[Federal Register Volume 89, Number 205 (Wednesday, October 23, 2024)]
[Proposed Rules]
[Pages 84784-84798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23975]



Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / 
Proposed Rules

[[Page 84784]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 774

[Docket No. 241004-0265]
RIN 0694-AH66


Export Administration Regulations: Revisions to Space-Related 
Export Controls, Including Addition of License Exception Commercial 
Space Activities (CSA)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Proposed rule.

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SUMMARY: In this proposed rule, the Bureau of Industry and Security 
(BIS) proposes changes to controls for spacecraft and related items 
under the Export Administration Regulations (EAR) that would conform to 
proposed changes to the International Traffic in Arms Regulations 
(ITAR) related to U.S. Munitions List (USML) Categories IV and XV. This 
rule also proposes the addition of a new license exception for certain 
Commercial Space Activities (CSA). This proposed rule is published 
alongside the Department of State proposed rule, ``International 
Traffic in Arms Regulations (ITAR): U.S. Munitions List Categories IV 
and XV'' (1400-AE73), which includes proposed changes for certain 
space-related defense articles and related controls. These proposed 
rules are intended to better enable a globally competitive U.S. space 
industrial base while continuing to protect U.S. national security and 
foreign policy interests.

DATES: Comments must be received by BIS no later than November 22, 
2024.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking portal at: https://www.regulations.gov. The regulations.gov 
ID for this rule is: BIS-2018-0029. Please refer to RIN 0694-AH66 in 
all comments.
    All filers using the portal should use the name of the person or 
entity submitting the comments as the name of their files, in 
accordance with the instructions below. Anyone submitting business 
confidential information should clearly identify the business 
confidential portion at the time of submission, file a statement 
justifying nondisclosure and referring to the specific legal authority 
claimed, and provide a non-confidential version of the submission.
    For comments submitted electronically containing business 
confidential information, the file name of the business confidential 
version should begin with the characters ``BC.'' Any page containing 
business confidential information must be clearly marked ``BUSINESS 
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked 
``PUBLIC.'' The file name of the non-confidential version should begin 
with the character ``P.'' Any submissions with file names that do not 
begin with either a ``BC'' or a ``P'' will be assumed to be public and 
will be made publicly available at: https://www.regulations.gov. 
Commenters submitting business confidential information are encouraged 
to scan a hard copy of the non-confidential version to create an image 
of the file, rather than submitting a digital copy with redactions 
applied, to avoid inadvertent redaction errors which could enable the 
public to read business confidential information.

FOR FURTHER INFORMATION CONTACT: 
    <bullet> For technical questions, contact Joseph A. Cristofaro, 
Director, Sensors, Aerospace and Marine Division, Office of National 
Security Controls, Bureau of Industry and Security, U.S. Department of 
Commerce, at (202)-482-2440 or by email: <a href="/cdn-cgi/l/email-protection#53193c2036233b7d10213a20273c3532213c13313a207d373c307d343c25"><span class="__cf_email__" data-cfemail="8ec4e1fdebfee6a0cdfce7fdfae1e8effce1ceece7fda0eae1eda0e9e1f8">[email protected]</span></a>.
    <bullet> For general questions, contact Regulatory Policy Division, 
Office of Exporter Services, Bureau of Industry and Security, U.S. 
Department of Commerce at 202-482-2440 or by email: <a href="/cdn-cgi/l/email-protection#feacaebaccbe9c978dd09a919dd0999188"><span class="__cf_email__" data-cfemail="045654403644666d772a606b672a636b72">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

A. National Space Council Direction To Review Space Export Controls

    On December 20, 2023, the National Space Council convened to 
discuss U.S. leadership in space. The Departments of State and Commerce 
(hereinafter, State and Commerce, respectively) were subsequently 
tasked to ``conduct a review of space export controls to enable a 
globally competitive U.S. industrial base while protecting our national 
security and foreign policy interests'' (see The White House FACT 
SHEET: Strengthening U.S. International Space Partnerships released on 
December 20, 2023). In response to the tasking, and pursuant to its 
authorities under the Export Control Reform Act of 2018 (ECRA) 
(codified, as amended, at 50 U.S.C. 4801-4852), BIS is publishing 
concurrently with this proposed rule, the Commerce final rule, ``Export 
Administration Regulations: Removal of License Requirements for Certain 
Spacecraft and Related Items for Australia, Canada, and the United 
Kingdom'' (0694-AJ85). That final rule makes important changes to the 
EAR's controls on remote sensing and space-based logistics, assembly, 
and servicing spacecraft and related items to better rationalize the 
controls and facilitate collaboration with three close allies of the 
United States (i.e., Australia, Canada, and the United Kingdom), as 
directed by the Space Council tasking.
    In addition, in response to the tasking, BIS is also publishing 
concurrently with this proposed rule a Commerce interim final rule, 
``Export Administration Regulations: Revisions to Space-Related Export 
Controls'' (0694-AJ87) and that Commerce final rule that will build on 
the space-related export control revisions for Australia, Canada, and 
the United Kingdom by further reducing the export control requirements 
on certain space-related items when destined to U.S. allies and 
partners (including, but not limited to Australia, Canada and the 
United Kingdom).
    This proposed rule builds on those two rules, to propose EAR 
changes that would conform to proposed changes to the ITAR (22 CFR 
parts 120-130), including those related to USML Categories IV and XV. 
This rule also proposes the addition of a new EAR License Exception for 
certain Commercial Space Activities (CSA). This proposed rule is 
published concurrently with the Department of State proposed rule, 
``International Traffic in Arms Regulations (ITAR): U.S. Munitions List 
Categories IV and XV'' (1400-AE73), which proposes changes to controls 
under the ITAR for certain space-related defense articles and related 
controls in response to the same tasking. Although the two rules are 
complementary and published concurrently, they are not published in 
conjunction as joint rules.
    These proposed changes are intended to better enable a globally 
competitive U.S. space industrial base while continuing to protect U.S. 
national security and foreign policy interests. BIS welcomes public 
comment on the impact of the changes proposed in this rule, as well as 
any additional changes to the EAR's space-related export controls that 
could enable a globally competitive U.S. space industrial base while 
protecting U.S. national security and foreign policy interests.
    In 2023-2024, BIS, in coordination with the National Aeronautics 
and Space Administration (NASA) and the National Oceanic and 
Atmospheric Administration (NOAA) conducted a survey and assessment of 
organizations affiliated with NASA, NOAA, and the broader U.S. Civil 
Space Industrial Base (CSIB). The resulting data included respondents' 
aggregated views on

[[Page 84785]]

current export control regulations, as well as suggestions for 
revisions, and has been broadly used to inform this proposed rule.

B. Past Activities To Review Spacecraft and Related Controls Under 
Departments of State and Commerce Export Control Authorities

    On March 8, 2019, the Department of Commerce (Commerce) and the 
Department of State (State) published two advanced notices of proposed 
rulemaking (ANPRMs) (84 FR 8485 and 84 FR 8486, respectively) seeking 
input on potential revisions to export controls related to satellites 
and spacecraft under the ITAR (22 CFR parts 120-130) and EAR (15 CFR 
parts 730-774). In public comments received in response to those 
ANPRMs, and during subsequent export control outreach events and 
interagency meetings to review space and related items export controls, 
industry and interagency representatives proposed several amendments to 
the EAR to support more robust international partnerships, improve the 
consistency and clarity of the EAR, and ensure that, whenever possible, 
U.S. policies are not putting U.S. industries at a comparative 
disadvantage. Building on the 2019 ANPRMs and as part of its activities 
described under section I.A of this proposed rule, the National Space 
Council tasked State and Commerce in December 2023 with conducting a 
review of space export controls to enable a globally competitive U.S. 
industrial base while protecting national security and foreign policy 
interests. Based on that initial interagency review, and pursuant to 
its authorities under ECRA, Commerce proposes the regulatory changes 
described in section II of this proposed rule.
    In response to the Commerce ANPRM, BIS received 19 public comments. 
The 19 comments submitted in response to the Commerce ANPRM consisted 
of comments from 12 major companies in the space industry, four trade 
associations with large representation from the space industry, two 
universities well known for their research activities in space related 
issues, and one individual. BIS summarizes those comments into 22 
topics, which BIS addresses under section I.C. BIS has reviewed these 
comments and used them to help inform interagency review of export 
controls on space and related items. In this proposed rule, BIS 
summarizes and responds to these 22 topics received in response to the 
Commerce ANPRM with either regulatory changes or in clarifications made 
in the preamble.
    BIS also notes that a large number of the comments received on the 
Commerce ANPRM, which were also submitted to State in response to the 
State ANPRM, requested that additional space-related defense articles 
be moved from the U.S Munitions List (USML) to the Commerce Control 
List (CCL). BIS considered those ITAR specific comments as part of the 
interagency review process that included State but does not further act 
upon them here because State has the statutory authority as delegated 
by the President to the Secretary of State to designate those items 
that are defense articles and defense services for purposes of the 
ITAR.
    BIS is publishing this proposed rule alongside the State proposed 
rule to propose appropriate EAR controls for the items that State 
proposes to remove from the USML.
    BIS reviewed all relevant comments submitted in response to the 
Commerce ANPRM and responds to them directly, as appropriate, in the 
discussion of the regulatory changes in section II of this proposed 
rule.

C. Public Comments in Response to Commerce 2019 ANPRM

    Topic 1: Supportive of moving items from USML to CCL. Commenters on 
the Commerce ANPRM were generally supportive of the effort to review 
the controls for spacecraft and related items and highlighted the 
importance of conducting regular reviews by the agencies, including 
public input to ensure that the controls are appropriately calibrated 
from a jurisdictional and license requirement perspective. One 
commenter stated that they support BIS's goals of streamlining export 
control regulations for the commercial space industry to secure our 
industrial base and reduce our export burdens. Another commenter stated 
that in general, this commenter sees developments in the commercial 
communications satellite sector rapidly evolving into areas described 
on the USML to emphasize the point for the importance of regular 
reviews of the USML and CCL.
    BIS response: BIS agrees that these additional proposed changes 
will help to reinforce U.S. technological innovation and leadership in 
the commercial space sector while safeguarding national security 
interests. BIS agrees that there has been rapid innovation and change 
in the commercial satellite servicing sector and changes are being 
proposed in this rule to address these developments as described below. 
BIS welcomes any additional comments from the public on the specific 
changes included in this proposed rule, as well as broader comments on 
reforming space export controls in a way that will continue to protect 
U.S. national security and foreign policy interests.
    Topic 2: Mandate a regular review of the CCL and the USML. A 
commenter stated that the CCL and USML reviews should be mandatory and 
ongoing, with a manageable portion of both lists revised annually. This 
commenter recommended that 20 percent of the CCL and USML be examined 
each year, leading to a full review and revision over the course of 
five-year cycles.
    BIS response: BIS supports the idea of regularly reviewing the CCL 
but does not support mandating a particular review schedule. Commerce 
has not mandated specific time periods for conducting re-reviews of 
certain categories to allow greater flexibility to focus on regulations 
that need re-review at certain times. This allows for reviews to occur 
more often for categories that include items that are rapidly changing, 
or in paragraphs where there have been issues (e.g., a continued large 
number of questions) that indicate refinements of the controls may be 
warranted for adjustment or clarity.
    Topic 3: Better distinguish between designed to operate/function in 
outer space vs. hardware that is ``specially designed'' for a satellite 
or spacecraft. One commenter requested that a distinction should be 
made between items designed to operate/function in outer space vs. 
hardware that is ``specially designed'' for a satellite or spacecraft. 
This commenter recommended that such items should not fall under ECCN 
9A515.
    BIS response: BIS does not accept making edits to the EAR at this 
time to address this comment. The commenter's recommended criteria 
appear too broad to BIS and could result in certain items being 
released from 9x515 ECCNs that warrant being controlled in a 9x5zz 
ECCN. These items need to be retained in 9x5zz ECCNs to protect U.S. 
national security and foreign policy interests. BIS welcomes comments 
providing more specific examples of what this commenter is stating 
supported by further rationale for why these particular items should be 
controlled at a lower level.
    Topic 4: Spacecraft related items to retain in 9A515. A commenter 
stated that specific defense-related commodities that could be 
militarized need to retain more stringent control and be retained in 
ECCN 9A515, which includes the following: (1) precision location 
determination sensors; (2) propulsion for re-entry; (3) vehicle re-

