Drone Rule Proposed

The Department of Commerce’s Bureau of Industry and Security (BIS) has issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comments on regulations addressing risks posed by information and communications technology and services (ICTS) integral to unmanned aircraft systems (UAS).

This ANPRM aims to identify undue or unacceptable risks to U.S. national security, including ICTS supply chains, critical infrastructure, and the safety of U.S. persons, posed by ICTS linked to foreign adversaries such as China and Russia.

BIS seeks public feedback on several matters including: definitions of UAS and components, assessments of how potential classes of ICTS transactions integral to UAS may present undue or unacceptable risks to U.S. national security, evaluations of risk posed by different foreign adversaries, potential processes for the public to request approval to engage in an otherwise prohibited transaction, the economic impact such regulation could have on certain entities, and, where feasible, potential mitigation measures.

China Hawks Cheer

Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House  Select China Committee applauded the move. "Last June, the Select Committee requested that Commerce utilize its authorities over information and communications technology and services (ICTS) to restrict PRC drones in the United States. Yesterday, Commerce did exactly that, and our nation’s security is better off for it," the lawmakers said in a statement Friday.

Summary of Rule

BIS is considering proposing a rule to address the undue or unacceptable risks posed by certain transactions involving ICTS integral to unmanned aircraft system (UAS) when the ICTS are designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries .

BIS is also considering whether there are mitigation measures that, if adopted, would allow UAS market participants to engage in transactions that would otherwise pose undue or unacceptable risks.

The purpose of this ANPRM is to gather information to support BIS’s potential development of a rule regarding foreign adversary ICTS integral to UAS. 

“This ANPRM marks a crucial step towards safeguarding the ICTS supply chain against foreign adversarial influences,” said Elizabeth Cannon, Executive Director of the Office of Information and Communications Technology and Services (OICTS).

Objective: BIS is considering regulations to mitigate risks associated with ICTS used in UAS, focusing on threats from foreign adversaries. These risks include sabotage, espionage, and manipulation of critical infrastructure.

Background:

•Pursuant to Executive Order 13873, BIS is empowered to address threats from ICTS linked to foreign adversaries.

•Foreign adversary nations can co-opt private entities for intelligence and cyber activities, leveraging dominant positions in global UAS markets.

Public Input Requested:

•Definitions: Feedback on how to define UAS for regulatory purposes.

•Risks: Identification of vulnerabilities in ICTS components of UAS and the sectors most at risk.

•Threat Analysis: Evaluation of threats from foreign adversaries, particularly China and Russia.

•Mitigations: Input on measures to reduce risks, such as cybersecurity standards, and potential processes for authorizing certain transactions.

•Economic Impact: Analysis of potential costs and benefits of proposed regulations on U.S. businesses and the public.

Concerns Raised:

•Data exfiltration and unauthorized remote access to UAS systems.

•Foreign adversaries’ ability to exploit UAS functionality through ICTS vulnerabilities.

•Economic and supply chain impacts of prohibiting transactions involving foreign adversary-linked ICTS.

The ANPRM aims to balance national security interests with the economic implications of regulating ICTS in the UAS sector. Public feedback will shape the development of future rules.

The deadline for public comments is March 4, 2025.