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.”
ITAR, EAR, Munitions List
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.
Changing space environment
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.
Continuing industry concerns
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.
Two final rules, two proposals
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.
- Commerce Department Final Rule: This rule exempts certain spacecraft and related technologies from needing Export Administration Regulations (EAR) licenses for exports to Australia, Canada, and the United Kingdom. The exemptions apply to space-based technologies like remote sensing and spacecraft servicing, enabling smoother cooperation with these allied countries in fields such as in-orbit servicing and assembly.
2. Commerce Department Interim Final Rule: This rule lifts EAR license requirements on select spacecraft parts and components for around 40 countries in the Wassenaar Arrangement, a multilateral export control agreement on conventional weapons and dual-use goods. The rule also expands export permissions for governmental projects, such as NASA’s Space Act 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 tight conditions that adhere to EAR standards.
3. Commerce Department Proposed Rule: This proposed rule seeks to align EAR space-related export controls with planned ITAR revisions. It is designed to support civil and commercial space initiatives, making certain space technologies more accessible while retaining strict security measures for sensitive components. By integrating ITAR and EAR frameworks for commercial space applications, the rule aims to simplify compliance for companies while preserving national security.
4. State Department Proposed Rule: This ITAR rule proposes updates to U.S. 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 reflect 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 EAR. These adjustments seek to enable more streamlined exports for commercial technologies.
