BIS Issues Long-Awaited Libya Regulation
Today the Commerce Department's Bureau of Industry and Security (BIS) published in the Federal Register the long-awaited regulation revising the Export Administration Regulations by removing Libya from the list of terrorist supporting countries in Country Group E:1. The PDF version of the interim final rule, which takes effect today, can be found here.
Among other things, this rule changes U.S. licensing policy towards Libya by significantly reducing the level of U.S. Government controls over commercial exports to Libya. As expected, items controlled only for anti-terrorism (AT) reasons on the Commerce Control List will no longer be subject to a licensing requirement for export or reexport to Libya (subject to end-use and end-user requirements). As a result of the lifting of AT controls on Libya, BIS has amended the EAR to removed License Exception USPL (EAR section 740.19) that was established to permit the reexport of certain items controlled for AT reasons only to U.S. persons in Libya.
BIS also amended the de minimis rules applicable to Libya to note that reexports of items to Libya from abroad are subject to the EAR only when U.S.-origin controlled content in such items exceeds 25% instead of the 10% that applies to Country Group E:1 countries.
This interim final rule retains license requirements for the export or reexport to Libya of items on the multilateral export control regime lists (the Wassenaar Arrangement, the Nuclear Suppliers Group, the Australia Group and the Missile Technology Control Regime) and items controlled for Crime Control or Regional Stability reasons.
However, the rule will permit licensed exports and reexports of items controlled for Chemical and Biological Weapons (CB), Nuclear Nonproliferation (NP), National Security (NS), Missile Technology (MT) , Regional Stability (RS) and Crime Control (CC) reasons to Libya, although such licenses will be reviewed on a case-by-case basis to ensure they are consistent with BIS licensing policies.
By removing Libya from Country Group E:1 and adding Libya to Country Group D:1, a number of License Exceptions may be available for exports to Libya.
This interim final rule also adds Libya to Computer Tier 3 for exports or reexports of high performance computers under License Exception Computers (APP) in section 740.7 of the EAR.
BIS also took this opportunity to amend the EAR to reflect the fact that in October 2004 the U.S. rescinded IraqÂs designation as a state sponsor of terrorism.
Because this regulation was issued as an interim final rule, BIS will review public comments before issuing a final rule. Public comments must be submitted by October 2, 2006.
Labels: BIS, Export Controls
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