November 27, 2024

Comment Period Extended for Proposed and Interim Space-Related Export Control Rules

Holland & Knight Alert
Christopher B. Stagg | Andrew K. McAllister | Antonia I. Tzinova | Robert A. Friedman | Marina Veljanovska O'Brien | Ronnie Rosen Zvi

Highlights

  • The U.S. Department of State's Directorate of Defense Trade Controls (DDTC) and the U.S. Department of Commerce's Bureau of Industry and Security (BIS) have extended the comment period for space-related export control rules from Nov. 22, 2024, to Dec. 23, 2024.
  • Companies in the space industry and other stakeholders are advised to review the proposed regulatory changes and interim final revisions and consider participating in the rulemaking process by submitting comments by the new deadline.

The U.S. Department of State's Directorate of Defense Trade Controls (DDTC) and U.S. Department of Commerce's Bureau of Industry and Security (BIS) on Oct. 23, 2024, published a set of three rules concerning space-related export controls and processes under the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). Comments on the these rules were originally due by Nov. 22, 2024, but the agencies recently extended the comment period to Dec. 23, 2024.

Background

The amendments to specific sections of the ITAR and EAR follow the National Space Council's directive instructing the State and Commerce Departments to review relevant space-related export controls and processes. This review was aimed to enhance the global competitiveness of the U.S. space industry while ensuring the protection of national security and foreign policy interests.

The ITAR rulemaking concerns a proposed rule that would revise U.S. Munitions List (USML) Categories IV and XV concerning missiles and space-related items. It would also revise related sections of the ITAR. These revisions are intended to clarify and standardize the regulatory text, add items for control on the USML, remove items that no longer warrant designation on the USML and introduce new license exemptions to support civil space activities.

The EAR rulemaking includes an interim final rule that aims to reduce license requirements for less sensitive items to better facilitate space collaboration, reclassify certain items, create exceptions for specific standards-related activities and expand license exceptions. The EAR rulemaking also includes a proposed rule that seeks to revise the EAR to align with the proposed changes to the ITAR, including a new license exception for certain commercial space activities.

For more detailed information on each of the new space rules, see Holland & Knight's previous alert, "New Export Control Rules Present Key Regulatory Changes for Space-Related Items, Activities," Nov. 4, 2024.

Updates to Space-Related Export Controls

On Nov. 19, 2024, in response to requests from the public, the State and Commerce Departments extended the deadline for public comments on the three rules by 30 days, updating the comment deadline to Dec. 23, 2024. According to BIS, this extension was made to allow for commenters to have additional time to review the rules and be informed by the public outreach that BIS is conducting on the rules in preparing their comments.

For more information on the implications of these rules or the process of submitting public comments, please contact the authors or another member of Holland & Knight's International Trade Group.


Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.


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