Recently, I discussed the lack of a timely resolution for three pending investigations under Section 232 of the Trade Expansion Act of 1962, and the problems caused by that uncertainty.
An investigation under Section 232 of drones, also called unmanned aircraft systems or UASs, was announced on July 1st of 2025.
Also was not resolved within the 360-day timeline established by the statute, but an announcement was finally issued on August the 13th, but it didn't go into effect until September the 3rd with several unusual features.
The Proclamation established tariffs of 100% on imported drones with a takeoff weight of at least 25 kilograms or with thermal imaging capabilities, docking stations, or certain other critical components that are listed in Annex 1 of the Proclamation.
Tariffs of only 25% will apply to drones weighing less than 25 kg and listed in Annex 2.
And then Annex 3 lists lower risk components also subject to 25% duty but only effective on February 9, 2027.
Duties are also delayed for 180 days for covered products on a list for companies on the approval list associated with the Department of Defense Blue UAS Cleared List or the Blue UAS Framework or on the FCC's Conditional Approval List as of September 2nd.
Duties are capped at 15% for products of the EU, Japan, South Korea, Taiwan, and Switzerland, and Liechtenstein, and at 10% for UK products, provided sufficient materials originate within those countries or the US.
Additional duties are waived for drone parts imported by companies with a Commerce Department-approved onshoring plan, including a commitment to build, refurbish, or expand a facility in the US to produce covered products by January 20, 2029.
Significantly, the Commerce Department has granted discretion to add additional drone components to these tariffs.
And frankly, we've found that additional items that have sometimes been unexpected and unwanted surprises to importers, almost like having a drone diving down on you.
So we'll let you know if we hear any buzz of something flying towards us.
Recently, I discussed the lack of a timely resolution for three pending investigations under Section 232 of the Trade Expansion Act of 1962, and the problems caused by that uncertainty.
An investigation under Section 232 of drones, also called unmanned aircraft systems or UASs, was announced on July 1st of 2025.
Also was not resolved within the 360-day timeline established by the statute, but an announcement was finally issued on August the 13th, but it didn't go into effect until September the 3rd with several unusual features.
The Proclamation established tariffs of 100% on imported drones with a takeoff weight of at least 25 kilograms or with thermal imaging capabilities, docking stations, or certain other critical components that are listed in Annex 1 of the Proclamation.
Tariffs of only 25% will apply to drones weighing less than 25 kg and listed in Annex 2.
And then Annex 3 lists lower risk components also subject to 25% duty but only effective on February 9, 2027.
Duties are also delayed for 180 days for covered products on a list for companies on the approval list associated with the Department of Defense Blue UAS Cleared List or the Blue UAS Framework or on the FCC's Conditional Approval List as of September 2nd.
Duties are capped at 15% for products of the EU, Japan, South Korea, Taiwan, and Switzerland, and Liechtenstein, and at 10% for UK products, provided sufficient materials originate within those countries or the US.
Additional duties are waived for drone parts imported by companies with a Commerce Department-approved onshoring plan, including a commitment to build, refurbish, or expand a facility in the US to produce covered products by January 20, 2029.
Significantly, the Commerce Department has granted discretion to add additional drone components to these tariffs.
And frankly, we've found that additional items that have sometimes been unexpected and unwanted surprises to importers, almost like having a drone diving down on you.
So we'll let you know if we hear any buzz of something flying towards us.
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