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The United States today announced that it will effectively lift most of the sanctions imposed on Libya under the International Emergency Economic Powers Act of 1996 (IEEPA) and that it has taken the necessary steps to have the Iran-Libya Sanctions Act of 1996 (ILSA) terminated with respect to Libya. Today's action represents the second round of Libyan sanctions to be eased or modified in response to Libya's progress in dismantling its weapons of mass destruction and the missiles capable of delivering them.
The Treasury Department's Office of Foreign Assets Control (OFAC) is issuing a general license that will authorize most new transactions with Libya. The license will take effect on the date the Federal Register publishes the Department of Commerce's revised regulations on exports to Libya.
The general license will lift much of the economic embargo that has been in place against Libya since 1986.
- 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.
- U.S. companies will be able to enter into and implement most industrial, commercial or government contracts, as well as invest in Libya, again subject to export controls based on Libya's status on the State Sponsors of Terrorism List.
- U.S. banks and other financial service providers will be able to participate in and support transactions with Libya.
- Libyan students may study in the U.S. if they are accepted by an American university and qualify for a student visa.
Certain restrictions on transactions with Libya will remain:
- All property blocked as of the effective date of the general license will remain blocked;
- Goods or technology controlled for export to Libya under the terms of the U.S. Department of Commerce's Export Administration Regulations require licensing for export;
- Transportation-related transactions remain prohibited, except as expressly authorized by the general license for travel issued on February 26, 2004 (general license: http://www.treasury.gov/offices/eotffc/ofac/sanctions/libya_gl2.pdf). This includes, but is 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 United States by Libyan air carriers.
Since the general license transfers export licensing jurisdiction back to the Department of Commerce, it will have a delayed effective date to coincide with the effective date of Commerce's revised regulations for Libya, so that there will be no gap in export licensing jurisdiction.
In January 1986, sanctions were imposed against Libya under IEEPA after Libya's involvement in the terrorist attacks against the Rome and Vienna airports in December of 1985. The sanctions were in reaction to Libya's continued support for and use of terrorism against the United States, other countries and innocent persons.
For more information on the United States' February 26, 2004 announcement to lift the travel ban on Libya, please visit: http://www.treasury.gov/press/releases/js1197.htm.