Licensing of Exports to Iraq

(May 9, 2003)

President suspends Iraq Sanctions Act: On May 7, the President exercised his authority under the Wartime Supplemental Authorization Act of 2003 to suspend most of the provisions of the Iraq Sanctions Act of 1990. As a result, the U.S. Government will no longer be required to prohibit the export of items to Iraq that would require an export license under the Commerce Department's Export Administration Regulations (EAR), and will have the discretion to review and approve license applications on their merits.

At this time, the Department of the Treasury's Office of Foreign Assets Control (OFAC) continues to be responsible for licensing transactions involving Iraq, including the export of dual-use items that would require a license under the EAR. Since the embargo on Iraq was implemented in the early 1990s, both the Department of the Treasury and the Department of Commerce have maintained licensing jurisdiction for the export of dual-use items to Iraq. In order to avoid a duplicate licensing requirement while the embargo is in effect, however, the EAR currently provide that authorization from OFAC to export items subject to EAR licensing requirements constitutes authorization from Commerce. Therefore, until further notice, exporters should continue to obtain authorization from OFAC (either through a specific or general license) for any exports of dual-use items to Iraq. For more information go the OFAC Web site.