International Traffic in Arms Regulations (ITAR)

FACTSHEET

Updated September 30, 2008

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A free service of the Secure World Foundation The Arms Export Control Act
TheArmsExportControlAct,22USC,2778(a)(2),requiresgovernmentsthatreceive weaponsfromtheUnitedStatestousethemforlegitimateselfdefense.TheActprohibits theexportoftechnologiesthatcontributetoanarmsrace,aidinthedevelopmentof weaponsofmassdestruction,supportinternationalterrorism,increasethepossibilityof outbreakorescalationofconflict,orprejudicethedevelopmentofbilateralormultilateral armscontrolornonproliferationagreementsorotherarrangements.TheActalsoprohibits U.S.manufacturersfromsellingcertainsensitivetechnologiestocertainpartiesandrequires thoroughdocumentationofsuchsalestolegitimatecustomers.

The International Traffic in Arms Regulations (ITAR)

ITAR(CFRTitle22,ChapterI,SubchapterM)representstheproceduralextensionoftheArms ExportControlAct.ITAR,whichisenforcedbytheUnitedStatesDepartmentofStateDirectorateofDefenseTradeControls (DDTC),isasetofregulationsthatcontroltheexportandimportofdefenserelatedarticles,servicesandrelatedtechnologyon theUnitedStatesMunitionsList(USML).

ThepurposeofITARistopreventtheinternationalproliferationofAmericantechnologyandprocessescriticaltonationalsecurity. NonadherencetoITARcanresultinsignificantfinesiftheStateDepartmentdiscoversthatcomponents,systemsandsoftware listedontheU.S.MunitionsListhavebeensharedwithnonU.S.citizens,governmentsandorganizationswithoutapproval.

The United States Munitions List (USML)

TheUSML(CFRPart121ofTitle22,ForeignRelations)currentlyconsistsoftwentycategories,anditscontentschangeoften. InformationonthecontentsoftheUSMLareoccasionallydiscussedintheStateDepartmentsBureauofPoliticalMilitaryAffairs publicationDefenseTradeNews.Thetwentycategoriesasof2008are: Firearms,CloseAssaultWeaponsandCombatShotguns GunsandArmament Ammunition/Ordnance LaunchVehicles,GuidedMissiles,BallisticMissiles,Rockets,Torpedoes,Bombs,andMines ExplosivesandEnergeticMaterials,Propellants,IncendiaryAgents,andtheirConstituents VesselsofWarandSpecialNavalEquipment TanksandMilitaryVehicles AircraftandAssociatedEquipment MilitaryTrainingEquipment MilitaryElectronics ProtectivePersonnelEquipment FireControl,RangeFinder,OpticalandGuidanceandControlEquipment AuxiliaryMilitaryEquipment ToxicologicalAgents,IncludingChemicalAgents,BiologicalAgents,andAssociatedEquipment SpacecraftSystemsandAssociatedEquipment NuclearWeapons,DesignandTestingRelatedItems ClassifiedArticles,TechnicalDataandDefenseServicesNotOtherwiseEnumerated DirectedEnergyWeapons SubmersibleVessels,OceanographicandAssociatedEquipment MiscellaneousArticles

Promoting Cooperative Solutions for Space Security

International Traffic in Arms Regulations (ITAR)

FACTSHEET

ITAR Authority and the Space Industry

In1990,PresidentBushorderedthatdualuseitemsthat wouldnototherwisecompromisenationalsecuritybe removedfromtheStateDepartmentslistofmunitions,an actionintendedtobringU.S.exportcontrolpolicyinline withthosedevelopedbytheCoordinatingCommitteefor MultilateralExportControls.In1992,theStateDepartment requestedthatcommunicationsatelliteswithoutcertain militarycharacteristics(suchasantijammingcapabilities)be transferredtotheDepartmentofCommerce.Thistransfer tookplacein1996.1

U.S.marketshareofcommercialsatellitemanufacturingrevenues.FromZelnio,Ryan.The effectsofexportcontrolonthespaceindustry,TheSpaceReview,January16,2006.

