Preliminary Findings of BIS Report Discuss Impact of Export Controls on Space Industry

November 7, 2012 by Brian Feito|Exports

The Bureau of Industry and Security’s Office of Technology Evaluation (OTE) reported on the impact of export controls on the U.S. space industry in the preliminary findings of a study it conducted with the U.S. Air Force, National Aeronautics and Space Administration, and the National Reconnaissance Office. The report, “U.S. Space Technology ‘Deep Dive’ Preliminary Results and Findings,” is the result of a survey of companies, universities, and government agencies. Export control-related highlights follow:

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18 percent of respondents use the export control system frequently (more than once per year), 10 percent infrequently (less than once per year), and 72 percent not at all.
Of those who utilized the export control system, 37.5 percent said they avoided the export of space-related products or services subject to International Traffic and Arms Regulations controls, and 26.2 percent said they avoided the export of space-related products or services subject to Export Administration Regulations controls.
31.2 percent of users of the export control system said controls incentivized non-U.S. organizations to “design-out” or avoid buying U.S. origin space-related products or services, and 24.6 percent said controls incentivized non-U.S. organizations to offer “ITAR-free” space related products or services.
Of users of export controls, 19.3 percent said controls contributed to the creation of non-U.S. companies/business lines in direct competition with the organization’s space-related products or services; 13 percent said controls caused the abandonment or alteration of space-related business lines; and 3 percent said controls caused re-location of space-related production/R&D facilities outside the U.S. due to regulatory burdens.
Many exporters (or potential exporters) view export controls as a monolith and do not know and/or understand the difference between the EAR and ITAR.

A presentation on the survey’s overall findings is available here. A presentation on the survey’s export-control related findings is available here.