I 118th CONGRESS 2d Session H. R. 8416 IN THE HOUSE OF REPRESENTATIVES May 15, 2024 Ms. Stefanik (for herself, Mr. Moolenaar , Mr. Wittman , Mrs. Hinson , and Mr. Banks ) introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committees on Transportation and Infrastructure , and Agriculture , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Harmonized Tariff Schedule of the United States to increase the rate of duty on unmanned aircraft, and for other purposes.

1. Short title This Act may be cited as the Drones for First Responders Act . 2. Findings and sense of Congress (a) Findings Congress makes the following findings: (1) Unmanned aircraft that are made in the People’s Republic of China dominate the current market in the United States for unmanned aircraft and present an unacceptable national security risk. (2) Through direct subsidization and targeted investment by the Chinese Communist Party, unmanned aircraft suppliers in the People’s Republic of China are undercutting the domestic and partnered unmanned aircraft markets and undermining ad valorem tariffs. (3) Over 90 percent of unmanned aircraft operated by America’s first responders are made in the People’s Republic of China. (4) It is strategically critical for first responders, critical infrastructure providers, and farmers and ranchers to have access to secure unmanned aircraft that are manufactured in the United States or by our partners and allies. (5) The United States cannot rely on the People’s Republic of China to supply unmanned aircraft that are critical to first responder operations. (6) It is vital to the national security of the United States that unmanned aircraft manufacturers of the United States and our partners and allies are competitive with Chinese unmanned aircraft manufacturers. (7) The United States has a national security interest in securing the supply chain for unmanned aircraft to the domestic market, allies, and free trade partners. (8) Implementing tariffs on unmanned aircraft from the People’s Republic of China has the effect of incentivizing sourcing domestically and in allied and partnered countries, which in turn has the effect of promoting resilient supply chains. (b) Sense of Congress It is the sense of Congress that phasing-in a protective specific duty for unmanned aircraft is prudent and necessary to safeguard this critical industry and increase the competitiveness of the unmanned aircraft industry outside of the People’s Republic of China. 3. Duty increase for imports of unmanned aircraft (a) In general Subchapter III of chapter 99 of the HTS is amended— (1) by inserting the following new subheadings 9903.87.01 and 9903.87.02, and the superior heading to subheading 9903.87.01, with the article description for subheading 9903.87.01 having the same degree of indentation as the article description for subheading 9903.85.11: Heading/ Subheading Article Description Rates of Duty 1 2 General Special Articles the product of China: 9903.87.01 Unmanned aircraft, as provided for in note 31 to subchapter III of chapter 99 (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 rates of duty provided in note 31 to this subchapter No change No change . (2) by inserting the following new U.S. note to subchapter III of chapter 99 in numerical sequence: 31. (a) For the purposes of subheading 9903.87.01, certain products of China shall be subject to additional ad valorem rates of duty, as provided for in this note. The products of China that are subject to additional ad valorem rates of duty under subheading 9903.87.01 and in accordance with the provisions of this note are products of China that are classified in the following 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. All products of China that are classified in the subheadings enumerated in this U.S. note are subject to the additional ad valorem rates of duty imposed by subheading 9903.87.01, in accordance with the provisions of this note. (b) The duty rate in the Rates of Duty 1-General column for goods entered under subheading 9903.87.01 shall be as follows: (1) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the day that is 30 days after the date of enactment of the Drones for First Responders Act through the close of the day that is one year after the date of enactment: 30%. (2) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the day after the day that is one year after the date of enactment through the close of the day that is two years after the date of enactment: 35%. (3) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the day after the day that is two years after the date of enactment through the close of the day that is three years after the date of enactment: 40%. (4) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the day after the day that is three years after the date of enactment through the close of the day that is four years after the date of enactment: 45%. (5) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on the day after the day that is four years after the date of enactment: $100 each + 50%. (c) Notwithstanding U.S. note 1 to this subchapter, all products of China that are subject to the additional ad valorem rates of duty imposed by subheading 9903.87.01, and provided for in this note, shall also be subject to the additional rates of duty imposed by any other headings or subheadings in subchapter III of chapter 99 of the HTS and to the general rates of duty imposed on products of China classified in the subheadings enumerated in this note. (d) Products of China that are classified in the subheadings enumerated in this note that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional ad valorem rates of duty imposed by subheading 9903.87.01. (e) Products of China that are provided for in subheading 9903.87.01 and classified in one of the subheadings enumerated in this note shall continue to be subject to antidumping, countervailing, or other duties, fees, exactions, and charges that apply to such products. . (b) Effective date Subheading 9903.87.01, the superior heading to subheading 9903.87.01, and U.S. note 31 to subchapter III of chapter 99 of the HTS, as added by subsection (a), shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 30 days after the date of enactment of this Act. 4. Strengthened rules of origin for