INTRODUCTION TO

U.S. Export Controls for theCommercial Space Industry

2nd Edition – November 2017

Department ofCommerce

Federal Aviation
Administration

This publication was prepared by the U.S. Department ofCommerce’s Office of Space Commerce and the Federal
Aviation Administration’s Office of Commercial SpaceTransportation. For additional information, questions, orcomments, please visit our websites:www.space.commerce.gov
ast.faa.gov

IMAGE CREDITS

Cover: Spaceflight Industries, Inc.
Page 2: Blue Origin
Page 12: NASA/Orbital ATK
Page 32: Mobilus In Mobili
Page 50: Planet
Page 58: SSL
Page 62: SpireTable of Contents
PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SECTION 1: BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.1 Export Control 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.1 Definitions: Exports, Deemed Exports, and Re-exports . . . . . . . . . . . . . . . . . . 4
1.1.2 The Reasons for Controls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.3 Regulations and Responsible Departments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.4 Multilateral Commitments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.2 What’s Changed Under Export Control Reform . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.2.1 Satellite Export Control Reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.2.2 Major Process Changes under Export Control Reform . . . . . . . . . . . . . . . . . . . 9
SECTION 2: UNDERSTANDING THE CONTROL LISTSAND HOW THEY WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12

2.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
2.1.1 Positive Controls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
2.1.2 The Order of Review: First ITAR, Then EAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
2.1.3 Catch-All Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.1.4 Catch and Release . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.1.5 Specially Designed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.1.6 Space-Qualified. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18
2.1.7 Carve-Outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18
2.2 The United States Munitions List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20
2.2.1 USML Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20
2.2.2 USML Categories IV and XV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
2.2.3 Special Controls on the USML. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.2.4 Integration Rule and Hosted Payloads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
2.2.5 Launch-Related Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
2.3 The Commerce Control List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  25
2.3.1 CCL Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  25
2.3.2 CCL Controls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  26
2.3.3 ECCN 600 Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.3.4 ECCN 500 Series (9x515). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.3.5 ECCN 9A004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
2.3.6 Use of the New Paragraphs .x and .y in the CCL. . . . . . . . . . . . . . . . . . . . . . . .  29
2.3.7 Hosted Payloads Subject to EAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
2.4 EAR99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

SECTION 3: HOW TO APPLY FOR A LICENSE OR USE A
LICENSE EXCEPTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32

3.1 Perform Self-Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  34
3.1.1 Follow the Order of Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  34
3.1.2 Use the BIS Order of Review Decision Tree. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
3.1.3 De Minimis Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
3.1.4 Special Considerations for Launch Vehicles. . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
3.2 How to Export EAR99 Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  38
3.3 How to File EAR STA or Other License Exceptions. . . . . . . . . . . . . . . . . . . . . . . .  39
3.4 How to Apply for an EAR License When Required . . . . . . . . . . . . . . . . . . . . . . .  41
3.5 How to Apply for an ITAR License or Agreement When Required . . . . . . . . . . 42
3.5.1 Register with State DDTC if needed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42
3.5.2  For Defense Articles: Access DTrade System to Submit        License Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43
3.5.3 Timeline for ITAR License Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43
3.5.4  For Defense Services: Obtain Approval for Technical Assistance       Agreements or Other Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  44
3.5.5 Application Process for Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  45
3.5.6 Timeline for Approval of Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
3.6 How to Apply for a Dual License (ITAR and EAR). . . . . . . . . . . . . . . . . . . . . . . . 47
SECTION 4: ENSURING COMPLIANCE AFTEREXPORT AUTHORIZATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  50

4.1 Compliance for EAR99 Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
4.2  Compliance for Items Exported under License
Exceptions (e.g., STA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  53
4.3 Compliance for EAR Licensed Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  54
4.4  Elements of an Effective EAR Export Management andCompliance Program (EMCP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  55
4.5 Compliance for ITAR Licensed Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  57
SECTION 5: HELPFUL HINTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  58

5.1 What to Do if You Need Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  60
5.2 Understand the Language and Agencies Involved. . . . . . . . . . . . . . . . . . . . .  60
5.3 Plan Sufficient Resources and Time for the Process . . . . . . . . . . . . . . . . . . . .  60
5.4 Avoid Delays in the Application Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  60
5.5 Train Your Staff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  61
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  62

Appendix A: Useful Contact Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  64
Appendix B: Case Study – Hosted Payload Funded by DOD. . . . . . . . . . . . . . . .  66
Appendix C: Acronyms and Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  68

PurposeT

his guidebook provides basic information to help commercial spaceorganizations, especially emerging entrepreneurial firms, considering business in the international market. It is intended to serve asa starting point in the preparation for the export control process. This is an
update to the 2008 edition and reflects changes due to the Export Control
Reform initiative.
Because most space technologies are subject to export controls, it is yourresponsibility to be aware of the steps necessary to ensure that your operations are lawful. While this guidebook gives an overview of the general responsibilities and procedures, it cannot replace a full understanding of export
regulations or discussions with regulatory bodies and legal counsel prior to
any technology or information export. Please consult with the Department ofState and Department of Commerce to ensure that your organization has themost recent information.
In particular, please note that export control regulations are subject to ongoing revision. Be sure to compare any regulatory text quoted in this publication
with the latest official online version.

The U.S. Department of Stateis the final authority on
International Traffic andArms Regulations (ITAR).

The U.S. Department ofCommerce is the final authority on Export Administration
Regulations (EAR).

www.pmddtc.state.gov

www.bis.doc.gov

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S E C T I O NBACKGROUNDS E C T I O N

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1.1

Export Control 101

1.1.1 DEFINITIONS: EXPORTS, DEEMED EXPORTS, AND RE-EXPORTS

An export is defined as: (1) an actual shipment or transmission out of theUnited States; (2) releasing or otherwise transferring technical data to a foreign person in the United States (a “deemed export”); (3) transferring registration, control, or ownership of any aircraft, vessel, or satellite by a U.S. person
to a foreign person; (4) releasing or otherwise transferring a defense article
to an embassy in the United States; or (5) performing a defense service onbehalf of, or for the benefit of, a foreign person, whether in the United States
or abroad.1 A launch vehicle or payload shall not, by reason of the launchingof such vehicle, be considered an export2,3.
A re-export is the shipment or transmission of exported items from one foreign country to another, the deemed export of technical data within a foreigncountry, or the transfer of registration, control, or ownership of an exported
aircraft, vessel, or satellite between foreign persons.4,5
1.1.2 THE REASONS FOR CONTROLSThe U.S. export control system is designed to prevent the spread of sensitivetechnologies to foreign actors that could threaten U.S. interests, while at thesame time allowing U.S. companies to engage in legitimate commercial activity. Controlled technologies include defense articles (e.g., missiles), defense
services (e.g., integration of a spacecraft onto a launcher), and dual use items(e.g., commercial spacecraft and components).
A U.S. company must seek and receive authorization from the U.S. government prior to exporting controlled technologies. Depending on the sensitivity of the item or service, the authorization may be in the form of a license,
agreement, or license exception.
The deemed export rule requires companies to also seek and receive authorization from the U.S. government before releasing controlled technology

22 CFR § 120.17 and 15 CFR § 734.13
22 CFR § 120.17
3
15 CFR § 734.18
422 CFR § 120.19
5
15 CFR § 734.14
1
2

4 | BACKGROUND

or technical data to foreign persons within the United States. The deemed
export rule exempts a person with permanent residence status, U.S. citizenship, and/or granted status as “protected individual”.6
Since exported technologies may be re-exported or diverted from commercial buyers to hostile actors, most U.S. export controls are based on an itemor service’s inherent technical capabilities, not on its intended end use. For
example, all launch vehicles are subject to restrictive export controls even if
designed to serve purely commercial markets.
1.1.3 REGULATIONS AND RESPONSIBLE DEPARTMENTS

The U.S. export control process involves two sets of regulations and two leaddepartments.
The International Traffic in Arms Regulations (ITAR) process has beendeveloped under the jurisdiction of the Department of State and is administered by the Directorate of Defense Trade Controls (DDTC). The ITAR process controls items, information, or activities that could be used for threatening foreign military purposes, whether actual products (defense articles) or
assistance (defense services). These products and services are detailed in the
ITAR under the United States Munitions List (USML) and can be found atwww.pmddtc.state.gov/regulations_laws/itar.html.
The Export Administration Regulations (EAR) process controls items andtechnologies considered to be “dual use”, meaning applicable to commercial
or military use. These items are detailed in the EAR under the Commerce Control List (CCL). The Commerce Department’s Bureau of Industry and Security (BIS) administers the EAR process.

The vast majority of commercial spacecraft and components fall under
the jurisdiction of the EAR.

Complete information about the CCL can be found at:www.bis.doc.gov/regulations/export-administration-regulations-ear.

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8 U.S.C. § 1324b(a)(3)

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Figure 1: Authorization Hierarchy for U.S. Export Controls

U.S. CONGRESSARMS EXPORTCONTROL ACTEXPORTADMINISTRATION ACTAUTHORIZES...

DEPARTMENTOF STATE

DEPARTMENT OFCOMMERCETO ADMINISTER...

