International Law Advisory - NRC Amends Export Regulations to Ease Restrictions Applicable to Libya

On January 12, the Nuclear Regulatory Commission (“NRC”) issued an amendment to its import/export controls regulations, 10 C.F.R. Part 110, to ease the restrictions applicable to the export of NRC-controlled nuclear equipment and materials to Libya. See 72 Fed. Reg. 1426 (January 12, 2007) (available for download at the following weblink: http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/E7-320.htm).

This measure represents the latest in a series of steps taken by the U.S. Government to modify export controls applicable to Libya, beginning with the removal of the Libyan trade embargo in 2004 and continuing last summer with the easing of export controls applicable to Libya in the Department of Commerce’s Export Administration Regulations (“EAR”). (For analysis of those earlier measures, please see our August 31, 2006, March 24, 2005, and April 28, 2004 client advisories.)

The NRC’s export control jurisdiction extends to commercial nuclear facilities, certain components and equipment for these facilities, and certain specified radioactive and byproduct materials. Specific licenses are required for the export of NRC-controlled items, unless the NRC import/export regulations provide for a general license or license exemption. Sections 110.20 to 110.26 of the regulations set forth general licenses that allow exporters to ship a wide range of controlled items to most countries, with the exception of countries that are listed as “embargoed” under section 110.28, or “restricted” under section 110.29.

Today’s regulation amends sections 110.28 and 110.29 to remove Libya as an “embargoed” country, and include it in the list of “restricted” countries. This will allow exporters to utilize a number of general export licenses in the NRC regulations, which do not apply to embargoed countries but do allow for exports to restricted countries.

The following countries remain “embargoed” from an NRC licensing perspective: Cuba, Iran, Iraq, North Korea, Sudan, and Syria.

The following countries, in addition to Libya, are currently designated as “restricted”: Afghanistan, Andorra, Angola, Burma, Djibouti, India, Israel, Oman, and Pakistan. (“Restricted” countries are ineligible for certain NRC general licenses.)

Today’s revision to the NRC regulations will benefit U.S. companies that export equipment containing radioactive and byproduct materials (such as the oil & gas, and medical services industries). Until this regulation, many types of commercial equipment containing radioactive sources could not be exported from the United States to Libya without an NRC license, notwithstanding the fact that foreign-produced equivalent products were already widely available in Libya.

Should you have any questions regarding the scope of the NRC regulations, or the export and reexport controls applicable to Libya, please contact Ed Krauland (ekrauland@steptoe.com; 202-429-8083) at Steptoe’s Washington, D.C., office, or David Lorello (dlorello@steptoe.com; +44-20-7367-8007) at Steptoe’s London office.