S2168-119

1. Short title This Act may be cited as the Drones for America Act.

2. Sense of Congress It is the sense of Congress that— the United States has a national security interest in securing the supply chain for unmanned aircraft in the United States; implementing tariffs on unmanned aircraft and components for such aircraft from the People’s Republic of China has the effect of incentivizing sourcing from the United States and allies of the United States, which in turn has the effect of promoting resilient supply chains for unmanned aircraft and components for such aircraft; and applying protective duties against foreign adversary countries, such as the People’s Republic of China, is prudent and necessary to safeguard the domestic unmanned aircraft industry.

3. Duty increase for imports of unmanned aircraft from the People's Republic of China Subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (in this Act referred to as the HTS) is amended as follows: By inserting in numerical sequence the following, with the article description for heading 9903.87.01 having the same degree of indentation as the article description for heading 9903.85.11: By inserting in numerical sequence the following new U.S. note: Products of China classified in headings 9903.87.01 and 9903.87.02 shall be subject to an ad valorem rate of duty specified in subdivision (b), which shall, notwithstanding U.S. note 1 to this subchapter, be in addition to— the rates of duty provided for such articles in chapter 88 and this subchapter; and any other applicable duties (including antidumping and countervailing duties), fees, exactions, or charges. The rates of duty specified in this subdivision and applicable with respect to products of China classified in headings 9903.87.01 and 9903.87.02 are as follows: With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day that is 30 days after the date of the enactment of the Drones for America Act through 11:59 p.m. eastern time on the day that is 1 year after such date of enactment, 30%. With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 1 year after such date of enactment through 11:59 p.m. eastern time on the day that is 2 years after such date of enactment, 35%. With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 2 years after such date of enactment through 11:59 p.m. eastern time on the day that is 3 years after such date of enactment, 40%. With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 3 years after such date of enactment through 11:59 p.m. eastern time on the day that is 4 years after such date of enactment, 45%. With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 4 years after such date of enactment, $100 each + 50%. Products of China that are classified in headings 9903.87.01 and 9903.87.02 that are eligible for temporary duty exemptions or reductions under subchapter II to this chapter shall be subject to the rates of duty specified in subdivision (b) notwithstanding such exemptions or reductions. The amendments made by this section shall with respect to articles entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day that is 30 days after the date of the enactment of this Act. Articles that are the product of China:9903.87.01Unmanned aircraft, as provided for in note 31 to this subchapter (provided for in subheadings 8806.10.00, 8806.21.00, 8806.22.00, 8806.23.00, 8806.24.00, 8806.29.00, 8806.91.00, 8806.92.00, 8806.93.00, 8806.94.00, or 8806.99.00) The rate of duty provided in note 31 to this subchapterThe duty provided in the applicable subheadingThe duty provided in the applicable subheading9903.87.02Parts of unmanned aircraft of heading 8806, as provided for in note 31 to this subchapter (provided for in subheadings 8807.10.00, 8807.20.00, or 8807.30.00) The rate of duty provided in note 31 to this subchapterThe duty provided in the applicable subheadingThe duty provided in the applicable subheading. 31.(a)Products of China classified in headings 9903.87.01 and 9903.87.02 shall be subject to an ad valorem rate of duty specified in subdivision (b), which shall, notwithstanding U.S. note 1 to this subchapter, be in addition to—(i)the rates of duty provided for such articles in chapter 88 and this subchapter; and(ii)any other applicable duties (including antidumping and countervailing duties), fees, exactions, or charges.(b)The rates of duty specified in this subdivision and applicable with respect to products of China classified in headings 9903.87.01 and 9903.87.02 are as follows:(i)With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day that is 30 days after the date of the enactment of the Drones for America Act through 11:59 p.m. eastern time on the day that is 1 year after such date of enactment, 30%.(ii)With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 1 year after such date of enactment through 11:59 p.m. eastern time on the day that is 2 years after such date of enactment, 35%.(iii)With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 2 years after such date of enactment through 11:59 p.m. eastern time on the day that is 3 years after such date of enactment, 40%.(iv)With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 3 years after such date of enactment through 11:59 p.m. eastern time on the day that is 4 years after such date of enactment, 45%.(v)With respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on the day after the day that is 4 years after such date of enactment, $100 each + 50%.(c)Products of China that are classified in headings 9903.87.01 and 9903.87.02 that are eligible for temporary duty exemptions or reductions under subchapter II to this chapter shall be subject to the rates of duty specified in subdivision (b) notwithstanding such exemptions or reductions..