INTERNATIONAL TRAFFICIN ARMS REGULATIONS (ITAR)EXPORT ADMINISTRATIONREGULATIONS (EAR)

WHICH COVERS ITEMS ON THE...

UNITED STATESMUNITIONS LIST (USML)

6 | BACKGROUNDCOMMERCE CONTROLLIST (CCL)1.1.4 MULTILATERAL COMMITMENTS

The United States aligns its export control regulations with several major
multilateral control regimes to which it is committed. Of particular interest
to commercial space companies are the Missile Technology Control Regime(MTCR), which controls items needed for missile development, production,and operation, and the Wassenaar Arrangement (WA), charged with promoting transparency and greater responsibility in transfers of conventional arms
and dual use goods and technologies to prevent destabilizing accumulations.
Additional information on MTCR and WA, including a list of member states,
can be found at www.mtcr.info and www.wassenaar.org, respectively.

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1.2

What’s Changed Under Export
Control Reform

1.2.1 SATELLITE EXPORT CONTROL REFORM

The National Defense Authorization Act for Fiscal Year 2013 authorized theremoval of satellites and related items from the USML. As a result, the Department of State revised the ITAR and USML Category XV (Spacecraft and Related
Articles) in rules that became effective in November 2014.7,8 The Commerce
Department made parallel revisions to the EAR and CCL.9,10 The Category
XV revision was one element of a broader Export Control Reform initiative
begun in 2009 to place “higher walls” around a smaller set of “crown jewels”
and unleash U.S. exports of products and services outside the walls. The government now focuses its oversight on the most critical national security priorities while enabling U.S. businesses to improve their competitiveness in key
defense and technology sectors.
The Category XV update represented a sea change for the space industry,
ending a 15-year period during which nearly all U.S. satellites and components were controlled as defense articles under ITAR. Prior to satellite export
control reform, Category XV was a short list of very broad controls with little
or no performance criteria to distinguish capabilities. This meant that anything from a complete space system to every nut, bolt, and screw used onthat system was ITAR controlled. Today, both the USML and the CCL provide
greater clarity on what is controlled, removing many items from stricter ITAR
controls and making it easier for you to understand and comply with export
regulations.
The USML now functions as a “positive control list” describing the few items
and services remaining under ITAR, with the rest falling to EAR. Satellite export
control reform reversed the ITAR “see through rule”11 (see Section 2.2.4) andrationalized most controls based on technical criteria. With so many space-

79 FR 27180 (May 13, 2014)
79 FR 66608 (November 10, 2014)9
79 FR 27417 (May 13, 2014)10
79 FR 67055 (May 13, 2014)11
Prior to 2014, if a satellite contained any part or component controlled under the ITAR, theentire satellite was subject to the ITAR. Today, satellites subject to the EAR generally remain under
the EAR even if they contain ITAR-controlled components.
7
8

8 | BACKGROUND

related items and services removed from ITAR control, U.S. exporters now facea lighter burden in terms of licensing and compliance.

Items and services transferred from the USML to the CCL include(but are not limited to):• Communication satellites that do not contain classified
components;• Remote sensing satellites with certain performance parameters;• Any spacecraft parts, components, accessories, attachments, equipment, or systems that are not specifically identified in the USML; and• Most radiation-hardened microelectronic circuits.

1.2.2 MAJOR PROCESS CHANGES UNDER EXPORT CONTROL REFORM

The revised export control regulations now allow companies to export andre-export items and components to designated foreign allies without any
licensing for the vast majority of their export activities. Most items on the CCL
are eligible for several license exceptions, including a Strategic Trade Authorization (STA), that allows the unlicensed export, re-export, and in-country transfer of products to 36 U.S. allies. Eight other countries are eligible toreceive certain items under STA, provided all terms of the license exceptions
have been met. Complete information about STA exceptions can be found in
15 CFR § 740.20.
With USML Category XV now serving as a positive control list, the former practice of requesting a Commodity Jurisdiction (CJ) determination (of whether aspace-related item is covered by ITAR or EAR) is now largely unnecessary. The
Departments of State and Commerce continue to conduct regular reviews of
USML Category XV in consultation with industry to identify additional items
that should be moved to EAR jurisdiction.
Satellite export control reform has created a less restrictive environment forforeign nationals working on U.S. space projects.12 Previously, foreign nation-

12

22 CFR § 120.16

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As of the date of this publication, the 36 allied countries eligible forLicense Exception STA are: Argentina, Australia, Austria, Belgium,
Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia,
Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden,
Switzerland, Turkey, the United Kingdom. Licensing Exception STA also
contains limited exceptions for the following countries: Albania, Hong
Kong, India, Israel, Malta, Singapore, South Africa, and Taiwan.

als required an ITAR license or agreement to work on any element of a satellite that contained ITAR controlled parts. Today, an organization can maintainappropriate controls on ITAR-controlled parts while allowing foreign nationals to work on the rest of the spacecraft, if it is controlled by the EAR. If theentire satellite is subject to the EAR, foreign national cooperation is even easier, especially if the foreign national is from an STA eligible country.

10 | B A C K G R O U N D

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2

S E C T I O NUNDERSTANDING THE
CONTROL LISTS AND
HOW THEY WORKS E C T I O N

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2.1

Overview

The purpose of this section is to familiarize you with the regulatory framework
established by the satellite export control reform, including the revised U.S.
Munitions List, the revised Commerce Control List, and the “Order of Review”
that describes how to use the lists. You will need a proper understanding of
the overarching framework and the two control lists before proceeding to
Section 3 (How to Apply for a License or Use a License Exception).
2.1.1 POSITIVE CONTROLS

Under satellite export control reform, the USML and CCL function with “positive” controls. This means the lists contain paragraphs of “control text” providing specific descriptions of the items and services they control. An itemor service that matches the control text of a given paragraph is considered“captured” by that paragraph and by the list in which the paragraph appears.
Conversely, an item that does not meet all of the specified criteria in a paragraph of control text is not captured by that paragraph. Positive control text
generally does not state what it doesn’t capture. The USML does include notes
clarifying what isn’t captured by certain paragraphs, but the notes are notconsidered control text.
As an example, USML Category XV(a)(2) describes spacecraft that “autonomously detect and track moving ground, airborne, missile, or space objects
other than celestial bodies, in real-time using imaging, infrared, radar, or laser
systems.” A commercial satellite that tracks ships via their Automated Information System (AIS) transmissions, but does not use imaging, infrared, radar, or
laser systems, would not be captured by this paragraph.
2.1.2 THE ORDER OF REVIEW: FIRST ITAR, THEN EAR

The relationship between the USML and the CCL is established by the “Orderof Review,” a step-by-step process used to determine which export regulations apply to an item or service. The Order of Review starts with the mostsensitive technologies, which are subject to the strictest export controls, andproceeds through progressively lower levels of sensitivity and control.
The USML includes this guidance on the Order of Review: “In order to classify
an item on the USML, begin with a review of the general characteristics of

14 | U N D E R S T A N D I N G T H E C O N T R O L L I S T S A N D H O W T H E Y W O R K

Figure 2: Export Controls on Space Related Items

POSITIVE CONTROL LISTUSMLCat IV & XV

E.g.: Missiles, antisatellite spacecraft

CCL
600 Series
500 Series ECCNs

POSITIVE CONTROL LISTCCL
ECCN 9A004, Others
CCL.x, .y Controls
EAR 99E.g.: Commercial comsat

POSITIVE CONTROL LIST
E.g.: ISS cargo module

CATCH-ALL & POSITIVE CONTROLS
E.g.: Specially designed parts forspacecraft, light cable assemblies

CATCH-ALL CONTROL

E.g.: Power cords, adapters

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the item. This should guide you to the appropriate category, whereupon you
should attempt to match the particular characteristics and functions of thearticle to a specific entry within that category…. articles not controlled on the
USML may be subject to another U.S. government regulatory agency.”13 For
space systems, USML Category XV provides further guidance on the Orderof Review; Paragraphs XV(a), XV(b), and XV(e) end with notes stating thatany spacecraft, ground control system, or spacecraft part not described by
the USML automatically falls to EAR control. The EAR includes an appendix
providing step-by-step instructions for following the Order of Review within
the CCL.14
Figure 2 shows the overall concept behind the Order of Review. At the top is
the USML, which lists the most critical space technologies. Below that is the
CCL, which captures other space technologies. At the bottom is a loosely controlled category known as “EAR99” that applies to the least sensitive exports.
The pyramid shape is meant to convey that the USML lists only a few space
related items and services, while the CCL controls the majority of them, andmany others are simply EAR99.
Following the Order of Review means starting at the top of the pyramid andworking your way down until an item or service is captured. If an item orservice is not fully described in one tier of control, then you proceed to thenext tier until it is captured. Once you know which tier it falls under, then you
know which controls apply to the export – e.g., ITAR licensing, EAR licensing,or license exceptions.
The overview above describes the Order of Review at the broadest level.
Within each control list, there are finer levels of detail to the Order of Review.
For each category (e.g., USML Category XV), a review must start at the firstparagraph of control text and proceed stepwise through each enumerated
entry until reaching the end of the paragraph. You must do this for each paragraph until reaching the end of the entire category. Individual paragraphs or
entries may employ logical constructs affecting the Order of Review, including catch-all controls, catch and release constructs, and carve-outs.

