International Law Advisory - DDTC Eases Restrictions on Libya and Adds Venezuela to the List of Proscribed Destinations

The United States Department of State, Directorate of Defense Trade Controls (“DDTC”) has amended the International Traffic In Arms Regulations (“ITAR”) to permit consideration of exports to Libya on a case-by-case basis for non-lethal defense articles and defense services. In addition, DDTC has added Venezuela to the list of proscribed countries.  See 72 Fed. Reg. 5614 (February 7, 2007). These changes reflect both the U.S. Government’s ongoing policy of easing export restrictions against Libya, and its policy of strengthening restrictions related to Venezuela.

Easing of Libya Restrictions
On June 30, 2006, Libya’s status as a state sponsor of terrorism was rescinded, and since that time the United States has taken steps to ease trade restrictions with Libya. Pursuant to today’s Federal Register notice, DDTC has amended 22 C.F.R. § 126.1(a) and (d) to implement its policy of easing export restrictions against Libya. DDTC will continue to impose a policy of denial for many exports and imports of defense articles and services destined for or originating in Libya. However, the granting of licenses for the following will be considered by DDTC on a case-by-case basis:

• non-lethal defense articles;
• non-lethal defense services;
• non-lethal safety-of-use defense articles (such as 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

According to the Federal Register notice, for purposes of considering export license requests for non-lethal defense end-items, no distinction will be made between Libya’s existing and new inventory.

Venezuela Added to Proscribed Countries List
DDTC has added Venezuela to the list of proscribed countries found at 22 C.F.R. § 126.1(a).  As a result, Venezuela is subject to a policy of denial of licenses and other export approvals of defense articles and services. The addition of Venezuela to the list of proscribed countries was done in conjunction with prior action taken by DDTC to prohibit the export or transfer of defense articles to Venezuela, and to revoke all ITAR licenses and approvals authorizing such transactions. (See Steptoe Client Advisory issued on August 17, 2006.) 

We will continue to keep you apprised of this and other developments related to export controls issues. If you have any questions regarding DDTC’s actions, please contact Meredith Rathbone (202-429-6437; mrathbone@steptoe.com) or Ed Krauland (202-429-8083; ekrauland@steptoe.com).