WASHINGTON — The U.S. Department of Commerce announced long-awaited changes to export control rules for space technologies, a move aimed at bolstering American 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 technologies to close allies, including the United Kingdom, Canada and Australia.
A senior official from the Commerce Department shared details about the updated rules during a briefing with reporters 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 under the highly restrictive International Traffic in Arms Regulations (ITAR), and placing them under the more flexible Commerce Control List.
“We’re taking action to modernize our export controls on space-related items to reflect the increasingly commercial nature of space activities,” said the official. While the rules are meant to streamline exports, the official emphasized that safeguards will remain in place to prevent adversaries such as China and Russia from accessing sensitive technologies.
The revisions are based on feedback the Commerce Department received over the past five years, during which time many U.S. companies expressed concerns that current regulations hampered their ability to compete with foreign firms. Businesses have long argued that the stringent requirements of ITAR placed 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
ITAR has long governed the export of defense-related technologies, including those related to space, due to national security concerns. Administered by the U.S. Department of State, ITAR rules require extensive licensing processes for any defense-related exports, including space systems with potential military applications, such as satellites and spacecraft. Companies say this has often hindered U.S. space industry’s ability to enter foreign markets and participate in international collaborations.
Under the new Commerce rules, certain space technologies will no longer require State Department licenses for exports to trusted allies. The first major change removes licensing requirements for technologies related to remote sensing, space-based logistics, and servicing spacecraft destined for the U.K., Canada, and Australia. This change, the Commerce official said, aims to reduce unnecessary regulatory barriers for allied countries while enhancing collective security.
Another rule change lifts licensing requirements for certain spacecraft components destined for roughly 40 allied nations. It also broadens license exceptions for specific items involved in NASA cooperative programs, further reducing the burden on companies exporting less sensitive technologies.
A third rule being proposed — still open for public comment until November 22 — could further ease ITAR restrictions by transferring additional space-related items from the Munitions List to the Commerce Control List. This proposed rule would affect spacecraft that contribute to space domain awareness, collision avoidance, cooperative docking, and tracking of ground vehicles and aircraft, among other capabilities.
Impact on U.S. space industry
For years, companies in the space industry, particularly those in the in-space servicing, assembly, and manufacturing (ISAM) sector, have lobbied for a less restrictive export regime. These companies, which develop spacecraft capable of extending the life of satellites, repairing mechanical issues, or removing obsolete satellites from orbit, argue that ITAR compliance has stifled innovation and international collaboration.
By easing these rules, U.S. firms are expected to have a better chance of competing globally, especially in markets dominated by foreign manufacturers offering less restricted products. Moving commercial satellites and related technologies from the Munitions List to the Commerce Control List would reduce the time and expense involved in securing export licenses, executives have argued, allowing U.S. companies to respond more quickly to international demand.
The space industry has long been intertwined with defense technologies, making it subject to ITAR’s complex licensing process. This has required companies to navigate extensive bureaucratic hurdles, submit detailed documentation, and undergo rigorous compliance checks — often slowing down business deals.
The new rules, the Commerce official said, are seen as a way to cut through that red tape for commercial space technologies, while maintaining safeguards against misuse.
In contrast to ITAR, items on the Commerce Control List undergo a more nuanced review process, with licensing decisions based on the technology’s end use and the receiving country. This more flexible approach could facilitate greater international cooperation and allow U.S. firms to enter new markets, particularly in Europe and Asia.
“This isn’t just a regulatory update,” the Commerce official stressed. “This is about maintaining our leadership in space technology, protecting our national security, and bolstering our partnerships around the world.”
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