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Space export reforms to march forward amid transition to new administration

By Sandra Erwin

Space export reforms to march forward amid transition to new administration

WASHINGTON -- Recently announced export control reforms affecting space systems and space technologies are moving into the next phase of discussion and implementation, and a change in administration should not impact the process, said Chirag Parikh, executive secretary of the National Space Council.

Speaking on Nov. 6 at a meeting hosted by the Commerce Department to discuss the new space exports control reforms, Parikh said these rules aim to modernize export regulations, reduce controls on less sensitive space-related items, boost the competitiveness of the U.S. space industrial base and international space partnerships.

One of the priorities of the Biden administration, he said, has been to "enable a competitive and burgeoning U.S. commercial space sector, and provide clarity on regulatory matters as well as export control matters."

As the current administration prepares to hand over the reins to the Trump administration, Parikh said, "Everybody wants to have a reset along the way." But in the case of export control reforms, there is bipartisan consensus that this an important initiative, he said. "I think everybody wants to be able to move forward on these efforts."

At the heart of the U.S. export control landscape are 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 stringent set of regulations administered by the State Department that governs the export of defense-related items and services listed on the U.S. Munitions List (USML). Technologies under ITAR are seen as vital to national defense, and their export is heavily restricted. Space systems with potential military applications, such as satellite imagery and propulsion technologies, often fall under ITAR, which limits U.S. companies' ability to compete in the global marketplace where similar technologies are increasingly available from foreign providers.

EAR, administered by the Commerce Department, generally governs less-sensitive technologies that still hold economic and strategic value. The Commerce Control List (CCL) identifies items under EAR, and items governed by EAR face fewer restrictions than those listed under ITAR. Some less-sensitive space technologies, like certain types of commercial satellites and antennas, are governed by EAR, allowing greater flexibility in export and international collaboration.

The administration's proposed reforms involve shifting some items from the USML under ITAR to the CCL under EAR. The motivation behind these changes is to reduce regulatory burdens on U.S. space companies, facilitating international partnerships, and keeping pace with foreign competitors in space.

At the meeting, Matthew Borman, principal deputy assistant secretary for export administration at the Commerce Department, highlighted the rapid transformation in space technology and industry. "We are in an era of extraordinary change, with an increasing number of 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 make adjustments to the USML by reclassifying some space technologies, potentially exempting dual-use space systems from ITAR licensing. Technologies that enable proximity operations -- crucial for servicing and rendezvous maneuvers in space -- are of particular interest to NASA, which has advocated for reducing restrictions to enable smoother operations with international partners.

Michael Tu, export control specialist at NASA's Office of International and Interagency Relations, said the agency is seeking to reduce friction points with "known and trusted partners." The shift of some technologies to the EAR framework could ease cooperative efforts with international space agencies, essential for NASA's ambitious exploration plans.

A key provision in one of the proposed rules are licensing exemptions for NASA Space Act Agreement programs, space tourism and research, and for the transmission of certain telemetry for space launch vehicles. These changes would enable more international exchanges in support of NASA's Lunar Gateway, Mars Sample return, the Nancy Grace Roman Space Telescope, and the Orion spacecraft.

The challenge, Tu noted, lies in the nuanced definitions and classifications within export controls. Items like rovers for lunar operations, while technically spacecraft under current regulations, could benefit from reclassification to better reflect their commercial and operational functions.

Some companies have made the case that the reforms don't go far enough and fail to fully account for today's global commercial capabilities. A case in point is the market for synthetic aperture radar (SAR) imaging satellites, where U.S. companies question why the most advanced SAR satellites that are commercially sold by foreign competitors remain under strict ITAR controls in the United States. SAR technology allows for high-resolution imaging through cloud cover or darkness.

Chris Weil, a senior official at the State Department's Directorate of Defense Trade Controls, said there are still items on the ITAR Munitions List that might be considered for control under Commerce's less restrictive EAR regulations, which is why it's important for companies to submit specific feedback on the proposed rule.

"Just telling the government 'I don't like this' or 'I have a concern' is not very helpful," said Timothy Mooney, a senior export policy analyst at the Commerce Department. Mooney urged industry representatives to submit precise recommendations for rule modifications.

The government has opened a public comment period ending November 22, providing an opportunity for space industry leaders to weigh in.

Four export control rules for space technologies were released Oct. 17 by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and the State Department's Directorate of Defense Trade Controls (DDTC), The first two rules are already in effect, while the remaining two are proposals still open for public comment.

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