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DJI on Verge of US Ban: Security Audit Deadline Looms
16 Dec
Summary
- DJI faces potential US ban on new products by December 23.
- A security audit is required to prevent DJI's inclusion on FCC Covered List.
- US Customs has also delayed DJI product imports citing labor law violations.
DJI faces an imminent threat of being banned from introducing new products in the US by December 23. This potential ban hinges on the completion of a critical security audit, a task no government agency has yet undertaken. The company has been actively seeking an agency to perform this audit, but it has become a political hot potato. Without this audit, DJI will be added to the FCC Covered List, mirroring actions taken against Huawei and ZTE.
Adding to DJI's challenges, US Customs and Border Protection has been delaying the company's product imports. These delays are reportedly due to alleged violations of the Uyghur Forced Labor Prevention Act, a claim DJI denies. This has led to significant disruptions, with recent product launches skipping the US market and existing products facing stock shortages and limited availability throughout the year.
The potential ban has far-reaching implications for the drone industry, estimated to be a $116 billion market in the US, with an estimated 450,000 individuals relying on DJI drones for their livelihoods. Drone enthusiasts, filmmakers, farmers, and law enforcement agencies all depend on DJI's technology. Competitors are emerging, but none currently match DJI's performance and feature set, leaving many in a precarious position should the ban be enacted.