In1995,aChineseLongMarch2EcarryingtheHughesbuiltApstar2satellitefailedshortlyafterlaunch.Thenextyear,aLong March3BcarryingIntelsat708,builtbySpaceSystems/Loral,alsofailed.Inaccordancewithinsurancerequirements,theChinese governmentandtheU.S.manufacturersinvestigatedbothfailures,andtheresultsweresubsequentlyreviewedbytheCommerce Department.Believingthatitwasauthorizedtodoso,theCommerceDepartmentsharedtheresultswithChina.Itwasunclear whethertheCommerceDepartmenthadtheauthoritytoapprovesuchanexport.CongressreviewthedataexporttotheChinese anddetermineditviolatedITAR.Thispromptedthe1998NationalDefenseAuthorizationActsponsoredbySenatorStrom Thurmond(RSC),whichtransferredcontrolofallsatelliteexportstotheStateDepartment,whoseUSMLwouldnowcontainall satellitecomponentsanddualusetechnologies.TheActalsorequiredthatthePresidentoftheUnitedStatescertifyinadvance thatanytechnologytransferstoChinawillnotharmU.S.nationalsecurity.HughesandSpaceSystems/Loralwerebothheavily finedasaresultoftheinvestigations.1,2

AccordingtotheSatelliteIndustryAssociation(SIA),totalworldwiderevenueforsatellitemanufacturing,satelliteservices,satellite groundequipmentandlaunchin2007wasapproximately$92billion.Satellitemanufacturingconstitutedjustshyof$12billion, withtheU.S.sharebeing41percentofthisat$4.8billion.3TheU.S.shareofsatellitemanufacturingwasabout80percentin1999 andhasdroppedconsiderablysince,mainlyduetobroadinterpretationofITARandtheUSML.

Ascurrentlyconfiguredandapplied,ITARisharmingboththeU.S.spaceindustryandnationalsecurity,withthelatterinparticular runningcountertotheintentoftheexportcontrolregulations.TheITARrestrictionsaresotightthatinternationalmanufacturers arebeginningtolookbeyondtheU.S.forcomponentdelivery,withThalesAleniaSpacegoingsofarastopursueanITARfree satellite.4AnythingassociatedwithasatelliteisconsideredpartoftheUSML,evenbolts,batteriesand,inatleastonecase,a simplemetalhardwarestand.5,5,7

Satellitemanufacturingisnottheonlyspacemarketaffected.VirginGalacticscontracttomanufacturespacetourismvehicles throughScaledCompositeswasforatimehamperedbyITAR.TheStateDepartmentclearedthewayforthemanufactureofVirgin Galacticsvehiclesin2005.8

ThespacetechnologiesinvolvedposenostrategicthreattotheUnitedStatesifreleasedtointernationalmarkets,andthe reductioninspacebusinessfortheUnitedStatestranslatesintoresearch,developmentandproductionvulnerabilitiesthat compromisenationalsecurity,accordingtotheU.S.DepartmentofDefense.5

Footnotes
1.ReportoftheSelectCommitteeonU.S.NationalSecurityandMilitary/CommercialConcernswiththePeoples RepublicofChina,May25,1999. 2.Zelnio,Ryan.Ashorthistoryofexportcontrolpolicy,TheSpaceReview,January9,2006. 3.StateoftheSatelliteIndustryReport,June2008,sponsoredbytheSatelliteIndustryAssociationandprepared byFutronCorporation. 4.deSelding,Peter.U.S.ExportRestrictionsHelpAlcatelWinChinasat9,SpaceNews,July21,2004. 5.Washington,WeHaveaProblem,TheEconomist,August21,2008. 6.Zelnio,Ryan.Theeffectsofexportcontrolonthespaceindustry,TheSpaceReview,January16,2006. 7.Foust,Jeff.BigelowAerospacesbigdayattherodeo,TheSpaceReview,July24,2006. 8.David,Leonard.U.S.OkaysVirginGalacticSpaceshipPlans,Space.com,August15,2005.

PocketITARavailablefromtheSocietyforInternationalAffairs (http://www.siaed.org/en/catalogs/items/view.asp?catalogid=1).

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