13
14

22 CFR § 121.1(b)15 CFR § 774, Supp. No. 4

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2.1.3 CATCH-ALL CONTROLS

A catch-all control is one that does not capture specific items by name orfunctional capability but by other means. An example would be USML Category XV(a)(13), which captures all classified spacecraft regardless of function.
Another example is ECCN 9A515.x, which controls unspecified parts, components, accessories, or attachments that are “specially designed” for a spacecraft but are not listed on the USML or ECCN 9A515. (See section 2.1.5 of thisguidebook.)
2.1.4 CATCH AND RELEASE

Some enumerated paragraphs on the USML and CCL use a “catch and release”
construct that initially captures a range of items but then applies a second
criterion, which if met releases less sensitive items from the paragraph. Sometimes the release criteria appear in notes, so it is important to check all notes
associated with the control text. See Appendix B for an example of how thecatch and release construct applies to hosted payloads funded by the Department of Defense.
Once an item or service is released from a given paragraph, you must still evaluate it against the following paragraphs before you can be sure it is released
from the entire category. In the case of the USML, you must evaluate the itemor service against all relevant categories before you can be sure it is released
from ITAR control.
2.1.5 SPECIALLY DESIGNED

The “specially designed” criteria appear throughout the USML and CCL to narrow the scope of some control paragraphs. The term is defined using the catchand release framework. An item may be caught by the specially designed
criteria if (and only if ) it:(1) as a result of development, has properties peculiarly responsible forachieving or exceeding the performance levels, characteristics, or functions in the relevant ECCN or USML paragraph; or(2) is a part, component, accessory, attachment, or software for use in orwith a controlled commodity or defense article.
However, the item drops out of the specially designed definition if it meets
any of the release criteria identifying it as a general commodity. For example,

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fasteners and wires are not “specially designed,” even when built for USML
satellites. Refer to 22 CFR § 120.41 and 15 CFR § 772.1 for the complete releasecriteria applicable to the USML and CCL.
The Departments of State and Commerce offer online tools to help you
determine whether items are specially designed. These are available at:www.pmddtc.state.gov/licensing/dt_SpeciallyDesigned.htm (ITAR) andwww.bis.doc.gov/index.php/specially-designed-tool (EAR).
2.1.6 SPACE-QUALIFIED

Like “specially designed,” the term “space-qualified” appears throughout the
USML and CCL to narrow the scope of some control paragraphs. An item isspace-qualified if it is designed, manufactured, or qualified through successful testing for operation at altitudes greater than 100 km above the surfaceof the Earth. 15, 16 An item only needs to meet one of the three criteria to beconsidered space-qualified. “Designed” and “manufactured” are synonymouswith “specially designed,” so the catch and release construct described in Section 2.1.5 applies if using those criteria.17,18
A determination that a specific item is space-qualified by virtue of testingalone does not mean that other items in the same production run or model
series are space-qualified if not individually tested. For example, the act ofspace-qualifying an individual chip designed for ground use does not makethe chip’s entire product line “space-qualified” and subject to tighter export
controls.19,20
2.1.7 CARVE-OUTS

USML Category XV contains several notes making explicit exceptions or“carve-outs” to the ITAR controls for space-related articles and technology,
including but not limited to:• International Space Station (ISS) - Technology exports specificallydesigned for use on the ISS are subject to the EAR jurisdiction and do

22 CFR § 121.1, Note 3 to USML Category XV(e)15 CFR § 772.1
17
22 CFR § 121.1, Note 4 to USML Category XV(e)18
15 CFR § 772.1, Note 2 to “Space-qualified” definition
19
22 CFR § 121.1, Note 4 to USML Category XV(e)20
15 CFR § 772.1, Note 1 to “Space-qualified” definition15
16

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not require a license under certain conditions.21• James Webb Space Telescope (JWST) – Control of the JWST has beentransferred to the jurisdiction of the EAR (ECCN 9A004), including primary and secondary payloads as well as the parts, components, accessories, or attachments that are specially designed for use in or with thetelescope.22• Telemetry Data – Telemetry data as defined in the ITAR is subject to the
EAR and designated EAR99.23 Additionally, processing of such data does
not cause such data to be subject to the ITAR or EAR regulations.
• Spaceflight Passenger or Participant Experience – Activities and technology/technical data required for spaceflight passenger or participant
experience (space tourism, research, education, etc.) are also not subject
to the ITAR or EAR.24

15 CFR § 774, Supp. No. 1, ECCN 9A004, (w)-(y)15 CFR § 774, Supp. No. 1, ECCN 9A004, (u)-(v) and (y)2322 CFR § 121.1, Note 3 to USML Category XV(f ) and 15 CFR § 774, Supp. No. 1, Note 2 toCategory 9E
24
15 CFR § 774, Supp. No. 1, Note 2 to ECCN 9E515(e)2122

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2.2

The United States Munitions List

2.2.1 USML OVERVIEWThe United States Munitions List (USML) is a list of articles, services, and related
technical data designated as defense articles and defense services pursuant
to the Arms Export Control Act.25 Your organization should obtain a working
knowledge of export restrictions under the USML as they apply to items orservices you may potentially send overseas.
All items and services described on the USML require export authorization by
the State Department. Items require licenses and services require approved
agreements such as a Technical Assistance Agreement (TAA).

Figure 3: The USML Category IV and XVUSMLCat IV & XV

CCL
600 Series
500 Series ECCNs

CCL
ECCN 9A004, Others
CCL.x, .y Controls
EAR 9925

22 CFR § 121.1

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2.2.2. USML CATEGORIES IV AND XVThe USML is divided into 21 categories of defense articles and services. Those
most relevant to the space industry are Category IV and Category XV. Relevant paragraphs from each category are summarized below.

Category IV — Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets,
Torpedoes, Bombs, and Mines(a) Rockets, space launch vehicles (SLVs), missiles, bombs, torpedoes, depth charges,
mines, and grenades(b) Launchers for rockets, SLVs, and missiles(c) Apparatus and devices specially designed for the handling, control, activation,
monitoring, detection, protection, discharge, or detonation of the articles enumerated
in paragraphs (a) and (b)(d) Rocket, SLV, and missile power plants(h) Systems, subsystems, parts, components, accessories, attachments, or associatedequipment(i) Technical data and defense services directly related to the defense articles
described in paragraphs (a) through (h) and classified technical data directly related toitems controlled in ECCNs 0A604, 0B604, 0D604, 9A604, 9B604, or 9D604 and defense
services using the classified technical data

Category XV — Spacecraft and Related Articles(a) Spacecraft, including satellites and space vehicles, that meet certain criteria(b) Ground control systems or training simulators, specially designed for telemetry,tracking, and control (TT&C) of spacecraft in paragraph (a)(e) Spacecraft parts, components, accessories, attachments, equipment, or systems, as
described(f ) Technical data and defense services directly related to the defense articles
described in paragraphs (a) through (e) and classified technical data directly related
to items controlled in ECCNs 9A515, 9B515, or 9D515 and defense services using theclassified technical data

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2.2.3 SPECIAL CONTROLS ON THE USML

Note that paragraphs may be marked with a leading asterisk (*), or a trailing“(MT)”. These markings will aid you in understanding that the specified items
fall under special controls in addition to those established by the applicable
ITAR/EAR control text.
Be sure to read the Category and its corresponding paragraphs as well as allof the technologies encompassed by the paragraph, including the SME and
MTCR designators and the explanatory notes embedded in the paragraphs,
to help with analyzing the classification of the technology you wish to export.

Cue

What does this tell me?

*

The paragraph lists Significant Military Equipment (SME) special export controls are imposed(MT)

The paragraph lists items that fall under the Missile Technology Control Regime (MTCR) Annex - special export controls
are set in this agreement(MT if…) or(MT for…)

Items described in the paragraph that also meet the criteria
in the parentheses are subject to MTCR controls. Items that
only meet the criteria outside the parentheses are subject to
ITAR/EAR controls and not MTCR controls.

Note

Notes at end of paragraph give added explanation on
intended coverage and term definitions

2.2.4 INTEGRATION RULE AND HOSTED PAYLOADS

Export Control Reform brought a paradigm shift for EAR controlled satellites
containing ITAR controlled components. The inclusion of such components
in a satellite no longer “flips” its jurisdiction from EAR to ITAR, as it did under
the old “see-through rule.” Under the new “integration rule,” an ITAR controlled
component moves to EAR control upon its (irreversible) integration into an
EAR spacecraft.
This is documented in Note 1 to USML Category XV(a), which states, “Spacecraft described in ECCNs 9A004 and 9A515 remain subject to the EAR even
if defense articles described on the USML are incorporated therein, except

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when such incorporation results in a spacecraft described in this paragraph.”
Furthermore, adding an ITAR-controlled hosted payload to an EAR-controlled
satellite also does not “flip” the satellite to ITAR. This is documented in Note
2 to USML Category XV(e), which states, “An ECCN 9A004 or ECCN 9A515.a
spacecraft remains a spacecraft subject to the EAR even when incorporatinga hosted payload performing a function described in paragraph (a) of thiscategory.”

