Space Law,
International Law
Feb. 25, 2026
U.S. space export controls: Topics to watch in 2026
America's commercial space surge is meeting a fast-shifting export-control regime, as new rules from the Bureau of Industry and Security and the Directorate of Defense Trade Controls ease allied trade but complicate compliance for space companies.
Space has become an important
and growing commercial market for private industry. This growth has been
sparked by the United States lowering certain barriers to space accessibility,
which has facilitated growing cooperation among allies while making it more
difficult for U.S. adversaries to access space-related commodities and
technologies.
In addition to helping
commercial space companies thrive, this growth in space accessibility raises
certain challenges for those companies, including compliance with U.S. export
controls. The export control landscape faced by the space industry is complex,
requiring companies to ensure their operations comply with applicable export
controls.
Further, even though space
technology (e.g., spacecraft, components, software and technical data) is often
dual-use (commercial and military), companies in the space industry need
to know how to navigate and comply with the U.S. Department of Commerce's
Bureau of Industry and Security (BIS) Export Administration Regulations (EAR)
and the U.S. Department of State's Directorate of Defense Trade Controls (DDTC)
International Traffic in Arms Regulations (ITAR). This article highlights
recent changes in the ITAR and EAR relevant to the space sector.
ITAR and EAR regulatory backdrop
In 2024, BIS issued several
rules that were published as interim, proposed and final, and that made or
suggested certain revisions to the EAR related to spacecraft commodities,
technology and software, especially concerning the Export Control
Classification Number (ECCN) in the 9x515 series. (See Export
Administration Regulations: Revisions to Space-Related Export Controls, 89
Fed. Reg. 84,770 (Oct. 23, 2024) (interim final rule) (to be codified at 15
C.F.R. pts. 734, 740, 744, 746 & 774); Export
Administration Regulations: Removal of License Requirements for Certain
Spacecraft and Related Items for Australia, Canada, and the United Kingdom,
89 Fed. Reg. 84,766 (Oct. 23, 2024) (to be codified at 15 C.F.R. pts. 742 &
774); Export
Administration Regulations: Revisions to Space-Related Export Controls,
Including Addition of License Exception Commercial Space Activities (CSA),
89 Fed. Reg. 84,784 (Oct. 23, 2024) (proposed rule).)
These cover spacecraft-related
equipment, parts, software and technology that were previously listed on the
ITAR's U.S. Munitions List (USML). The amendments and proposals included:
• Removing license requirements for exports, reexports
and transfers of most ECCNs to Australia and the United Kingdom, including ECCN
9A515 items and ECCN 9E515-related technology that covered remote spacecraft
sensing or space-based logistics, assembly or servicing;
• Easing license requirements for exports, reexports
and transfers to U.S. allies of spacecraft and related parts, components and
accessories that are specially designed for use in or with certain ECCN 9A515
spacecraft commodities, and clarifying license
requirements and classification review as to ECCNs 9A004.y and 9A515.y to
ensure license requirements remain in place for certain countries such as China
and Russia; and
• Proposing a new license exception, Commercial Space
Activities (CSA), for official space agency programs, space tourism and
research, and aligning revisions to the ITAR's U.S. Munitions List and the
EAR's Commerce Control List.
In parallel with BIS's
initiatives, DDTC's revisions to the ITAR included, but
were not limited to:
• Implementing the AUKUS exemption, which will reduce
or eliminate ITAR licensing requirements for certain defense trade activities
conducted between or among the U.S., the U.K. and Australia;
• Proposing definitions for terms like amateur rocket,
amateur rocket motor, bomb, excluded National Aeronautics and Space
Administration spacecraft, ground sample distance, hosted payload, human
spaceflight preparations, loitering munition, mine, payload, primary payload,
range, real-time, secondary payload, spacecraft, spacecraft bus, spacecraft
housekeeping data and output, spacecraft payload, and spectral bandwidth;
• Proposing removal of certain defense articles in
USML Categories IV (launch vehicles and related) and XV (spacecraft and
related) through clarifying notes and related constructions; and
• Proposing the issuance of three new license
exemptions for official space agency activities that involve space launches,
space tourism and space research.
AUKUS becomes operational
As a result of AUKUS, an item
classified in ECCN 9A515.a and related technology classified in ECCN 9E515.f does not
require a license when exported, reexported or transferred (in-country) to an
AUKUS country. Now, under the EAR, the only items that require an EAR license
for export to an AUKUS country, absent end-use or end-user issues, are those
controlled for chemical or biological reasons.
Under the ITAR, an AUKUS ITAR
exemption was issued under 22 C.F.R. § 126. Thus, an ITAR license will still be
required for exports, reexports and transfers of defense articles to AUKUS
countries if all the conditions and requirements of the AUKUS exemption,
including "Authorized User" concepts and excluded technology lists, are met. (See International Traffic in Arms
Regulations (ITAR): U.S. Munitions List Categories IV and XV, 89 Fed. Reg.
84,482 (Oct. 23, 2024) (proposed rule), International Traffic in Arms
Regulations: Exemption for Defense Trade and Cooperation Among Australia, the
United Kingdom, and the United States, 90 Fed. Reg. 61,053 (Dec. 30, 2025)
(final rule) (codified at 22 C.F.R. § 126.7))
Proposed CSA license exception
and DDTC proposed license exemptions
BIS's proposed CSA license
exception would align the EAR controls with DDTC's proposed license exemptions
for official space agencies. The finalization of these license exemptions will
more easily enable more private missions, public-private programs and
commercial research that were previously subject to stringent licensing
requirements. As these are all proposed changes, we recommend monitoring BIS
and DDTC actions to determine (a) whether the exception and exemptions will be
finalized and how they will define eligible activities; (b) whether the
exception and exemptions will be practical for real-world missions (i.e., broad
enough to cover typical payload integration, testing and operational support);
and (c) what compliance conditions will be included (i.e., recordkeeping,
notifications and end-use restrictions).
Conclusion
We expect 2026 to bring further changes to EAR and ITAR to
facilitate the commercialization of space by the U.S. and allied partners.
These changes should create significant opportunities for space companies.
However, they may also pose challenges for compliance with the EAR and ITAR.
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