BIS Publishes Final Rule with Respect to Spacecraft No Longer ITAR-Controlled

On November 12, 2014, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) published a final rule on the control of spacecraft systems and related items the President determines no longer warrant control under the United States Munitions List (USML). See 79 Fed. Reg. 67,055. 

Previously, as part of President Obama’s Export Control Reform (“ECR”) Initiative, the U.S. Department of State, Directorate of Defense Trade Controls (“DDTC”) modified Cat. XV of  the U.S. Munitions List, 22 C.F.R. Part 121.1 (the “USML”), to remove the Spacecraft identified above from the USML, and therefore, from control under the International Traffic in Arms Regulations (the “ITAR”). See, generally, 79 FR 27180 (May 13, 2014).

Concurrently, BIS also issued an interim final rule with respect to the controls that would be applicable to the export of the Spacecraft no longer controlled by the ITAR. 79 FR 27417 (May 13, 2014) (the “Interim Rule”). In the Interim Rule, BIS modified Category 9 of the Commerce Control List, 15 C.F.R. 774.1, Supp. 1 (the “CCL”), to create four new 9x515 Export Control Classification Numbers (ECCNs) applicable to the Spacecraft  (9A515, 9B515, 9D515, and 9E515), and modified other provisions of the Export Administration Regulations (the “EAR”) to impose export controls for and upon the Spacecraft removed from the ITAR. Under the BIS Interim Rule:

  • New ECCN 9A515 applies to spacecraft, ground stations, and ‘‘specially designed’’ parts, components, accessories and attachments;
  • New ECCN 9B515 applies to related test, inspection and production equipment and the ‘‘specially designed’’ parts and components;
  • New ECCN 9D515 applies to related software; and
  • New ECCN 9E515 applies to related technology.