entries of unmanned aircraft under heading 8806 of the HTS (a) In general Notwithstanding any provisions of the general notes to the HTS, beginning on January 1, 2030, unmanned aircraft classified under heading 8806 of the HTS may not enter the customs territory of the United States unless— (1) the entry of the unmanned aircraft is accompanied by a certificate or other documentation required by U.S. Customs and Border Protection establishing the unmanned aircraft does not contain a flight controller, radio, data transmission device, camera, gimbal, ground control system, operating software, network connectivity hardware, or data storage 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, 2025— (i) authorized for operations under the provisions of title 14 of part 135 of the 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, 2025, 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) Definitions In this section— (1) the term air carrier has the meaning given that term in section 40102 of title 49, United States Code; and (2) the term customs territory of the United States has the meaning given that term in general note 2 of the HTS. 5. Secure Unmanned Aircraft Systems for First Responders Fund and grant program (a) Secure Unmanned Aircraft Systems for First Responders Fund (1) Establishment There is established in the Treasury of the United States a fund, to be known as the “Secure Unmanned Aircraft Systems for First Responders Fund” (in this section referred to as the Fund ). (2) Deposit of amounts There shall be deposited in the Fund all duties imposed and collected by the United States under subheading 9903.87.01 of the HTS, and as further provided for under U.S. note 31 to subchapter III of chapter 99 of the HTS, as added by section 3(a). (3) Use of amounts (A) In general The Secretary is authorized to use the amounts in the Fund for a fiscal year for purposes of carrying out the grant program established under subsection (b) for the next fiscal year. (B) Unobligated and unexpended funds The Secretary is authorized to make amounts in the Fund that are not obligated or expended in accordance with subparagraph (A) available for the purposes described in subparagraph (A) for the next available fiscal year. (b) Grant program (1) In general Beginning not later than one year after the date of the enactment of this Act, the Secretary shall establish and carry out a program to provide grants on a fiscal year basis to first responders, farmers and ranchers, and providers of critical infrastructure to— (A) purchase or lease secure unmanned aircraft systems; (B) support operational capabilities of such systems by the grant recipient; and (C) support the program management capability of the grant recipient to use such systems. (2) Consultation In carrying out the program, 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 made available for purposes of carrying out the program— (A) 60 percent of such amounts in the Fund shall be made available for grants that benefit first responders; (B) 20 percent of such amounts in the Fund shall be made available for grants that benefit farmers and ranchers; and (C) 20 percent of such amounts in the Fund shall be made available for grants that benefit providers of critical infrastructure. (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 not later than 90 days after the date of the submission of the application. (ii) Allocation timing Amounts under a grant shall be allocated in a manner that prioritizes the funding to recipients in States or localities that have established bans on the purchase, lease, or operation of unmanned aircraft based on their country of origin or on their manufacturer. (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 for the Secretary to process the applications, the Secretary may extend the deadline described in clause (i) for not more than 45 days. (B) Effect of denial Denial of an application for a grant under the program shall not preclude the applicant from resubmitting the application with additional documentation or submitting a new application at a later date. (5) Report Not later than 1 year after the date on which the program is established, and annually thereafter, the Secretary shall submit to Congress a report on the implementation of the program in the prior year, including a description of all grants provided under the program and the amounts of such grants. 6. Definitions In this Act: (1) Covered foreign entity The term “covered foreign entity” means a foreign entity that is— (A) an entity on the Federal Government’s Consolidated Screening List; (B) an entity on the Department of Defense’s Chinese Military Company List as established by section 1260H of William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( 10 U.S.C. 113 note); (C) an entity on the Department of Treasury’s Non-SDN Chinese Military Industrial Complex Companies List; (D) an entity on the Department of Homeland Security’s Uyghur Forced Labor Prevention Act Entity List; or (E) an entity identified as a covered foreign entity, as such term is defined in section 1822(1) of the American Security Drone Act of 2023 (41 U.S.C. note prec. 3901), for purposes of such Act. (2) 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 ). (3) 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 ). (4) Foreign adversary country The term foreign adversary country means a covered nation, as such term is defined in section 4872(d)(2) of title 10, United States Code. (5) HTS The term HTS means the Harmonized Tariff Schedule of the United States. (6) Fund The term Fund means the Secure Unmanned Aircraft Systems for First Responders Fund established by section 5. (7) Schedule of Concessions (A) In general The term Schedule of Concessions means Schedule XX of the WTO. (B) Terms from Uruguay Round Agreements Act In this paragraph, the terms “Schedule XX” and WTO have the meanings given such terms in section 2 of the Uruguay Round Agreements Act ( 19 U.S.C. 3501 ). (8) Secretary Except as otherwise provided, the term Secretary means— (A) the Secretary of Homeland Security; or (B) the Secretary’s designee. (9) Secure unmanned aircraft system The term secure unmanned aircraft system means an unmanned aircraft system, as such term is 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.