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Last week, the House of Representatives passed a bill that would ban some U.S. Federal agencies from purchasing drones and drone components manufactured in certain foreign countries.  The “Drone Origin Security Enhancement Act,” would prevent all government agencies from purchasing drones based solely on their country of manufacture.  A similar bill currently in the Senate, though not as far along as the House bill, would only prohibit such procurement by Department of Homeland Security (“DHS”) agencies.  The proposed bills prohibit the procurement of drones manufactured in any nation designated by the Department of Commerce, the Director of National Intelligence or the Secretary of Homeland Security as a national security threat.  The main target is China, home of major manufacturers of drones and drone components alike.

The consequences of the bills could be far-reaching, as the ban may expand beyond the drone itself to include component parts in products and devices that support the drone system.  The bills define a foreign manufactured drone broadly, including the flight controllers, radios, data transmission devices, cameras, gimbals, ground control systems, and operating software that make up or are mounted on the drone.  These components are critical to drones used in commercial operations.  Due to China’s dominance in manufacturing, these restrictions could be problematic for U.S. Government users and for drone manufacturers that install Chinese-made components on their drones.

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Photo of Mary-Caitlin Ray Mary-Caitlin Ray

A former attorney for the Federal Aviation Administration, Mary-Caitlin represents aircraft owners, operators, and manufacturers as well as investors into aviation related businesses, advising on regulatory and transactional matters. Her clients come to her for practical and strategic advice on navigating complex aviation…

A former attorney for the Federal Aviation Administration, Mary-Caitlin represents aircraft owners, operators, and manufacturers as well as investors into aviation related businesses, advising on regulatory and transactional matters. Her clients come to her for practical and strategic advice on navigating complex aviation challenges. She has significant experience advising clients on the impacts of and solutions for emerging technologies in the aviation sector, including uncrewed aircraft systems (UAS or drones) and electric vertical takeoff and landing (eVTOL) aircraft.

Mary-Caitlin’s practice spans the crewed and uncrewed side of the aviation world.

She has advised Fortune 500 flight departments, high net worth individuals, and manufacturers and suppliers on regulatory concerns related to the operation and production of aircraft, including complex issues related to permitted compensation, pilot licensing, operating structures such as dry leasing, timesharing and fractional ownership agreements, and emergency and Letter of Investigation response related to quality escapes and incidents. She also represents clients in the acquisition and sale of business aircraft, including cross-border transactions requiring the export or import of aircraft.

Mary-Caitlin counsels drone and eVTOL manufacturers, operators, and owners on all aspects of FAA regulatory compliance, including the business impacts of the evolving global regulatory framework for emerging aviation technologies. She also advises drone manufacturers and operators developing internal aviation-related corporate policies and best practices.

Mary-Caitlin has significant experience advising investors on the regulatory implications of investment into a wide array of aviation-related businesses, including MROs, manufacturers (including eVTOL manufacturers), and businesses that own and/or operate aircraft.

Photo of Evan Chuck Evan Chuck

Evan Chuck is a partner in the firm’s Los Angeles office and is a member of the firm’s International Trade and Corporate Groups. He leads the firm’s Asia practice and is also a director of the firm’s China office in Shanghai.

Evan has…

Evan Chuck is a partner in the firm’s Los Angeles office and is a member of the firm’s International Trade and Corporate Groups. He leads the firm’s Asia practice and is also a director of the firm’s China office in Shanghai.

Evan has more than 25 years of international trade and cross-border transactional experience. He has been a strategic advisor to Fortune 500 companies in structuring market entry, global supply chain and e-commerce strategies across the Asia-Pacific region. He has in-depth experience in China with cross-border acquisitions/dispositions, government regulatory compliance, and investigations. He advises major multinational companies on navigating the potential conflicts between and among U.S., E.U., and newly emerging Chinese law, including the Anti-foreign Sanctions Law, the PRC “Blocking Statute”, the PRC Export Control Law, Unreliable Entity List, the PRC Cybersecurity Law, and the PRC Data Security Law. He has also been representing a select group of large, multinational Chinese companies with complex U.S. transactional, tax, and regulatory issues. Evan works closely with the firm’s government affairs group and consulting group, Crowell & Moring International, to align global geo-political policy and strategy with cross-border legal advice.