Foreign-Produced Technology in the Crosshairs: FCC Continues to Expand Covered List

The U.S. Federal Communications Commission (FCC) is accelerating its campaign to bar certain foreign-produced technology from the U.S. market, utilizing its authorities in novel ways. Companies that manufacture, import, or sell products in the affected categories must now determine whether their devices are subject to the prohibition imposed by the FCC Covered List or can still lawfully enter the United States. The prohibition is country-agnostic on its face but widely understood to target technology produced in China. Producers of covered equipment that seek to overcome the prohibition may apply for a Conditional Approval exemption.

What Is the Covered List?

The FCC Covered List is a list of communications equipment and services that are deemed to pose an unacceptable risk to the national security of the United States or the safety and security of U.S. persons. Under the Secure Networks Act, the FCC can update the Covered List at the direction of a qualifying national security authority and must implement the determinations made by national security agency experts. National Security Determinations for recent additions have found that these “foreign-produced” products introduce supply chain vulnerabilities and pose cybersecurity risks.

Most electronic devices require FCC equipment authorization prior to importation, marketing, or sale in the United States. Because covered equipment is prohibited from receiving FCC equipment authorizations, these devices are effectively barred from entering the United States. Devices that received FCC equipment authorization prior to the applicable Covered List update remain authorized and may continue to be imported, marketed, and sold. However, any new model or variant of such a device requires new authorization.

The FCC traditionally focused on placing specific entities on the Covered List but recently has begun placing categories of products on the Covered List in actions clearly aimed at prohibiting goods originating from China that are alleged to raise national security concerns.

Uncrewed Aircraft Systems (UAS) and UAS Critical Components

In December 2025, the FCC took its first such action, adding foreign-produced Uncrewed Aircraft Systems (UAS) and UAS critical components to the Covered List. The National Security Determination cited to threats posed by malicious actors utilizing these technologies as well as the access foreign adversaries may collect from foreign-produced devices. This action was widely seen as an effort to curtail DJI and other drones manufactured in China.

The FCC ultimately made amendments to this addition to the Covered List as the original prohibition was determined to be overbroad. Within two weeks of the announcement, the FCC removed certain UAS and components deemed not to pose national security risks by the U.S. Department of War (DoW), including products on DoW’s Blue UAS Cleared List and products that qualify as “domestic end products” under the Buy American Standard (48 CFR § 25.101(a)). The FCC ultimately removed toy drones from the Covered List, as well.

Routers

In March 2026, the FCC added foreign-produced routers to the Covered List. The National Security Determination cited to recent examples of malicious cyber actors leveraging vulnerabilities in consumer routers to carry out cyber attacks, as well as in attacks against American critical infrastructure, including the Volt, Flax, and Salt Typhoon attacks. Routers subject to the Covered List include foreign-produced “consumer-grade networking devices that are primarily intended for residential use and can be installed by the customers” and notes that “routers forward data packets, most commonly Internet Protocol (IP) packets, between networked systems.”

Power Inverters

In July 2026, the FCC added foreign-produced power inverters (devices that convert direct current (DC) electricity into alternating current (AC) electricity) to the Covered List. The National Security Determination cited to the potential for foreign-produced power inverters to compromise the United States’ electricity supply and enable remote access, surveillance, and exploitation by adversaries. However, last week DoW issued a New National Security Determination revising the definition of power inverters “to accurately reflect which foreign-produced power inverters the Executive Branch interagency body and the DoW have determined pose unacceptable risks.”

The revised definition specifies that certain foreign-produced power inverters eligible for Advanced Manufacturing Production Tax Credit, commonly referred to as section 45X, do not pose unacceptable risks to national security and are not included in the Covered List. In addition, according to the New National Security Determination, DoW assesses that because foreign-produced power inverters that comply with section 45X should be eligible for tax credits for domestic production, they are not properly considered “foreign produced” and thus should be removed from the Covered List.

The updated definition of power inverters also clarifies that wired and Ethernet connections were intended to be subject to the listing, and aligns the definition of utility-interactive inverters with that of Underwriters Laboratories Standard UL 1741. As such, the current definition of power inverters includes an electronic device that: “(a) Changes dc power to ac power, to include bidirectional devices, that are intended for use in parallel with an electric utility to supply common loads and sometimes deliver power to the utility, i.e., a utility-interactive inverter … and (b) Contains, or is designed, equipped, or configured to accept a component that enables remote communication, control, sensing, data-collection, or monitoring through Ethernet, Wi-Fi, cellular, Bluetooth or other similar connection, whether wired or wireless.”

Advanced Robotics

In July 2026, the FCC added foreign-produced advanced robotic devices to the Covered List. The National Security Determination cited to the increased use of advanced robotics in monitoring and securing critical infrastructure as well as in the defense space. In general terms, an “advanced robotic device” is a mobile, networked robot weighing over 4.4 lbs. that is capable of autonomous or semi-autonomous navigation, equipped with environmental sensors and network connectivity, and controlled by software (including AI or machine-learning models). The definition excludes, among other things, connected vehicles, drones, medical devices, underwater vehicles, and fixed industrial robots.

