BIS Expands License Exception GOV to International Space Station Items

(The ISS is a research facility in a low-Earth orbit approximately 190 miles (350 km) above the surface of the Earth. It is a joint project among the space agencies of the U.S., Russia, Japan, Canada, Europe and Italy. The ISS is nearing completion of assembly, and is planned to remain in operation until at least 2016.)

Terms and Conditions for ISS Exports/Reexports Under License Exception GOV

BIS' final rule adds a new paragraph (d) to License Exception GOV in 15 CFR 740.11, which establishes specific terms and conditions with which exports or reexports must comply in order to take advantage of the new authorization, including the following:

"Short notice" ECCN 9A004 commodities. Eligible commodities are those classified under Export Control Classification Number 9A004 (Space launch vehicles and "spacecraft"), and are required for use on the ISS on short notice².

Four eligible destination countries, SLVs. Eligible destinations are France, Japan, Kazakhstan, and Russia. To be eligible, a destination needs to have a launch for a supply mission to the ISS scheduled by a country participating in the ISS.

Only commodities that will be delivered to the ISS using U.S., Russian, ESA (French), or Japanese space launch vehicles (SLVs) are eligible under this authorization. Commodities to be delivered to the ISS using SLVs from any other countries are excluded from this authorization.

Ineligible recipients of ISS items. BIS' final rule specifically excludes from the list of eligible recipients any national of a country listed in Country Group E:1 in Supplement No. 1 to 15 CFR Part 740. In addition, no person may receive authorized commodities if that person is subject to any end-user or end-use control described in 15 CFR Part 744, including the Entity List in Supplement No. 4 to part 744.

6-month launch deadline, extension available. If there are unexpected delays in a launch schedule for reasons such as mechanical failures in a launch vehicle or weather, commodities exported or reexported under this license exception are authorized to be retained at or near the launch site for a period of six months from the time of initial export or reexport before the commodities must be destroyed, returned to the exporter or reexporter, or be the subject of an individually validated license request submitted to BIS to authorize further disposition of the commodities.

If, after the commodity is exported or reexported under this authorization, a delay occurs in the launch schedule that would exceed the six-month deadline, the exporter or reexporter or the person in control of the commodities in the launch country may request a one-time six-month extension by submitting written notification to BIS. (If the requestor is not contacted by BIS within 30 days from the date of the postmark of the written notification and if the notification meets the requirements, the request is deemed granted.)

To retain a commodity abroad beyond the time authorized, the exporter, reexporter or person in control of the commodity must request authorization by submitting a license to BIS 90 days prior to the expiration of the six-month extension period.

Recordkeeping requirements. Exporters and reexporters must maintain records regarding exports or reexports made using this license exception, as well as any other applicable recordkeeping requirements under 15 CFR Part 762, including:

a record of the initial written notification they received requesting these commodities be supplied on short notice for a supply mission to the ISS;

records of the date of any exports or reexports made using the authorization and the date on which the commodities were launched into space for delivery to the ISS; and

documentation of the return, destruction, or reexport/transfer (in-country) to a NASA-designated review destination, of defective or worn out parts or components exported pursuant to this license exception. (BIS notes that return or destruction of defective or worn out parts or components is not required.)

Reexports to an alternate launch country. If a mechanical or weather related issue causes a change from the scheduled launch country to another foreign country after a commodity was exported or reexported under this license exception, then that commodity may be subsequently reexported to the new scheduled launch country, provided all of the terms and conditions of the license exception are met, along with any other applicable EAR provisions.

In such instances, the six-month time limitation would start over again at the time of the subsequent reexport transaction. Note that if the subsequent reexport may be made under the designation No License Required (NLR) or some other authorization under the EAR, a reexporter does not need to rely on the provisions of this license exception.

¹License Exception GOV (governments, international organizations, and international inspections under the Chemical Weapons Convention) authorizes exports and reexports for international nuclear safeguards; U.S. government agencies or personnel, and agencies of cooperating governments; international inspections under the Chemical Weapons Convention; and the ISS.

²"Short notice" is defined as a requirement to have a commodity manifested and at the scheduled launch site for hatch-closure (final stowage) no more than 45 days from the time the exporter or reexporter received complete documentation.

"Complete documentation" means the exporter or reexporter received the technical description of the commodity and purpose for use of the commodity on the ISS.

"Hatch-closure (final stowage)" is defined as the final date specified by a launch provider by which items must be at a specified location in a launch country in order to be included on a mission to the ISS.

(See ITT's Online Archives or 01/29/10 news, 10012999 12, for BP summary of OMB approval of this final rule.)

BIS contact - Gene Christiansen (202) 482-2984

BIS final rule (D/N 0812241645-91422-01, FR Pub 02/09/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-2579.pdf