BEFORE REFORM

AFTER REFORM

SEE-THROUGH RULE

INTEGRATION RULE

The presence of an
ITAR-controlled partor component rendered
an entire spacecraft
subject to ITAR controls

Spacecraft generally
remain subject to EAR
controls even if they
contain ITAR-controlled
parts or components

ITAR HOSTED PAYLOADSFLIP EAR SATELLITESHOSTED PAYLOADS DON’T
FLIP EAR SATELLITES

A satellite integratinga hosted payload that
included ITAR-controlled
items or characteristics was
subject to ITAR controls

An EAR-controlled satellite
generally remains subject
to the EAR, even if its
hosted payload has
characteristics described in
Category XV (a) of the USML

Be sure to familiarize yourself with the definitions of primary, secondary, andhosted payloads in Chapter XV Note 1 to paragraph (e)(17) of the USML. See
Appendix B for an example of how the Order of Review applies to a DoDfunded hosted payload.

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2.2.5 LAUNCH-RELATED SERVICES

With regard to satellite launch-related changes to the USML, Categories IV
and XV more precisely describe the defense services that still warrant control
under the ITAR:• Providing assistance (including training) in the integration of a satellite to a launch vehicle, including both planning and on-site support,
regardless of (i) the jurisdiction (EAR or ITAR), ownership, or origin of thesatellite or (ii) whether technical data is used; and,• Providing assistance (including training) in the launch failure analysis ofa launch vehicle, regardless of (i) the jurisdiction (EAR or ITAR), ownership, or origin of the launch vehicle or (ii) whether technical data is used.

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2.3

The Commerce Control List

2.3.1 CCL OVERVIEWThe Commerce Control List (CCL) is a list of commercial or dual use items (i.e.,commodities, software, and technology) subject to the EAR licensing authority of the Bureau of Industry and Security (BIS), part of the Department ofCommerce.26
The CCL divides items into ten broad Categories, with spacecraft and related
items falling under Category 9 (Aerospace and Propulsion).
Each CCL category is subdivided into five Product Groups: (A) Equipment,
Assemblies, and Components; (B) Test, Inspection and Production Equipment;(C) Materials; (D) Software; and (E) Technology.

Figure 4: Commerce Control ListUSML
Cat IV & XV

CCL
600 Series
500 Series ECCNs

CCL
ECCN 9A004, Others
CCL.x, .y Controls
EAR 9926

15 CFR § 774

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An item that falls into a specific category and product group is given an
Export Control Classification Number (ECCN). An ECCN categorizes items
based on the nature of the product, i.e. type of commodity, software, or technology and its respective technical parameters.
2.3.2 CCL CONTROLSEach ECCN begins with a table citing which licensing requirements andlicensing policies (control policies) apply to which of the following paragraphs, along with the applicable recipient countries.27 The control policies
are shown using two-letter codes such as NS (national security), MT (missile
technology), and RS (regional stability). 15 CFR § 742 explains each of the CCL
control policies.
For example, ECCN 9A515 indicates that MT controls apply to microcircuits
in paragraphs 9A515.d and 9A515.e(2) when usable in missiles for protecting missiles against nuclear effects. Among other things, this means that suchmicrocircuits are ineligible for unlicensed export under License Exception
STA.28

Reason for Controls
AT - Anti-Terrorism

NS - National Security

CB - Chemical & Biological Weapons

NP - Nuclear Nonproliferation

CC - Crime Control

RS - Regional Stability

CW - Chemical Weapons Convention

SS - Short Supply

EI - Encryption Items

UN - United Nations Embargo

FC - Firearms Convention

SI - Significant Items

MT - Missile Technology

SL - Surreptitious Listening

27
28

15 CFR § 738
15 CFR § 740.20(b)(2)(iii)

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2.3.3 ECCN 600 SERIESAs part of the ECR, BIS has added a “600 Series” to the CCL to control lesssensitive military items, which no longer warrant control on the USML. The
600 series items are subject to more
flexible licensing provisions than
USML
under the ITAR, but will be subject to
Cat IV & XV
somewhat stricter export and re-exCCL
600 Series
500 Series ECCNs
port licensing controls than mostother items controlled under the EAR.
CCL
ECCN 9A004, Others
Licenses from BIS will still be required
CCL
to export and re-export most 600.x, .y Controls
series items worldwide (minus CanEAR 99ada), unless an EAR license exception
is available. (See Section 3.3 of thisguidebook.)
2.3.4 ECCN 500 SERIES (9X515)

Under the ECR initiative, dual use satellite technologies removed from USML
Category XV were added to the CCL under ECCNs 9A515, 9B515, 9D515, and9E515, which are collectively referred to as “9x515”.

ECCN

Items Described

9A515

Spacecraft, ground control systems and training simulators,
microelectronic circuits and discrete electronic components,pressure suits, remote sensing satellite components, andspecially designed parts, components, accessories, andattachments

9B515

Related test, inspection, and production equipment

9D515

Related software

9E515

Related technology

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Figure 5: Decoding ECCN Notations

9A515
CCL
Category
0-9
Product
Group
A-E

Last two
Characters
Reference
USML Cat XV“5” is used to distinguish from600 Series and dual-use items
not previously in USML Cat XV

2.3.5 ECCN 9A004

In addition to 9x515, the CCL includes ECCN 9A004, which is applicable to theInternational Space Station (ISS) and all specially designed parts and components, as well as the James Webb
Space Telescope (JWST) and most
USML
Cat IV & XV
specially designed parts and compoCCL
600 Series
nents. Inclusion of these two large500 Series ECCNs
scale, international projects in the
CCL
CCL facilitates collaboration across
ECCN 9A004, Others
international borders without jeoparCCL.x, .y Controls
dizing national security.
Paragraphs a. through f. of ECCN
9A004 apply to certain space launchvehicles, spacecraft, spacecraft buses,
spacecraft payloads, on-board systems or equipment, and terrestrial equipment. They are listed here in order to harmonize ECCN 9A004 with the Wassenaar Dual-Use List, even though the controls for these items are found under
ECCN 9A515.
EAR 9928 | U N D E R S T A N D I N G T H E C O N T R O L L I S T S A N D H O W T H E Y W O R K

2.3.6 USE OF THE NEW PARAGRAPHS .X AND .Y IN THE CCL

The revised EAR regulations introduced two new constructs known as paragraphs .x and .y to certain ECCNs. The .x paragraph is a catch-all control that
captures specially designed items
that were not previously enumerated
USML
Cat IV & XV
in a given ECCN. For example, ECCN
CCL
9A515 lists various spacecraft and
600 Series
500 Series ECCNs
related commodities in paragraphs
CCL.a through .e, then 9A515.x captures
ECCN 9A004, Others
all other specially designed parts,
CCL.x, .y Controls
components, accessories, and attachments for spacecraft and related
EAR 99commodities that are not specificallylisted.
The paragraph .y construct is an enumerated list that follows the .x catch-all
control. A .y control covers items that would otherwise be within scope ofa .x control but have been identified in an interagency-cleared commodity
classification as warranting a higher level of control than EAR 99. For example,
9A515.y includes flight cable assemblies for spacecraft applications.
2.3.7 HOSTED PAYLOADS SUBJECT TO EARSpacecraft enumerated in categories 9A004 or 9A515.a remain subject tothe EAR even when incorporating a hosted payload performing a function
described in USML Category XV(a). All spacecraft incorporating primary or
secondary payloads that perform a function described in Category XV(a) arecontrolled in Category XV(a).29

29

22 CFR § 121.1, Note 2 to USML Category XV(e)(17)

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2.4

EAR99

Items subject to the EAR but not identified on the CCL are identified by thedesignator “EAR99.” EAR99 items generally consist of low-technology consumer goods and do not require a license in many situations. However, if you
plan to export an EAR99 item to an embargoed country, to an end-user ofconcern, or in support of a prohibited end-use, you may be required to obtaina license.