[[Page 84786]]

entry thermal protection; (4) security for communications; and (5) high 
power energy and associated technologies.
    BIS response: The proposed rule does not decontrol any items from 
ECCN 9A515. The rule proposes adding additional requirements to 9A515 
to ensure appropriate controls will be in place for any additional 
spacecraft related item that are moved from the USML to the CCL.
    Topic 5: Control parameters for large aperture earth observation 
cameras needs to be revised to not overreach. One commenter requested 
that State and Commerce increase the clear aperture diameter threshold 
for space-qualified optics in USML Category XV(a)(7)(i) and (e)(2), and 
ECCN 9A515.g.1 from ``0.50 meters'' to ``0.80 meters.'' This commenter 
stated that the U.S. has been building high-resolution commercial 
imaging satellites with similar sized optics since the 1990s and that, 
as of 2019, U.S. industry faced global competitors from at least eight 
countries that can produce one meter-class space-qualified optics. 
Another commenter stated that non-U.S. built commercial imaging 
satellites are already using apertures larger than 0.5m and the adverse 
effect on U.S. industry's competitiveness in the international market 
should be considered when evaluating tight controls on performance 
parameters.
    BIS response: This proposed rule would revise the text of 
9A515.g.1, which would be responsive to these comments. This rule 
proposes to revise ECCN 9A515.g.1 to specify it controls space-
qualified optics (i.e., lens, mirror, membrane having active properties 
(e.g., adaptive, deformable)) with a largest individual light 
collecting or focusing area less than 1,020 cm\2\; or passive optics 
with a largest individual light collecting area between 1,020 cm\2\ and 
2,150 cm\2\; or Xray grazing incidence optics with a total surface area 
(i.e., shells/segments) of less than 25,000 cm\2\; or an effective 
collecting area less than 3,000 cm\2\. State also proposed changes in 
its rule which would increase the thresholds, which is why BIS is 
publishing this Commerce proposed rule to ensure that appropriate 
controls would be in place to protect U.S. national security and 
foreign policy interests for the items that would move from the USML to 
the CCL.
    Topic 6: Codes for trajectories involving three-body calculations 
may be covered under fundamental research. A commenter stated that 
national interest in space activity in Earth's Cis-Lunar space is 
turning toward participation by the private or commercial sector. 
Planning trajectories in this domain involve three-body calculations of 
a sort different from the two-body codes employed previously in deep 
space exploration. The basis of three-body trajectory planning is use 
of mathematics from the domain of basic or fundamental research. 
Verified codes that employ this mathematics may need to be reviewed to 
determine if they are appropriate items for inclusion in either ITAR or 
EAR control.
    BIS response: For items not subject to the ITAR, a person in this 
scenario should review part 734 to see if any of the specified 
exclusion criteria may apply. BIS also continuously reviews emerging 
and foundational technologies (i.e., Section 1758 items) to determine 
when new entries need to be added to a 0Y521 ECCN or to a new or 
existing ECCN to ensure appropriate controls are in place under the EAR 
to protect U.S. national security and foreign policy interests. Section 
1758 of ECRA (50 U.S.C. 4801-4852) authorizes BIS to establish 
appropriate controls on the export, reexport or transfer (in-country) 
of emerging and foundational technologies essential to the national 
security of the United States. For fundamental research into a 
technology, the existing EAR criteria in Sec.  734.8 for excluding 
fundamental research that meets the criteria in that section would 
already address it. Commerce notes that the development of mathematical 
techniques under the fundamental research exclusion does not mean that 
applying those techniques in the development of a specific commodity or 
software is also fundamental research. BIS also notes that the 
application of the results from prior fundamental research in the 
subsequent engineering development phase of research and development, 
and may also include proprietary information, both of which would be 
outside the scope of the fundamental research exclusion.
    Topic 7: Request for classification guidance for science 
instruments. One commenter stated that it would be beneficial to have a 
category that provides control guidance for science instruments such as 
mass spectrometers (particles, plasmas), Spectral--visible/infrared/
ultraviolet/multispectral sensors, and Magnetometers.
    BIS response: BIS does not agree that creating a separate ECCN 
classification or exclusion from CCL-based controls is warranted for 
these types of science instruments because any type of exclusion would 
likely be too broad. The existing CCL already controls scientific 
instruments under certain ECCNs and other scientific instruments are 
designated as EAR99. BIS welcomes comments in response to this proposed 
rule for identifying additional specific scientific instruments that 
should be excluded from the scope of certain ECCNs.
    Topic 8: Remove worldwide license requirement for 9A515.a.4 and 
9A515.a.5. One commenter requested BIS remove the worldwide licensing 
requirement for spacecraft controlled under 9A515.a.4 that are designed 
for resupply of the International Space Station (ISS) or another U.S. 
space station (e.g., the Lunar Gateway) controlled similarly under 
9A515.a.5.
    BIS response: BIS does not agree. With license exceptions under the 
EAR, BIS can facilitate the exports, reexports, and transfers (in-
country) that are consistent with U.S. national security and foreign 
policy interests while still imposing a restrictive license requirement 
requiring EAR authorization. BIS notes that this rule does propose the 
new License Exception Commercial Space Activities (CSA), which 
addresses some of the concerns surrounding this comment. BIS welcomes 
comments on the new License Exception CSA.
    Topic 9: Small CubeSats should be released to a lower level of 
control. One commenter noted that CubeSats of 6U size or smaller have 
become widely available as commercial off-the-shelf (COTS) systems 
because: (1) advances in satellite technology have provided many 
improvements including lighter structural elements, capable 
miniaturized ``components,'' and low power electronics; (2) 
standardization of CubeSat architectures has enabled small companies to 
enter the market as some of the previously demanding technical 
obstacles have been mitigated or removed. Standardization also has 
lowered the cost of initial investments required for entering the 
market, and the need for acquiring data for big data applications has 
increased the market interest in CubeSats considerably. This commenter 
specified that CubeSat is a quickly growing market. This commenter 
stated that because of the COTS availability of 6U or smaller CubeSats 
warrants further review of this technology for less stringent licensing 
requirements.
    BIS response: BIS does not agree that all CubeSats should be moved 
to a lower level of control. The EAR controls in place on some CubeSats 
based on their functionality is needed to protect U.S. national 
security and foreign policy interests. BIS also notes that EAR 
authorizations can be an efficient way to export, reexport, or transfer 
(in-country) items that would otherwise require a license.

[[Page 84787]]

    Topic 10: Remove certain terrestrial equipment from 9A515.x and add 
it as a new 9A515.i.
    One commenter recommended adding 9A515.i (.i is currently reserved) 
to control certain terrestrial equipment ``specially designed'' for 
``spacecraft.'' This commenter stated that this type of equipment is 
positively described and controlled under 9A004 when used with the 
James Webb Space Telescope, but when ``specially designed'' for use in 
or with a 9A515.b ground control system and simulator are not 
positively described in 9A515, they are caught under the catch-all 
category of 9A515.x. This commenter believes that adding telemetry and 
telecommand equipment and simulators as a 9A515 paragraph (i.e., 
9A515.i) instead of capturing the items in a catch-all category, 
furthers the objective of creating a positive control list which will 
result in more consistent classifications and licensing of these 
commodities.
    BIS response: BIS does not agree that a separate ``items'' 
paragraph is needed in 9A515.i to control this equipment. In the 
context of ECCN 9A004 and the use of this equipment in the James Webb 
Space Telescope, it is warranted to call out this specific equipment. 
In the context of ECCN 9A515 where this equipment may be ``specially 
designed'' for use in a variety of spacecraft, it is warranted to 
maintain the classification of 9A515.x.
    Topic 11: Clarification needed for thrusters for whether to 
classify under ECCNs 9A515 and 9A604. One commenter recommended BIS 
consider under ECCN 9A604 adopting text similar to that of ECCN 9A515.x 
by controlling ``specially designed'' ``parts'' and ``components'' of 
USML Category IV and 9A604 (excluding ``specially designed'' ``parts'' 
of 9A604.e and .f) or create a new ``items'' paragraph entry under 
9A604 to control thrusters ``specially designed'' for USML Category IV 
defense articles that are not controlled under USML Category IV. This 
commenter stated that unlike ECCN 9A515.x, ECCN 9A604.x does not 
generically control ``specially designed'' ``parts'' of 9A604 
commodities. This commenter stated that this presents a classification 
challenge because following the CCL Order of Review process leaves the 
classifier in a quandary about how to classify the thruster, especially 
when the item peculiarly responsible for the controlled performance, 
characteristic, or function of the Category IV defense article is a 
``part'' or ``component'' of the thruster. This commenter stated that 
in this case they choose to classify the complete thruster as ECCN 
9A604.x and the ``specially designed'' ``component'' as ECCN 9A604.x.
    BIS response: Other than certain model and high power rocket 
motors, the USML currently describes all rocket, SLV, and missile 
engines and motors. For a thruster that is not subject to the ITAR, in 
these types of classification scenarios BIS would look to whether the 
thruster was for spacecraft and met the control parameter in 9A515.h. 
When asked by the public, BIS has generally advised industry to treat 
thrusters under USML Category IV or ECCN 9A604. BIS further notes that 
if the thrusters were for satellite functionality they would be 
classified under 9A515. BIS reminds exporters, reexporters, and 
transferors that if a person needs assistance in classifying such 
items, they may submit a free classification request to BIS using the 
SNAP-R System on the BIS website at: https://www.bis.doc.gov.
    Topic 12: License Exception eligibility for 9x515 items. One 
commenter states that hardware purchased from a foreign vendor often 
needs to be sent back to the vendor for various reasons, including 
repair, maintenance, calibration, or exchange. This commenter stated 
that in the case of hardware that originated abroad, a less stringent 
licensing requirement is warranted, especially if the U.S. user can 
document the fact that the hardware does not bear any indication of 
what it was used for or the data that it produced during use by the 
U.S. individual.
    BIS response: License Exception TMP under Sec.  740.9(a)(6) 
(Inspection, test, calibration, and repair) already addresses this 
comment. If the scenario was altered slightly where it involved 
reexports between two foreign countries for repair or servicing, then 
License Exception TMP under Sec.  740.9(a)(6) would be used for the 
initial reexport, and then License Exception RPL under Sec.  740.10(b) 
would address return of the repaired or serviced commodity in that 
scenario. License Exception RPL is not needed for the return leg of the 
transaction in this commenter's scenario because no EAR authorization 
would be required to return the serviced or repaired item to the U.S. 
No additional changes are needed or warranted.
    Topic 13: Reduce the number of agencies and organizations/offices 
that review export licenses, advisory opinions, commodity 
jurisdictions, and commodity classification requests. A commenter 
requested that BIS reduce the number of agencies that review license 
applications, as well as other key documents BIS reviews, to help 
improve the efficiency of the review processes for the licensing of 
9x515 items. This commenter stated that the multiple layers of review 
often involving various agencies results in unnecessarily long 
processing times.
    BIS response: BIS's license review process, including the agencies 
that review BIS license applications, is mandated by Executive Order 
(E.O.) 12981, ECRA, and required under the regulatory provisions in 
part 750 of the EAR. BIS also notes that that other agencies that 
review BIS licenses play an important role in helping to protect U.S. 
export control interests when decisions are made whether to approve a 
license application. BIS clarifies here that the review of advisory 
opinions and, until fairly recently, classifications, were already done 
within just BIS in most cases. As a result, any improvements that would 
need to be made for efficiency would be within BIS. BIS does evaluate 
on a regular basis ways that these various review processes can be 
improved. For example, BIS believes that having clear and objective CCL 
control parameters helps reduce the number of classification requests 
that BIS receives. BIS is soliciting comments in response to this 
proposed rule, including on these proposed ECCN control parameters, 
assists BIS in making the process more efficient if the public's input 
helps BIS confirm whether the proposed control parameters are clear and 
if any refinements are needed.
    Topic 14: Improving efficiency of reviews by fully staffing 
reviewing agencies and continuing to work during a lapse in Federal 
funding. One commenter made two recommendations for how to improve the 
efficiency of license review and classifications for spacecraft and 
related items. This commenter recommended that each of the agencies 
that review BIS licenses or are involved in reviewing classification 
requests should be fully staffed. This same commenter recommended that 
during any U.S. Government lapse in funding that the staff working at 
these agencies reviewing BIS licenses and classification requests will 
continue to be able to work.
    BIS response: BIS agrees that fully staffing each of the respective 
agencies would help improve the efficiency of the licensing process. 
BIS does not have any control over staffing decisions at other 
agencies. BIS also seeks to be fully staffed to ensure the work of BIS 
can be completed in a timely and efficient fashion with decisions made 
that protect U.S. national security and foreign policy interests. BIS 
notes that there are statutory limitations that prevent BIS, as well as 
many other U.S. Government employees who are not deemed essential or 
some other

