WASHINGTON — The U.S. Department of Commerce announced long-awaited changes to space technology export control rules, a move aimed at strengthening U.S. competitiveness in the global space industry. The new regulations will make it easier for U.S. companies to sell satellites, launch vehicles and other space-related technology to close allies, including the United Kingdom, Canada and Australia.

A senior Commerce Department official shared details of the updated rules during a briefing with reporters on Oct. 17, but declined to be quoted by name.

The changes would reclassify many space technologies as commercial items rather than weapons, removing commercial satellites from the U.S. munitions list that is regulated by the highly restrictive International Traffic in Arms Regulations (ITAR), and placing them under the list of control of trade, more flexible.

“We are taking steps to modernize our export controls on space-related items to reflect the increasingly commercial nature of space activities,” the official said. Although the rules aim to streamline exports, the official stressed that safeguards would remain in place to prevent adversaries such as China and Russia from accessing sensitive technology.

The revisions are based on comments received by the Commerce Department over the past five years, during which many U.S. companies have expressed concerns that current regulations hinder their ability to compete with foreign companies. Companies have long argued that ITAR’s strict requirements put them at a disadvantage compared to international competitors who can offer “ITAR-free” products. The changes will be implemented by the Bureau of Industry and Security, a division of the Commerce Department that oversees trade controls.

New export framework

The ITAR has long governed the export of defense-related technologies, including those related to space, for national security reasons. Administered by the U.S. Department of State, ITAR rules require extensive licensing processes for any defense-related export, including space systems with potential military applications, such as satellites and spacecraft. Companies say this has often hindered the U.S. space industry’s ability to enter foreign markets and participate in international collaborations.

Under new trade rules, some space technologies will no longer require State Department licenses to export to trusted allies. The first major change removes licensing requirements for technologies related to remote sensing, space logistics and spacecraft servicing intended for the UK, Canada and Australia. This change, the Commerce official said, aims to reduce unnecessary regulatory barriers for allied countries while strengthening collective security.

Another rule change lifts licensing requirements for certain spacecraft components destined for about 40 allied countries. It also expands licensing exceptions for specific items involved in NASA cooperative programs, reducing the burden on companies exporting less sensitive technologies.

A third proposed rule – still open for public comment until November 22 – could further relax ITAR restrictions by moving additional space-related items from the Munitions List to the Commerce Control List. This proposed rule would affect spacecraft that contribute to, among other capabilities, space domain awareness, collision avoidance, cooperative docking, and tracking of ground vehicles and aircraft.

Impact on the US space industry

For years, space industry companies, particularly those in the space servicing, assembly and manufacturing (ISAM) sector, have been pushing for a less restrictive export regime. These companies, which develop spacecraft that can extend the life of satellites, repair mechanical problems or remove obsolete satellites from orbit, say ITAR compliance has stifled innovation and international collaboration.

By relaxing these rules, U.S. companies should have a better chance of competing globally, particularly in markets dominated by foreign manufacturers with less restricted products. Moving commercial satellites and related technologies from the munitions list to the commerce control list would reduce the time and expense of obtaining export licenses, the executives argued, allowing U.S. companies to respond more quickly to international demand.

The space industry has long been closely linked to defense technologies, making it subject to the complex ITAR licensing process. This has required companies to overcome numerous bureaucratic hurdles, submit detailed documentation and undergo rigorous compliance checks, often slowing down business transactions.

The new rules, the Commerce official said, are seen as a way to reduce red tape related to commercial space technologies, while maintaining safeguards against misuse.

Unlike the ITAR, items on the Commerce Control List are subject to a more nuanced review process, with licensing decisions based on the end use of the technology and the destination country. This more flexible approach could facilitate greater international cooperation and allow American companies to enter new markets, particularly in Europe and Asia.

“This is not just a regulatory update,” emphasized the Commerce official. “This is about maintaining our leadership in space technology, protecting our national security and strengthening our partnerships around the world. »

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