SEATTLE/WASHINGTON, March 14 (Reuters) - U.S.

Transportation Secretary Sean Duffy said on Friday that the

Federal Aviation Administration plans to propose rules to expand

use of drones for deliveries and other services.

"We're in the stages of developing a rule to make sure we

can give more authority and clarity to those who are developing

these drones," Duffy told reporters after a tour of Amazon

Prime Air drone delivery service's headquarters in

Seattle, saying the agency plans to release a proposal "in

relatively short order."

Last month, the Commercial Drone Alliance urged President

Donald Trump's administration to release a proposed rule that

would allow commercial unmanned aircraft systems or drone

operations beyond visual line of sight, saying the rule "is

essential to enable this industry to succeed."

The rule would "normalize commercial drone operations that

are otherwise prohibited or require individual approval through

bureaucratic and time-consuming FAA application processes."

The FAA has done substantial work to prepare the draft rule

and other federal agencies have provided input, the group noted.

Drone delivery companies have raised concerns that the U.S.

could fall behind China.

"If we don't have clear rules that allow innovators to

innovate and create products and test products, it won't happen

here," Duffy said. "It's going to happen somewhere else, and

then we'll import someone else's technology into this country to

develop whether it is in packages or groceries."

In January, the Commerce Department under former President

Joe Biden said it was considering rules to restrict or ban

Chinese drones in the U.S., citing national security concerns.

China accounts for the vast majority of U.S. commercial

drone sales. Washington has increasingly cracked down on Chinese

drones over the last year.

In December, Biden signed legislation that could eventually

ban China-based DJI and Autel Robotics from selling

new drone models in the U.S.