and representations in applications and supporting application materials” that its devices and equipment were produced in the United States.[12] The FCC also proposed fines against eight UAS industry companies for failing to respond to the FCC’s investigative requests. The proposed orders regarding fines note that failure to respond “is a continuing violation until cured,” meaning potential enforcement penalties could expand with further inaction by the subject companies.
Audit supply chains for foreign-produced content. The recent BIS and FCC actions likely will encourage foreign vendors seeking continued access to the U.S. market to shift their supply chains toward U.S.-based manufacturers. However, U.S. design alone may not satisfy the “domestic end product” requirement, so manufacturers and vendors should audit their product lines to identify components that may contain covered equipment and ensure those components have received the necessary FCC authorization.[13]
Consider pursuing conditional approval. Some UAS and UAS components deemed by DoW and DHS not to pose an unacceptable risk have been granted conditional approval.[14] Foreign companies must generally provide specific diligence information and demonstrate a detailed plan to establish or expand manufacturing in the United States; thus foreign manufacturers who intend to pursue an onshoring plan should begin gathering the necessary information now while concurrently pursuing conditional approval to account for potentially long wait times for DoW and DHS review.[15]
Track the January 1, 2028 sunset of the DoW Blue UAS or other carve-outs. Companies that currently rely on the Blue UAS or “domestic end product” carve-outs from the Covered List should closely monitor whether the Administration again extends, narrows, or makes permanent those exemptions before they lapse.
Review, Develop, or Refresh STA Procedures. Given the expansion of License Exception STA under the final rule, companies should consider whether their products now qualify for the exception. As part of this process, vendors and manufacturers should confirm the applicable ECCN for their products, ensure end-use and end-user requirements are met, and verify the necessary consignee statements have been received and documented.
Conduct or Refresh Item Classification to confirm jurisdiction and classification of exported items. Vendors and manufacturers should review and confirm the appropriate classification for their products. BIS notes in the rule that the addition of even “one feature or capability that would not also be included for civil or commercial purposes, regardless of significance,” may trigger “600 series” controls in 9A610. Companies should be vigilant in tracking how planned product modifications or updates may implicate a different regulatory regime.
[1] Executive Order 14307, “Unleashing American Drone Dominance,” June 6, 2025.
[2] U.S. Department of Commerce, Bureau of Industry and Security, “Streamlining Export Controls for Drone Exports,” 91 Fed. Reg. 52501 (Aug. 14, 2026).
[3] Id.
[4] Id.
[5] U.S. Department of Commerce, Bureau of Industry and Security, “Streamlining Export Controls for Drone Exports,” 91 Fed. Reg. 2467 (January 21, 2026).
[6] Shortly after making this addition to the Covered List, the FCC amended its initial listing and temporarily removed certain UAS and UAS components—including devices on DoW’s Blue UAS Cleared List and devices that qualify as “domestic end products”—deemed by the U.S. Department of War (DoW) to not currently pose unacceptable national security risks. Ultimately, devices that have been granted Conditional Approval by DoW or the Department of Homeland Security (DHS), certain equipment and services listed in the FY25 National Defense Authorization Act (NDAA), and foreign-produced toy drones were removed, as well.
[7] Federal Communications Commission, “Covered List FAQs: UAS and UAS Critical Components” (last visited Aug. 23, 2026).
[8] Federal Communications Commission, “List of Equipment and Services Covered by Section 2 of the Secure Networks Act” (last visited Aug. 24, 2026).
[9] Covered List FAQs, supra note 8.
[10] Id.
[11] Federal Communications Commission, “National Security Determination on the Threat Posed by Uncrewed Aircraft Systems (UAS) and UAS Critical Components Produced in Foreign Countries” (Dec. 21, 2025).
[12] Federal Communications Commission, “FCC Revokes Equipment Authorizations Held by Odyssey Robot LCC” (Aug. 11, 2026).
[13] The “domestic end product” standard mandates that a product be manufactured in the United States and made up of domestic components whose costs exceed 65% of the cost of the finished product, or a product that is commercially available off the shelf. Notably, the domestic content thresholds are slated to increase in 2029.
[14] Equipment and services that have received conditional approvals thus far have largely been headquartered or incorporated in the United States or in allied nations. For example, the FCC recently granted conditional approval to agriculture drones assembled and tested in the U.S. with software and operator data hosted in the U.S.
[15] Federal Communications Commission, “Guidance on Submissions for Conditional Approval for Uncrewed Aircraft Systems (UAS) and UAS Critical Components Produced in Foreign Countries Subject to the FCC’s Covered List” (January 7, 2026).