House Subcommittee Hearing Addresses Whether Satellite Exports Should Be Controlled by State or Commerce

Satellite Export Licensing is Under State Department Control

The Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261), enacted in October 1998, moved control over satellite export licensing to the State Department under the Arms Export Control Act from the Commerce Department.

Subcommittee Chair Discussed Need to Legislate, Clarify Satellite Export Controls

In his opening remarks, Subcommittee Chairman Sherman discussed the need to legislate and clarify export controls on satellite technology. Sherman noted that one way to clarify the situation could be to make satellite technology subject to the same administrative process as other exports. Chairman Sherman noted that no matter what way the controls are clarified, they need to balance economic and national security interests

Highlights of Witness Written Hearing Statements

Highlight of the witnesses' written hearing statements include (partial list):

Commission opines control of satellite exports should remain with State - The U.S.-China Economic and Security Review Commission representative stated that he saw no reason to change the decision to have satellite exports remain on the U.S. Munitions List (USML). He opined that given the way that the satellite programs are being used in China, exports of dual-use technologies that would improve China's remote sensing satellite capabilities still require careful control.

Close examination of dual-use satellite-related technology advocated - The representative from the U.S.-China Economic and Security Review Commission also recommended examining more closely how the U.S. controls dual-use satellite-related technology and to look into implementing some of the findings of the "Beyond Fortress America" report related to ensuring that export control processes are more timely and that regulations are more updated to account for rapid advances in technology and foreign development.

China warrants continued examination - In addition, the U.S.-China Economic and Security Review Commission representative stated that even if China has improved its nonproliferation practices, its cooperative efforts with other countries warrant continued examination and retaining satellite export controls on the USML.

Satellite Industry Association advocates change in current rules - In contrast, the Satellite Industry Association (SIA) testified that it believes that it is time for Congress to review its decision that all exports of satellite and related components and technology be controlled by the State Department and licensed pursuant to the International Traffic in Arms Regulations (ITAR).

SIA noted that the current rules governing exports of satellites sold commercially have resulted in overbroad regulation that disadvantages U.S. spacecraft and component manufacturers in the global marketplace without necessarily having accomplished the desired intent.

Statutory export licensing jurisdiction limits executive discretionary authority - SIA stated that satellites are the only commodities on the USML for which export licensing jurisdiction is mandated by law, rather than regulation which has left the Executive Branch with limited discretionary authority over export controls for commercial satellites and all related technologies, including parts and components, technical data, and defense services.

SIA questioned whether commercial satellite technology merits this extraordinary and unique position of legislative oversight in comparison to all other sensitive technologies included in USML.

1st priority should be review/update of satellite-related technology on USML - SIA stated that careful review and update of the satellite-related technologies included in USML should be a first priority, in order to ensure that licensing and oversight resources are not being expended on products of limited military or competitive value in today's context.

(See ITT's Online Archives or 03/05/09 news, 09030535, for BP summary on a House Science and Technology Committee hearing on the negative impacts of U.S. export controls, which included a discussion of satellite technology exports and the "Beyond Fortress America" report.)

Witness statements from hearing available at http://foreignaffairs.house.gov/schedule.asp.

Hearing webcast available at http://foreignaffairs.house.gov/hearing_notice.asp?id=1060.