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Perspectives

| 1 minute read

Important Updates to Space Related Export Controls

The Department of Commerce, Bureau of Industry and Security (BIS) announced on October 17, 2024, three regulatory updates—one Final Rule, one Interim Final Rule, and one Proposed Rule—to enhance space-related export controls. These revisions aim to boost U.S. innovation and maintain leadership in technology while ensuring national security and foreign policy objectives are met. Executive Secretary of the National Space Council, Chirag Parikh, stated, “With these updates, the United States is making significant progress in developing a robust space industrial base.” He emphasized that these modifications would reinforce international partnerships and demonstrate America's dedication to innovation and leadership in space.

The set of regulatory updates includes the following:

  1. A Final Rule introduces significant modifications to the Export Administration Regulations (EAR) regarding spacecraft and related items. It aims to streamline controls and enhance cooperation with three key allies of the United States—Australia, Canada, and the United Kingdom. BIS is removing license requirements for exports of certain items involving remote sensing or space-based logistics, assembly, or servicing spacecraft under ECCNs 9A515 and 9E515 and destined for Australia, Canada, and the United Kingdom. These changes will support a competitive U.S. space industry while safeguarding national security and foreign policy interests. 
  2. In an Interim Final Rule, BIS is eliminating licensing obligations for the export of specific spacecraft parts to more than 40 allied nations and partners globally. It is also simplifying licensing requirements for the least sensitive components across most destinations and expanding license exceptions to enhance various cooperative initiatives with the National Aeronautics and Space Administration (NASA). These adjustments promote international collaboration and strengthen the United States' leadership in space technology on a global scale.
  3. A Proposed Rule released by BIS alongside the Department of State presents initial suggestions for transferring the jurisdiction of certain space-related defense items, which no longer offer a significant military or intelligence advantage, from the U.S. Munitions List (USML) overseen by the Department of State to the Commerce Control List. Examples of these items include spacecraft that can refuel other spacecraft and those equipped with autonomous collision avoidance capabilities. This proposed shift would allow for the application of BIS license exceptions, facilitating the export of commercial space products to key allies and partners. BIS has instituted a comment period from all interested stakeholders on this Proposed Rule within 30 days of its publication.

While these measures represent a crucial advancement in updating and modernizing the U.S. Government’s export controls related to space and strengthening international collaborations, they also necessitate the space industrial base to review their current authorizations and policies to ensure complete compliance and fully up-to-date procedures. 

Tags

national security export controls & economic sanctions