Where Industry and Security Intersect
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On November 16, 2005, the Bureau of Industry and Security (BIS), published an amendment to the Export Administration Regulations (EAR) establishing a new license exception to facilitate the export and reexport of certain items subject to the EAR to U.S. persons in Libya. BIS published the amendment specifically to facilitate U.S. persons business activities, including humanitarian activities, in Libya. The new license exception, "U.S. Persons in Libya" (USPL) is found in Section 740.19 of the EAR.
Major changes implemented in the rule are as follows:
Details on License Exception USPL
Restrictions on License Exception USPL
Eligible Commodities
Frequently Asked Questions
Details on License Exception USPL
New License Exception USPL authorizes the export and reexport of certain items controlled
on the Commerce Control List (CCL) in Part 774 of the EAR for anti-terrorism (AT) reasons only when shipped for the exclusive use of U.S. persons in Libya and their employees, within the scope of their employment. Items exported or reexported under License Exception USPL are intended to facilitate normal business activities, including humanitarian activities. The definition of "U.S. Person" found in part 772 of the EAR applies in the context of new License Exception USPL.
Restrictions on License Exception USPL
Items exported or reexported to Libya under License Exception USPL must remain under the control and supervision of a U.S. person. They are not eligible for transfer to a non-U.S. person in Libya. Items exported or reexported under License Exception USPL and not destroyed or consumed in the ordinary course of business may be returned to the United States without BIS authorization or reexported to a third country consistent with BIS’s license requirements for such reexports.
Eligible Commodities
Items that may be shipped under License Exception USPL are limited to those specified below.
All items controlled under the following export control classification numbers (ECCNs) are eligible for export and reexport under License Exception USPL:
Additionally, the following subparagraphs of items controlled under the following ECCNs are eligible for shipment:
In choosing the ECCNs (and subparagraphs thereof) eligible for shipment under License Exception USPL, BIS consulted with industry to determine which items controlled on the CCL for AT reasons only are essential for conducting business in Libya. Additionally, the items selected have widespread foreign availability and are unlikely to contribute to terrorism or weapons of mass destruction programs in Libya. This rule is consistent with the President’s decision to modify United States’ sanctions against Libya in response to Libya’s continuing efforts to dismantle its weapons of mass destruction and missile programs and its renunciation of terrorism.
1. What’s the purpose of the November 16, 2005 Libya rule?
BIS published the November 16, 2005 Libya rule to facilitate the business activities of U.S. persons in Libya. The rule amends the Export Administration Regulations (EAR) by establishing a new license exception (License Exception "U.S. Persons in Libya," found in Section 740.19 of the EAR) authorizing the export and reexport of certain items controlled on the Commerce Control List (CCL) in Party 774 of the EAR for anti-terrorism (AT) reasons only to U.S. persons in Libya.
2. What items are eligible for shipment under the new license exception?
All items controlled under the following export control classification numbers (ECCNs) are eligible for export and reexport to U.S. persons in Libya under License Exception USPL:
Additionally, the following subparagraphs of items controlled under the following ECCNs are eligible for shipment:
3. How did BIS decide which items should be eligible for export and reexport under USPL?
BIS determined which items should be eligible for export or reexport under License Exception USPL in consultation with industry and other agencies of the U.S. Government. Specifically, BIS sought to determine items controlled on the CCL for anti-terrorism reasons only that have widespread foreign availability, are unlikely to contribute to terrorism or weapons of mass destruction programs in Libya, and are essential for conducting business activities, including humanitarian activities, in Libya.
4. Who is eligible to receive items shipped under the new license exception?
U.S. persons in Libya are eligible to receive items exported or reexported under License Exception USPL. Libyan and third-country persons are not eligible to receive items exported or reexported under USPL.
5. What’s a U.S. person?
As defined by Part 772 of the EAR, a U.S. person is 1) any individual who is a citizen of the United States, a permanent resident alien of the United States, or a protected individual as defined by 8 U.S.C. 1324b(a)(3); 2) any juridical person organized under the laws of the United States or any jurisdiction within the United States, including foreign branches; and 3) any person in the United States. This definition of U.S. person applies in the context of the (date) Libya rule.
Therefore, in the context of License Exception USPL, a U.S. person is a U.S. citizen, wherever located, a U.S. resident alien, wherever located, an individual protected under the cited U.S. law, and any person in the United States. Also for the purposes of License Exception USPL, a U.S. person is any entity organized under U.S. law or the law of a U.S. jurisdiction, including but not limited to companies, corporations, and branch offices thereof, wherever located.
6. Who is eligible to use items shipped under the new license exception?
Items exported or reexported under License Exception USPL are for the use of U.S. persons in Libya and their employees, in the course of normal business activities. The items must remain under the control and supervision of a U.S. person at all times.
7. Can items exported or reexported under License Exception USPL be transferred?
Prior BIS authorization is not required to transfer items exported or reexported under USPL from one U.S. person in Libya to another. Prior authorization is required for the transfer of items exported or reexported under USPL to a non-U.S. person in Libya.
8. What are the license requirements for reexporting items shipped under USPL out of Libya?
Items exported or reexported under License Exception USPL to Libya may be shipped back to the United States without authorization. Items exported or reexported to Libya under USPL may also be reexported to third countries in compliance with BIS’s license requirements for reexports to those countries.
9. When will BIS make USPL-eligible items eligible for shipment to non-U.S. persons in Libya without a license?
BIS continues to consult with its U.S. Government interagency partners, including the Department of State, regarding bilateral relations between the United States and Libya. These discussions will determine both when and how further changes to BIS’s licensing requirements and policy for Libya may occur.
10. When will BIS make items controlled under other ECCNs available for export or reexport to Libya under license exception?
As previously stated, BIS continues to consult with its U.S. Government interagency partners, including the Department of State, regarding bilateral relations between the United States and Libya. These discussions will determine both when and how further changes to BIS’s licensing requirements and policy for Libya may occur.