The U.S. Government has announced significant alterations to the export control guidelines for equipment, parts, components, software, related technology and services used in spacecraft and satellites. These adjustments come as a direct result of a change in jurisdiction from the Department of State’s International Traffic in Arms Regulations (ITAR) to the Department of Commerce’s Export Administration Regulations (EAR).
The long-term goal of this shift is to reduce export compliance obligations, but the burden will fall on manufacturers and exporters up-front since they will be the ones re-evaluating the product classifications. Most of the changes will be implemented on November 10th of this year, but some will take place as early as June 27th. Although the long-term results will reduce U.S. government export controls with these kinds of goods, the short-term implications will include some significant constraints. These constraints include, but are not limited to:
- Manufacturers and exporters must update all product classifications, licenses, export authorizations, procedures, and compliance programs.
- Exports to China will be placed under different standards depending on the type of good. Some will be subject to the policy of denial while others will remain under the ITAR for licensing jurisdiction.
If your company is involved with spacecraft in a manufacturing or export capacity, you should review your current compliance procedures and make sure they are in line with the new regulations.
To learn more about the changes to export controls on spacecraft and satellites, you can read the full article here.