[[Page 84788]]

exempted category, to continue working during a lapse in Federal 
funding. For essential employees that do continue to work during a 
lapse in Federal funding, there are statutory limits for the activities 
that these types of U.S. Government personnel may engage in. BIS notes 
that even during a lapse in Federal funding that license applications 
that are critical to health and safety would generally continue to be 
processed by employees determined to be essential. Because BIS does not 
impose fees for applying for licenses and submitting classification 
requests to BIS, there are limits to what can be done to continue 
operations when there is a lapse in Federal funding. By statute, under 
ECRA, BIS is prohibited from charging fees to apply for BIS licenses, 
which benefits exporters, reexporters, and transferors because they do 
not need to pay a fee to apply for a license. In order to apply for a 
BIS license or submit a classification request to BIS, an applicant 
needs to register in BIS's SNAP-R system, but this registration process 
is free. After any lapse in Federal funding, BIS, as well as the other 
agencies involved in reviewing BIS licenses or classifications 
requests, do the best they can to reduce any backlog of applications.
    Topic 15: Cost savings to private entities by shifting control of 
additional items from the USML to the CCL. One commenter in response to 
the Commerce ANPRM addressing whether there were past cost savings from 
USML Categories IV or XV to the CCL, stated that, in general, 
compliance with EAR controls requires fewer company resources (i.e., 
less time and personnel devoted to drafting and submitting licenses and 
complying with administrative obligations) than compliance with State's 
ITAR controls, given the greater flexibility of licensing and exporting 
under the EAR versus the ITAR.
    BIS response: This commenter's statement is consistent with past 
representations made by BIS and State, as well as by comments received 
by the public over the years in response to USML to CCL review process 
rules. BIS notes that this comment was made in response to the Commerce 
ANPRM, and that, in State's proposed rule published alongside this BIS 
proposed rule, State is proposing new ITAR exemptions for certain space 
related activities. BIS is also proposing new EAR License Exception CSA 
to mirror the ITAR exemptions where it makes sense in the context of 
the EAR for spacecraft and related items subject to the EAR. Comments 
specific to the ITAR should be directed to State in response to its 
proposed rule, but BIS does welcome comments on whether the changes 
included in the Commerce and State proposed rules impact the perceived 
cost savings for entities in the space industry.
    Topic 16: Previous movement of certain spacecraft related items led 
to positive benefits, but more items should be moved to see greater 
benefits for the space industry. One commenter noted that previous 
efforts to remove space-related items from the USML and add them to the 
CCL have had a positive benefit for commercial and civil space 
opportunities, helping to make U.S. companies more competitive, reduce 
costs, and facilitate international cooperation. This commenter also 
stated that there are additional items that, when intended for use in 
commercial civil applications, should be removed from the USML and 
controlled on the CCL.
    BIS response: BIS acknowledges that moving additional items to the 
CCL, provided those items are determined to not warrant ITAR control by 
State, would generally provide greater flexibility under the EAR 
because of additional flexibility for the availability of EAR license 
exceptions and difference in license application requirements, such as 
not requiring a purchase order to apply for a BIS license for 9x515 
spacecraft related items.
    Topic 17: Potential for new costs savings or other benefits for the 
space industry. One commenter stated that to the extent that future 
regulatory changes clarify existing ambiguities and minimize the need 
for export authorizations under the ITAR and EAR for a single program, 
such changes would be expected to result in quantifiable cost savings.
    BIS response: BIS agrees that reducing the regulatory burden, 
including from increasing clarity of the regulatory provisions, can 
result in cost savings for the industry. The proposed addition of 
License Exception CSA in this proposed rule is responsive to this 
comment, as well as other changes included in this proposed rule, and 
the two related Commerce final rule and IFR that are published 
concurrently with this proposed rule, that also made changes that were 
responsive to this comment. BIS welcomes comments in response to this 
proposed rule whether the proposed changes would result in new cost 
savings for the space industry (e.g., for the space programs that this 
commenter references).
    Topic 18: Movement of items from USML to CCL resulted in increased 
cost and complexity. One commenter stated that to date, spacecraft and 
launch vehicle manufacturers have not seen a cost benefit from moving 
certain items from the USML to the CCL. This commenter noted that as 
the categories (i.e., USML Categories and ECCNs) increase in 
complexity, industry utilizes more resources to classify hardware and 
associated data/technology.
    BIS response: BIS notes that this comment on the Commerce ANPRM is 
an outlier compared to the other comments received that support the 
opposite perspective that there have been significant cost savings to 
the space industry, along with increased opportunities for 
international collaboration, as a result of these categories increasing 
in complexity. Because other comments received were supportive, BIS 
believes that the space industry as a whole has seen these export 
control changes as reducing costs and increasing opportunities for the 
space industry. BIS notes that the classification process is a one-time 
cost, not a recurring cost. In addition, the USML Order of Review and 
CCL Order of Review should direct a person classifying an item to the 
appropriate jurisdiction and classification of an item and reduce the 
need for submitting CJ determinations. BIS welcomes comments in this 
area whether other commenters feel the same as this commenter taking 
into consideration the passage of time since 2019 and the additional 
changes that are proposed to the spacecraft and related items controls 
in this proposed rule, as well as the Commerce final rule and IFR 
published concurrently with this proposed rule.
    Topic 19: Increased complexity because a greater number of 
authorizations are available and sometimes needed to cover a large 
program. One commenter stated that because all spacecraft 
``components'' are not in the same ``items'' paragraph .x 
classification under the ECCNs, spacecraft manufacturers utilize more 
resources to develop and manage export authorizations. This commenter 
stated that in many cases, multiple authorizations, which may include 
in certain cases authorization from State and Commerce, are required 
for one space industry program.
    BIS response: BIS agrees that there are a greater number of 
authorizations that are now available to authorize exports, reexports, 
and transfers (in-country). However, for those exporters, reexporters, 
or transferors that prefer to have a single authorization, there are 
options to take that more simplified approach. For example, there is 
the ITAR Sec.  120.5(b) process, so if an exporter prefers to have a 
single authorization in certain cases, they

[[Page 84789]]

could do that with a State license or other approval, provided the EAR 
item was being exported in or with a defense article and the other 
applicable terms and conditions of Sec.  120.5(b) of the ITAR are met. 
Ultimately, having greater flexibility with items moving to the EAR 
means that different authorizations may be available, but may not apply 
in every case. Similar to the ITAR Sec.  120.5(b) process, if an 
exporter wishes to have a single authorization under the EAR for all of 
the items subject to the EAR, that is possible by applying for a BIS 
license to cover all of the items for that export, reexport, or 
transfer (in-country). BIS does not disagree with the commenter that 
having various authorizations potentially available does result in some 
additional burdens, but BIS believes those additional authorizations 
and flexibility it affords to exporters, reexporters, and transferors, 
outweighs the burdens of having greater options for authorizations 
under the EAR.
    Topic 20: Movement of items from USML to CCL has increased, rather 
than lessened complexity because this was a unilateral effort that did 
not involve international agreements or partners. One commenter stated 
that the movement of items from the USML to the CCL (e.g., spacecraft 
and related items from the USML to the CCL) has compounded, rather than 
lessened, the fragmentation of the export control system because this 
reform effort has been a strictly U.S. program. This commenter asserted 
that the U.S. Government made no effort to reach international 
agreement at the multilateral export control regimes on either the 
technologies transferred from the USML to the CCL nor the accompanying 
non-technical verbiage.
    BIS response: BIS does not agree. BIS notes that there is national 
discretion for how regime members of the multilateral export control 
regimes fulfill their commitments. The determination by State that 
certain items did not warrant control under the ITAR and the subsequent 
moving of those items, where they are controlled on the CCL, to the EAR 
was consistent with U.S. Government commitments to the multilateral 
export control regimes. The additional items that are proposed to be 
moved from the USML to the CCL in the Department of State proposed rule 
and the EAR controls that would apply to those items in this Commerce 
proposed rule would also be consistent with U.S. Government 
multilateral export control regime commitments. For example, the items 
moved or proposed to be moved to ECCN 9A515 on the CCL would be 
controlled for national security (NS) reasons, and for certain items 
for missile technology (MT) reasons, so nothing that was done in past 
movements of space and related items from the USML to the CCL, or that 
is proposed in this proposed rule or the State proposed rule, are 
inconsistent with U.S. Government multilateral regime commitments. 
Defined terms under the EAR are consistent with defined terms under the 
multilateral export control regimes.
    Topic 21: License requirement for India for 9A515.e should be added 
to the Commerce Country Chart or removed. One commenter stated that the 
regional stability (RS2) license requirement for ECCN 9A515.e destined 
to India that is in Footnote 7 to the Commerce Country Chart in 
supplement no. 1 to part 738 is often overlooked. This commenter asked 
whether this license requirement should be added to the Commerce 
Country Chart or whether the footnote and license requirement for ECCN 
9A515.e should be removed now that India is a member of the Wassenaar 
Arrangement.
    BIS response: BIS clarifies here that the Commerce Country Chart 
Footnote 7 for the entry for India directs exporters, reexporters, or 
transferors to review that license requirement. Accordingly, BIS does 
not agree that the license requirement for India for ECCN 9A515.e is 
not identified on the Commerce Country Chart. The Commerce Country 
Chart includes eight footnotes so that exporters, reexporters, and 
transferors need to be aware of the importance of reviewing any 
applicable footnote for a country entry they are reviewing on the 
Commerce Country Chart. BIS also notes that the Footnote 7 structure is 
important to maintain because India does not require a CCL-based 
license requirement for RS2 under the RS2 license requirement column on 
the Commerce Country Chart, so an alternative method is needed to 
impose that license requirement. BIS has determined that ECCN 9A515.e 
continues to warrant a license requirement for India. However, BIS also 
notes that as a Country Group A country that License Exception STA is 
available to authorize such exports, reexports, or transfers (in-
country) destined to or within India.
    Topic 22: Clarifying the scope of control status for rovers, 
habitats, commercial crew vehicles, and other robotic space equipment. 
Two commenters on the Commerce ANPRM requested that BIS clarify and 
update the control status for rovers, habitats, commercial crew 
vehicles, and other robotic space equipment that are designed to 
operate in outer space but are not hardware ``specially designed'' for 
a satellite or spacecraft. These commenters stated that such 
commodities should not fall under ECCN 9A515.
    BIS response: This proposed rule is responsive to these comments 
with the revisions this rule proposes for removing the reference in 
Note 1 to 9A515 to ``planetary rovers'' and ``in-space habitats'' and 
the addition of Note 7 to 9A515.

