State Department Amends ITAR for Libya and Venezuela

U.S. Implements Policy of Denial for Libya Except on Case-by-Case Basis for Certain Non-Lethal Defense Articles and Services Effective February 7, 2007

For Libya, the following ITAR amendments are effective February 7, 2007:

1. CFR 126.1(a) is amended by deleting Libya from the list of countries for which it is the policy of the U.S. to deny licenses and other approvals for exports and imports of defense articles and defense services, destined for or originating in certain countries.

Libya is also deleted from the list of countries in 22 CFR 126.1(d) which have been determined to have repeatedly provided support for acts of international terrorism that are contrary to U.S. foreign policy, etc.

a new paragraph (k) is added to 22 CFR 126.1 which specifies U.S. defense trade policy for Libya. New 22 CFR 126.1(k) states that for Libya it is the policy of the U.S. to deny licenses, other approvals, exports or imports of defense articles and defense services destined for or originating in Libya except, on a case-by-case basis, for:

• non-lethal defense articles and defense services,
• non-lethal safety-of-use defense articles (e.g., cartridge actuated devices, propellant actuated devices and technical manuals for military aircraft for purposes of enhancing the safety of the aircrew) as spare parts for lethal end-items.

New paragraph (k) also states that for non-lethal defense end-items, no distinction will be made between Libya's existing and new inventory.

Guidance posted to the State Department's Web site regarding the policy change for Libya notes that as Libya is still proscribed in 22 CFR 126.1, exemptions, other than 22 CFR 123.17, do not apply with respect to articles originating in or for export to Libya and the requirements of 22 CFR 126.1(e), applicable to proposed sales, continue to apply.

ITAR Amended to Reflect Existing Policy for Venezuela

The final rule also conforms the ITAR to existing U.S. policy towards Venezuela by adding Venezuela to the list of countries in 22 CFR 126.1(a) for which it is U.S. policy to deny licenses and other approvals for exports and imports of defense articles and defense services, destined for or originating in certain countries.

State Department sources note that the ITAR amendment for Venezuela reflects what was imposed as a matter of policy by the State Department in August 2006, and what became a matter of law in October 2006, when the sanctions against Venezuela for not fully cooperating with anti-terrorism efforts took effect.

(Venezuela was designated on May 8, 2006 as a country not cooperating fully with anti-terrorism efforts. Section 40 of the Arms Export Control Act (AECA) prohibits the sale or licensing of defense articles and services to those on the list of countries not cooperating fully with anti-terrorism efforts for a term of the fiscal year beginning October 1, 2006. In addition, on August 17, 2006, the State Department announced a policy of denial of the export or transfer of defense articles to and revocation of existing authorizations for Venezuela. (See ITT's Online Archives or 09/06/06 news, 06090615, for BP summary of the State Department's public notice announcing its policy of denial, effective August 17, 2006.)

- comments may be submitted at any time

State Department contact - Ann Ganzer (202) 663-2792

State Department final rule (Public Notice 5685, FR Pub 02/07/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-2034.pdf.

State Department guidance on new policy for Libya (dated 02/08/07) available at http://www.pmddtc.state.gov/defense_trade_libya.htm.