Figure 6: EAR 99

USML
Cat IV & XV

CCL
600 Series
500 Series ECCNs

CCL
ECCN 9A004, Others
CCL.x, .y Controls
EAR 9930 | U N D E R S T A N D I N G T H E C O N T R O L L I S T S A N D H O W T H E Y W O R K

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3

S E C T I O NHOW TO APPLY FOR
A LICENSE OR USE A
LICENSE EXCEPTIONS E C T I O N

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3.1

Perform Self-Assessment

Determination of the relevant export control jurisdiction for exported products, data, and services is a key component of any export compliance program. Be fully aware of your company’s products, services, technology, andthe extent of your engagement in business practices that involve foreign
nationals or foreign operations (i.e. facility tours, design, development, delivery, insurance) prior to export. You should know or be able to ascertain:• What technology or information you are exporting,• Where you are exporting it,• Who will receive it,• Why it is needed, and• How it will be used.
3.1.1 FOLLOW THE ORDER OF REVIEWTo determine which controls apply to your company’s item, you must assess it
according to steps outlined in the Order of Review. The following outline is an
overview of the steps you should take to make your determination:
1. 
Review the USML category by category and paragraph by paragraph, in the order they appear on the ITAR. You can use the Order ofReview online decision tool provided by the Department of State at:www.pmddtc.state.gov/licensing/dt_OrderofReview.htm
2. If you find that your item or service matches any of the descriptions
listed on the USML, then it is subject to ITAR controls. (Proceed to Section 3.5 of this guidebook.)
3. If your item has not been described and enumerated on the USML, it isa dual use item subject to the EAR and you will need to determine thelicensing requirements for your item or technology.
4. Next, review the Export Control Classification Numbers (ECCNs) of the
CCL to determine whether any of them apply to your item or technology. You should begin by reviewing the 600 series items on the CCL.
5. If your item or technology is not controlled by the 600 series, review
the 500 series items. For space companies, the most relevant 500 series
ECCNs are 9A515, 9B515, 9D515, 9E515. Items specific to the Interna34 | H O W T O A P P L Y F O R A L I C E N S E O R U S E A L I C E N S E E X C E P T I O Ntional Space Station or James Webb Space Telescope are classified as
9A004.
6. If your item does not fall in any of the above categories, it could befound elsewhere so be sure to check other ECCNs. If after review of theother ECCNs, you find your item is not listed, it is designated EAR99 anddoes not require a license. (Proceed to Section 3.2 of this guidebook.)
7. If your item is classified by an ECCN, you will need to determine if you
are eligible for a Strategic Trade Authorization (STA) license exception.
An STA authorizes the unlicensed export, re-export, and in-country
transfer of specified items on the CCL to 36 NATO countries and certain
other allies, provided all requirements for the use of the license havebeen met. Note that 9x515 items that are controlled for missile technology (MT) reasons may not be exported, re-exported, or transferred(in-country) under License Exception STA. (Proceed to Section 3.3 ofthis document.)
8. If your item or technology does not qualify for an STA, you may be
eligible for other 500 series license exceptions. If you determine thatyour export is eligible for a license exception, you may use the coded
designation of that license exception on your export documents. For
example, use the code “LVS” for shipments of limited value or “RPL” forreplacement parts and equipment, among others. (Proceed to Section
3.3 of this document.)
9. If your item is not eligible for an STA or other License Exception, thenyou must apply for an export license. (Proceed to Section 3.4 of thisdocument.)
10. Finally, you may wish to consider applying for a dual license (both ITAR
and EAR) depending on the nature of your export. (Proceed to Section
3.6 of this document.)

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3.1.2 USE THE BIS ORDER OF REVIEW DECISION TREE

In addition to the guidance found in 15 CFR § 774, Supp. No. 4, you canalso use the corresponding web-based decision tool at: www.bis.doc.gov/
export-control-classification-interactive-tool.
3.1.3 DE MINIMIS RULE

Integrating U.S. components into a foreign made spacecraft does not causethat spacecraft to fall under U.S. export controls if certain conditions are met.
Under the de minimis rule, the foreign-made spacecraft is not subject to U.S.
jurisdiction under the EAR as long as: (1) the value of the controlled U.S. content comprises 25% or less of the total value of the item and is not destinedfor a country subject to U.S. arms embargo; or (2) the value of the controlled
U.S. content comprises 10% or less of the total value of the item and is destined for a country subject to a U.S. embargo.30
Guidelines regarding the de minimis rules can be found at: www.bis.doc.gov/
forms-documents/pdfs/1382-de-minimis-guidance/file
BIS also provides a tool to assist you in determining whether a non-U.S.-madeitem located outside the United States is subject to the EAR and can be found
at: www.bis.doc.gov/de-minimis-direct-product-rules-decision-tool
3.1.4 SPECIAL CONSIDERATIONS FOR LAUNCH VEHICLES

By U.S. statute, the launch of a launch vehicle, reentry vehicle, or payload
is not considered an export, if the launch occurs from the United States (orU.S. territory). Therefore, a launch vehicle does not require an export licensefrom the Department of State or Department of Commerce when built andlaunched in the United States.31 However, the operation of the commercial
launch vehicle generally requires a launch license or permit from the Federal
Aviation Administration (FAA). FAA licensing requirements are in place to protect public health and safety, property, U.S. national security and foreign policy interests, and international obligations of the U.S.32
The launch of a U.S. launch vehicle outside the United States requires ITAR
authorization in compliance with MTCR controls. The applicable MTCR con30
As of the date of this publication, Cuba, Iran, North Korea, Sudan and Syria are comprehensively embargoed countries (15 CFR § 740, Supp. No. 1, Country Group E).
3151 U.S.C. § 50919(f )32Information on FAA launch licensing can be found at ast.faa.gov.

36 | H O W T O A P P L Y F O R A L I C E N S E O R U S E A L I C E N S E E X C E P T I O Ntrols establish a presumption of denial for exports of U.S. launch vehicles,
even to other launching states.
A U.S. company wishing to apply for a launch vehicle export license must
work with the State Department and the government of the recipient nation
to establish a Technology Safeguards Agreement (TSA) covering the export.
Contact information for the State Department is in Appendix A.

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3.2

How to Export EAR99 Items

If your item falls under the U.S. Department of Commerce jurisdiction andis not listed on the CCL, it is designated with the ECCN code EAR99. These
items generally consist of low-technology consumer goods and usually do
not require a license, unless you find that you are exporting to an embargoedcountry, to an entity or end-user of concern, or in support of a prohibited
end-use.
Most exports from the United States that are not under the jurisdiction of
the ITAR do not require a license. This is because items either are not on the
CCL (EAR99), or the ECCN controls do not apply to the country of destination.
In these circumstances, you can export under the designation of “No License
Required “and enter “NLR” in your export documents.

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3.3

How to File EAR STA or Other
License Exceptions

An export license exception is an authorization that allows you to export orre-export, under stated conditions, items subject to the EAR that would otherwise require a license. Each exception has a three-letter symbol that is used
for export clearance purposes. There are many license exception designations
and several of them have applicability to “500 series” items, such as Limited
Value Shipments (LVS), government and International Organizations (GOV),
Aircraft, Vessels, and Spacecraft (AVS), in addition to the aforementioned STA
and others.33 If you meet specified terms and conditions, you can declare oneof the license exception designations, which will serve as a general authorization to export.
The following steps will help you determine if you are eligible for a License
Exception and how to proceed with export clearance:
1. Use the BIS on-line tool to determine if you are eligible for License
Exception STA. The tool can be found at: www.bis.doc.gov/statool.
2. If you are eligible for a License Exception, apply for an AutomatedCommercial Environment (ACE) account.34 ACE is the primary systemthrough which the U.S. government tracks, controls and processes allimported and exported goods. An Automated Export System (AES)
filing is required for most exports from the United States to a foreigncountry if valued at U.S. $2,500 or more.
3. To complete the application, you will need your Employer Identification
Number (EIN), which is also known as a Federal Tax Identification Number.
4. Next, access the AES through ACE to file your Electronic Export Information (EEI).35 The first requirement for participation in AES is a Letterof Intent (LOI). The LOI is a written statement of a company’s commitment to develop, maintain, and adhere to Customs and Border Patrol

15 CFR § 740
Application form: ace.cbp.dhs.gov/acexpub/acexpub_Apps/ExporterAccountApplication/
expForm.php
35
15 CFR § 758.1
33
34

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and Census performance requirements and operations standards as aparticipant in AES. If you register to file exports to AES using the freeinternet application, AESDirect, your on-line registration satisfies therequirement for the LOI.36
5. In addition to the LOI and other information, you will need the following to complete your entry:
a. EINb. 
Correct License Code that corresponds to the appropriate
License Exception symbol (e.g., LVS, GOV)c. Correct Export Control Classification Number (ECCN) (e.g., 9A515)
for all exports of items under a license exception.
d. Item description (must be stated in Commerce Control List (CCL)
terms)
e. Destination Control Statement (DCS)f. Power of attorney or other written authorization (if someone isacting as an authorized agent on your behalf)
 complete guide to filling out your EEI can be found at: www.census.gov/
A
foreign-trade/aes/aesdirect/AESDirect-User-Guide.pdf.
6. From the ACE portal it is possible to run reports of the EEI that havebeen submitted by your company or submitted by someone else on
your company’s behalf.
Remember, when using a license exception symbol, you are making a legal
representation to the U.S. government that you have followed the appropriate guidelines and that the export meets all of the specified terms and conditions of the license exception you are using to authorize the export. License
exceptions are still subject to routine reviews by BIS to ensure compliancewith the EAR.