4. Strengthened rules of origin for entries of unmanned aircraft and parts for unmanned aircraft Notwithstanding any provision of the general notes to the HTS, unmanned aircraft classified under heading 8806 of the HTS, and parts for such aircraft classified under heading 8807 of the HTS, may not enter the customs territory of the United States unless— in the case of an unmanned aircraft, the entry of the aircraft is accompanied by a certificate or other documentation required by U.S. Customs and Border Protection establishing that the aircraft does not contain a flight controller, radio, data transmission device, camera, gimbal, permanent magnets (including neodymium iron boron magnets), ground control system, operating software, network connectivity hardware, or data storage manufactured in the People’s Republic of China; and in the case of a part, the entry of the part is accompanied by a certificate or other documentation required by U.S. Customs and Border Protection establishing that the part was not manufactured in the People’s Republic of China; and U.S. Customs and Border Protection confirms the veracity of the certificate or other documentation required by paragraph (1). Subsection (a) shall not apply with respect to unmanned aircraft classified under heading 8806 of the HTS that— the Federal Aviation Administration has, before January 1, 2026— authorized for operations under the provisions of part 135 of title 14, Code of Federal Regulations; or included in an air carrier’s exemption under section 44807 of title 49, United States Code; and are not manufactured in whole by a covered foreign entity or in a foreign adversary country. Not later than January 1, 2026, the Administrator of the Federal Aviation Administration shall— provide the Commissioner for U.S. Customs and Border Protection with a list of unmanned aircraft that qualify for the exemption under this subsection; and certify that the list required by subparagraph (A) contains only unmanned aircraft that are not manufactured in whole by a covered foreign entity or in a foreign adversary country. The prohibition under subsection (a) shall apply— with respect to unmanned aircraft classified under heading 8806 of the HTS, on and after January 1, 2028; and with respect to parts for such aircraft classified under heading 8807 of the HTS, on and after January 1, 2031.