II. Overview of This Proposed Rule

    This rule proposes two sets of changes to controls for spacecraft 
and related items under the EAR pursuant to the legal authority of the 
Export Control Reform Act of 2018 (ECRA) (codified, as amended, at 50 
U.S.C. 4801-4852). Section 1753(a) of ECRA (50 U.S.C. 4812) authorizes 
the regulation of ``(1) the export, reexport, and in-country transfer 
of items subject to the jurisdiction of the United States, whether by 
United States persons or by foreign persons.'' First, BIS proposes 
amending the EAR to conform to State's proposed changes related to USML 
Categories IV and XV. Second, BIS proposes adding a new license 
exception to the EAR for certain Commercial Space Activities (CSA), 
which would mirror certain exemptions proposed to be made available for 
defense articles under the ITAR. BIS welcomes comments that identify 
any further amendments to the EAR (and corresponding amendments to the 
ITAR) that better enable a globally competitive U.S. space industrial 
base while continuing to protect U.S. national security and foreign 
policy interests.

A. EAR Changes To Conform to ITAR Changes Related to USML Categories IV 
and XV

    BIS is proposing changes to Export Control Classification Number 
(ECCN) 9A515, the addition of 9C515, and changes to 9D515 and 9E515 in 
supplement no. 1 to part 774 of the EAR, described under section 
III.A.1. through .4. BIS estimates that these amendments would result 
in an additional 90 license applications submitted to BIS annually.
    This rule does not propose any changes to ECCN 9A004, but BIS does 
welcome comments from the public on whether any additional changes to 
ECCN 9A004 should be made, including whether changes should be made to 
ECCN 9A004 to remove references to items paragraphs in 9A004 that are 
otherwise subject to the ITAR or classified under ECCN 9A515. BIS has 
maintained the current structure of ECCN 9A004 for consistency with the

[[Page 84790]]

Wassenaar Arrangement, but does welcome any additional comments on 
whether the current structure for ECCN 9A004 and how that cross 
references items subject to ITAR and ECCN 9A515 may be improved.
1. ECCN 9A515
    a. Revises 9A515.a to remove text that is not needed as part of the 
control parameter. In ECCN 9A515, this rule proposes revising 9A515.a 
to remove the phrase `whether designated developmental, experimental, 
research or scientific' because this text is not needed as part of the 
control parameter. ECCN 9A515.a controls all ``spacecraft,'' including 
satellites, and space vehicles and ``sub-orbital craft'' not enumerated 
in USML Category XV or described in ECCN 9A004.u or .w, that meet the 
control parameters under one of the ``items'' paragraphs under 
9A515.a.1 through a.5, so the additional text that this rule would 
remove is not needed to describe the scope of commodities controlled.
    b. Revises 9A515.a.4 to impose a broader control parameter. This 
rule proposes expanding the control parameter under 9A515.a.4 to 
control ``spacecraft'' that perform remote proximity on-orbit services 
to other spacecraft (e.g., docking, delivery, refueling, or servicing), 
provide life sustaining operations (e.g, space stations, space hotels, 
outposts, or laboratories), or capture, collect, and remove space 
debris. This expanded control parameter is needed to control additional 
``spacecraft'' that would be moved to the CCL from the USML.
    c. Excluding planetary rovers and in-space habitats not identified 
in ECCN 9A004 or USML Category XV(a) from the scope of 9A515.a. This 
rule proposes revising Note 1 to 9A515.a to remove the terms 
``planetary rovers'' and ``in-space habitats.'' This rule also proposes 
adding new Note 7 to 9A515 to specify these commodities are not within 
the scope of 9A515.
    d. Revision to Note 2 to 9A515.d and .e to remove text for clarity. 
Note 2 to 9A515.d and .e, which provides guidance on the scope of 
Application Specific Integrated Circuits (ASICs) that are controlled 
under ECCN 9A515.d. and .e, is proposed to be modified to more clearly 
describe the items in 9A515.d and .e and related controls.
    e. Revision to 9A515.g.1 to impose a broader control parameter. 
This rule proposes expanding the control parameter under 9A515.g.1 to 
control space-qualified optics (i.e., lens, mirror, membrane having 
active properties (e.g., adaptive, deformable)) with a largest 
individual light collecting or focusing area less than 1,020 cm\2\; or 
passive optics with a largest individual light collecting area between 
1,020 cm\2\ and 2,150 cm\2\; or X-ray grazing incidence optics with a 
total surface area (shells/segments) of less than 25,000 cm\2\; or an 
effective collecting area less than 3,000 cm\2\. This expanded control 
parameter is needed to control additional space-qualified optics that 
would be moved to the CCL from the USML.
    f. Revision to 9A515.h to remove the term ``spacecraft.'' This rule 
proposes removing the term ``spacecraft'' before the term thrusters in 
9A515.h because the term is not needed. The heading of ECCN 9A515 
already makes it clear that the thrusters that are controlled under 
this ECCN would be thrusters that are for ``spacecraft'' when these 
thrusters meet the control parameters under 9A515.h.
    g. Addition of 9A515.i. This rule proposes adding a new 9A515.i to 
control Electric (Plasma/Ion) thrusters and their associated power 
control systems operating at in input power of less than 20kW and 
having an individual thrust of at least 400 milli-Newtons, but not also 
having a specific impulse better than 1,900 seconds, which the 
Department of State has proposed moving from the USML to the CCL.
    h. Addition of 9A515.j. This rule proposes adding a new 9A515.j to 
capture Control moment gyroscopes (CMG) ``specially designed'' for 
spacecraft that provide an angular momentum of less than 2.0 (N m sec) 
or provide a torque of less than Newton meters (N m), which the 
Department of State has proposed moving from the USML to the CCL. This 
rule also proposes adding a Note 4 to 9A616.j to specify that if a CMG 
has an angular momentum of at least 2.0 Newton meter seconds (N m sec), 
provide a torque of at least 6.0 Newton meters (N m), and are 
``specially designed'' for spacecraft it is subject to USML Category 
XV(e)(13).
    i. Addition of 9A515.k. This rule proposes adding a new 9A515.k to 
control hold-down or satellite release mechanisms (i.e., clampbands, 
adapters, dispensers, or motorized lightbands) not described in USML 
Category IV(e)(5), excluding those for 1U CubeSats or less.
    j. Clarification of 9A515.y. This rule proposes adding the term 'as 
follows' at the end of the introductory text of 9A515.y to make it 
clear that any item that is ``specially designed'' for purposes of 
9A515.x that also meets any of the control parameter descriptions under 
9A515.y.1 through y.6 is controlled under 9A515.y.
    k. Addition of Note 8 to 9A515 to specify rovers and in-space 
habitats are not classified under ECCN 9A515. This rule proposes to add 
new Note 8 to 9A515 to specify that rovers and in-space habitats are 
not classified under ECCN 9A515. Following the CCL Order of Review, a 
person classifying these commodities would go to the beginning of CCL 
Category 9 and review the other ECCNs that may be applicable (e.g., 
ECCN 9A004.r for in-space habitats) and then if none of those are 
applicable, then the items in question would be designated as EAR99.
    l. Conforming changes. This rule proposes as a conforming change 
reserving paragraphs (1) through (w) to reflect the proposed additions 
to 9A515. In addition to complying with Office of Federal Register 
(OFR) drafting requirements for the designation of Notes, this proposed 
rule, the Note to 9A515.a would get redesignated as Note 1 to 9A515.a; 
Note 1 to 9A515.d and .e would get redesignated as Note 2 to 9A515.d 
and .e; Note 2 to 9A515.d and .e would get redesignated as Note 3 to 
9A515.d and .e; and Note to 9A515.x would get redesignated as Note 5 to 
9A515.x, Note 5 to 9A515.b and .x would get redesignated as Note 6 to 
9A515.b and .x, and Note 6 to 9A515 would get redesignated as Note 7 to 
9A515. Lastly, in ECCN 9A515 in the List of Items Controlled section 
under the Related Controls paragraph, this rule proposes revising the 
first sentence to removes the phrase `enumerated on the USML' and add 
in its place the phrase `described on the USML' to conform with ITAR 
terminology used to describe the USML.
2. Addition of New 9C515
    a. Materials classified under new 9C515. This rule proposes adding 
a new ``materials'' ECCN to the CCL by adding a new ECCN 9C515, which 
would control materials, coatings, treatments for reducing in-orbit 
signatures (i.e., radar, optical, ultraviolet, and infrared) of 
spacecraft, not described by USML Categories XIII(j) or XV(e)(22), such 
as blankets, films, tapes, and paints as identified in the List of 
Items Controlled. This new ECCN 9C515 would only control ``materials'' 
that are not subject the ITAR. This rule proposes these materials would 
be controlled under ECCN 9C515, which would consist of materials, 
coatings, treatments for reducing in-orbit signatures (i.e., radar, 
optical, ultra violet, and infrared) of spacecraft such as blankets, 
films, tapes, and paints with either of the following characteristics 
specified under 9C515.a.1 (i.e., designed to reduce radar, ultra-
violet, & infrared signature by 20% or more), or 9C515.a.2

[[Page 84791]]