36

www.cbp.gov/trade/aes/letter-intent/register

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3.4

How to Apply for an EAR License
When Required

If your product does not qualify for NLR, License Exception, or STA, then you
must apply for an export license.
To apply for a license, use the Simplified Network Application Process(SNAP-R), the online license application system that the BIS provides to the
public. As an exporter or re-exporter, you have the ability to submit export
and re-export applications and commodity classification requests via theinternet in a secure environment. You also will receive same day acknowledgment of your submission and can obtain online validations (e.g. electronic
facsimile of export license) from BIS.
You must have a Company Identification Number (CIN) and an active user
account to access SNAP-R. The first step to obtaining your CIN is to enter yourinformation and agree to the Terms & Conditions for using the SNAP-R system
as stated on the registration form at snapr.bis.doc.gov/snapr. The system willthen verify the email address you entered; once verified, further instructions
to set up your user account will be delivered.
Once your license application is received, the BIS will coordinate with theappropriate government agencies for review. You should budget approximately 45 days for this process.
For additional information, visit the BIS website at: www.bis.doc.gov/
licensing/simplified-network-application-process-redesign-snap-r.

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3.5

How to Apply for an ITAR Licenseor Agreement When Required

3.5.1 REGISTER WITH STATE DDTC IF NEEDED

If you have concluded that the item or service you wish to export is subject
to the ITAR, the next step is to register with the Directorate of Defense Trade
Controls (DDTC), if you have not done so already. The period of validity for
new and renewal registrations is twelve months from the date of issuance.
Registration does not confer any export privileges but is a prerequisite toexport licensing approval.
The registration process:• Informs the U.S. government about the U.S. defense industry (legal status, export eligibility, foreign ownership/affiliations, legally responsible
personnel, areas of activity);• Serves as a channel to provide industry with information about export
regulations and government concerns; and• Helps validate the bona fides of U.S. firms engaged in defense trade,
especially during the review of export license applications.
Registration submissions must be submitted electronically. The average
review time for a registration request is 45 days. It is recommended that you
send your complete registration package electronically up to a maximum of
60 days in advance of the renewal expiration.
There is a 3-tier schedule of ITAR Registration fees:
1. New $2,250 (or lapsed for over 90 days)
2. Renewal $2,750 if there were less than 11 license applications theprevious year
3. Renewal $2,750 + ($250 for each license application over 10)
There is a maximum fee of 3% of the total value of the exports items and aminimum of $2,750.
Further information regarding registration with the DDTC can be found at:www.pmddtc.state.gov/registration.

42 | H O W T O A P P L Y F O R A L I C E N S E O R U S E A L I C E N S E E X C E P T I O N

3.5.2 FOR DEFENSE ARTICLES: ACCESS DTRADE SYSTEM TO SUBMITLICENSE APPLICATIONThe DDTC has set up an electronic licensing system called DTrade, which a
registered U.S. exporter must use for most of its licensing needs. ThroughDTrade, the DDTC receives and authorizes requests regarding all unclassified
export and temporary import defense articles.
Once you have registered with DDTC, they will provide you access to theDTrade system. Defense articles can be licensed for use through one of thefollowing application forms:• Form DSP-5: Application/License for Permanent Export of UnclassifiedDefense Articles and Related Unclassified Technical Data• Form DSP-61: Application/License for Temporary Import of UnclassifiedDefense Articles• Form DSP-73: Application/License for Temporary Export of UnclassifiedDefense Articles
Applicable forms and additional information can be found at: www.pmddtc.
state.gov/DTRADE
3.5.3 TIMELINE FOR ITAR LICENSE PROCESSING

The Department of State is directed to complete the review and adjudicationof license requests within 60 days of receipt, except in cases where national
security exceptions apply.
Under special circumstances, the Department of State is required to provide
notification to Congress prior to approving a license application, based on
regulatory threshold value of a sales contract and the SME designation of theitems being sold. For cases requiring Congressional notification, budget foran additional 30-90 calendar days. Information regarding Congressional notification can be found at 22 CFR § 123.15.
If an applicant has received an adverse decision, a request may be submitted
in writing to the DDTC for reconsideration. The request must be submitted
within 30 days of the decision. As part of this request, the applicant is given an
opportunity to present additional information for consideration by the DDTC.

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3.5.4 FOR DEFENSE SERVICES: OBTAIN APPROVAL FOR TECHNICALASSISTANCE AGREEMENTS OR OTHER AGREEMENTS

Whereas defense articles require a DDTC-issued license for export or temporary import, defense services require a DDTC-approved “Agreement”. Defense
services involve furnishing assistance to foreign persons in such things as
the design, development, engineering, manufacture, production, assembly,
maintenance, modification, operation, and the destruction of defense articles. They also include giving technical data or military training of foreign
units or forces.37
The agreements that authorize these services are:• Technical Assistance Agreement (TAA)38 – The most common type ofagreement in the space industry, the TAA is basically a contract for the
performance of a defense service or the disclosure of technical data, as
opposed to an agreement granting a license or right to manufacture
defense articles. For example, the assembly of defense articles would
require a TAA, unless production rights or manufacturing know-how areconveyed. If they are conveyed, then this activity would actually need
to be covered by a Manufacturing License Agreement, described below.
• Manufacturing License Agreement (MLA)39 – An agreement whereby
a U.S. person grants a foreign person an authorization to manufacture
defense articles abroad which involves:a. The export of defense articles or the performance of a defense
service, orb. The use by the foreign person of technical data or defense articles
previously exported by the U.S. person.
• Warehouse and Distribution Agreement (WDA)40 – An agreement(e.g., a contract) to establish a warehouse or distribution point abroadfor defense articles exported from the United States for subsequent distribution to entities in an approved sales territory.

22 CFR § 120.9 and 22 CFR § 120.10
22 CFR § 120.22
39
22 CFR § 120.21
40
22 CFR § 120.23
37
38

44 | H O W T O A P P L Y F O R A L I C E N S E O R U S E A L I C E N S E E X C E P T I O NActivities Frequently Requiring Agreements• Launch Related Services• Supporting Direct Commercial Sales to Foreign Parties• Providing Overseas Maintenance or Training Support• Technical Studies, Evaluations, Demonstrations or Consultations with
Foreign Parties• Release of Manufacturing Data or Rights• Efforts to Import Technology from Abroad• Supporting a Foreign Military Sales Case (Beyond scope of LOA:
Letter of Offer and Acceptance)• Supporting U.S. Government-Sponsored Foreign Contracts

3.5.5 APPLICATION PROCESS FOR AGREEMENTS

The following is an outline of the process for obtaining approval for an agreement to export your organization’s defense service:
1. If you have not already done so, register your organization with the
DDTC.
2. Review the Agreements Guidelines set forth by DDTC.41
3. Prepare the agreement application. The documents listed below must
be included:a. Transmittal Letterb. Proposed Agreement (with necessary appendices, exhibits, andannexes)c. Empowered Official Letterd. Supporting Documentation
4. 
Submit the completed application via the DPS-5 vehicle throughDTrade41

www.pmddtc.state.gov/licensing/documents/AgreementGuidelinesRev44b.pdf

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5. Monitor the application process via My Application Ready Yet (MARY), a
web-based status retrieval system, which contains the status of DTradesubmissions.
3.5.6 TIMELINE FOR APPROVAL OF AGREEMENTS

As with a license, an applicant whose agreement has been denied may submit to the DDTC a request for consideration within 30 days of being notifiedof the adverse decision42. As part of the request, the applicant is given theopportunity to present additional information.

42

22 CFR § 126.7

46 | H O W T O A P P L Y F O R A L I C E N S E O R U S E A L I C E N S E E X C E P T I O N

3.6

How to Apply for a Dual License(ITAR and EAR)

The export control regulations incorporate modifications so that only a single license is required when exporting a commodity, software or technology
subject to both USML and CCL controls. Under the updated regulations, therevised USML Categories IV and XV have a new paragraph (x), in order to allow
for ITAR licensing of commodities, software, and technical data otherwise
subject to the EAR. In both USML Categories, paragraph (x) and its explanatory note read as follows:(x) Commodities, software, and technology subject to the EAR (see§ 120.42 of this subchapter) used in or with defense articles.
Note to paragraph (x): Use of this paragraph is limited to license applications for defense articles where the purchase documentation also includes
commodities, software, or technology subject to the EAR (see § 123.21(b)of this subchapter).
As noted, this regulatory solution only applies to CCL commodities, software,and technical data used with or integrated into defense articles on the USML
and are included in the exported technology.
The value of a paragraph (x) export is not used to calculate the Congressional
notification threshold described above. However, applicants are still required
to list the accurate value of the paragraph (x) article on the license applicationthat authorizes its export.
When submitting an application with paragraph (x) items, be sure to include
purchase records that list both USML and CCL controlled commodities, noting that the CCL items are used “in or with” the USML articles being exported.
The application must list the CCL commodities, software, and technical data
separately by ECCN, including the value of those items as integrated into
the export.
Licenses authorizing the export of paragraph (x) items will include the following paragraph:T he U.S. exporter must provide to the end-user and consignees in the purchasedocumentation or other support documentation submitted with the Depart-S E C T I O N

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ment of State license or other approval request the appropriate EAR classification information for each item exported pursuant to a U.S. Munitions List “(x)”paragraph. This includes the appropriate ECCN or EAR99 designation.

