License Burden Eased

Steptoe attorneys Edward Krauland, Andrew Irwin, and David Lorello were featured in the September 21, 2004, BNA Federal Contracts Report with the publication of their article, “Department of Commerce Revises Export Licensing Framework for Iraq: The Practical Impact of US Government Contractors.”

On July 30, 2004, the Department of the Treasury, Office of Foreign Assets Control (OFAC), and the Department of Commerce, Bureau of Industry and Security (BIS), issued regulations formally transferring licensing jurisdiction for exports and re-exports to Iraq from OFAC to BIS. Those actions were the culmination of a series of regulatory changes, beginning in the Spring of 2003 when the US-led coalition assumed governing control of Iraq, resulting in the lifting of the 13-year US economic embargo against Iraq. The practical consequences for exporters and contractors are as follows:

• US companies can now do business in Iraq;
• A great many products can be exported to Iraq without export licenses;
• Certain “license exceptions” are now available to ease the export licensing burden; and
• BIS has created a new blanket Special Iraq Reconstruction License (SIRL), which in some circumstances may make it even easier to do business in Iraq.

This article provides an analysis of the current regulatory framework for the export/re-export of goods and technology to Iraq. Although the BIS regulation represents a significant easing of export/re-export controls on Iraq, it is in some respects complex, and represents a rather unique approach in BIS export licensing policies. It is important, therefore, that US contractors working in Iraq have a grasp of the contours of the regulation.

Click here for a PDF version of the report "Department of Commerce Revises Export Licensing Framework for Iraq: The Practical Impact of US Government Contractors."