(i.e., designed to reduce optical signature by 50% or more).
    b. Note to 9C515 would clarify materials included and excluded 
under this new ECCN. This rule also proposes a note to 9C515 that would 
clarify the scope of this new ECCN. The new Note under paragraph (1) 
would specify that materials controlled by 9C515 include structural 
materials and coatings (including paints), ``specially designed'' for 
reduced or tailored reflectivity or emissivity in the microwave, 
infrared, or ultraviolet spectra. Paragraph (2) of the note to 9C515 
would specify that this entry does not control materials used for the 
purpose of reducing brightness from the ground. These first two 
paragraphs of the Note to 9C515 would be intended to focus the scope of 
this new ECCN 9C515, so it would not be broader than intended. 
Paragraph (3) to the Note to 9C515 would include a cross reference back 
to the USML to specify that 9C515 applies to certain ``materials'' for 
commodities that meet the definition of defense articles under 22 CFR 
120.31 of the ITAR, which describes similar commodities ``subject to 
the ITAR,'' including USML Category XIII.
    c. License requirements and license exception eligibility for 
9C515. This rule proposes adding new ECCN 9C515 to impose appropriate 
controls under the EAR for this material that would be moved from the 
USML to the CCL. This material would be controlled for NS1, RS1, and 
AT1. No list-based license exceptions would be available for this 
``material.'' License Exception STA under the paragraph (c)(1) 
authorization for Country Group A:5 countries would be eligible, but 
(c)(2) of License Exception STA (Sec.  740.20(c)(2)) may not be used 
for any item in 9C515.
3. ECCN 9D515
    a. Addition of 9D515.c. This proposed rule would add new ECCN 
9D515.c to clarify that this software would be within the scope of 
9D515. New 9D515.c would specify that Space Situational Awareness (SSA) 
analysis ``software'' used to model, simulate, optimize, or perform 
operations involving spacecraft maneuvers, trajectory planning, or 
debris tracking would be within the scope of this ECCN. The control 
parameter would include when this ``software'' is incorporated into a 
ground system, as well as when the ``software'' is incorporated into a 
``spacecraft.''
    b. Conforming change. In ECCN 9D515's List of Items Controlled 
section under the Related Controls paragraph (1), this rule proposes 
revising the first sentence to remove the phrase 'enumerated on USML 
Category XV' and add in its place the phrase 'described in USML 
Category XV' for consistency with ITAR terminology used to describe the 
USML. This rule also proposes revising the same sentence to remove the 
phrase 'is subject to the control of USML paragraph XV(f)' and add in 
its place a more general reference of 'subject to the ITAR.'
4. ECCN 9E515
    This rule proposes revising ECCN 9E515 to add new items paragraphs 
9E515.g, .h, and .i to control certain ``technology'' for new 9A515.i, 
.j, and .k that this rule also proposes adding to ECCN 9A515 as 
described further under III.A.1.a through .e.
    a. Addition of 9E515.g. This rule proposes adding a new 9E515.g to 
control ``technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.i. This would be a necessary 
conforming change to reflect the proposed new addition of the control 
parameter under ECCN 9A515.i to ensure that an EAR authorization would 
be required under NS1, RS1 worldwide except for exports and reexports 
to Australia, Canada, and the United Kingdom.
    b. Addition of 9E515.h. This rule proposes adding a new 9E515.h to 
control ``technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.j. This would be a needed 
conforming change to reflect the proposed new addition of the control 
parameter under ECCN 9A515.j to ensure that an EAR authorization would 
be required under NS1, RS1 worldwide except for exports and reexports 
to Australia, Canada, and the United Kingdom.
    c. Addition of 9E515.i. This rule proposes adding a new 9E515.i to 
control ``technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.k. This would be a needed 
conforming change to reflect the proposed new addition of the control 
parameter under ECCN 9A515.k to ensure an EAR authorization would be 
required under NS1, RS1 worldwide except for exports and reexports to 
Australia, Canada, and the United Kingdom.
    d. Conforming change. This rule proposes reserving ``items'' .j 
through .x to account for the proposed additions of ECCN 9E515.g, .h, 
and .i.

B. Addition of New License Exception for Commercial Space Activities 
(CSA)

1. New License Exception CSA
    In part 740 (License Exceptions) to the EAR, BIS proposes adding a 
new license exception under Sec.  740.26 for Commercial Space 
Activities (CSA) for official space agency programs and space tourism 
and research. The new License Exception would consist of paragraphs (a) 
(Scope), (b) (Exclusions), and (c) (Authorizations). Under 
Authorizations, (c)(1) would provide an authorization for `official 
space agency programs' and (c)(2) would provide an authorization for 
Space Tourism and Research. The State proposed rule published 
concurrently with this Commerce proposed rule, proposes similar ITAR 
exemptions for these types of Civil Space Activities specific to 
defense articles that are subject to the ITAR.
    Paragraph (a) (Scope) would specify the two types of authorizations 
that are available to authorize certain 9x5zz and 9A004 items for 
certain specified commercial space activities. Paragraph (a) would 
specify that License Exception CSA would authorize under paragraph 
(c)(1) exports, reexports, and transfers (in-country) of items subject 
to the EAR and classified in 9x5zz or 9A004 ECCNs for certain `official 
space agency programs.' The paragraph (c)(1) authorization would only 
be available when the export, reexport, or transfer (in-country) is 
entirely within the scope of an official space agency program 
identified in paragraph (c)(1)(i) of License Exception CSA, and subject 
to the exclusions in paragraph (b). License Exception CSA would also 
authorize under paragraph (c)(2) exports, reexports, and transfers (in-
country) of manned spacecraft subject to the EAR and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' subject to the EAR 
solely for use in or with such spacecraft, provided the requirements 
under paragraph (c)(2)(i) through (iv) are met, and subject to the 
exclusions in paragraph (b).
    Paragraph (b) would clarify that License Exception CSA is not 
available for any export, reexport, or transfer (in-country) that is 
excluded under paragraphs (b)(1), (2), (3), (4), or (5) of License 
Exception CSA. These exclusions would not allow the use of License 
Exception CSA when: (1) a ``proscribed person'' (e.g., any entity 
listed on the Entity List) is a party to the transaction; (2) a license 
is required under a part 744 end use or end user control; (3) if the 
export, reexport, or transfer (in-country) is for the purpose of 
establishing offshore procurement

[[Page 84792]]

arrangements or producing any item classified in a 9x515 or 9A004 ECCN 
offshore; (4) any export or reexport to or transfer (in-country) within 
a destination listed in Country Groups D:1, D:4, or D:5 in supplement 
no. 1 to part 740; or (5) the export, reexport, or transfer (in-
country) is any radiation-tolerant hardware classified in ECCN 9A515.d 
or .e or related ``technology.'' These exclusions from the use of 
License Exception CSA for these specified end users, end uses, and 
destinations of concern are needed to protect U.S. national security 
and foreign policy interests.
    The proposed paragraph (c)(1) authorization would authorize 
exports, reexports, and transfers (in-country) of items subject to the 
EAR for an `official space agency programs.' The paragraph (c)(1) 
authorization would also require that the export, reexport, or transfer 
(in-country) would need to be entirely within the scope of an official 
space agency program identified in paragraph (c)(1)(i) of License 
Exception CSA, and subject to the exclusions in paragraph (b). 
Paragraph (c)(1)(i) (Eligible `official space agency programs') would 
specify, for purposes of the paragraph (c)(1) authorization under 
License Exception CSA, the following programs for formal spacecraft, 
independent of the launch vehicles that deliver them to orbit, are 
eligible for License Exception CSA under the paragraph (c)(1) 
authorization, provided the terms and conditions of paragraph (c)(1) 
are met: (1) NASA's Lunar Gateway; (2) NASA's Mars Sample Return (a 
program that entails multiple spacecraft); (3) Nancy Grace Roman 
Telescope; (4) The Orion spacecraft; (5) Commercial Low Earth Orbit 
Development program; and (6) Habitable Worlds Observatory. Paragraph 
(c)(1)(i) would specify that the authorization under paragraph (c)(1) 
is only available for items that are subject to the EAR that are for an 
export, reexport, or transfer (in-country), that is entirely within the 
scope of `official space agency programs.' This rule proposes including 
an example in paragraph (c)(1)(i) for the export of an ECCN 9A515.x 
``component'' to a space contractor in France that is ``producing'' a 
higher level assembly that will be for use in NASA's Lunar Gateway 
program to assist understanding of the types of exports, reexports, or 
transfers (in-country) that License Exception CSA would authorize under 
the paragraph (c)(1) authorization.
    The proposed paragraph (c)(2) would authorize the export, reexport, 
or transfer (in-country) of manned spacecraft subject to the EAR 
classified under ECCNs 9A004 or 9A515 and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' subject to the EAR solely for use 
in or with such spacecraft, provided the requirements under paragraphs 
(c)(2)(i) through (iv) for the spacecraft are met and the export, 
reexport, or transfer (in-country) is not otherwise excluded from the 
use of License Exception CSA under paragraph (b). This rule proposes 
requirements under paragraphs (c)(2)(i) through (iv) that would require 
that the spacecraft must be limited to: (1) suborbital trajectories; 
(2) the purpose of the activity must be limited to either space tourism 
or supporting ``fundamental research;'' (3) the activity must not 
transfer registration, control, or ownership of the spacecraft to a 
foreign person; (4) the spacecraft's destinations, including planned 
diverts and contingencies, must be approved by the Federal Aviation 
Administration (FAA) or its foreign equivalent in all countries; and 
(5) must not include any destinations listed in Country Groups D:5 or 
E. The requirement under paragraph (c)(2)(iv) that would allow for 
foreign equivalents, but excludes foreign equivalents of any 
destination listed in Country Group D:5 or E, would be intended to 
ensure that a country such as Russia, which is listed in Country Group 
D:5, could not issue a foreign equivalent that could meet the terms of 
the paragraph (c)(2)(iv) requirement, even if the export, reexport, or 
transfer (in-country) was not destined to or within a destination 
listed in Country Groups D:1, D:4, or D:5.
    Because of the burgeoning space tourism and space research 
industries, providing paragraph (c)(2) of License Exception CSA would 
provide more efficient authorization for activities of this type that 
do not raise national security or foreign policy concerns, provided the 
terms and conditions of using License Exception CSA are followed. BIS 
welcomes comments on License Exception CSA, in particular whether the 
requirements in order to use License Exception CSA are clear and meet 
the objectives described here. BIS estimates these proposed changes to 
add new License Exception CSA under Sec.  740.26 would result in a 
decrease of 100 license applications submitted to BIS annually.
2. Conforming Changes
    In Sec.  740.2, as a conforming change, this rule proposes adding a 
new paragraph (a)(5)(i)(G) to specify that proposed License Exception 
CSA that would be added to Sec.  740.26 of the EAR would be one of the 
license exceptions that may be used to export MT-controlled items to 
destinations other than to or within those identified in Country Groups 
D:4 or D:5 (see supplement no. 1 to part 740 of the EAR). This proposed 
rule as a conforming change for the addition of new paragraph 
(a)(5)(i)(G), would also revise paragraph (a)(5)(i)(E) to remove the 
word `and' and add in its place a semi-colon, and would revise 
paragraph (a)(5)(i)(F) to remove the period at the end of the sentence 
and add a semi-colon in its place and the word `and' at the end of the 
paragraph.
Export Control Reform Act of 2018
    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included ECRA (codified, as amended, at 50 U.S.C. 4801-4852). ECRA 
provides the legal basis for BIS's principal authorities and serves as 
the authority under which BIS issues this rule. In particular, and as 
noted elsewhere, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the 
regulation of exports, reexports, and transfers (in-country) of items 
subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA 
(50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, the establishment 
of a list of controlled items; the prohibition of unauthorized exports, 
reexports, and transfers (in-country); the requirement of licenses or 
other authorizations for exports, reexports, and transfers (in-country) 
of controlled items; apprising the public of changes in policy, 
regulations, and procedures; and any other action necessary to carry 
out ECRA that is not otherwise prohibited by law. Pursuant to Section 
1762(a) of ECRA (50 U.S.C.4821(a)), these changes can be imposed in a 
final rule without prior notice and comment.
Rulemaking Requirements
    1. E.O. 12866, 13563, and 14094 direct agencies to assess all costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects and distributive impacts and equity). E.O. 13563 emphasizes the 
importance of quantifying both costs and benefits and of reducing 
costs, harmonizing rules, and promoting flexibility. This proposed rule 
has been designated a ``significant regulatory action'' under E.O. 
12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject

[[Page 84793]]

to the requirements of the Paperwork Reduction Act of 1995 (PRA) (44 
U.S.C. 3501, et seq.), unless that collection of information displays a 
currently valid Office of Management and Budget (OMB) Control Number.
    This rule involves the following OMB-approved collections of 
information subject to the PRA:
    <bullet> 0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.4 minutes for a manual or electronic 
submission;
    <bullet> 0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute;
    <bullet> 0694-0122, ``Licensing Responsibilities and Enforcement;'' 
and
    <bullet> 0607-0152 ``Automated Export System (AES) Program,'' which 
carries a burden hour estimate of 3 minutes per electronic submission.
    BIS estimates that the changes included in this proposed rule would 
result in a decrease of 10 multi-purpose applications. This reduction 
would be attributable to the addition of License Exception CAS, which 
would result in an estimated decrease of 100 license applications per 
year and an estimated increase of 90 license applications per year as a 
result of the proposed movement of additional space-related items from 
the USML to the CCL, which BIS estimates would result in a net 
reduction of 10 license applications annually, if this Commerce 
proposed rule and State proposed rule are published in final form. 
However, the reduction of burden falls within the existing estimates 
currently associated with these control numbers.
    Additional information regarding these collections of information--
including all background materials--can be found at: https://www.reginfo.gov/public/do/PRAMain by using the search function to enter 
either the title of the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in E.O. 13132.
    4. Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), this action 
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date. While section 1762 of ECRA 
provides sufficient authority for such an exemption, this action is 
also independently exempt from these APA requirements because it 
involves a military or foreign affairs function of the United States (5 
U.S.C. 553(a)(1)). However, BIS is accepting comments on this proposed 
rule.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 740 and 774 of the 
Export Administration Regulations (15 CFR parts 730 through 774) are 
proposed to be amended as follows:

PART 740--LICENSE EXCEPTIONS

0
1. The authority citation for part 740 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783.

