Summary of U.S. Export Controls on Libya
On April 23, 2004, the Department of the Treasury's Office
of Foreign Assets Control (OFAC) issued General License 550.575, which transferred
licensing jurisdiction for the export of items subject to the Export Administration
Regulations (EAR) to the Bureau of Industry and Security (BIS). The effective
date of this General License is April 29, 2004. OFAC continues to
maintain certain financial restrictions, including blocking the assets of
named persons. You should consult with OFAC
if you have questions regarding these issues.
On April 29, 2004, BIS published an amendment
to the EAR in the Federal Register. This amendment updates our license
requirements for Libya. The amendment is consistent with changes in U.S. legal
authorities concerning Libya and reflects Libya's continuing good faith effort
to completely dismantle its weapons of mass destruction and missile programs,
and adherence to its renunciation of terrorism.
In summary, BIS's new licensing requirements and policies for Libya are as
follows:
License Requirements
- Items subject to the EAR but not listed on the Commerce Control List
(CCL) (i.e., EAR99 items) are generally not subject to a license requirement
except as defined in the end-user and end-use controls set forth in Part
744 of the EAR.
- Items controlled by the multilateral export control regimes [i.e., items
controlled for national security (NS), missile technology (MT), chemical
and biological weapons (CB), and nuclear nonproliferation (NP) reasons
on the Commerce Control List (15 CFR Part 774)(CCL)] require a license
to Libya, as do items controlled for crime control (CC) and regional stability
(RS) reasons.
- Libya remains on the list of designated state sponsors of terrorism.
As a result, most items controlled for anti-terrorism (AT) reasons will
continue to require a license for export or reexport to Libya.
- Additionally, certain categories of items controlled for reasons not
included on the Country Chart in Part 738 of the EAR [e.g., encryption
(EI), short supply (SS), Chemical Weapons (CW), Computers (XP) and Significant
Items (SI)] also require a license for export or reexport to Libya.
Deemed Exports
- As cited in §734.2(b)(ii) of the EAR, any release
of technology or source code to a foreign national in the United States
is deemed to be an export to the home country of that foreign national.
- License applications for the deemed export of technology
or source code to Libyan nationals in the United States will be reviewed
on a case-by-case basis.
- This license requirement does not apply to Libyan nationals
who have established permanent residency in the United States or to persons
protected under the Immigration and Naturalization Act [8 USC 1324(b)(a)(3)].
De minimis
- The de minimis rules applicable to Libya remain unchanged.
Reexports of items to Libya from abroad are subject to the EAR when U.S.-origin
controlled content in such items exceeds 10% and would require a license
if exported or reexported to Libya as an individual component.
- Reexports that exceed 10% but do not exceed 20% U.S.-origin
controlled content will be reviewed on a case-by-case basis.
License Exceptions
- Libya remains in Country Groups E:1, D:2, D:3 and D:4.
It has been removed from Country Group E:2.
- As a result, the following license exceptions may be
available in whole or in part: TMP, GOV, GFT, TSU, BAG, RPL, and AVS.
- A specific transaction is eligible for a License Exception
only if it satisfies all of the terms and conditions of the relevant License
Exception and is not excluded by any of the restrictions that apply to
all License Exceptions, as set forth in the EAR.
- Additional guidance on the use of License Exceptions
is found in Part 740 of the EAR.
Licensing Policy
License applications for exports or reexports to Libya will
be reviewed pursuant to applicable licensing policies in the EAR, as follows:
Chemical/Biological
- Items controlled for chemical/biological (CB) reasons
on the CCL and destined to Libya will be reviewed under a general policy
of denial.
- Additional guidance on the export and reexport of chemical/biological
items is found in §742.2, §742.20, and Supplement 2 to Part
742 of the EAR.
Nuclear Nonproliferation
- Items controlled for nuclear nonproliferation (NP) reasons
on the CCL and destined to Libya will be reviewed on a case-by-case basis.
Items controlled for NP reasons on the CCL and destined to military, police,
intelligence or other sensitive end-users in Libya will generally be denied.
- Additional guidance on the export and reexport of NP
items is found in §742.3, §742.20, and Supplement 2 to Part
742 of the EAR.
National Security
- Items controlled for national security (NS) reasons on
the CCL destined to Libya will be reviewed on a case-by-case basis. Items
controlled for NS reasons on the CCL and destined to military, police,
intelligence or other sensitive end-users in Libya will generally be denied.
- Items designated as NS Column 1" in the Country
Chart column of the License Requirements section of the ECCN on the CCL
and controlled by equipment or material entries ending in the number 18"
that are destined to Libya will be reviewed under a general policy of
denial.
- Additional guidance on the export and reexport of national
security items is found in §742.4, §742.20, and Supplement 2
to Part 742 of the EAR.
Missile Technology
- Items controlled for missile technology (MT) reasons
on the CCL and destined to Libya will be reviewed under a general policy
of denial.
- Additional guidance on the export and reexport of missile
technology items is found in §742.5, §742.20, and Supplement
2 to Part 742 of the EAR.
Cryptographic, Cryptoanalytic,
and Cryptologic items
- Cryptographic, cryptoanalytic and cryptologic items destined
to Libya will be reviewed under a general policy of denial. Such items
contain an AT column 1 and an NS Column 1 or NS column 2 in the Country
Chart of the License Requirements section of an ECCN on the CCL.
Computers
- Computers with a composite theoretical performance (CTP)
of 6 million theoretical operations per second (MTOPs) or more will be
reviewed on a case-by-case basis. Items with a CTP of 6 MTOPs or more
and destined to military, police, intelligence or other sensitive end-users
in Libya will generally be denied.
Crime Control
- Items controlled for crime control (CC) reasons on the
CCL and destined to Libya will be generally be denied based on evidence
that the government has violated internationally recognized human rights.
- Additional guidance on the export and reexport of crime
control items is found in §742.7 of the EAR.
Civil Aircraft
- The Administration intends that any license applications for the export of civil aircraft (powered and unpowered), helicopters, engines, and related spare parts and components to Libya will be considered on a case-by-case basis, with no presumption of denial. The statement of licensing policy relating to civil aircraft was an oversight and a correction stating Administration policy will be published shortly.
End-use/End-user Controls
- Existing license requirements in Part 744 of the EAR
apply.
- These requirements include the export or reexport of
any item subject to the EAR, if, at the time of export or reexport, you
know, have reason to know, or are informed by BIS that the item will be
used in the design, development, production or use of weapons of mass
destruction.
Department of the Treasury Licensing
- Specific licenses previously issued by OFAC will be valid
until the date specified on the license or May 1, 2005, if no expiration
date is specified.
- Persons returning items previously exported to Libya
under a specific license authorized by OFAC are subject to a recordkeeping
requirement. Guidance on this requirement is found in Section 762.2 of
the EAR. Items being returned to the United States from Libya do not require
authorization from BIS.
- Items exported or reexported to Libya under a specific
license from OFAC may not be transferred within Libya to a new end-user
without authorization from BIS.
- Additionally, items reexported from Libya must conform
with relevant provisions of the EAR on the basis of the country to which
the items are being sent. Items reexported from Libya may require a BIS
license or be eligible for shipment under a License Exception.
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