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4

S E C T I O NENSURING COMPLIANCE
AFTER EXPORTAUTHORIZATIONS E C T I O NF O U R| 51

As an exporter or re-exporter, it is your responsibility to be aware of, and comply with, all existing and future regulations of any and all U.S. government
agencies controlling U.S. exports. The Directorate of Defense Trade Controls(DDTC) and the Bureau of Industry and Security (BIS) strongly advise that registered exporters and manufacturers have in place comprehensive monitoring programs, to ensure compliance with U.S. export law and regulations.

4.1

Compliance for EAR99 Items

EAR99 items will generally ship under the designation “NLR”, which stands for“No License Required”. However, if your proposed export of an EAR99 item is
to an embargoed country, to an end-user of concern, or in support of a prohibited end-use, you may be required to obtain an export license. Part 744
of the Export Administration Regulations spells out the specific regulations
related to end-user and end-use controls. There are many prohibited end-users. The consolidated U.S. government screening list, including proscribedparties from the Department of State and the Department of Commerce, canbe found at www.export.gov/article?id=Consolidated-Screening-List.

52 | E N S U R I N G C O M P L I A N C E A F T E R E X P O R T A U T H O R I Z A T I O N

4.2

Compliance for Items Exported underLicense Exceptions (e.g., STA)

Once you determine you can use a license exception there may still be approvals or documentation you must produce. Below are examples of the types ofcompliance actions you made need to take.
GOV Exception (Governments, International Organizations, Interna• 
tional Inspections Under the Chemical Weapons Convention, and theInternational Space Station) requires an Electronic Export Information(EEI) filing of the ECCN, and requires a Destination Control Statement tobe put into the commercial export documents.
• LVS Exception (Shipments of Limited Value) exception will require you tobe able to prove that the limited value of the yearly shipments has notbeen exceeded.
• 
TMP Exception (Temporary Imports, Exports, Re-exports, Transfers)
exception requires the item be securely controlled and items have beenreturned or destroyed.
• STA (Strategic Trade Authorization) allows you to transfer the item toanother consignee, but you and each consecutive consignee must sign
an agreement stating all the required conditions to allow the transfer.
STA also requires an application (via SNAP-R) to be made to determine if
the items are eligible.
It is important to read section 740 of the EAR carefully for the documentation,agreements, and records keeping that is required for any license exception.

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4.3

Compliance for EAR Licensed Items

BIS recommends all organizations exporting goods and services under the
Export Administration Regulations (EAR) have in place an Export Management and Compliance Program (EMCP). An EMCP will help prevent U.S.-origin
dual use goods and technologies from being used against us.
An EMCP is a comprehensive, written set of export procedures, policies, andguidelines that provide an organization’s management with a framework toensure and evaluate whether or not the company/employees/products are in
full compliance with EAR regulations. A well-written and fully implemented
EMCP benefits an exporter by minimizing risk of noncompliance and can bea strong mitigating factor when determining penalties in cases of export violation.
While the EAR allows flexibility in the manner in which U.S. companies meetthese compliance requirements, the BIS strongly recommends incorporating
the nine key elements (listed below) and the screening of all parties to transactions, as part of their overall due diligence.

54 | E N S U R I N G C O M P L I A N C E A F T E R E X P O R T A U T H O R I Z A T I O N

4.4

Elements of an Effective EAR Export
Management and Compliance Program(EMCP)

1. Management Commitment: Senior management establishing writtenexport compliance standards for the organization, committing sufficient resources for the export compliance program, and ensuring
appropriate senior organizational official(s) are designated with theoverall responsibility for the export compliance program to ensure
adherence to export control laws and regulations
2. Continuous Risk Assessment of the Export Program
3. Formal Written Export Management and Compliance Program: Effective implementation and adherence to written policies and operational
procedures
4. Ongoing Compliance Training and Awareness
5. 
Pre/Post Export Compliance Security and Screening: Screening of
employees, contractors, customers, products, and transactions andimplementation of compliance safeguards throughout the export life
cycle including product development, jurisdiction, classification, sales,
license decisions, supply chain, servicing channels, and post-shipment
activity
6. Adherence to Recordkeeping Regulatory Requirements
7. Internal and External Compliance Monitoring and Periodic Audits
8. Maintaining a Program for Handling Compliance Problems, including
Reporting Export Violations
9. Completing Appropriate Corrective Actions in Response to Export
Violations
An effective EMCP will be tailored to address your organization’s uniqueoperations and will incorporate such factors as business locations, the size ofyour organization, the types of products, and the end-users/end-use of yourproducts. The document should reflect the scale and scope of your export
program and be flexible enough to adapt to the changes in your organization

S E C T I O NF O U R| 55

and the regulatory environment. The BIS provides several resources to help
your organization develop an EMCP, which can be found at: www.bis.doc.
gov/compliance-a-training/export-management-a-compliance/compliance.

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4.5

Compliance for ITAR Licensed Items

If your organization exports defense articles and defense-related services,
you must employ a dedicated compliance officer to serve as an Empowered
Official.43 An Empowered Official is authorized by an organization to sign andprocess license applications on behalf of that organization and, if necessary,refuse to sign any license application without the threat of retribution.
In addition to the Empowered Official, DDTC recommends putting in place acomprehensive compliance program. The level of sophistication of your internal compliance controls will depend on the nature and scale of your business.
Your program should include the organization’s commitment to compliancewith laws and regulations, procedures for dealing with licensing and compliance matters, identification and duties of empowered and responsible persons,and procedures for record keeping and internal auditing. To assist you, DDTC hasoutlined some elements that should be included in your compliance program:
www.pmddtc.state.gov/compliance/documents/compliance_programs.pdf

43

22 CFR § 120.25

S E C T I O NF O U R| 57

5

S E C T I O NHELPFUL HINTSS E C T I O N

F I V E| 59

5.1 WHAT TO DO IF YOU NEED HELP

There is no substitute for direct communication with the organization thatwill handle your export control issues. There is a DDTC Response Team inplace to answer questions regarding the ITAR and your technology issues
before and during the licensing process. Additionally, you will be assigned alicensing officer for your case during the ITAR process. If you are following theEAR process, the Department of Commerce has specialized export counselors
available to answer questions. Any of these official government resources canbe contacted if you need help. (See Appendix A: Useful Contact Information.)
5.2 UNDERSTAND THE LANGUAGE AND AGENCIES INVOLVED

To succeed through the export control process, it is useful to understand thelanguage and the government agencies with which you will be dealing. The
appendices to this report provide acronym and terminology definitions, aswell as important points of contact at various U.S. government agency offices.
5.3 PLAN SUFFICIENT RESOURCES AND TIME FOR THE PROCESSThe time required from start to finish for the export control licensing process
is case-specific. Therefore, it is helpful to build in a sufficient time period toensure the process does not hinder your operations.
5.4 AVOID DELAYS IN THE APPLICATION PROCESSThe timeline and process confusion are major concerns with export controls.
There are simple actions that can help mitigate these concerns:• Use the electronic applications that are available online.
• Fill out forms fully and correctly.
• Know who you need to contact throughout the process. (See Appendix A.)• Know your company’s processes and potential interactions with foreign
nationals.
• Check for updates on policies and forms on the websites of the Departments of State or Commerce, depending on your situation.

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5.5 TRAIN YOUR STAFF

The Department of State and Department of Commerce websites have links
to their own training sessions. For instance, the DDTC conducts one-day,in-house seminars covering export licensing basics. The BIS provides webinars on the subject via their online training room.44
You can contract with outside organizations to evaluate and provide consultation on your company’s specific import and export compliance issues.
These companies can reduce the need for hiring full-time internal experts.
Certain law and consulting firms specialize in export control or trade compliance issues, as well as in space industry regulatory issues.
Other specialized organizations can train personnel at a cost. These groups
usually hold scheduled ITAR process-training sessions at various locations
throughout the country.

44
The online training room is accessible at: www.bis.doc.gov/compliance-a-training/
export-administration-regulations-training/online-training-room

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APPENDICESA P P E N D I C E S| 63

Appendix A  Useful Contact Information
This appendix provides the contact information for organizations that can
assist a company engaged in or planning to begin the U.S. export control
licensing process.
DEPARTMENT OF STATE, DDTC• Directorate of Defense Trade Controls (DDTC) General
Contact Information
Telephone: 202-663-2980
DDTC Contacts Website:
pmddtc.state.gov/about/contact_information.html• Directorate of Defense Trade Controls (DDTC) Response Team:The Response Team is set up to address a full range of defense tradeinquiries and direct you to a secondary contact, if necessary.
Telephone: 202-663-1282
Email: DDTCResponseTeam@state.gov• Electronic Application Support:
For assistance, please contact the Help Desk.
Telephone: 202-663-2838
Email: dtradehelpdesk@state.gov

DEPARTMENT OF COMMERCE, BIS• Bureau of Industry and Security (BIS) General Contact Information:www.bis.doc.gov/about-bis/contact-bis• To speak with an Export Counselor:• Outreach & Educational Services Division (Washington, DC):
202-482-4811• Western Regional Office (Newport Beach, CA): 949-660-0144• Northern California Branch (San Jose, CA) 408-998-8806
You may also e-mail your inquiry to the Export Counseling Division of the
Office of Exporter Services at: ECDOEXS@bis.doc.gov