What is “Foreign-Produced?”

Only products that are “foreign-produced” are included in these Covered List products. “Foreign-produced” refers to any article that would not qualify as a “domestic end product,” which is defined in 48 CFR § 25.101(a). A domestic end product is one that has been manufactured in the United States and is made up of domestic components whose costs exceed 65% of the cost of the finished product, or a product that is commercially available off the shelf. Accordingly, a device that is designed or engineered in the United States but manufactured or assembled in a foreign country would be considered “foreign-produced.” Similarly, a device incorporating both domestic and foreign components will be considered “foreign-produced” unless the final product satisfies the “domestic end product” standard, including the applicable domestic content thresholds slated to increase in 2029.

How Can Producers Obtain a Conditional Approval Exemption?

Producers of “covered equipment” can apply to the DoW or the U.S. Department of Homeland Security (DHS) (depending on the product) for “Conditional Approval,” which, if granted, exempts the applicable devices from the Covered List. In evaluating applications, DoW will assess whether the specific product poses national security risks, whether it poses risks to supply chain resilience, and whether the applicant is committed to establishing manufacturing capacity in the United States.

In order to apply for Conditional Approval, the producer must submit the following information:

1. Corporate Structure—Legal name, jurisdiction of incorporation, complete ownership structure (parents, subsidiaries, affiliates, joint ventures), beneficial owners holding 5% or greater equity, board members and executive leadership (including nationality and country of residence), and any foreign government ownership, control, influence, financing, or material support.
2. Manufacturing and Supply Chain Disclosure—Detailed bill of materials, country of origin for all components and design, entities responsible for IP ownership and software updates, justification for foreign manufacturing, locations of manufacturing/final assembly/testing, country of origin for onboard software and firmware, quantitative supply chain concentration by country, and identification of any single points of failure (including sole-source suppliers).
3. U.S. Manufacturing and Onshoring Plan—A detailed, time-bound plan to establish or expand manufacturing in the United States, a dedicated point of contact responsible for implementing the onshoring plan (with quarterly updates), description of existing U.S.-based manufacturing and assembly, and committed/planned capital expenditures and investments dedicated to U.S.-based manufacturing over the next 1 to 5 years.

Different products on the Covered List have different deadlines for Conditional Approval applications. For example, the advanced robotics deadline is January 1, 2028. Given the breadth of the required disclosures, companies anticipating the need for an exemption should begin preparing well in advance. Applicants that knowingly violate the terms of a Conditional Approval or materially misrepresent information in their applications will have their Conditional Approval terminated and will be permanently precluded from reapplying.

The FCC has issued conditional approvals for covered UAS and routers that it deems do not pose an “unacceptable risk” periodically since March 2026. As noted above, to gain conditional approval, the foreign company generally needs to demonstrate a detailed plan to establish or expand manufacturing in the United States. To date, the companies that have received such conditional approvals have largely been headquartered or incorporated in the United States or allied nations, including NATO countries and FVEY partners.

What Are the Consequences of Non-Compliance?

The importation, marketing, or sale of covered equipment without valid FCC equipment authorization may subject violators to enforcement action by the FCC, including monetary forfeitures, cease-and-desist orders, and seizure of non-compliant equipment. Additionally, the DoW retains authority to refer violations to the Department of Justice for criminal prosecution. Companies that have received Conditional Approval and subsequently violate its terms face termination of the approval and permanent preclusion from reapplying, in addition to any applicable civil or criminal penalties.

What Should Companies Do Now?

The FCC has signaled that it will continue to expand the Covered List. Companies with exposure to foreign-produced technology should consider the following steps:

• Audit product portfolios and roadmaps for exposure. Identify which devices, components, and planned variants fall within listed categories, and confirm which models already hold FCC equipment authorization. Existing authorizations survive, but any new model or variant will require a new authorization and will be subject to the prohibition—so refresh cycles, not current inventory, are where the risk concentrates.
• Assess “foreign-produced” status against the domestic end product test. Because the standard turns on manufacturing location and the 65% domestic component cost threshold under 48 CFR § 25.101(a), U.S. design or engineering alone will not take a device outside the prohibition. Companies should document country-of-origin and component cost data now before a listing forces the analysis on a compressed timeline, and keep in mind that this threshold will increase to 75% in 2029.
• Preserve optionality on Conditional Approval. Applications must be submitted by the product specific deadline, and the diligence burden is substantial—full ownership and beneficial owner detail, a component-level bill of materials, and a time-bound U.S. onshoring plan with committed capital expenditures. Companies that are likely to need an exemption should begin assembling that record well in advance.
• Monitor for follow-on guidance and listing amendments. The FCC has narrowed listings after the fact. Affected companies should track amendments and consider engaging with the FCC and DoW where a product line warrants an exclusion.
• Revisit contractual and compliance protections. Supplier representations on country of origin, indemnities for authorization failures, and import compliance procedures should be updated to account for enforcement exposure, which includes monetary forfeitures, cease-and-desist orders, equipment seizure, and referrals for criminal prosecution.