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All U. Department of State.

Registration is primarily a means to provide the U. Government with necessary information on who is involved in certain manufacturing and exporting activities. Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export. Department of State before the export can take place. A foreign person is any person who is not a lawful permanent resident of the U.

Luxembourg Space Resources Act: Paving the legal road to space - Lexology

ITAR also operates to prohibit the "Retransfer" also called "Re-export" of items on the USML by foreign persons unless the Retransfer is specifically authorized under the relevant export authorization. The prohibition on Retransfer stems from the requirement for all export authorizations to include the statement that "[t]he technical data or defense service exported from the United States in furtherance of this agreement and any defense article which may be produced or manufactured from such technical data or defense service may not be transferred to a person in a third country or to a national of a third country except as specifically authorized in this agreement unless the prior written approval of the Department of State has been obtained.

This means that if, for example, a foreign person wants to Retransfer a USML item to another foreign person such as a subcontractor , both foreign persons must be authorized under the relevant export authorization:. Where a foreign person requires access to USML items exported under a specific export authorization, but that foreign person is not authorized under the export authorization, the export authorization must be amended and re-approved by the U. It does not authorize export to the employee's country of Dual or Third Nationality.

This can cause significant problems for foreign governments and organizations from countries with large first generation immigrant populations which is discussed in more detail under "Controversy". Government and the Australian Government have drawn attention to the importance for U. Department of State for approval.

Remarks from Space Commerce Workshop

Clauses approved by the U. Government has substantially increased action against organizations and individuals responsible for breaches of ITAR since In most cases, penalties against corporate entities involve a mandatory compliance component requiring the entity to spend funds on compliance measures, including the appointment of "Internal Special Compliance Officers".

In serious cases, a party may be debarred from future exporting for a period of time. Government policy also imposes a positive obligation on U. Government will also take action against individuals responsible for breaches of ITAR and such action can involve criminal penalties. Actions are often initiated by U. Immigrations and Customs Enforcement and include:. Since , the U. Government has also operated the "Blue Lantern" end-use monitoring program. Where appropriate, parties involved in unfavorable Blue Lantern cases may be subject to civil enforcement actions or referred to law enforcement for criminal investigation.

Because failure to implement an effective export compliance program can be an exacerbating factor in the event of a breach of ITAR, [48] the U. Government encourages U. Government may also require U. It is notable that the failure of overseas companies to implement ITAR compliance programs has been criticized by the U.

Companies in U. While political debate over the wisdom of placing all satellite and launch technology on the US Munitions List USML has been ongoing since the advent of ITAR regulation in , there has been a shift in political opinion since In late , the US Congress passed the defense authorization bill which, if signed into law, will allow U. Munitions List USML and allows him to decide which satellite technologies are the most important to protect. The political changes in came after several years of a gradual shift in thinking.

In , the Congress formally requested "an assessment of the national security risks of removing satellites and components from the USML. The study, known as the report , was completed in April There is an open debate between the Department of State and the industries and academia regulated by ITAR concerning how harmful the regulatory restrictions are for U. Higher education institutions argue that ITAR prevents the best international students from studying and contributing in the United States, and prevents cooperation on certain types of international scientific projects.

Where the definition of "defense service" includes "the furnishing of assistance including training to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles. The ITAR specifies that the products of "fundamental research" are not considered controlled "technical data," so long as they are published freely.

Fundamental research is defined as university-based "basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community, as distinguished from research the results of which are restricted for proprietary reasons or specific U. Government access and dissemination controls.

The Impact of Technology and Export Controls on Small Satellite Missions

Research that does not meet the criteria of "fundamental research" cannot involve foreign persons without export licenses; however, research activities that are considered fundamental typically can involve foreign persons, even when they involve the design and construction of defense articles, as the US State Department has deemed such research activities to fall outside of the purview of training activities that would constitute the illegal export of a "defense service. These measures can vary widely; for example, MIT states that "the intent of the ITAR is that research conducted on campus, without restrictions on publication or participation, is fundamental research from inception to publication as long as the intent is to publish the results," [65] while Stanford University maintains a more nuanced and restrictive approach to research involving defense articles.

University interpretation and up-to-date understanding of export control regulations and willingness to seek opinions from the U. State Department affect the research that can be conducted on their campuses; for example, the University of Michigan successfully obtained an opinion from the Department of State stating that satellite development work on an at the time ITAR-controlled satellite being conducted by a student group containing both U. The Department of State insists that ITAR has limited effect and provides a security benefit to the nation that outweighs any impact that these sectors must bear.

