MUNITIONS LIST TO AFFECT SATELLITE EXPORTS
“It is reasonable to anticipate that deletions, some additions and some clarifications are likely,” Defense Dept. official said last week when asked about recent Pentagon move to speed up review process of items on U.S. munitions list. Many U.S. satellite components that have run into tough export rules are on list and move to have them omitted would ease restrictions, analyst said. State Dept. makes final determination, although DoD coordination is required for removals, official said. Spokesman said Sept. 12 State hadn’t received recommendation from DoD, but did confirm that any satellite component removed from list no longer would be under jurisdiction of State: “If [satellite component] is not on the munitions list, then State is not responsible for licensing it.”
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Last month, Intelsat cancelled purchase of Astrium- manufactured satellite with U.S. components (CD Aug 31 p3), in part because of long wait for export license. Analyst said taking components off list would provide more expeditious path for satellite companies to export their products. He also said move to speed up review process could be related to industry complaints on tough satellite export rules. “When there are restrictions on exports in a slowing economy, people lose jobs… This is their way of loosening the reins,” he said. Satellite Industry Assn. (SIA) study in Feb. said manufacturers building telecom satellites lost $1.2 billion in contracts and more than 1,000 jobs as result of controls.
Pentagon official said decision to accelerate review process wasn’t brought on by industry pressure: “The [Bush] Administration came into office with the view that export control improvements were necessary and important and that improvements should be implemented on a priority basis… That view is current today.”
State and DoD are working together as part of Defense Trade Security Initiative to review 25% of munitions list each year on continuing basis, officials said. DoD’s first tranche was submitted to State at end of May and has begun its review of 2nd tranche of munitions list category XV -- Spacecraft Systems & Associated Equipment. Official said DoD was committed to accelerating schedule, at least first one, but new timetable hadn’t yet been specified.