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DevelopingMarketRule watch2 min read

A court reopened one piece of DJI's Pentagon case. It does not change what you can buy.

The D.C. Circuit sent a single Pentagon finding back for review because its public justification is entirely redacted, but DJI stays on the Section 1260H list and nothing about U.S. retail availability moved.

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Drone on a work surface representing federal procurement lists and the equipment they cover
Drone on a work surface representing federal procurement lists and the equipment they cover.

Decision brief

This is a defense procurement list, not the mechanism that limits what you can buy. DJI remains designated while the district court reconsiders one finding, the FCC Covered List that actually restricts U.S. import and sale is a separate fight, and the September 2 FCC comment deadline and September 3 tariff date are both unchanged.

The U.S. Court of Appeals for the D.C. Circuit ruled on August 14 that a lower court should not have upheld the Pentagon's conclusion that DJI contributes to China's defense industrial base while relying only on the unclassified record. Reuters reports the panel wrote that there is "no publicly stated rationale for why the Secretary believes DJI contributes to the Chinese defense industrial base," and sent the case back to U.S. District Judge Paul Friedman, who granted summary judgment against DJI last year.

02

The ruling is narrower than the headlines suggest. DJI stays on the Section 1260H list of Chinese military companies while the case is reconsidered. Reuters reports the appeals court rejected DJI's three other arguments: that it was denied due process, that the unclassified record lacked evidence the company received Chinese government assistance, and that the Defense Department failed to explain why it treated DJI differently from companies DJI considers similarly situated. Only the defense industrial base finding goes back for another look.

03

Section 1260H is a defense procurement designation. The current list was published in the Federal Register on June 10, 2026, when the Deputy Secretary of Defense designated an expanded set of entities. Reuters reports the list bars the Defense Department from contracting with designated companies and that a broader prohibition on buying their products through third parties takes effect in 2027. Reuters also notes another judge granted a preliminary injunction earlier in August barring the department from listing biotechnology firm WuXi AppTec.

04

For pilots, the practical takeaway is that nothing you do changed this week. What limits U.S. DJI availability is the FCC Covered List and the separate FCC proceeding on importation and marketing, both covered on our DJI ban explainer, and neither moved on August 14. The September 2 comment deadline in PS Docket 26-189 and the September 3 tariff effective date are still live. Even a full 1260H delisting would restore federal procurement eligibility rather than reopen the retail channel, so it is not a reason to delay or accelerate a purchase.

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