News

BIS revises licensing requirements for commercial UAVs

26 January 2026

Key takeaways

The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a new interim final rule on January 20, 2026 that makes two changes in an attempt to ease licensing requirements on certain commercial UAVs.

First, it removes licensing requirements for exports, reexports and in-country transfers of specific short‑endurance UAVs to nearly all Wassenaar Arrangement partners (Country Group A:1).

Second, the new rule expands License Exception STA eligibility to select non-military MT‑controlled UAVs destined for certain U.S. partners and allies (Country Group A:5).

These changes are intended to streamline exports of certain civil UAVs to trusted partners and countries in line with Executive Order 14307 while maintaining safeguards against diversion and national security risks.

On January 20, 2026, the U.S. Department of Commerce's Bureau of Industry and Security (“BIS”) issued an interim final rule (“IFR”) in an attempt to ease licensing requirements applicable to certain civil unmanned aerial vehicles (“UAVs”). The IFR makes two principal regulatory changes: (1) it revises the National Security (“NS”) reason for control applicable to certain short‑endurance commercial UAVs classified under ECCN 9A012.a.1, removing license requirements for Country Group A:1 countries; and (2) it makes select Missile Technology (“MT”) controlled UAVs in ECCNs 9A012 and 9A120 eligible for export, reexport, and in-country transfer to or within Country Group A:5 destinations under License Exception Strategic Trade Authorization (“STA”) (15 C.F.R. § 740.20 (c)(1)(ii)). The IFR was made effective as of January 20, 2026. The IFR implements directives from Executive Order (“EO”) 14307 (“Unleashing American Drone Dominance”), which instructed Commerce to amend the Export Administration Regulations (“EAR”) to enable expedited exports of US-manufactured civil UAVs to trusted foreign partners, provided the transactions pose no diversion or national security risk. BIS is accepting public comments on the IFR through February 19, 2026 (30 days after filing for public inspection).

Key regulatory changes

1. Eased Controls for Certain Short Endurance Commercial UAVs (ECCN 9A012.a.1)

BIS revised the National Security (“NS”) reason for control applicable to UAVs in ECCN 9A012.a.1 (endurance less than or equal to thirty (30) minutes but less than one hour and capable of stable flight in winds greater than or equal to 46.3 km/h (25 knots)). The reason for control applicable to these items changed from NS Column 1 to NS Column 2, which removes license requirements for exports, reexports and in-country transfers to or within Country Group A:1 (all Wassenaar Arrangement Participating States except Malta, Russia, and Ukraine), which includes countries in Western Europe, Japan, South Korea, India, Turkey, and South Africa, among others. Previously, these UAVs could be exported, reexported or transferred (in-country) without a license only to or within Australia, Canada, and the United Kingdom.

2. License Exception STA Eligibility for Certain MT Controlled UAVs (ECCNs 9A012 & 9A120)

Prior to this rule, MT controlled UAVs were not eligible for License Exception STA, and exports, reexport or transfers (in-country) to or within most destinations (except Australia, Canada, and the United Kingdom) required a BIS license. The IFR creates a new authorization at Section 740.20(c)(1)(ii) of the EAR that permits exports, reexports or transfers (in-country) of certain MT controlled UAVs under License Exception STA to or within Country Group A:5 (e.g., the European Union, Japan, South Korea, Canada, Australia, New Zealand), provided they cannot deliver a payload of at least 500 kg to a range of at least 300 km. To overcome the general restriction on the use of license exceptions for MT-controlled items and make the UAVs detailed below eligible for License Exception STA to Country Group A:5, the IFR also (1) revises Section 740.20(b)(2)(iii) to add a carve-out for these MT items under License Exception STA; and (2) adds Section 740.2(a)(5)(i)(G) as an exclusion from the general restriction on the use of License Exceptions for MT items.

As a result of these changes, the following items are now eligible for License Exception STA to Country Group A:5, provided they are not capable of delivering at least a 500 kg payload to a distance of at least 300 km:

Certain ECCN 9A012 UAVs: Non military UAVs controlled for MT reasons because they are capable of a maximum range greater than or equal to 300 km (but less than 500 km).
All ECCN 9A120 UAVs: UAVs incorporating aerosol or liquid dispensing systems with capacity greater than 20 liters.

License exception STA compliance obligations

Exports under License Exception STA (15 C.F.R. § 740.20) remain subject to stringent conditions, including:

Consignee ECCN Notification: Exporter must provide the ECCN to the consignee of each item to be exported under License Exception STA. A reexporter or transferor must furnish the ECCN to subsequent consignees.
Prior Consignee Statement: The exporter, reexporter, or transferor must obtain a specific signed written statement (set forth in Section 740.20(d)(2)) before export/reexport/transfer of the item, and retain the statement for at least five years (per BIS’s general recordkeeping requirements).
Notice to Consignee of License Exception STA Use: Exporters (or reexporter/transferor as applicable) must notify the consignee in writing that the shipment is being made pursuant to License Exception STA.
Special Requirements for Technology or Source Code Releases: Additional notices may apply when exporting technology or source code to nationals of Country Group A:5 or A:6 countries.

Policy rationale

According to BIS, the changes were made pursuant to EO 14307 and recognize that commercial UAV capabilities have outpaced older export control approaches. Foreign equivalent UAVs now have broad global availability, and BIS aims to reduce unnecessary licensing burdens while maintaining safeguards against diversion to programs of concern.

Comment period

BIS invites comments on all aspects of the IFR. Comments must be submitted to www.regulations.gov under BIS 2025 0092 by February 19, 2026.

Practical takeaways for UAV manufacturers and exporters

BIS licenses are no longer required for certain short-range UAVs classified under ECCN 9A012.a.1 when destined for Country Group A:1.
UAVs that are MT-controlled because they are capable of either a maximum range of at least 300 km (certain ECCN 9A012 items) or incorporate an aerosol dispensing system/mechanism with a capacity greater than 20 liters (all ECCN 9A120 items) are now eligible for License Exception STA when destined for Country Group A:5, provided they are not capable of delivering at least a 500 kg payload to a distance of at least 300 km.
License Exception STA remains a complex exception with significant requirements; exporters should review or update internal License Exception STA compliance procedures before relying on it.
UAVs capable of delivering a payload equal to or greater than 500 kg to range equal to or greater than 300 km remain ineligible for License Exception STA, and continue to require case by case licensing.
Stakeholders should consider submitting comments to BIS, particularly on definitions, operational thresholds, and License Exception STA compliance burdens.

AI tools have been used to support drafting of this publication. All content has been reviewed and approved by Hogan Lovells lawyers.

Authored by Ajay Kuntamukkala, Julia Diaz, Kelly Heesch, and Lisa Ellman.