Space export reforms will move forward amid the transition to a new administration

WASHINGTON – Newly announced export control reforms The affected space systems and space technologies are moving to the next stage of discussion and implementation and the change of administration should not affect this process, said Chirag Parikh, executive secretary of the National Space Council.

Speaking Nov. 6 at a meeting hosted by the Commerce Department to discuss new space export control reforms, Parikh said the rules are aimed at modernizing export rules, reducing controls on less sensitive space products, and increasing the competitiveness of the U.S. space industry. base and international space partnership.

He said one of the Biden administration’s priorities was to “ensure a competitive and growing U.S. commercial space sector and provide regulatory clarity as well as export control issues.”

As the current administration prepares to hand over the reins to the Trump administration, Parikh said, “Everyone wants a reset along the way.” But when it comes to export control reform, there is bipartisan agreement that it is an important initiative, he said. “I think everyone wants to be able to move forward in these efforts.”

ITAR, EAR, Ammunition List

The US export control system is based on two key regulations: the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). These frameworks delineate the boundaries of what technologies can be shared internationally and with whom.

ITAR is a strict set of regulations administered by the Department of State that regulates the export of defense goods and services listed on the United States Munitions List (USML). ITAR technologies are considered vital to national defense and their export is strictly limited. Space systems with potential military applications, such as satellite imagery and propulsion technologies, are often subject to ITAR, limiting the ability of U.S. companies to compete in a global market where similar technologies are increasingly available from foreign suppliers.

The EAR, administered by the Commerce Department, generally administers less sensitive technologies that still have economic and strategic value. The Commerce Control List (CCL) identifies items covered by the EAR, and items covered by the EAR have fewer restrictions than those listed in the ITAR. Some less sensitive space technologies, such as certain types of commercial satellites and antennas, are regulated by the EAR, allowing greater flexibility in exports and international cooperation.

The Administration’s proposed reforms include moving some items from the USML under the ITAR to the CCL under the EAR. The motivation for these changes is to reduce regulatory burdens on U.S. space companies, promote international partnerships, and keep pace with foreign competitors in space.

Changing space environment

At the meeting, Matthew Borman, principal deputy assistant secretary for export administration at the Commerce Department, emphasized the rapid transformation in space technology and industry. “We are living in an era of extraordinary change, with more countries and companies operating in space,” Borman said, emphasizing that export control policies must adapt to this new reality.

The State Department’s proposed rule would adjust the USML by reclassifying certain space technologies, potentially exempting dual-use space systems from ITAR licensing. Technologies that enable long-distance operations, which are critical for maintenance and rendezvous maneuvers in space, are of particular interest to NASA, which has advocated for lowering restrictions to enable smoother operations with international partners.

Michael Tu, an export control specialist at NASA’s Office of International and Interagency Affairs, said the agency is committed to reducing friction with “known and trusted partners.” Moving some technologies to the EAR framework could facilitate collaborative efforts with international space agencies needed for NASA’s ambitious exploration plans.

A key provision of one of the proposed rules is licensing exceptions for NASA’s Space Agreement programs, space tourism and exploration, and the transmission of certain telemetry data for space launch vehicles. These changes will allow for increased international exchange in support of NASA’s Lunar Gateway, Mars sample return, the Nancy Grace Rome Space Telescope, and the Orion spacecraft.

The problem, Tu noted, is the nuanced definitions and classifications within export controls. Items such as lunar operations rovers, while technically compliant with current regulations, could benefit from reclassification to better reflect their commercial and operational functions.

Ongoing industry concerns

Some companies argue that the reforms do not go far enough and do not fully address today’s global business opportunities. An example is the market synthetic aperture radar (SAR) imaging satellites, where US companies are questioning why the most advanced SAR satellites that are sold commercially by foreign competitors remain under strict ITAR control in the United States. SAR technology allows you to obtain high-resolution images even in cloudy or dark conditions.

Chris Weil, a senior official at the State Department’s Office of Defense Trade Review, said there are still items on the ITAR Munitions List that could be considered for control under the Commerce Department’s less stringent EAR rules, so it is important for companies to provide specific feedback. under the proposed rule.

“Simply telling the government, ‘I don’t like this’ or ‘I’m concerned about this’ is not very helpful,” said Timothy Mooney, senior export policy analyst at the Commerce Department. Mooney called on industry representatives to provide clear recommendations on how to change the rules.

The government opened public comment period will end on November 22, providing an opportunity for space industry leaders to voice their opinions.

Two final rules, two sentences

Four export control rules for space technology were published on October 17 by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the State Department’s Office of Defense Trade Controls (DDTC). The first two rules have already gone into effect, but the remaining two proposals are still open for public comment.

1. Department of Commerce Final Rule: This rule exempts certain spacecraft and related technologies from the requirement to obtain Export Administration Regulations (EAR) licenses for export to Australia, Canada, and the United Kingdom. Exceptions apply to space technologies such as remote sensing and spacecraft maintenance, allowing for smoother cooperation with these allied countries in areas such as on-orbit servicing and assembly.

   2. Department of Commerce Interim Final Rule: The rule eliminates EAR licensing requirements for certain spacecraft parts and components for approximately 40 countries in the Wassenaar Arrangement, a multilateral agreement to control the export of conventional weapons and dual-use items. This rule also expands export authorizations for government projects such as the NASA Space Agreements, provides clarity for exports to offshore launch sites in international waters, and allows specific exports to Russia for International Space Station (ISS) missions under stringent conditions consistent with the EAR . standards.

   3. The Commerce Department’s proposed rule: The proposed rule seeks to align the EAR’s space-related export controls with planned changes to the ITAR. It is designed to support civilian and commercial space initiatives by making certain space technologies more accessible while maintaining strict safety measures for sensitive components. By integrating the ITAR and EAR infrastructures for commercial space applications, the rule is intended to make compliance easier for companies while maintaining national security.

   4. The State Department’s proposed rule: This ITAR rule proposes updates to United States Munitions List (USML) categories 4 and 15, reclassifying certain space-related defense items. Advanced propulsion systems, AI-enabled guidance and control technologies are added to meet modern defense needs, while redundant entries and dual-use items, such as spacecraft with autonomous tracking or collision avoidance capabilities, are removed and transferred to the EAR. These adjustments are aimed at ensuring a more streamlined export of commercial technologies.

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