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US finally reforms ITAR to reclassify commercial satellites

Connectivity BusinessbyConnectivity Business
May 13, 2014
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The US Departments of State and Commerce have published new regulations reforming the export controls for civil satellites and their components, reclassifying them from munitions to commerce.
The new rules will take effect in stages from 27 June to 10…

The US Departments of State and Commerce have published new regulations reforming the export controls for civil satellites and their components, reclassifying them from munitions to commerce.

The new rules will take effect in stages from 27 June to 10 November and will enable US satellite manufacturers and component developers to compete for contracts globally without being hamstrung by their country’s export rules.

The changes will see the International Traffic in Arms Regulations (ITAR) amended so that most commercial, scientific and civil satellites are moved from Category XV (spacecraft and satellites) of the US munitions list to the Department of Commerce’s Commerce Control List

Specifically the revision removes from the munitions list communications satellites (without classified components), remote sensing satellites with certain performance parameters, any spacecraft parts, components, equipment or systems not identified as munitions, and most radiation-hardened microelectronic microcircuits.

The new rules also seek to make it easier for the US government to more easily host payloads on commercial satellites.

Commenting on the reform, Under Secretary of Commerce Eric Hirschhorn said: “Today’s action reflects the cooperation that has made the President’s Export Control Reform Initiative such an extraordinary success story.

“For the many American businesses that compete in this key technology sector, it means a stronger United States defence industrial base, the ability to focus the government’s limited resources on the technologies and destinations of greatest concern, an increase in the competitiveness of the US satellite industry, and a reduction in the licensing burden on US exporters.”

His view was echoed by Patricia Cooper, president of the Satellite Industry Association, who said: “SIA congratulates the US government on this truly comprehensive overhaul to the US satellite export control system. With a more modern regulatory environment for exports in place, we look forward to unleashing the full force of American ingenuity and innovation at work in the international market.”

The rules come approximately 18 months after the US Congress passed legislation permitting satellite export control reform, with bipartisan and bicameral support.

This was followed with the establishment of a notice of proposed rulemaking in May last year, with the end of the comment period in July and the final action taking place in December.

Tags: Satellite Industry Association
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