International Trade Law News

Published by Jacobson Burton Kelley PLLC

Today the President signed an Executive Order that lifts the remaining economic sanctions on Libya. The Executive Order, which will become effective at midnight tonight, terminates all of the remaining prohibitions contained in the Libyan Sanctions Regulations (31 C.F.R. Part 550) and ends the need for Treasury Department licences for trade with Libya. As a result of this Executive Order all property and interests in property blocked under the Libyan Sanctions Regulations will be unblocked. The Executive Order also lifts the remaining U.S. restrictions imposed on aviation relations with Libya and permits direct air service and regular charter flights between the U.S. and Libya. Finally, the Executive Order revokes the 1985 Executive Order that prohibits the importation into the United States of petroleum products refined in Libya.

While the Executive Order formally lifts U.S. sanctions on Libya, it will not lift a wide variety of other restrictions sanctions imposed on Libya due to its designation as a state sponsor of terrorism under section 620A of the Foreign Assistance Act (restriction on foreign assistance), section 40 of the Arms Export Control Act (restriction on arms exports), and section 6(j) of the Export Administration Act of 1979 (restriction on exports of certain items on the Commodity Control List).

The text of the Executive Order is as follows:

EXECUTIVE ORDER

TERMINATION OF EMERGENCY DECLARED IN EXECUTIVE ORDER 12543 WITH RESPECT TO THE POLICIES AND ACTIONS OF THE GOVERNMENT OF LIBYA AND REVOCATION OF RELATED EXECUTIVE ORDERS

By the authority vested in me as President by the Constitution and the laws of
the United States of America, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50
U.S.C. 1601 et seq.) (NEA), section 5 of the United Nations Participation Act,
as amended (22 U.S.C. 287c) (UNPA), sections 504 and 505 of the International
Security and Development Cooperation Act (22 U.S.C. 2349aa-8 and 2349aa-9), and section 40106 of title 49, United States Code,

I, GEORGE W. BUSH, President of the United States of America, find that the
situation that gave rise to the declaration of a national emergency in Executive
Order 12543 of January 7, 1986, with respect to the policies and actions of the
Government of Libya, and that led to the steps taken in that order and in
Executive Order 12544 of January 8, 1986, and Executive Order 12801 of April 15, 1992, has been significantly altered. Accordingly, I hereby terminate the
national emergency declared in Executive Order 12543, and revoke that Executive
Order, Executive Order 12544, and Executive Order 12801. I also hereby revoke
Executive Order 12538 of November 15, 1985, and further order:

Section 1. Pursuant to section 202(a) of the NEA (50 U.S.C. 1622(a)),
termination of the national emergency declared in Executive Order 12543 with
respect to the policies and actions of the Government of Libya shall not affect
any action taken or proceeding pending not finally concluded or determined as of
the effective date of this order, any action or proceeding based on any act
committed prior to such date, or any rights or duties that matured or penalties
that were incurred prior to such date.

Sec. 2. This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, instrumentalities, or
entities its officers or employees, or any other person.

Sec. 3. (a) This order is effective at 12:01 a.m. eastern daylight time on
September 21, 2004.

(b) This order shall be transmitted to the Congress and published in the Federal
Register.

THE WHITE HOUSE
09/20/2004