[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2168 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 2168

    To amend the Harmonized Tariff Schedule of the United States to 
   increase the rate of duty on unmanned aircraft imported from the 
          People's Republic of China, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 25 (legislative day, June 24), 2025

  Mr. Scott of Florida introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Harmonized Tariff Schedule of the United States to 
   increase the rate of duty on unmanned aircraft imported from the 
          People's Republic of China, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Drones for America Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States has a national security interest in 
        securing the supply chain for unmanned aircraft in the United 
        States;
            (2) 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
            (3) 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.

SEC. 3. DUTY INCREASE FOR IMPORTS OF UNMANNED AIRCRAFT FROM THE 
              PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--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:
            (1) 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:


``       ...............  Articles that are    ...................  ...................  ...................
                           the product of
                           China:
 
         9903.87.01         Unmanned           The rate of duty     The duty provided    The duty provided
                             aircraft, as       provided in note     in the applicable    in the applicable
                             provided for in    31 to this           subheading           subheading
                             note 31 to this    subchapter
                             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).....
 
         9903.87.02         Parts of unmanned  The rate of duty     The duty provided    The duty provided    ''
                             aircraft of        provided in note     in the applicable    in the applicable    .
                             heading 8806, as   31 to this           subheading           subheading
                             provided for in    subchapter
                             note 31 to this
                             subchapter
                             (provided for in
                             subheadings
                             8807.10.00,
                             8807.20.00, or
                             8807.30.00).....

            (2) By inserting in numerical sequence the following new 
        U.S. note:
            ``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.''.
    (b) Effective Date.--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.

SEC. 4. STRENGTHENED RULES OF ORIGIN FOR ENTRIES OF UNMANNED AIRCRAFT 
              AND PARTS FOR UNMANNED AIRCRAFT.

    (a) In General.--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--
            (1)(A) 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
            (B) 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
            (2) U.S. Customs and Border Protection confirms the 
        veracity of the certificate or other documentation required by 
        paragraph (1).
    (b) Exemption.--
            (1) In general.--Subsection (a) shall not apply with 
        respect to unmanned aircraft classified under heading 8806 of 
        the HTS that--
                    (A) the Federal Aviation Administration has, before 
                January 1, 2026--
                            (i) authorized for operations under the 
                        provisions of part 135 of title 14, Code of 
                        Federal Regulations; or
                            (ii) included in an air carrier's exemption 
                        under section 44807 of title 49, United States 
                        Code; and
                    (B) are not manufactured in whole by a covered 
                foreign entity or in a foreign adversary country.
            (2) List.--Not later than January 1, 2026, the 
        Administrator of the Federal Aviation Administration shall--
                    (A) 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
                    (B) 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.
    (c) Applicability.--The prohibition under subsection (a) shall 
apply--
            (1) with respect to unmanned aircraft classified under 
        heading 8806 of the HTS, on and after January 1, 2028; and
            (2) with respect to parts for such aircraft classified 
        under heading 8807 of the HTS, on and after January 1, 2031.

SEC. 5. GRANT PROGRAM TO ENSURE FIRST RESPONDERS, FARMERS AND RANCHERS, 
              AND CRITICAL INFRASTRUCTURE PROVIDERS HAVE SECURE 
              UNMANNED AIRCRAFT SYSTEMS.

    (a) Secure Unmanned Aircraft Systems Trust Fund.--
            (1) Establishment.--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--
                    (A) amounts transferred to the Trust Fund under 
                paragraph (2); and
                    (B) any amounts that may be credited to the Trust 
                Fund under paragraph (3).
            (2) Transfer of amounts.--
                    (A) In general.--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).
                    (B) Frequency of transfers.--The Secretary shall 
                transfer amounts required by subparagraph (A) to the 
                Trust Fund not less frequently than quarterly.
            (3) Investment of amounts.--
                    (A) Investment of amounts.--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.
                    (B) Interest and proceeds.--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.
            (4) Use of amounts.--
                    (A) In general.--Amounts in the Trust Fund shall be 
                available, without further appropriation, to carry out 
                the grant program established under subsection (b).
                    (B) Availability of amounts.--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.
                    (C) Reports required.--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.
    (b) Grant Program.--
            (1) In general.--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--
                    (A) to first responders, farmers and ranchers, and 
                providers of critical infrastructure to--
                            (i) purchase or lease secure unmanned 
                        aircraft systems;
                            (ii) support operational capabilities of 
                        such systems by the grant recipient; and
                            (iii) support the program management 
                        capability of the grant recipient to use such 
                        systems; and
                    (B) to entities that manufacture components for 
                unmanned aircraft systems in the United States--
                            (i) for workforce development; and
                            (ii) to otherwise increase the capacity to 
                        manufacture such components in the United 
                        States.
            (2) Consultation.--In carrying out the program established 
        under paragraph (1), the Secretary shall--
                    (A) consult with the Secretary of Agriculture with 
                respect to developing criteria for reviewing 
                applications for grants submitted on behalf of farmers 
                and ranchers; and
                    (B) consult with the Secretary of Transportation 
                with respect to providing grants to providers of 
                critical infrastructure.
            (3) Priority for grants.--Of the amounts in the Trust Fund 
        in any fiscal year--
                    (A) not more than 60 percent of such amounts shall 
                be made available for grants to first responders under 
                subparagraph (A) of paragraph (1);
                    (B) not more than 20 percent of such amounts shall 
                be made available for grants to farmers and ranchers 
                under that subparagraph;
                    (C) not more than 20 percent of such amounts shall 
                be made available for grants to providers of critical 
                infrastructure under that subparagraph; and
                    (D) 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.
            (4) Review of applications.--
                    (A) Deadline.--
                            (i) In general.--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.
                            (ii) Allocation timing.--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.
                            (iii) Additional time needed for review.--
                        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.
                    (B) Effect of denial.--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.
            (5) Report required.--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.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Air carrier.--The term ``air carrier'' has the meaning 
        given that term in section 40102 of title 49, United States 
        Code.
            (2) Covered foreign entity.--The term ``covered foreign 
        entity'' means a foreign entity that is--
                    (A) on the Federal Government's Consolidated 
                Screening List;
                    (B) domiciled in the People's Republic of China or 
                subject to influence or control by the Government of 
                the People's Republic of China;
                    (C) 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;
                    (D) 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);
                    (E) 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
                    (F) 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).
            (3) Critical infrastructure.--The term ``critical 
        infrastructure'' has the meaning given that term in the 
        Critical Infrastructures Protection Act of 2001 (42 U.S.C. 
        5195c).
            (4) Customs territory of the united states.--The term 
        ``customs territory of the United States'' has the meaning 
        given that term in general note 2 of the HTS.
            (5) First responder.--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).
            (6) Foreign adversary country.--The term ``foreign 
        adversary country'' means a covered nation, as defined in 
        section 4872(f) of title 10, United States Code.
            (7) Secure unmanned aircraft system.--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.
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