0
2. Section 740.2 is amended by:
0
a. Revising paragraphs (a)(5)(i)(E) and (F); and
0
b. Adding paragraph (a)(5)(i)(G).
    The revisions and addition read as follows:


Sec.  740.2  Restrictions on all License Exceptions.

* * * * *
    (a) * * *
    (5)(i) * * *
    (E) License Exception AVS (Sec.  740.15(b)(1) through (4), (c)(1), 
(2), (e), and (f) of the EAR);
    (F) License Exception APR for (Sec.  740.16(c) through (f) of the 
EAR); and
    (G) License Exception CSA (Sec.  740.26 of the EAR).
* * * * *
0
3. Add Sec.  740.26 to read as follows:


Sec.  740.26  Commercial Space Activities (CSA).

    (a) Scope. License Exception CSA authorizes under paragraph (c)(1) 
of this section exports, reexports, and transfers (in-country) of items 
subject to the EAR for certain `official space agency programs,' when 
the export, reexport, or transfer (in-country) is entirely within the 
scope of an official space agency program identified in paragraph 
(c)(1)(i) of this section, and subject to the exclusions in paragraph 
(b) of this section. License Exception CSA authorizes under paragraph 
(c)(2) of this section exports, reexports, and transfers (in-country) 
of manned spacecraft subject to the EAR and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' subject to the EAR solely for use 
in or with such spacecraft, provided the requirements under paragraph 
(c)(2)(i) through (iv) of this section are met, and subject to the 
exclusions in paragraph (b) of this section.
    (b) Exclusions. License Exception CSA is not available for any 
export, reexport, or transfer (in-country) that is excluded under 
paragraphs (b)(1), (2), (3), (4), or (5) of this section.
    (1) A ``proscribed person,'' (e.g., any entity listed on the Entity 
List) is a party to the transaction;
    (2) A license is required under a part 744 end use or end-user 
control;
    (3) For purposes of establishing offshore procurement arrangements 
or producing any item classified in a 9x515 (including 9E515 
``production'' technology) or 9A004 ECCN offshore;
    (4) Any export or reexport to or transfer (in-country) within a 
destination listed in Country Groups D:1, D:4, or D:5 in supplement no. 
1 of this part; or
    (5) Any export, reexport, or transfer (in-country) of any 
radiation-tolerant hardware classified in ECCN 9A515.d or .e or related 
``technology.''
    (c) Authorizations--(1) Authorization for `official space agency 
programs.' This paragraph (c)(1) authorizes exports, reexports, and 
transfers (in-country) of items subject to the EAR for `official space 
agency programs,' provided the export, reexport, or transfer (in-
country) is entirely within the scope of an official space agency 
program identified in paragraph (c)(1)(i) of this section, and subject 
to the exclusions in paragraph (b) of this section.
    (i) Eligible `official space agency programs.' For purposes of the 
authorization under this paragraph (c)(1), the following programs for 
formal spacecraft, independent of the launch vehicles that deliver them 
to orbit, are eligible for License Exception CSA under the 
authorization of this paragraph (c)(1), provided the terms and 
conditions of this paragraph (c)(1) are met. The authorization under 
this paragraph (c)(1) is only available for items that are subject to 
the EAR that are for an export, reexport, or transfer (in-country), 
that is entirely within the scope of an `official space agency 
programs' (e.g., the export of an ECCN 9A515.x ``component'' to a space 
contractor in France that is ``producing''

[[Page 84794]]

a higher level assembly that will be for use in NASA's Lunar Gateway 
program).
    (A) NASA's Lunar Gateway;
    (B) NASA's Mars Sample Return (a program that entails multiple 
spacecraft);
    (C) Nancy Grace Roman Telescope;
    (D) The Orion spacecraft;
    (E) Commercial Low Earth Orbit Development program; and
    (F) Habitable Worlds Observatory.
    (ii) [Reserved]
    (2) Authorization for Space Tourism and Research. This paragraph 
(c)(2) authorizes the export, reexport, or transfer (in-country) of 
manned spacecraft subject to the EAR classified under ECCNs 9A004 or 
9A515 and ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' subject to the EAR solely for use in or with such 
spacecraft, provided the requirements under paragraphs (c)(2)(i) 
through (iv) of this section for the spacecraft are met and the export, 
reexport, or transfer (in-country) is not otherwise excluded from the 
use of License Exception CSA under paragraph (b) of this section:
    (i) The spacecraft must be limited to suborbital trajectories;
    (ii) The purpose of the activity must be limited to either space 
tourism or supporting ``fundamental research;''
    (iii) The activity must not transfer registration, control, or 
ownership of the spacecraft to a foreign person; and
    (iv) The spacecraft's destinations, including planned diverts and 
contingencies, must be approved by the Federal Aviation Administration 
or its foreign equivalent in all countries, and must not include any 
destinations listed in Country Groups D:5 or E.

PART 774--THE COMMERCE CONTROL LIST

0
4. The authority citation for part 774 continues to read as follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 
U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783.

0
5. Supplement no. 1 to part 774 is amended by:
0
a. Revising ECCNs 9A515;
0
b. Adding ECCN 9C515; and
0
c. Revising ECCNs 9D515 and 9E515.
    The revisions and addition read as follows:

SUPPLEMENT NO. 1 TO PART 774--THE COMMERCE CONTROL LIST

* * * * *
9A515 ``Spacecraft'' and related commodities, as follows (see List 
of Items Controlled).
License Requirements
Reason for Control: NS, RS, MT, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry, except .e, .x,  NS Column 1.
 and .y.
RS applies to entire entry, except .e, .x,  RS Column 1.
 and .y.
MT applies to microcircuits in 9A515.d and  MT Column 1.
 9A515.e.2 when ``usable in'' ``missiles''
 for protecting ``missiles'' against
 nuclear effects (e.g., Electromagnetic
 Pulse (EMP), X-rays, combined blast and
 thermal effects) MT also applies to
 9A515.h when the total impulse capacity
 is equal to or greater than 8.41 x 10\5\
 newton seconds.
NS applies to 9A515.x.....................  NS Column 2.
RS applies to 9A515.e and .x..............  RS Column 2.
RS applies to 9A515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7)).
 International Space Station (ISS),
 including launch to the ISS.
AT applies to entire entry................  AT Column 1.
 

    License Requirement Note:
    (1) The Commerce Country Chart is not used for determining 
license requirements for commodities classified in ECCN 9A515.a.1, 
.a.2, .a.3, .a.4, and .g. See Sec.  742.6(a)(9), which specifies 
that such commodities are subject to a worldwide license 
requirement, except to Australia, Canada, and the United Kingdom.
    (2) ECCN 9A004.a through .f apply to certain space launch 
vehicles, spacecraft, spacecraft buses, spacecraft payloads, on-
board systems or equipment, and terrestrial equipment. They are 
listed in ECCN 9A004.a through .f in order to harmonize 9A004 with 
the Wassenaar Arrangement Dual-Use List, even though the controls 
for these items are found under ECCN 9A515 and to direct exporters, 
reexporters, and transferors to see USML Category IV for 9A004.a. 
See ECCN 9A515 for 9A004.b through .f, and .h. See this ECCN 9A004 
for .g, .h, .r, .s, and .u through .y.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $1500
GBS: N/A

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR) may not be used for ``spacecraft'' in ECCNs 
9A515.a.1, a.2, a.3, or a.4, ``sub-orbital craft,'' or items in 
9A515.g, unless determined by BIS to be eligible for License 
Exception STA in accordance with Sec.  740.20(g) (License Exception 
STA eligibility requests for certain 9x515 and ``600 series'' 
items). (2) License Exception STA may not be used if the 
``spacecraft'' controlled in ECCN 9A515.a.1, a.2, a.3, or a.4 
contains a separable or removable propulsion system described in 
USML Category IV(d)(2) or USML Category XV(e)(12)described on the 
USML and designated MT. (3) Paragraph (c)(2) of License Exception 
STA (Sec.  740.20(c)(2) of the EAR) may not be used for any item in 
9A515.

List of Items Controlled

Related Controls: Spacecraft, launch vehicles and related articles 
that are described on the USML, and technical data (including 
``software'') directly related thereto, and all services (including 
training) directly related to the integration of any satellite or 
spacecraft to a launch vehicle (including both planning and onsite 
support), or furnishing any assistance (including training) in the 
launch failure analysis or investigation for items in ECCN 9A515.a, 
are ``subject to the ITAR.'' All other ``spacecraft,'' as enumerated 
below and defined in Sec.  772.1, are subject to the controls of 
this ECCN. See also ECCNs 3A001, 3A002, 3A991, 3A992, 6A002, 6A004, 
6A008, and 6A998 for specific ``space-qualified'' items, 7A004 and 
7A104 for star trackers, and 9A004 for the International Space 
Station (ISS), the James Webb Space Telescope (JWST), and 
``specially designed'' ``parts'' and ``components'' therefor. See 
USML Category XI(c) for controls on certain ``Monolithic Microwave 
Integrated Circuit'' (``MMIC'') amplifiers. See ECCN 9A610.g for 
pressure suits used for high altitude aircraft.
Related Definitions: `Microcircuit' means a device in which a number 
of passive or active elements are considered as indivisibly 
associated on or within a continuous structure to perform the 
function of a circuit.
Items:

    See ITAR Sec.  126.8(d) for treatment of ``spacecraft'' 
described in ECCN 9A515 when exported, reexported, or transferred 
(in-country) with defense articles ``subject to the ITAR'' 
incorporated in and included as integral parts of the item.

    a. ``Spacecraft,'' including satellites, and space vehicles and 
``sub-orbital craft'' not described in USML Category XV or described 
in ECCN 9A004.r, .u or .w, that:
    a.1. Have electro-optical remote sensing capabilities and 
having:
    a.1.a. An active (e.g., adaptive, deformable) individual light 
collecting area of less than 1,020 cm\2\ ;
    a.1.b. A passive individual light collecting area of less than 
2,150 cm\2\<INF>;</INF>
    a.1.c. X-ray, not otherwise described in paragraph (e)(2)(i) or 
(ii) of USML Category XV, with a total effective collecting area 
less than 3,000 cm\2\; or
    a.1.d. Xray not otherwise described in paragraph (e)(2)(i) or 
(ii) of USML Category XV, and with a total effective collecting area 
greater than or equal to 3,000 cm\2\ and an angular resolution 
greater than 30 milliarcseconds.
    a.2. Have remote sensing capabilities beyond NIR (i.e., SWIR, 
MWIR, or LWIR);

