What We Know About the DJI Customs Issue

On October 16, 2024, Reuters reported that U.S. Customs and Border Protection (CBP) is blocking the import of some DJI drones, citing the Uyghur Forced Labor Prevention Act (UFLPA). DJI, the world’s largest drone manufacturer, controls over half of the U.S. drone market, making the news of a DJI customs ban significant for the industry. This report is based on a leaked letter sent by DJI to its distributors and subsequently obtained by Reuters. DJI responded to the Reuters article with a blog post providing additional context and refuting the claims.

The Customs Issue and UFLPA

The UFLPA, effective since June 2022, is designed to prevent goods produced with forced labor from entering the U.S. It allows U.S. authorities to block imports of products presumed to be produced wholly or in part in China’s Xinjiang region or by certain listed entities associated with forced labor practices.

In a letter obtained by Reuters, DJI explained that CBP is holding back some of their drone shipments at the U.S. border due to concerns about forced labor violations. DJI has called the situation a “customs-related misunderstanding,” and the company categorically denies these accusations.

How Customs is Blocking Some Shipments

Customs is reportedly stopping larger shipments at the border, while some smaller shipments may still get through. This suggests that drone imports into the U.S. are being affected inconsistently. DJI says that it is actively working to provide CBP with the documentation needed to prove compliance with U.S. laws and to resolve the issue.

Broader Scrutiny of Chinese Drones

This customs hold is unrelated to the ongoing legislative efforts targeting Chinese-made drones, such as the Countering CCP Drones Act, recently passed by the U.S. House of Representatives. That bill, which still awaits Senate action, seeks to bar new DJI drones from operating in the U.S. due to concerns over security and supply chain risks from Chinese made drone technology. In contrast, the current customs situation stems from the UFLPA and focuses on labor practices rather than data or security concerns.

Last month, the U.S. Commerce Department also announced that it is considering further restrictions on Chinese drones, with Commerce Secretary Gina Raimondo stating, “We’re looking at drones that have Chinese and Russian equipment, chips, and software in them.” However, the customs issue currently affecting DJI shipments is independent of these legislative and regulatory discussions.

That being said, US lawmakers were quick to comment on the report.  Representative Elise Stefanik, a sponsor of the Countering CCP Drones Act, and Select Committee on the Chinese Communist Party Chairman John Moolenaar released the following statement:

“For years CCP-drone manufacturer DJI has been rightfully blacklisted by the U.S. government for actively aiding the CCP in carrying out surveillance for their genocidal crimes against Uyghurs in Xinjiang. Now we have discovered that DJI is not only aiding this genocide but also forcing Uyghur slave labor in Xinjiang to manufacture the very drones used to surveil the human rights abuses against them in direct violation of the Uyghur Forced Labor Prevention Act. DJI is advancing the capabilities of the Chinese military, carrying out human rights abuses, using slave labor, and spying on Americans. It is past time to end U.S. dependence on this anti-American company and bolster American manufacturing by getting our unanimously passed Countering CCP Drones Act signed into law.”

DJI’s Response and Commitment to Compliance

In its response to the customs hold, DJI clarified that this is not a full ban on their drones but rather a customs-related delay affecting some shipments due to UFLPA concerns. “The evidence clearly supports DJI’s compliance, while the claims of any violations are baseless and unfounded,” the company stated. DJI is working closely with CBP to provide documentation proving compliance with international labor standards and U.S. laws.

DJI states that no part of its manufacturing process involves forced labor. “DJI has no manufacturing facilities in Xinjiang, nor do we source materials from the region,” the company emphasized. Their manufacturing is primarily based in Shenzhen and Malaysia, and DJI is not listed on the UFLPA Entity List, which subjects specific companies to import restrictions.

The Impact on U.S. Drone Users

This uncertainty over product availability adds to the fears of some U.S. drone users that this situation and the evolving legislative landscape will negatively impact their operations. The newly released Air 3S drones, which cost under $1600, are reportedly difficult to get currently: some commercial users say that there are currently no U.S.-made alternatives in the same price range that provide comparable performance, raising concerns about potential disruptions to their businesses if the import delays continue or further bans are enacted.

For more details, see the original Reuters report here and DJI’s official response in their blog post.

Read more:

• House Passes Countering CCP Drones Act: Now What?
• Stefanik, Moolenaar Statement: Autel Robotics Added to US Government Department of Commerce Blacklist
• Concerns Over Chinese Agricultural Drones Spark Debate

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