US to Lift Most Trade Sanctions Against Libya

The US Department of the Treasury, Office of Foreign Assets Control (OFAC) has issued a general license to be published at 31 C.F.R. § 550.575 removing nearly all of the prohibitions on trade with Libya by US persons under the Libyan Sanctions Regulations, 31 C.F.R. Part 550 (LSR).

Although issued by OFAC on April 23, 2004, the general license will not become effective until the Department of Commerce, Bureau of Industry and Security (BIS) publishes a new rule entitled "Revision of Export and Reexport Restrictions on Libya" in the Federal Register. Accordingly, US companies should not engage in transactions with Libya that would be prohibited under the LSR until the new BIS rule is published. Unless licensed, companies should refrain from entering into contracts with the Libya, even if contingent upon lifting of the sanctions. Publication of the new rule is expected in a few days.