[[Page 84795]]

    a.3. Have radar remote sensing capabilities (e.g., AESA, SAR, or 
ISAR) having a center frequency equal to or greater than 1.0 GHz, 
but less than 10.0 GHz and having a bandwidth equal to or greater 
than 100 MHz, but less than 300 MHz;
    a.4. Perform remote proximity on-orbit services to other 
spacecraft (e.g., docking, delivery, refueling, or servicing), 
provide life sustaining operations (e.g., space stations, space 
hotels, outposts, or laboratories), or capture, collect, and remove 
space debris; or
    a.5. Are not described in ECCN 9A515.a.1, .a.2, .a.3, or .a.4.
    Note 1 to 9A515.a: ECCN 9A515.a includes commercial 
communications satellites, remote sensing satellites, planetary and 
interplanetary probes, and ``sub-orbital craft,'' not identified in 
ECCN 9A004 or USML Category XV(a).
    b. Equipment for telemetry, tracking, and control, as follows:
    b.1. Ground control systems and training simulators ``specially 
designed'' for telemetry, tracking, and control of the 
``spacecraft'' controlled in paragraphs 9A004.u or 9A515.a;
    b.2. Terrestrial equipment ``specially designed'' for 
``spacecraft,'' as follows:
    b.2.a. Telemetry and telecommand equipment ``specially 
designed'' for any of the following data processing functions:
    b.2.a.1. Telemetry data processing of frame synchronization and 
error corrections, for monitoring of operational status (also known 
as health and safe status) of the ``spacecraft bus;'' or
    b.2.a.2. Command data processing for formatting command data 
being sent to the ``spacecraft'' to control the ``spacecraft bus;''
    b.2.b. [Reserved]
    b.3. Simulators ``specially designed'' for `verification of 
operational procedures' of ``spacecraft.''
    Technical Note: For the purposes of 9A515.b.3, `verification of 
operational procedures' is any of the following:
    1. Command sequence confirmation;
    2. Operational training;
    3. Operational rehearsals; or
    4. Operational analysis.
    c. [Reserved]
    d. Microelectronic circuits (e.g., integrated circuits, 
microcircuits, or MOSFETs) and discrete electronic components rated, 
certified, or otherwise specified or described as meeting or 
exceeding all the following characteristics and that are ``specially 
designed'' for defense articles, ``600 series'' items, or items 
controlled by ECCNs 9A004.v or 9A515:
    d.1. A total dose of 5 x 10\5\ Rads (Si) (5 x 10\3\ Gy (Si));
    d.2. A dose rate upset threshold of 5 x 10\8\ Rads (Si)/sec (5 x 
10\6\ Gy (Si)/sec);
    d.3. A neutron dose of 1 x 10\14\ n/cm\2\ (1 MeV equivalent);
    d.4. An uncorrected single event upset sensitivity of 1 x 
10<SUP>-</SUP>\10\ errors/bit/day or less, for the CR[Egrave]ME-MC 
geosynchronous orbit, Solar Minimum Environment for heavy ion flux; 
and
    d.5. An uncorrected single event upset sensitivity of 1 x 
10<SUP>-</SUP>\10\ errors/part or less for a fluence of 1 x 10\7\ 
protons/cm\2\ for proton energy greater than 50 MeV.
    e. Microelectronic circuits (e.g., integrated circuits, 
microcircuits, or MOSFETs) and discrete electronic components that 
are rated, certified, or otherwise specified or described as meeting 
or exceeding the characteristics in either paragraph e.1 or e.2, AND 
``specially designed'' for defense articles described in USML 
Category XV or items controlled by ECCNs 9A004.u or 9A515:
    e.1. A total dose >=1 x 10\5\ Rads (Si) (1 x 10\3\ Gy(Si)) and 
<5 x 10\5\ Rads (Si) (5 x 10\3\ Gy(Si)); and a single event effect 
(SEE) (i.e., single event latchup (SEL), single event burnout (SEB), 
or single event gate rupture (SEGR)) immunity to a linear energy 
transfer (LET) >=80 MeV-cm\2\/mg; or
    e.2. A total dose >=5 x 10\5\ Rads (Si) (5 x 10\3\ Gy (Si)) and 
not described in 9A515.d.
    Note 2 to 9A515.d and .e: See USML Category XI for military 
electronics. See 3A611.f for PLDs and ASICs programmed for 600 
series items.
    Note 3 to 9A515.d and .e: See 3A001.a and .z for controls on 
radiation-hardened microelectronic circuits ``subject to the EAR'' 
that are not controlled by 9A515.d or 9A515.e.
    f. Pressure suits (i.e., space suits) capable of operating at 
altitudes greater than or equal to 55,000 ft above sea level.
    g. Remote sensing components ``specially designed'' for 
``spacecraft'' described in ECCNs 9A515.a.1 through 9A515.a.4 as 
follows:
    g.1. Space-qualified optics (i.e., lens, mirror, membrane having 
active properties (e.g., adaptive, deformable)) with a largest 
individual light collecting or focusing area less than 1,020 cm\2\; 
or passive optics with a largest individual light collecting area 
between 1,020 cm\2\ and 2,150 cm\2\; or Xray grazing incidence 
optics with a total surface area (shells/segments) of less than 
25,000 cm\2\; or an effective collecting area less than 3,000 cm\2\;
    g.2. Optical bench assemblies ``specially designed'' for ECCN 
9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 ``spacecraft;'' or
    g.3. Primary, secondary, or hosted payloads that perform a 
function of ECCN 9A515.a.1, 9A515.a.2, 9A515.a.3, or 9A515.a.4 
``spacecraft.''
    h. Thrusters using bi-propellants or mono-propellants that 
provide thrust equal to or less than 150 lbf (i.e., 667.23 N) vacuum 
thrust.
    i. Electric (Plasma/Ion) thrusters and their associated power 
control systems operating at in input power of less than 20kW and 
having an individual thrust of at least 400 mN but not also having a 
specific impulse better than 1,900 sec.
    j. Control moment gyroscopes (CMG) ``specially designed'' for 
spacecraft that provide an angular momentum of less than 2.0 (N m 
sec) or provide a torque of less than Newton meters (N m).
    Note 4 to 9A515.j: If a CMG has an angular momentum of at least 
2.0 Newton meter seconds (N m sec), provide a torque of at least 6.0 
Newton meters (N m), and are ``specially designed'' for spacecraft 
it is subject to USML Category XV(e)(13).
    k. Hold-down, or satellite release mechanisms (i.e., clampbands, 
adapters, dispensers, or motorized lightbands), not described by 
USML Category IV(e)(5), excluding those for 1U CubeSats or less.
    l. through v. [RESERVED]
    w. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' that would otherwise be within the scope of ECCN 
9A515.x but that have been identified by the interagency as 
warranting control in 9A515.w, as follows:
    w.1. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for defense articles 
described in USML Category XV or items controlled by 9A515, and that 
are NOT:
    x.1. Described on the USML or elsewhere within ECCNs 9A515 or 
9A004;
    x.2. Microelectronic circuits and discrete electronic 
components;
    x.3. Described in ECCNs 7A004 or 7A104;
    x.4. Described in an ECCN containing ``space-qualified'' as a 
control criterion (i.e., 3A001.b.1, 3A001.e.4 or .z, 3A002.g.1, 
3A991.o, 3A992.b.3, 6A002.a.1, 6A002.b.2, 6A002.d.1, 6A004.c and .d, 
6A008.j.1, 6A998.b, or 7A003.d.2);
    x.5. Microwave solid state amplifiers and microwave assemblies 
(refer to ECCN 3A001.b.4 and .z for controls on these items);
    x.6. Travelling wave tube amplifiers (refer to ECCN 3A001.b.8 
and .z for controls on these items); or
    x.7. Elsewhere specified in ECCN 9A515.y.
    Note 5 to 9A515.x: ``Parts,'' ``components,'' ``accessories,'' 
and ``attachments'' described on the USML, either in Category XV(e) 
or elsewhere, are subject to the ITAR.
    Note 6 to 9A515.b and .x: This note clarifies the scope of 
controls over baseband units (BBU). For purposes of 9A515.b and .x, 
a BBU means a device that interprets the original frequency range of 
a transmission signal. These devices are not controlled under 
9A515.b or .x when they do not perform telemetry, track, and 
control.
    y. Items that would otherwise be within the scope of ECCN 
9A515.x but that have been identified in an interagency-cleared 
commodity classification (CCATS) pursuant to Sec.  748.3(e) as 
warranting control in 9A515.y, as follows:
    y.1. Discrete electronic components not specified in 9A515.e;
    y.2. Thermistors for spacecraft applications;
    y.3. RF microwave bandpass ceramic filters (e.g., Dielectric 
Resonator Bandpass Filters);
    y.4. Hall effect sensors for spacecraft applications;
    y.5. Subminiature (SMA and SMP) plugs and connectors, TNC plugs 
and cable and connector assemblies with SMA plugs and connectors for 
spacecraft applications;
    y.6. Flight cable assemblies for spacecraft applications;
    y.7. Public address (PA) systems;
    y.8. Audio selector panels;
    y.9. Spacecraft crew, passenger, or participant lavatories and 
body waste management systems;
    y.10. Spacecraft crew, passenger, or participant hygiene 
facilities and systems;
    y.11. Spacecraft crew, passenger, or participant crew rest 
equipment or sleeping quarters;
    y.12. Spacecraft crew, passenger, or participant galleys or food 
preparation or serving systems;

[[Page 84796]]

