Deputy Commerce Secretary Graves Debuts Updates to Export Control Regulations for the Space Industry

The U.S. Department of Commerce is updating export control rules in regards to foreign space launch vehicles that could lead to potentially “hundreds of millions of dollars” in new exports of U.S. satellite and satellite components, Deputy Secretary of Commerce Don Graves announced March 15 at SATELLITE 2023.

The U.S. government reviewed how Missile Technology Control Regime (MTCR) policy has been interpreted, and will now review license applications to export satellites and satellite components to MTCR partners on a case-by-case basis, not under the presumption of denial, even if the U.S. does not encourage the launch vehicle, Graves said. “That may seem like a subtle distinction. But for those of you who have been denied satellite exports to certain MTCR countries due to the choice of launch vehicle, this change of interpretation will have major business implications,” Graves said. “It will open the door to potentially hundreds of millions of dollars in new exports of U.S. satellite and satellite components.”

Graves delivered a Wednesday keynote presentation sharing the Commerce Department’s priorities, new initiatives by the government, and new funding to help drive space commerce.

He began with a key assurance to conference attendees. “We want to ensure that the United States remains the country of choice for businesses operating in space. That means engagement with industry to support innovation, expand business opportunities and provide clarity, consistency and transparency that you all need to invest to compete.”

A year ago, Graves asked the Commerce Department to prioritize the commercial space industry with a new strategic plan. “I’m happy to report that we’ve made significant progress in just one year,” he said.

Since then, the department created a Commercial Space Coordination Committee, with Graves as chair, offering a forum to engage the Commerce Dept. on key space-related issues.

“This reflects the reality that we face in our work that expanding space commerce isn’t confined to one office or one bureau, but involves international trade,” Graves said. “It involves economic development, broadband expansion efforts, National Institute of Standards and Technology (NIST), cybersecurity expertise and minority business outreach to expand the supplier base. So it requires us to think more broadly and to make sure that we’re engaging you where you are, as opposed to having to find us and seek out that partner.”

He then outlined the department’s strategic plan on space with five areas of focus: coordinating regulatory functions; growing the customer base for U.S. commercial space goods and services; improving space safety and sustainability; promoting commercial space innovation; and advancing Earth observation capabilities.

Commenting on regulatory functions, he said that space ventures don’t always fit under the existing regulatory framework, and is challenging when it comes to government oversight. The department is working toward better coordination between all the federal agencies to simplify the process for things like commercial space licensing, Graves said.

He reminded the audience that, in 2020, new regulations on commercial remote sensing resulted in the majority of Earth imaging satellites needing a simple license. “Over the past year, licensing improved its speed and efficiency, even as we’ve seen an increase in the number of applications,” he said. “In 2022, the average time to process a new application was 22 days, or a 20 percent improvement over the previous year. We’re going to keep pushing and pushing to move faster because we know that you can’t wait.”

Another new aid coming from the department is helping with customer base development — growing the customer base for U.S. commercial space goods and services. The Commerce Department’s International Trade Administration (ITA) works with U.S. commercial space companies to help them win business overseas, he said, encouraging the industry to reach out to the ITA Advocacy Center.

Over the past year, he said, the Advocacy Center has contributed to international space contract wins with a total value of about $406 million, and it is currently working on 29 cases involving the space industry with a total estimated value of almost $9 billion.

Improving space safety and sustainability is an “absolute top priority” for us, he said, referring back to the strategic plan.

“We know that we have to act quickly to prevent catastrophic collisions that could render Earth’s orbits useless,” Graves said, citing that the Office of Space Commerce, which is under National Oceanic and Atmospheric Administration (NOAA) within the Commerce Department, received a $70 million dollar appropriation from Congress for fiscal year 2023, a huge increase from previous years.

He discussed working on issues of spectrum availability; building a more advanced and agile structure for NOAA’s satellite architecture; and encouraging ongoing innovation.

“What I hope that you’ll take away from my remarks is that the Department of Commerce is fully engaged with our commercial space industry,” he said. “America’s commercial space industry is vital to our country’s continued global competitiveness. And the satellite industry is advancing new technologies, creating good paying jobs, combating climate change and keeping Americans in the world connected. I hope that you’ll continue to partner with us in the months and weeks ahead.” VS