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On New Year’s Eve, President Obama signed the National Defense Authorization Act (NDAA) which contains a long-sought provision affecting the aerospace and defense industry. Passage of the NDAA returns to the President the authority for determining proper export control categorization of commercial satellites (COMSATS) and their parts and components. Since the 1998 National Defense Authorization Act the Department of State has, by legislative requirement, controlled the export of commercial satellites and all related technologies. This excessively restrictive control on COMSATS led to the U.S. share of the market dropping from nearly 65 percent to 30 percent, and resulted in an average annual loss of nearly 28,000 direct and indirect jobs.
The NDAA’s export control language will enable the Administration, subject to Congressional oversight, to transition items from the U.S. Munitions List (USML) to the more flexible Commerce Control List (CCL). As with all other technologies removed from the USML, the export of these technologies to China and other countries of concern will be prohibited barring a “national interest” determination from the President.
Moving forward, the Administration will release its “Transition Rule” this April, outlining the new regulations and process for items being moved from the USML to the CCL. The Federal Register Notice will also include the final revisions to Category VIII (military aircraft) and Category XIX (military engines). AIA understands there will be a six month delayed implementation to allow companies to make internal compliance adjustments. Other revisions to USML categories (including Category XV – space vehicles) will be released in draft and then in final form over the course of the year.
AIA appreciates the energy and the leadership shown by our member companies in helping to achieve these important milestones in export control reform. AIA advocacy will continue to be critical as we now focus on remaining export control priorities, such as program licensing and the export control treatment of UAS. For more information, please contact PJ Hart, firstname.lastname@example.org
AIA Source: pj.hart[at]aia-aerospace.org