State, Commerce Issue Final Rules on Satellite Export Controls; Expedite Microelectronic Circuits Transfer
The Departments of State and Commerce issued concurrent interim final rules to transfer export controls on spacecraft, including satellites, from U.S. Munitions List (USML) Category XV (Spacecraft and Related Articles) to the Commerce Control List (CCL). The Commerce Department’s Bureau of Industry and Security and the State Department have been prioritizing revision to Category XV for months, according to top administration officials (see 13110705). The transfers are part of the administration’s Export Control Reform (ECR). Large portions of both rules will be effective on Nov. 10, following a 180 day grace period to allow industry to adjust to the regulatory changes.
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The interim rules incorporate changes suggested through comments on the proposal published the Federal Register on May 24, 2013 (see 13052318). Both agencies will accept comments until June 26. The Commerce rule (here) creates four new Export Control Classification Numbers in CCL Category 9. The controls on radiation-hardened and other microelectronic circuits will be removed from the USML on June 26. International Traffic in Arms Regulations controls on software and technical data related to microelectronic circuits will also be removed from the USML on that date, and Commerce will amend the EAR to reflect those changes.
The Commerce Department's Bureau of Industry and Security (BIS) is accelerating implementation of these changes because microelectronic circuits development is advancing to a degree that manufacturers are concerned future commercial microelectronic circuits may be subject to USML controls, it said. Therefore, expedited implementation is necessary to enable manufacturers to avoid registering with State, according to BIS. The other revisions to Category XV will largely be effective on Nov. 10, simultaneous with the State transfer.
The State final rule (here) will be effective on November 10, except for §121.1. That section, effective June 26, amends portions of Category IV (Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines) that deal with spacecraft-launch vehicle integration and launch failure analysis services. Regarding Category XV, certain commercial communications and remote sensing satellites will be subject to CCL controls after the Nov. 10 effective date. State is also transferring USML items to the CCL by limiting its scope of control on ground control systems and training simulators specially designed for telemetry, tracking, and control of spacecraft. State will keep USML control on certain Global Positioning System receiving equipment, which be up for export control changes in amendments to USML Category XII (Fire Control, Range Finder, Optical and Guidance and Control Equipment).
(Federal Register 05/13/14)