US Export Plan - Sector Report - Space

Trade, policy and regulation considerations

Within the US, the space industry is overseen by different entities, depending on whether activity involves the civil, national security or the commercial sector. However, the majority of regulations tend to be federal rather than state-specific. Bodies managing civil space activities include NASA and the National Oceanic and Atmospheric Administration (NOAA) with influence from The Federal Aviation Administration (FAA) and Associate Administrator for Commercial Space Transportation (AST).

International Traffic in Arms Regulations (ITAR) is national regulation to ensure that defence technology is not exported unless it is under specific US terms, and is also applicable to the space sector, and can impose strict controls on space‑related hardware, software, and technical data. For international businesses, this means that exporting to the US space sector requires compliance with US national security rules, licensing from the State Department, and often collaboration through approved brokers. ITAR can therefore create barriers to market entry, increase compliance costs, and slow down partnerships, but recent reforms have slightly eased restrictions for trusted allies.^[25] In 2024, the US government introduced the first major updates in a decade to space‑related export controls, modernising ITAR and aligning it with the Export Administration Regulations (EAR).^[26]

Export Administration Regulations (EAR) control items and technologies that may have commercial or military applications (known as “dual-use” items). For international businesses exporting to the US space sector, EAR affects how they can sell, transfer, or collaborate with US entities on space‑related technologies. Unlike ITAR, which covers defence‑specific items, EAR applies to a broader set of technologies including satellite components, software, encryption, sensors, and advanced manufacturing tools. Compliance with EAR is essential for international firms seeking to access the US market, and failure to comply can result in fines, denial of export privileges, or criminal penalties.^[27]