U.S. Announces Plans to Lift Most Import and Export Sanctions Against Libya
On April 23, 2004, the White House announced that President Bush has terminated the application of the Iran and Libya Sanctions Act with respect to Libya, and 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 in order to, when implemented, allow the resumption of most commercial activities, financial transactions, and investments.
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OFAC General License to Authorize Import/Export Transactions, Etc.
On April 23, 2004, OFAC issued a general license (new 31 CFR 550.575) which, once it takes effect, will lift much of the economic embargo that has been in place against Libya since 1986.
According to the Treasury Department, this will result in the following (partial list):
Imports and exports. Most trade and investment activities between the U.S. and Libya will be permitted, including the importation and exportation of goods or services, subject to export controls maintained by the Department of Commerce;
(The White House notes that controls on exports with respect to Libya will be maintained consistent with Libya's continued listing on the State Sponsors of Terrorism List. Restrictions will continue to apply to exports of dual-use items with military potential, including potential for WMD or missile applications, and exports to Libya of defense articles and services on the U.S. Munitions List (USML) will remain prohibited.)
Contracts and investment. U.S. companies will be able to enter into and implement most industrial, commercial, or government contracts, as well as invest in Libya, subject to export controls based on Libya's status on the State Sponsors of Terrorism List; and
Financial transactions. U.S. banks and other financial service providers will be able to participate in and support transactions with Libya.
OFAC General License Takes Effect When BIS Publishes Regulations on Libya
OFAC's general license will not take effect until the date that the Bureau of Industry and Security (BIS) publishes its "Revision of Export and Reexport Restrictions on Libya" in the Federal Register.
The Treasury Department notes that this delayed effective date is due to the transfer of export licensing jurisdiction to the Commerce Department and its purpose is to prevent a gap in export licensing jurisdiction.
OFAC General License to Continue Blocking of Property, Prohibition of Most Transportation-Related Transactions
OFAC's general license states that the following prohibitions would continue:
Libyan property and interests will continue to be blocked. OFAC's general license states that all property and interests in property that were blocked pursuant to the Libyan Sanctions Regulations (Subpart B to 31 CFR Part 550), as of the effective date of the general license, will remain blocked and subject to the prohibition and requirements of the Libyan Sanctions Regulations.
Transportation-related transactions remain prohibited, unless expressly authorized.OFAC's general license states that, except as expressly authorized by 31 CFR 550.574 (OFAC's recently amended general license on travel to Libya), all transportation-related transactions prohibited by 31 CFR 550.203, including, but 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 U.S. by Libyan air carriers, will remain prohibited.
(OFAC recently issued an amended general license for travel to Libya which clarifies that the booking of travel to and from Libya for U.S. persons by U.S. travel service providers is authorized, whether such services are prohibited by 31 CFR 550.207 or 550.203. See ITT's Online Archives or 04/20/04 news, 04042099 6, for previous BP summary on this amended general license.)
White House statement (dated 04/23/04) available athttp://www.whitehouse.gov/news/releases/2004/04/20040423-9.html.
Presidential Determination No. 2004-30 (dated 04/23/04) available at
http://www.whitehouse.gov/news/releases/2004/04/20040423-10.html.
OFAC general license (dated 04/23/04) available at http://www.treas.gov/offices/eotffc/ofac/actions/20040423.html.
Treasury Department press release (dated 04/23/04) available at http://www.treasury.gov/press/releases/js1457.htm.