OFAC General License Lifts Most Import and Export Sanctions Against Libya Effective April 29, 2004

(See ITT's Online Archives or 04/28/04 news, 04042805, for previous BP summary on plans to lift most import and export sanctions against Libya.)

This general license is effective April 29, 2004, the date that the Bureau of Industry and Security (BIS) published in the Federal Register its interim rule revising the export and reexport restrictions on Libya (See today's ITT, 04043015, for BP summary of BIS' interim rule.)

OFAC General License Authorizes Import/Export Transactions, Etc.

According to the Treasury Department and the White House, OFAC's general license results 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;

(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 Continues Blocking of Property, Prohibition of Most Transportation-Related Transactions

OFAC's general license states that the following prohibitions continue:

• Libyan property and interests blocked prior to April 29, 2004 continue to be blocked. Libyan property and interests in property blocked prior to April 29, 2004 must remain blocked unless specifically licensed or otherwise authorized for release.

However, new transactions involving "[LIBYA]" entries on OFAC's Specially Designated Nationals (SDN) list need no longer be interdicted; those entries have been removed from the list for that purpose.

• Transportation-related transactions remain prohibited, unless expressly authorized.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.

(See ITT's Online Archives or 04/20/04 news, 04042099 6, for previous BP summary on OFAC's amended general license on travel to Libya.)

OFAC's general license also notes that the authorization under new 31 CFR 550.575(a) does not eliminate the need to comply with other provisions of 31 CFR chapter V, or with other applicable provisions of law, including any aviation, financial or trade requirements of agencies other than OFAC.

OFAC general license (dated 04/23/04) available at http://www.treas.gov/offices/eotffc/ofac/actions/20040423.html.

OFAC's Libya brochure (dated 04/29/04) available at http://www.treas.gov/offices/eotffc/ofac/sanctions/t11libya.pdf.

Treasury Department press release (dated 04/23/04) available at http://www.treasury.gov/press/releases/js1457.htm.