5. Grant program to ensure first responders, farmers and ranchers, and critical infrastructure providers have secure unmanned aircraft systems There is established in the Treasury of the United States a fund, to be known as the Secure Unmanned Aircraft Systems Trust Fund (in this section referred to as the Trust Fund), consisting of— amounts transferred to the Trust Fund under paragraph (2); and any amounts that may be credited to the Trust Fund under paragraph (3). The Secretary of the Treasury shall transfer to the Trust Fund, from the general fund of the Treasury, for fiscal year 2026 and each fiscal year thereafter, an amount equivalent to the amount received into the general fund during that fiscal year and attributable to duties imposed and collected by the United States under headings 9903.87.01 and 9903.87.02 of the HTS and in accordance with U.S. note 31 to subchapter III of chapter 99 of the HTS, as added by section 3(a). The Secretary shall transfer amounts required by subparagraph (A) to the Trust Fund not less frequently than quarterly. The Secretary shall invest such portion of the Trust Fund as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund. Amounts in the Trust Fund shall be available, without further appropriation, to carry out the grant program established under subsection (b). Amounts in the Trust Fund shall be available for obligation and expenditure during the fiscal year during which the amounts were transferred or credited to the Trust Fund and the fiscal year thereafter. Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary shall submit to Congress a report on amounts disbursed from the Trust Fund in the preceding year. Beginning not later than 1 year after the date of the enactment of this Act, the Secretary of Homeland Security shall establish and carry out a program to provide grants— to first responders, farmers and ranchers, and providers of critical infrastructure to— purchase or lease secure unmanned aircraft systems; support operational capabilities of such systems by the grant recipient; and support the program management capability of the grant recipient to use such systems; and to entities that manufacture components for unmanned aircraft systems in the United States— for workforce development; and to otherwise increase the capacity to manufacture such components in the United States. In carrying out the program established under paragraph (1), the Secretary shall— consult with the Secretary of Agriculture with respect to developing criteria for reviewing applications for grants submitted on behalf of farmers and ranchers; and consult with the Secretary of Transportation with respect to providing grants to providers of critical infrastructure. Of the amounts in the Trust Fund in any fiscal year— not more than 60 percent of such amounts shall be made available for grants to first responders under subparagraph (A) of paragraph (1); not more than 20 percent of such amounts shall be made available for grants to farmers and ranchers under that subparagraph; not more than 20 percent of such amounts shall be made available for grants to providers of critical infrastructure under that subparagraph; and not more than 10 percent of such amounts shall be made available for grants to entities that manufacture components for unmanned aircraft systems in the United States under subparagraph (B) of that paragraph. Except as provided in clause (iii), the Secretary shall approve or deny an application for a grant under the program established under paragraph (1) not later than 90 days after the date the Secretary receives the application. Amounts available for providing grants under the program established under paragraph (1) shall be allocated on a first-come, first-served basis, determined by the date the Secretary receives the application. If the Secretary determines that, because an excessive number of applications have been filed at one time, the Secretary needs additional time to process the applications, the Secretary may extend the deadline under clause (i) for not more than 45 days. Denial of an application for a grant under the program established under paragraph (1) shall not preclude the applicant from resubmitting the application with additional documentation or submitting a new application at a later date. Not later than 1 year after the date on which the program is established under paragraph (1), and annually thereafter, the Secretary shall submit to Congress a report on the implementation of the program in the year preceding submission of the report, including a description of all grants provided under the program during that year and the amounts of such grants.

6. Definitions In this Act: The term air carrier has the meaning given that term in section 40102 of title 49, United States Code. The term covered foreign entity means a foreign entity that is— on the Federal Government’s Consolidated Screening List; domiciled in the People’s Republic of China or subject to influence or control by the Government of the People’s Republic of China; identified by the Secretary of Defense under section 1260H(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 10 U.S.C. 113 note) as a Chinese military company operating directly or indirectly in the United States; on the Non-SDN Chinese Military-Industrial Complex Companies List maintained by the Office of Foreign Assets Control of the Department of the Treasury pursuant to Executive Order 13959 (50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance communist Chinese military companies); on a list maintained under clause (i), (ii), (iv), or (v) of section 2(d)(2)(B) of the Act entitled An Act to ensure that goods made with forced labor in the Xinjiang Autonomous Region of the People’s Republic of China do not enter the United States market, and for other purposes, approved December 23, 2021 (Public Law 117–78; 22 U.S.C. 6901 note) (commonly referred to as the Uyghur Forced Labor Prevention Act); or a covered foreign entity, as defined in section 1822 of the American Security Drone Act of 2023 (title XVIII of Public Law 118–31; 137 Stat. 691; 41 U.S.C. note prec. 3901). The term critical infrastructure has the meaning given that term in the Critical Infrastructures Protection Act of 2001 (42 U.S.C. 5195c). The term customs territory of the United States has the meaning given that term in general note 2 of the HTS. The term first responder has the meaning given that term in section 3025 of the Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C. 10705). The term foreign adversary country means a covered nation, as defined in section 4872(f) of title 10, United States Code. The term secure unmanned aircraft system means an unmanned aircraft system (as defined in section 44801 of title 49, United States Code) that is not manufactured or assembled by a covered foreign entity or in a foreign adversary country.