Arms Regulations Damaging US Space Industry
athe!st writes "International Traffic in Arms Regulations (ITAR) are a major headache for companies trying to put their satellites into space, so much so that some companies are using 'ITAR-free' (aka free of US technology) as a selling point. The European Space Agency is trying to reduce its dependence on ITAR components, and the regulations are also threatening the nascent space tourism industry."
Our company used to buy a certain kind of component from the US to put into the products we make. Every single one needed an export licence and an import licence. That is an export licence from the US and an import licence from the UK. If something goes wrong with the component and it needs fixing, we need an export licence from the UK and an import licence to the US to return it for fixing or replacement. Again, that replacement needs another import/export licence. That's just for traffic between the UK and the US. If you're then going to export your product to a third country, you need another export licence and possibly another import licence for that country too. It's so bad we actually hire people just to track what's going on with all of the difference licences!
To cut a long story short, we switched supplier to a European company who make similar components. Now of course we need an import licence for the US if selling to the US, but in general apart from countries like Iran, we can freely export our product without the nightmare stack of licences and yes, it is a factor you talk about when giving sales presentations.
I was part of the CubeSAT program at my university. We were designing a 1 foot x 1 foot x 1 foot satellite to be launched. To track the satellite, we needed a GPS module on board. However, due to the ITAR components on the module, the student in charge of software couldn't touch the GPS code or schematics, because he was not a US citizen.
Nope. Sorry. The big aerospace companies do plenty well by suckling off of the government teat. ULA doesn't bother to sell to non-domestic customers because they know they have a near monopoly on government contracts, and dealing with ITAR is a pain. They don't need ITAR reform nearly as much as tihe small companies, who have to jump through ridiculous hoops for dumb things.
My favorite example is when Bigelow was preparing to launch one of their test habitats aboard a Russian proton. For assembly, they needed a table, so they grabbed some aluminum slabs out of their warehouse and bolted them together. Turns out this particular variety of aluminum falls under ITAR restrictions, so while in Russia, the table made out of scrap aluminum had to be watched by two armed guards at all time.
I'm not a tea-partier, I believe that in many cases good regulations make the market much more robust. However, ITAR is not good regulation. It is out of date, it places undue legal and financial burden on small startups, and partitions our space industry from the rest of the world. If we're not careful, we will become a backwater of mediocrity in the high frontier.
Where I work we deal with both EAR and ITAR equipment. Since I have been here I have seen a lot of different points of view. Currently, as I understand it, we treat any mechanical or un-programmed electrical hardware as EAR. Unless there are special circumstances (i.e. specific customer requirements).
Electrical hardware doesn't become ITAR unless it has ITAR software/firmware on it. Sub-assembly and top level drawings are EAR unless they call out a piece of hardware that is ITAR. Once a lower level drawing calls out an ITAR item all higher level assembly drawings have to be ITAR as well. While, an ITAR assembly drawing can call out either ITAR or EAR items, an EAR assembly can only call out EAR items in the BOM.
Brasil is developing a C-130-class military transport with no US technology in it specifically to get around ITAR. Scuttlebutt is that Venezuela is the driver but it wouldn't surprise me if most countries are tired of the US sticking their nose in.
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It also affects proposals to NASA that have ANY international collaborators. When sending out various drafts, we have either ITAR-safe or ITAR-unsafe versions because foreign citizens not working in the US are not allowed to even read vague descriptions of hardware, let alone have the hardware. So for the ITAR-safe version, whole sections of the proposal have to be removed for the safety of our foreign collaborators. After all, if you know how to build a [redacted for your safety], you must be a terrorist...
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