New Export Regulations Facilitate U.S. Space Industry Collaboration with Key Allies

The Bureau of Industry and Security (BIS) has amended the Export Administration Regulations (EAR) to remove license requirements for certain spacecraft and related items exported to Australia, Canada, and the United Kingdom. This regulatory change reflects a broader initiative to foster international cooperation in the space sector while maintaining U.S. national security interests. The removal of these restrictions is aimed at strengthening the competitive position of the U.S. space industry, aligning with recommendations from the National Space Council and strategic policies emphasizing closer defense and industrial partnerships with these allied nations.

This regulatory shift follows a review initiated by the National Space Council in December 2023. The council urged relevant government agencies to reassess space-related export controls to promote global competitiveness for U.S. space enterprises. The resulting changes are intended to simplify compliance and reduce barriers for American companies collaborating with international partners on remote sensing, space-based logistics, assembly, and servicing projects. By streamlining these exports, the U.S. government aims to enhance cooperation with countries that are part of the National Technology and Industrial Base (NTIB), including Australia, Canada, and the United Kingdom.

Prior to this amendment, these spacecraft and related items were subject to a worldwide license requirement, even for export to close allies. The rule change acknowledges the consistent approval of export licenses to these three countries over the past five years, illustrating the low risk of such transfers. BIS anticipates that removing the license requirement will reduce the administrative burden for both businesses and regulators by cutting approximately 90 annual license applications, generating time and cost savings.

In practical terms, the revised regulation applies to spacecraft and technologies governed by ECCNs (Export Control Classification Numbers) 9A515 and 9E515. These classifications cover a variety of space-related items, including satellites, remote sensing technologies, and space-based servicing components. The amendment ensures that these items can now be exported to Australia, Canada, and the United Kingdom without requiring prior approval, facilitating smoother trade and collaboration.

This regulatory change forms part of a broader regulatory alignment strategy. It builds on previous amendments, such as the interim final rule issued in April 2024, which began easing export restrictions to Australia and the United Kingdom. This latest amendment brings the treatment of all three allied nations into closer alignment, further harmonizing the regulatory landscape for space commerce.

The legal foundation for these changes lies in the Export Control Reform Act (ECRA) of 2018, which provides the BIS with the authority to regulate exports, reexports, and in-country transfers. Section 1762 of ECRA allows BIS to implement these regulatory changes without prior public notice or comment due to their relevance to national security and foreign affairs. Furthermore, the rule is exempt from the Administrative Procedure Act’s (APA) public participation requirements, reinforcing the priority placed on national security considerations.

BIS highlights the practical benefits of these amendments, noting that the simplified process will enhance the ability of U.S. companies to compete globally. The agency anticipates that reducing licensing requirements will not only save costs but also foster innovation through enhanced collaboration between the U.S. and its allies. These changes align with executive orders prioritizing regulatory flexibility and efficiency, helping U.S. businesses operate with greater agility in international markets.

In summary, the BIS’s decision to eliminate certain licensing requirements for spacecraft exports to Australia, Canada, and the United Kingdom represents a significant regulatory development. It aims to bolster the U.S. space industry’s competitiveness, streamline trade processes, and strengthen international partnerships in the space sector. The decision reflects a strategic balance between enabling economic growth and maintaining national security interests.

This blog post is provided for informational purposes only and it not guaranteed to be accurate. While every effort has been made to ensure the accuracy of the information, readers should consult appropriate legal or regulatory professionals for advice specific to their situation.