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Satellite Companies Back Changes to Export Administration Regulations

Satellite companies and manufacturers supported the Obama Administration's draft proposals to update the satellite export control regime in comments to the Department of Commerce Bureau of Industry and Security (BIS). The proposals address the transfer of satellite systems and their components from the U.S. munitions list (USML) to the Commerce Control List (CCL). Items controlled under the USML are critical to national security, while the CCL is less restrictive and includes items that are less critical. Comments were due and posted this week (see 13071122). SES, Intelsat, Boeing and other companies approved of the proposals but asked for clarifications to export control classification numbers (ECCN) that identify items.

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EchoStar urged clarification concerning telemetry data. Telemetry data doesn't constitute "technology required for the development, production, or operation, installation, maintenance, repair, overhaul or refurbishing of commercial comsats" controlled by ECCN 9A515, it said in its comments. Telemetry data can't be used to operate or maintain a satellite without being processed through ground control software, "including the satellite command and telemetry database, which resides within a ground control system," it said. ECCN 9E515 should exclude commercial communications satellite telemetry data disconnected from the satellite-specific context provided by the satellite command and telemetry database, it said.

SES agreed with changing ECCN 9E515, saying satellite operators regularly provide ground system operators with "link budget" data "related to the operating and performance specifications of the satellite transponders to enable the ground system operators to establish communications connections," it said. Clarification is needed whether the Commerce Department will continue to apply to its export licenses the limitations that are now often included in technical assistance agreement provisions, it said.

The Satellite Industry Association urged the Commerce Department to avoid establishing a double licensing requirement for certain items, where Commerce and State department licenses are required. Such requirements "run contrary to the goal of streamlining and simplifying the existing export control system," it said. SIA recommended codifying the USML licensing practice or policy by which a satellite manufacturer or operator could obtain a single cradle-to-grave program license "that would cover all manufacturer-client interactions," it said. "Even if a separate license for launch services would also be required, a single license covering all other activities would be invaluable." The association also suggested changes to technical definitions and clarification of certain terms, like "space-qualified," it said.

Intelsat also urged clarification of ECCN 9E515.a and ECCN 9E515.b of the CCL. They are "far too general and do not account for varying sensitivities of technologies for parts and components," it said. The ECCNs should distinguish between technologies of low, medium or high sensitivity, Intelsat said. Intelsat also requested a distinction based on elements of "use" technology: Design verification, "manufacturability" and quality control should be moved to 9E515.a "and not be subject to licensing in the same way as production and development technology." BIS should clarify that satellite telemetry data, payload performance data and other types of information are not controlled, Intelsat said. "The opposite conclusion would run counter to generally accepted interpretations, and dramatically burden manufacturers, operators and insurance providers, who regularly obtain and transmit this information."

The Radio Amateur Satellite Corporation (AMSAT) requested a separate category for amateur radio satellites and components and ground station equipment under ECCN 9A515, it said. A comparable category should be created under 9E515 for associated technical data, it said. There also should be a license exception for "deemed exports" for amateur radio satellite design and construction so as to allow free exchange of ideas, software pertaining to such design and construction "when interacting with foreign nationals who are citizens of nations listed in the license exception Strategic Trade Authorization Country List," it said. This approach places AMSAT back to the regulatory requirements in place prior to International Traffic in Arms Regulations "and eliminates concerns about how to setup a proper compliance program that we have neither the funds nor expertise to implement," the organization said. -- Kamala Lane