1. Drone Exports:
What Every Drone Company
Should Know About Exporting Drones.
St. Louis, MO (June 10, 2014) – US based Unmanned Aerial Systems (UAS) leadership is driving an increase of
UAS exports. A wide array of federal laws and regulations, collectively known as “export controls,” apply to
exports of both UAS hardware and technical information. Additionally, UAS exporters are affected by the
recent Export Administration Regulations (EAR) amendments and need to review their export product
classifications. Improper compliance can result in penalties up to $1 million per violation for companies and
may include jail time for individuals.
Beyond traditional “export” shipments, export controls apply to disclosure of technical information to a
foreigner in the US (“deemed exports”), shipments of exported products from one foreign country to another
(“re-export”), and the delivery of products to a party in a given foreign country (“in-country transfers”). Export
controls apply to goods, materials, technology, know-how, and software produced, developed, or owned by
a US company or individual, even when made overseas.
Generally, UAS and related technical data, software, components, parts, training and maintenance services
are subject to two primary US export control regimes: The International Traffic in Arms Regulations (ITAR), and
the Export Administration Regulations (EAR). Additionally, UAS exporters must comply with sanctions and
embargoes of the US Government against certain countries and individuals.
The ITAR applies to defense articles and defense services covered by the United States Munitions List. More
precisely, ITAR covers military UAVs, armed UAVs, target drones, optionally piloted vehicles, UAV launch
systems, flight control and vehicle management systems, and other UAV components. While the definitive
standard is “military,” it has been traditionally interpreted to exclude clearly civil items.
The EAR primarily deals with exports of commercial and “dual-use” items. These items range from plastic soda
cups to turbine engines. The majority of commercial products are designated as EAR99 and generally do not
require an export license. Conversely, dual-use products predominantly have commercial uses yet may have
military applications. The dual-use items have a specific Export Control Classification Number (ECCN) and are
listed in the Commerce Control List. The EAR controls for UAS are based on UAS’s capabilities not their
intended use. Most commercial UAS systems are generally subject to the EAR as dual-use items and require
an authorization to be exported.
Effective May 27, 2014, the Bureau of Industry and Security has amended the EAR to comply with the Missile
Technology Control Regime (MTCR) member countries’ agreement. The amended EAR has eight revised
ECCNs, one new ECCN (9A102 for turboprop engine systems) and two revised definitions of the terms
“payload” and “repeatability”. The MTCR comprises missile technology and long range UAVs international
rules. The MTCR seeks to limit weapons of mass destruction proliferation by controlling exports of goods and
technologies for weapons delivery systems.
To successfully export UAS and create an effective international UAS distribution chain, it is vital to understand
and comply with UAS export controls. Additionally, every UAS exporter’s know-your-customer process should
look into the country where the UAS end-users are located, the UAS’s purpose, and who the UAS end-users
are to ensure the exported products are not going to embargoed or sanctioned destinations or persons.
Sandler Law’s successful experience includes designing export compliance programs. Sandler Law
advocates for UAS designers, manufacturers, operators (including law enforcement and universities),
and insurance providers. Contact us - isandler@isandlerlaw.com or (314) 303 1361.
THE CHOICE OF A LAWYER IS AN IMPORTANT DECISION AND
SHOULD NOT BE BASED SOLELY UPON ADVERTISING.