BIS Issues New Rule and Proposed Rule to Amend U.S. Space-Related Controls

Oct. 22, 2024
By: Ashley J. Bodden

The Department of Commerce’s Bureau of Industry and Security (BIS) announced three rules aimed at furthering U.S. innovation and technology leadership while protecting national security and foreign policy interests. These new rules are intended to make it easier for U.S. companies to sell satellites, launch vehicles, and other space-related technologies to close international partners.

The changes to the export control comes as a result of a review by the National Space Council to enable a globally competitive U.S. space industrial base. Prior to the rule change companies there was a rigorous compliance process, including lengthy and detailed documentation, which U.S. companies claimed hindered their ability to provide services to close allies. The stated intention for the new rules is to bolster partnerships while maintaining safeguards.

In the Final Rule, BIS removed license requirements for certain spacecraft and related items which involve remote sensing or space-based logistics, assembly, or servicing when exporting and reexporting to Australia, Canada, and the United Kingdon. The rule takes effect October 23^rd.

In the Interim Final Rule (IFR), BIS would remove the license requirements for exports of certain spacecraft components to more than 40 allies and partners worldwide, reduce the license requirement on less sensitive items and broaden the license exceptions to support additional National Aeronautics and Space Administration cooperative programs.

In the Proposed Rule, published in conjunction with the State Department, there is an initial proposal to transfer jurisdiction of certain space-related defense articles that no longer provide a critical military or intelligence advantage from the U.S. Munitions List (USML) maintained by the Department of State to the Commerce Control List. This proposed transfer would allow the use of BIS license exceptions that facilitate exports of commercial space items to close allies and partners. The Department of State’s Directorate of Defense Trade Controls (DDTC) proposed rule also adds Civil Space-Related License Exemptions and Special Licensing Provisions.

Comments on the IFR and Proposed Rule are due by November 22^nd. If you would like to provide comments or questions about the license exceptions, please do not hesitate to contact any attorney at Barnes, Richardson & Colburn LLP.