International Trade Law News

Published by Jacobson Burton Kelley PLLC

The White House today announced the lifting of most United States economic sanctions on Libya. First, the White House stated that the President issued Presidential Determination No. 2004-30 certifying that Libya has fulfilled the requirements of United Nations Security Council Resolution 731, adopted January 21, 1992, United Nations Security Council Resolution 748, adopted March 31, 1992, and United Nations Security Council Resolution 883, adopted November 11, 1993. As a result of this Presidential Determination, the application of the Iran and Libya Sanctions Act will be terminated with respect to Libya.

In addition, the Treasury Department 's Office of Foreign Assets Control (OFAC) has modified sanctions imposed on U.S. firms and individuals under the authority of the International Emergency Economic Powers Act. OFAC has issued a general license that will authorize most new transactions with Libya. The general license will take effect on the date the Federal Register publishes the Department of Commerce’s revised regulations on exports to Libya. The general license will lift most of the economic embargo that has been in place against Libya since 1986 and will permit the following activities:

*Most trade and investment activities between the U.S. and Libya will be permitted under the general license, including the importation and exportation of goods or services, subject to export controls maintained by the Department of Commerce's Bureau of Industry and Security (BIS). As a result of this action it will not longer be necessary to obtain a license to export agricultural products, medical devices, medicines and other EAR99 items to Libya. However, as noted below, items on the Commerce Control List will still require an export license to be issued by BIS prior to export.
U.S. companies will be able to enter into and implement most industrial, commercial or government contracts, as well as invest in Libya, again subject to export controls based on Libya’s status on the State Sponsors of Terrorism List.

*U.S. banks and other financial service providers will be able to participate in and support transactions with Libya.

*Libyan students may study in the U.S. if they are accepted by an American university and qualify for a student visa.

Certain restrictions on transactions with Libya will remain:

*All property blocked as of the effective date of the general license will remain blocked;

*Restrictions will continue to apply to exports of dual-use items with military potential, including potential for WMD or missile applications.

*Exports to Libya of defense articles and services on the U.S. Munitions List remain prohibited.

*Goods or technology controlled for export to Libya under the terms of the U.S. Department of Commerce’s Export Administration Regulations require licensing for export;

*Transportation-related transactions remain prohibited, except as expressly authorized by the general license for travel issued on February 26, 2004. This includes, but is not limited to, flights to or from Libya by U.S. air carriers, code-sharing involving flights to or from Libya, and flights to or from the United States by Libyan air carriers.

Because the general license transfers export licensing jurisdiction from OFAC to BIS, there will be a delayed effective date to coincide with the effective date of BIS's revised regulations for Libya to ensure no gap in export licensing jurisdiction. As a result of this delay, no transactions with Libya should be conducted until the general license is published in the Federal Register, which should take place next week.

Labels: BIS