64 | A P P E N D I X ASystem for Tracking Export License Applications (STELA):
snapr.bis.doc.gov/stela

A P P E N D I C E S| 65

Appendix B  Case Study – Hosted Payload  Funded by DOD

As part of the ECR Initiative, most commercial, scientific, and civil satellites
and their components were transferred from jurisdiction under the International Traffic and Arms Regulations (ITAR) to the less restrictive Export Control
Regulations (EAR). An ECCN 9A004 or 9A515 spacecraft is now subject to theless restrictive EAR even when incorporating a hosted payload that performs
a function described in Category XV, paragraph (a) of the ITAR.
However, payloads funded by the Department of Defense (DoD) present aunique case. If a secondary or hosted payload and any specially designed
parts or components related to it are developed with DoD funding and areincorporated into a spacecraft, the entire spacecraft is subject to the ITAR
unless the payload is(a) determined to be subject to the EAR via a Commodity Jurisdiction (CJ)
determination, or(b) is exempt in the relevant DoD contract or other agreement as being
developed for both military and civil or commercial applications.45

45

22 CFR § 121.1, Notes 1 and 2 to USML Category XV(e)(18)

66 | A P P E N D I X BFigure B-1:
Hosted Payload Funded by Department of Defense Decision Tree

Does the host spacecraft fall under ECCN
9A004 or ECCN 9A515.a?

NO

The payload is
subject to ITARYES
Do you have a secondary or hosted
payload that provides a Category XVparagraph (a) function?

NO

The payload is
subject to EAR

YESIs the secondary or hosted
payload developed with
Department of Defense funding?

NO

The payload is
subject to EAR

YES
Do you have a CJ determination or contract
as being developed for both militaryand either civil or commercial applications?

NO

The payload is
subject to ITARYES
The payload is
subject to EAR

A P P E N D I C E S| 67

Appendix C  Acronyms and Glossary
ACE – Automated Commercial Environment – The primary system throughwhich the trade community reports imports and exports and the government
determines admissibility.
AECA – Arms Export Control Act – The statute that authorizes the export
and temporary import control activities of the Department of State.
AES – Automated Export System – The central point through which export
shipment data required by multiple agencies is filed electronically to the U.S.
Customs and Border Protection Agency.
BIS – Bureau of Industry and Security – An agency of the Departmentof Commerce that is responsible for administering and enforcing export
controls on dual use items.
CCL – Commerce Control List – A list of items (commodities, software, andtechnology) subject to the Department of Commerce, Bureau of Industry andSecurity (BIS) export controls.
CFR – Code of Federal Regulations – The official codification of the general and permanent rules published in the Federal Register by the executive
departments and agencies of the federal government.
CJ – Commodity Jurisdiction – A determination as to whether an item orservice is subject to the export licensing authority of the Department ofCommerce or the Department of State, Directorate of Defense Trade Controls(DDTC).
Deemed Export – Release or transfer of “technology” or source code to aforeign person in the United States.
DDTC – Directorate of Defense Trade Controls – The office in the Department of State that administers licenses for defense services and defense(munitions) articles.
DTAG – Defense Trade Advisory Group – An advisory committee thatprovides the Bureau of Political-Military Affairs with a formal channel for regular consultation and coordination with U.S. private sector defense exporters
and defense trade specialists on issues involving U.S. laws, policies, and regulations for munitions exports.

68 | A P P E N D I X CDTSA – Defense Technology Security Administration – An agency of the
Department of Defense responsible for the development and implementation of policies on international transfers of defense-related munitions technology. The DTSA is also involved in the review of certain dual use export
license applications.
Dual Use – Items that have both commercial and military or proliferation
applications.
EAA – Export Administration Act – The statute that authorizes the export
control and anti-boycott compliance activities of the Department of Commerce.
EAR – Export Administration Regulations – Regulations set forth in sections 730-774 of Title 15 of the Code of Federal Regulations and issued by the
Department of Commerce to implement the Export Administration Act andother statutory requirements.
ECCN – Export Control Classification Number – A five character alphanumeric designation used on the Commerce Control List (CCL) to identify adual-use item for export control purposes.
ECR – Export Control Reform – A fundamental reform of the U.S. export
control system designed to enhance U.S. national security and the competitiveness of key U.S. manufacturing and technology sectors by focusing on
current threats, as well as adapting to the changing economic and technological landscape.
EEI – Electronic Export Information – Electronic export data as filed in
the Automated Export System (AES) for U.S. exports that contain a single
commodity’s value exceeding US $2,500.00.
The information collected by the Census Bureau is used for statistical
purposes while the Bureau of Industry and Security and other export enforcement agencies uses it for export control and enforcement purposes.
EMCD – Export Management and Compliance Program – An optional program developed by the Bureau of Industry and Security to assist companies
in complying with the export control provisions of the Export Administration
Regulations.
Export – (1) An actual shipment or transmission out of the United States,
including the sending or taking of an item out of the United States, in any
manner; (2) releasing or otherwise transferring “technology” or source code

A P P E N D I C E S| 69

to a foreign person in the United States (a “deemed export”) (3) transferring
by a person in the United States of registration, control, or ownership of: (i)a spacecraft subject to the EAR that is not eligible for export under License
Exception STA to a person in or a national of any other country (ii) any otherspacecraft subject to export controls to a person in or a national of a Country
Group D:5 country.
Hosted payload – A complement of equipment or sensors that uses the available or excess capacity (mass, volume, power, etc.) of a spacecraft to accommodate an additional, independent mission which does not dictate control oroperation of the spacecraft.
ITAR – International Traffic in Arms Regulations – Regulations set forth in
Sections 120-130 of Title 22 of the Code of Federal Regulations and issued by
the Department of State to implement the Arms Export Control Act and otherstatutory requirements.
MTCR – Missile Technology Control Regime – A multilateral control regime
consisting of the United States and other nations that have agreed to guidelines for restricting the export of dual use items that may contribute to thedevelopment of missiles.
MTEC – Missile Technology Export Committee – An interagency group,
chaired by a representative of the Department of State, that reviews export
license applications involving items controlled for missile technology reasons.
Primary payload – That complement of equipment designed from the outset
to accomplish the prime mission function of the spacecraft payload mission set.
Re-export – (1) An actual shipment or the transmission of items subject toexport regulations from one foreign country to another foreign country; (2)release or transfer of technical data or source code to a foreign person of acountry other than the foreign country where the release or transfer takes
place (a deemed re-export); (3) transfer of registration, control, or ownership of (i) any a spacecraft subject to export regulations that is not eligible
for re-export under License Exception STA to a person in or a national of any
other country; or (ii) any other spacecraft subject to the EAR to a person in ora national of Country Group D:5 country.
Secondary payload – That complement of equipment designed from theoutset to be fully integrated into the spacecraft payload mission set. The secondary payload may operate separately from the primary payload.

70 | A P P E N D I X CSME – Significant Military Equipment – Articles for which special export
controls are warranted because of their capacity for substantial military utility
or capability.
SNAP-R – Simplified Network Application Process Redesign – An electronic
method of submitting EAR export license applications.
Space Qualified – An item designed, manufactured, or qualified throughsuccessful testing, for operation at altitudes greater than 100 kilometers (km)above the surface of the Earth.
Specially Designed – An “item” that: (1) as a result of “development” hasproperties peculiarly responsible for achieving or exceeding the performancelevels, characteristics, or functions in the relevant ECCN or U.S. Munitions List
(USML) paragraph; or (2) Is a “part,” “component,” “accessory,” “attachment,” or“software” for use in or with a commodity or defense article ‘enumerated’ orotherwise described on the CCL or the USML.
ST – Strategic Trade Authorization – A license exception that authorizes,
with conditions, the export, re-export, and transfer (in-country) of specified
items to destinations that pose relatively low risk of unauthorized uses.
TAA – Technical Assistance Agreement – An agreement (e.g., contract) forthe performance of a defense service(s) or the disclosure of technical data, as
opposed to an agreement granting a right or license to manufacture defense
articles. Assembly of defense articles is included under this section, provided
production rights or manufacturing know-how are not conveyed.
TCP – Technology Control Plan – A formal plan required in cases when foreign
nationals are employed at or assigned to security-cleared facilities or facilities
that handle export-controlled items or information.
TTCP – Technology Transfer Control Plan – A detailed course of action thatthe exporter provides to the Department of State when applying for an ITAR
license that explains how the exporter will maintain appropriate controls
during the process of exporting items or services on the United States Munitions List.
USML – United States Munitions List – The list of defense articles, technology, and services under the export and temporary import jurisdiction of the
Department of State. The USML is found in Part 121 of the ITAR.

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OFFICE OF SPACE COMMERCE
U.S. Department of Commerce
Herbert C. Hoover Building, Room 2518
1401 Constitution Avenue, N.W.
Washington, D.C. 20230
www.space.commerce.gov
OFFICE OF COMMERCIAL SPACE TRANSPORTATION
Federal Aviation Administration
800 Independence Avenue, S.W., Room 331
Washington, D.C. 20591
ast.faa.gov