    y.13. Spacecraft crew, passenger, or participant entertainment 
systems;
    y.14. Spacecraft crew, passenger, or participant exercise 
systems;
    y.15. Spacecraft crew, passenger, or participant laundry 
systems;
    y.16. Spacecraft crew, passenger, or participant safety systems, 
not including launch abort systems/launch escape systems, ejector 
seats, spacesuits, flight suits, helmets, or ``parts'' and 
``components'' therefor;
    y.17. Spacecraft crew, passenger, or participant storage units, 
facilities, or systems (for items related to human safety, welfare, 
and health);
    y.18. Spacecraft crew, passenger, or participant medical 
facilities or health-related systems for monitoring, evaluating, or 
assessing, or for providing treatments;
    y.19. Spacecraft crew, passenger, or participant information 
systems (e.g., personal laptops and phones);
    y.20. Name plates, identification plates, and identification 
systems;
    y.21. Internal, external, and emergency lighting systems;
    y.22. Humidity and CO2 removal systems;
    y.23. Potable water storage systems;
    y.24. Water regeneration systems;
    y.25. Air filters, filter networks, or air quality systems;
    y.26. Space heaters, temperature sensors, or thermostats for 
human habitation;
    y.27. Environmental control systems for human habitation;
    y.28. Spacecraft environmental control systems (e.g., air 
conditioner, air distribution, air filtration and sanitation, CO2 
removal, cabin pressure control, dehumidifier, fire suppression 
system, nitrogen oxygen recharge system, heater systems, 
thermostats);
    y.29. Plant growth systems;
    y.30. Fire extinguishers;
    y.31. Flame, smoke, or CO2 detectors;
    y.32. Fire suppression systems;
    y.33. Spacecraft crew, passenger, or participant seats, other 
than ejection seats, and ``parts'' and ``components;''
    y.34. Spaceflight crew, passenger, or participant ejection seat 
mounted survival aids;
    y.35. Spaceflight crew, passenger, or participant life rafts;
    y.36. Spacecraft crew, passenger, or participant locator 
beacons;
    y.37. Spacecraft crew, passenger, or participant mirrors;
    y.38. Spacecraft crew, passenger, or participant windows;
    y.39. Spacecraft locator beacons;
    y.40. Viewing windows on non-crewed spacecraft;
    y.41. Temperature sensors and pressure transducers;
    y.42. Thermal control pumps, accumulators, fluid filters and 
filter assemblies, control valves, heat exchangers, and radiators;
    y.43. Hydraulic, pneumatic, oil, fuel, gas, propellant, fluid, 
and thermal control fluid reservoirs, filters, filter assemblies, 
tubing, lines, hoses, check valves, and quick disconnects, and 
associated fittings, couplings, clamps, brackets, adapters, valves, 
gaskets, shims, and o-rings;
    y.44. Gauges and indicators;
    y.45. Filtered and unfiltered panel knobs, indicators, 
annunciator panels, switches, buttons and dials;
    y.46. Spacecraft tires and brake systems (does not include 
sintered mix or carbon/carbon materials);
    y.47. Bearings (e.g., Ball, roller, wheel);
    y.48. Energy dissipating pads for cargo or crew;
    y.49. Spacecraft bus structures;
    y.50. Bracket adapters for bus and payload structures;
    y.51. Latches and hinges;
    y.52. Boom assemblies;
    y.53. Cables, cable assemblies, and connectors;
    y.54. Batteries and associated battery management circuitry;
    y.55. Germanium coated polyimide tapes (e.g., Kapton tape);
    y.56. Multiplexors and Demultiplexors (MUX & DEMUX);
    y.57. Switches, switch bank assemblies, beam select switches, 
transfer switch assemblies, switch matrices, thermal switches;
    y.58. Magnetic torque bars;
    y.59. Filters, filter networks;
    y.60. Network switches;
    y.61. Reflectors, antennas;
    y.62. Antenna feed horns;
    y.63. Diplexers, modulators, demodulators;
    y.64. Second surface mirrors;
    y.65. Backshells, pins and contacts;
    y.66. Measurement devices;
    y.67. Electrical power distribution and control units;
    y.68. Electrical connectors;
    y.69. Non-propulsive landing systems (e.g., skids, inflatable);
    y.70. Electric fans;
    y.71. Microphones;
    y.72. Speakers;
    y.73. Circuit breakers; and
    y.74. Printed circuit boards ``specially designed'' for items 
classified under 9A515.y
    Note 7 to 9A515: An item operating on any celestial body other 
than Earth is treated as if it is on Earth for classification 
purposes on the CCL.
    Note 8 to 9A515: Rovers and in-space habitats are not classified 
under ECCN 9A515.
* * * * *
9C515 Materials, coatings, treatments for reducing in-orbit 
signatures (i.e., radar, optical, ultraviolet, and infrared) of 
spacecraft such as blankets, films, tapes, and paints (see List of 
Items Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1.
RS applies to entire entry................  RS Column 1.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a description of all 
license exceptions)

LVS: N/A
GBS: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 9C515.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items:

    a. Materials, coatings, treatments for reducing in-orbit 
signatures (i.e., radar, optical, ultraviolet, and infrared) of 
spacecraft, not described by USML Categories XIII(j) or XV(e)(22), 
such as blankets, films, tapes, and paints with either of the 
following characteristics:
    a.1. Designed to reduce radar, ultra-violet, & infrared 
signature by 20% or more, or
    a.2. Designed to reduce optical signature by 50% or more.
    Note 1 to 9C515:
    (1) Materials controlled by this entry include structural 
materials and coatings (including paints), ``specially designed'' 
for reduced or tailored reflectivity or emissivity in the microwave, 
infrared or ultraviolet spectra.
    (2) This entry does not control materials used for the purpose 
of reducing brightness from the ground.
    (3) For commodities that meet the definition of defense articles 
under 22 CFR 120.3 of the International Traffic in Arms Regulations 
(ITAR), which describes similar commodities ``subject to the ITAR'' 
(See 22 CFR parts 120 through 130, including USML Category XIII).
* * * * *
9D515 ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of ``spacecraft'' and related commodities, 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT

 
                                            Country chart (See Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9D515.c,  NS Column 1.
 .x, and .y.
RS applies to entire entry except 9D515.c,  RS Column 1.
 .x, and .y.
NS applies to 9D515.c and .x..............  NS Column 2.
RS applies to 9D515.c and .x..............  RS Column 2.
RS applies to 9D515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7)).
 International Space Station (ISS),
 including launch to the ISS.
AT applies to entire entry................  AT Column 1.
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR)

[[Page 84797]]

may not be used for 9D515.b, .d, or .e. (2) Paragraph (c)(2) of 
License Exception STA (Sec.  740.20(c)(2) of the EAR) may not be 
used for any ``software'' in 9D515.

List of Items Controlled

Related Controls: (1) ``Software'' directly related to articles 
described in USML Category XV is subject to the ITAR. (2) See also 
ECCNs 3D001, 6D001, 6D002, and 6D991 for controls of specific 
``software'' ``specially designed'' for certain ``space-qualified'' 
items. (3) For ``software'' for items listed in 9A004.d that are 
incorporated into ``spacecraft payloads,'' see the appropriate 
``software'' ECCN within those Categories.
Related Definitions: N/A
Items:

    a. ``Software'' (other than ``software'' controlled in 
paragraphs .b, .d, or .e of this entry) ``specially designed'' for 
the ``development,'' ``production,'' operation, installation, 
maintenance, repair, overhaul, or refurbishing of commodities 
controlled by ECCN 9A515 (except 9A515.d or .e) or 9B515.
    b. ``Source code'' that:
    b.1. Contains the algorithms or control principles (e.g., for 
clock management), precise orbit determination (e.g., for ephemeris 
or pseudo range analysis), signal construct (e.g., pseudo-random 
noise (PRN) anti-spoofing) ``specially designed'' for items 
controlled by ECCN 9A515;
    b.2. Is ``specially designed'' for the integration, operation, 
or control of items controlled by ECCN 9A515;
    b.3. Contains algorithms or modules ``specially designed'' for 
system, subsystem, component, part, or accessory calibration, 
manipulation, or control of items controlled by ECCN 9A515;
    b.4. Is ``specially designed'' for data assemblage, 
extrapolation, or manipulation of items controlled by ECCN 9A515;
    b.5. Contains the algorithms or control laws ``specially 
designed'' for attitude, position, or flight control of items 
controlled in ECCN 9A515; or
    b.6. Is ``specially designed ``for built-in test and diagnostics 
for items controlled by ECCN 9A515.
    c. Space Situational Awareness (SSA) analysis ``software'' used 
to model, simulate, optimize, or perform operations involving 
spacecraft maneuvers, trajectory planning, or debris tracking.
    d. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.d.
    e. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.e.
    f. through w. [Reserved]
    x. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.x.
    y. Specific ``software'' ``specially designed'' for the 
``development,'' ``production,'' operation, or maintenance of 
commodities enumerated in ECCN 9A515.y.
* * * * *
9E515 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, repair, overhaul, or 
refurbishing of ``spacecraft'' and related commodities, as follows 
(see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, RS, AT

 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 9E515.x   NS Column 1.
 and .y.
MT applies to technology for items in       MT Column 1.
 9A515.d, .e.2, and .h, and 9B515.a
 controlled for MT reasons.
NS applies to 9E515.x.....................  NS Column 2.
RS applies to 9E515.x.....................  RS Column 2.
RS applies to 9E515.y, except to Russia     China, Russia, or Venezuela
 for use in, with, or for the                (see Sec.   742.6(a)(7)).
 International Space Station (ISS),
 including launch to the ISS.
AT applies to entire entry................  AT Column 1.
 

    License Requirement Note: The Commerce Country Chart is not used 
for determining license requirements for ``technology'' classified 
ECCN 9E515.f. See Sec.  742.6(a)(9), which specifies that such 
``technology'' is subject to a worldwide license requirement, except 
to Australia, Canada, and the United Kingdom.

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

TSR: N/A

Special Conditions for STA

STA: (1) Paragraph (c)(1) of License Exception STA (Sec.  
740.20(c)(1) of the EAR) may not be used for ECCN 9E515.b, .d, .e, 
or .f unless determined by BIS to be eligible for License Exception 
STA in accordance with Sec.  740.20(g) (License Exception STA 
eligibility requests for certain 9x515 and ``600 series'' items). 
(2) Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) of 
the EAR) may not be used for any ``technology'' in 9E515.

List of Items Controlled

Related Controls: Technical data directly related to articles 
described in USML Category XV are subject to the ITAR. See also 
ECCNs 3E001, 3E003, 6E001, and 6E002 for specific ``space-
qualified'' items. See ECCNs 9E001 and 9E002 for technology for the 
International Space Station, the James Webb Space Telescope (JWST) 
and ``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor. See USML Category XV(f) for 
controls on technical data and defense services related to launch 
vehicle integration.
Related Definitions: N/A
Items:

    a. ``Technology'' ``required'' for the ``development,'' 
``production,'' installation, repair (including on-orbit anomaly 
resolution and analysis beyond established procedures), overhaul, or 
refurbishing of commodities controlled by ECCN 9A515 (except 
9A515.a.1, a.2, a.3, a.4, .b, .d, .e, or .g), ECCN 9B515, or 
``software'' controlled by ECCN 9D515.a.
    b. ``Technology'' ``required'' for the ``development,'' 
``production,'' failure analysis or anomaly resolution of software 
controlled by ECCN 9D515.b.
    c. [Reserved]
    d. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.d.
    e. ``Technology'' ``required'' for the ``development,'' 
``production,'' failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.e.
    f. ``Technology'' ``required'' for the ``development,'' 
``production,'' installation, repair (including on-orbit anomaly 
resolution and analysis beyond established procedures), overhaul, or 
refurbishing of commodities controlled by ECCN 9A515.a.1, a.2, a.3, 
a.4, or .g.
    g. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.i.
    h. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.j.
    i. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.k.
    j. through w. [Reserved]
    x. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, failure analysis or anomaly resolution of 
commodities controlled by ECCN 9A515.x.
    y. Specific ``technology'' ``required'' for the ``production,'' 
``development,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or software enumerated in 
ECCN 9A515.y or 9D515.y.
    Note 1 to 9E515: [Reserved]
    Note 2 to 9E515: Human spaceflight preparation activities 
directly related to, or required for the following, are not subject 
to the ITAR or the EAR:
    (i) ``Spacecraft'' access, ingress, and egress, including the 
operation of all ``spacecraft'' doors, hatches, and airlocks;
    (ii) Physiological training (e.g., human-rated centrifuge 
training or parabolic flights, pressure suit or spacesuit training/
operation);

[[Page 84798]]

    (iii) Medical evaluation or assessment of the spaceflight 
passenger or participant;
    (iv) Training for and operation by the passenger or participant 
of health and safety related hardware (e.g., seating, environmental 
control and life support, hygiene facilities, food preparation, 
exercise equipment, fire suppression, communications equipment, 
safety-related clothing or headgear) or emergency procedures;
    (v) Viewing of the interior and exterior of the spacecraft or 
terrestrial mock-ups;
    (vi) Observing ``spacecraft'' operations (e.g., pre-flight 
checks, landing, in-flight status);
    (vii) Training in ``spacecraft'' or terrestrial mock-ups for 
connecting to or operating passenger or participant equipment used 
for purposes other than operating the ``spacecraft;'' or
    (viii) Donning, wearing or utilizing the passenger's or 
participant's flight suit, pressure suit or spacesuit, and personal 
equipment.
* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-23975 Filed 10-17-24; 4:15 pm]
BILLING CODE 3510-33-P


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