119-s2168

[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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