Legislation that will reform US satellite export control rules has received presidential approval after passing through Congress.
The National Defense Authorization Act (NDAA) reverses a 1998 requirement to treat satellite-related technology as…
Legislation that will reform US satellite export control rules has received presidential approval after passing through Congress.
The National Defense Authorization Act (NDAA) reverses a 1998 requirement to treat satellite-related technology as munitions.
Under the US government’s International Traffic in Arms Regulations (ITAR), this classification had not only banned satellites from being exported to security threats such as China, but also to NATO allies.
The provision within the NDAA for FY 2013 gives the US government discretion to transfer less sensitive satellites and related components from its munitions list to the less restrictive Commerce Control List.
Following Presidential approval on 3 January, the government will now implement a rulemaking process. This means that new export rules for satellites could come into effect as early as Q3 2013, however, one industry insider cautioned that it remained to be seen what impact, if any, the regulations will have.
Patricia Cooper, president of the Satellite Industry Association (SIA) trade body, which includes aerospace giants Boeing, Lockheed Martin, and Loral Space & Communications, said the move will provide a more even playing field for satellite companies.
“The provision passed in the NDAA will remove the legislative mandate that required one-size-fits-all regulation for satellite trade,” said Cooper.
“This mandate caused unintended harm to the health of the US space industry and our nation’s security.”
The presidential green light comes shortly after politicians clinched a last minute deal to stave off the US “fiscal cliff” of steep spending cuts and tax rises.
Congress extends risk sharing for launchers
Congress has also agreed to extend a framework of government risk-sharing for commercial launch companies by a year to 31 December 2013.
The bill, which was sent to the President for signature on 2 January 2013, extends the requirement for commercial launch providers to acquire insurance to cover the risk of damage to third parties. The framework also provides an expedited appropriations backstop which, despite originally being put in place in 1988, has never been triggered. President Obama is expected to approve the legislation within the next few weeks.
According to the Washington-based Commercial Spaceflight Federation (CSF), the framework keeps the US in line with other space nations including China, Russia and France, which also employ state risk-sharing for launch providers.
CSF chairman Stuart Witt, who is also CEO of Mojave Air and Space Port in California, explained: “Government risk-sharing serves an important role in the commercial space industry by ensuring companies don’t have to bet the farm on every launch, and it does so at no cost to taxpayers.”