They also view the announcements of "ITAR-free" items as anecdotal and not systemic. There is evidence that ITAR considerations have been a factor in decisions by foreign governments to avoid U. Department of State charges back fees to manufacturers who have failed to register previously. Department of State-industry advisory group, the Defense Trade Advisory Group, that charging back fees discourages some manufacturers from registration. Restrictions on Retransfer of USML items can also cause difficulties where those items have been incorporated into a product manufactured by a foreign person.

If the foreign person wants to Retransfer the product to another foreign person, it must obtain authorization from the U. Government before the Retransfer can take place. It is open to the U. As a consequence of the blocking of these sales, Venezuela has subsequently purchased aircraft and other military hardware from Russia and Belarus. The restrictions on access to USML items by Dual and Third Country National employees of a foreign person can cause significant difficulties because the current accepted definitions of Dual and Third Country Nationals do not reflect the definition of "US persons".

Government will take country of origin [27] and continued ties or allegiance to a country into account when determining Dual or Third Country Nationality. This means that a person who was born in the UK but is a U. If, however, the same person emigrated to Canada, obtained Canadian citizenship and commenced employment with a Canadian company, she would be treated as a Canadian-UK Dual National for the purposes of any U. If she did not obtain Canadian citizenship but instead became a temporary or permanent Canadian resident, she would be treated as a UK Third Country National for the purposes of such U.

It is also possible for a person who was born in one country to become a Dual National for the purposes of ITAR without necessarily leaving his country of origin, simply by obtaining a foreign passport thereby "holding nationality" from another country.

Regulatory Challenges and Chances

Restrictions on access to USML items by Dual and Third Country National employees of foreign persons essentially forces foreign persons to discriminate against their employees who do not meet the nationality criteria under an export authorization. Such discrimination may be illegal in some countries under anti-discrimination law such as in Canada [92] [93] and Australia. The ease with which USML items can be exported and retransferred using computer networks and removable media significantly increases the risk of unauthorized retransfer of USML items.

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As discussed above, carrying a laptop computer which contains USML items overseas is considered a retransfer of those items. Likewise, access to USML items on corporate systems, such as intranets, by foreign persons overseas or in the U. It is important to note that, in both cases, theoretical access to the USML items overseas or by foreign persons is sufficient to constitute a breach of ITAR. Theoretical access to USML items by foreign persons including dual and third country nationals can create difficulties for the engagement of IT professionals from overseas as network administrators or the use of overseas companies to support IT systems.

Avoiding discrimination while screening applicants for their ability to access ITAR materials can often be an HR nightmare. Government in an effort to minimize the impact of ITAR, with varying degrees of success. Government remains reluctant to consider broad exemptions from ITAR because of continuing concerns regarding the adverse effect unauthorized release of USML items can have on U. Attempts by the UK Government to obtain a similar exemption were also stymied.

The Clinton administration promised the United Kingdom's Ministry of Defence that an ITAR waiver would be given, allowing greater technology transfer associated with the project. Congressman Henry Hyde because of his security concerns about potential technology transfer to third countries. These difficulties caused the UK to threaten that it would abandon the JSF project and consider alternative aircraft. Government signed bilateral defense trade cooperation treaties with the UK and Australian governments in June [] [] and September [] [] respectively.

The treaties are designed to allow the exchange of technical data, defense articles and defense services including USML items without the need for export authorizations such as TAAs and MLAs, subject to restrictions on the type and classification of the technology in question and its intended end-use. Senate Foreign Relations Committee had deferred consideration of the treaties on the grounds that it had not had time to properly evaluate proposed amendments to ITAR required in order to implement the treaties.

There have been exemptions for scientific research: notably certain specialized components used in the Large Hadron Collider are "dual use" but as the US contributes both research grant money and personnel it is generally believed that a reciprocal arrangement exists. Some high-performance computers are affected by ITAR and it is believed [ by whom?

Before , satellite components were classified as munitions, and ITAR export compliance was controlled by the State Department.

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  5. After the failed launches of Apstar 2 and Intelsat , the satellite insurance companies required the satellite manufacturers to work with China to investigate the failures. The Commerce Department determined that the "export" of information as part of the failure analysis complied with the export license. The ChinaSat 8 satellite, which had been scheduled for launch in April on a Long March 3B rocket, [] was placed in storage for a decade and finally launched on a French rocket in China used the results of the insurance investigation to improve the reliability of its Long March rockets , which would not experience another mission failure until In May , the United States Department of State reclassified satellites and several related components so they will no longer be treated as munitions whose export is controlled by ITAR, but will be covered instead under the Export Administration Regulations.

    An official at the Bureau of Industry and Security emphasized that "no U. ITAR remains a major concern in the European aerospace industry as of European manufacturers of satellite components report that ITAR-free status is the first question they are asked by potential customers. Even U. From Wikipedia, the free encyclopedia.