General overview of the rules

On October 17, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) issued rules to modernize controls to space-related exports by reducing licensing requirements and clarifying existing controls. on these articles.

BIS has published a final rule, an interim final rule, and a proposed rule. The final rule and interim final rule are effective upon publication (scheduled for October 23, 2024), and BIS is accepting comments on the proposed rule until November 22, 2024. In its press release announcing the rules, BIS stressed that these updated controls will strengthen American leadership in innovation and technology while protecting the national security and foreign policy interests of the United States. These rules follow the comprehensive review begun in December 2023 by the National Space Council, which focused on strengthening the United States’ international space partnerships and promoting American policy interests in this industry.

Along with the BIS proposed rule, DDTC also issued a proposed rule scheduled for publication on October 23, 2024 with comments accepted through November 22, 2024. This proposed rule revises Categories IV and XV of the List United States Munitions (USML) and adds elements that justify control over the USML and removes elements that no longer justify control over the USML. DDTC’s proposed rule also adds civil space-related licensing exemptions and special licensing provisions.

BIS rules

1. BIS has issued a final rule to amend the Export Administration Regulations (EAR) by removing controls on certain spacecraft and related items for exports and re-exports to Australia, Canada, and the United Kingdom. The final rule eliminates the licensing requirement for these spacecraft and related items, which involve remote sensing or space logistics, assembly or servicing when exported or re-exported to Australia, Canada or the United Kingdom.

2. BIS also issued an Interim Final Rule (IFR) to modify controls for spacecraft and related items under the EAR. The IFR reduces licensing requirements on less sensitive items, makes improvements and clarifications to existing controls, and expands licensing exceptions to support National Aeronautics and Space Administration (NASA) cooperative programs.

3. BIS also issued a proposed rule to modify controls for spacecraft and related items under the EAR, which would be consistent with proposed changes to the International Traffic in Arms Regulations (ITAR) referenced in the DDTC rule below. The rule proposes changes to Export Control Classification Numbers (ECCN) 9A515, 9D515, and 9E515, as well as the addition of ECCN 9C515. This rule also includes a new licensing exception for certain commercial space activities (CSA) for official space agency programs as well as space tourism and research. The rule is scheduled for publication on October 23, 2024, and comments must be submitted to BIS by November 22, 2024.

DDTC Rule

4. The DDTC issued a proposed rule to amend the ITAR by revising USML Categories IV and the USML for certain space-related defense items. This rule also introduces three new license exemptions related to certain official space agency programs, certain space activities, space tourism and research, and authorizes BIS licensing of certain defense articles in USML Cat. XV which are incorporated into the EAR spacecraft. These license exemptions and license authorizations are intended to promote U.S. industry participation in civil space activities while furthering U.S. national security and foreign policy objectives. The rule is scheduled for publication on October 23, 2024, and comments must be submitted to DDTC by November 22, 2024.