Country Update: Venezuela, Lebanon, and Libya

Venezuela:

In the August 17, 2006 Federal Register the State Department announced it has imposed comprehensive ban on transfers of defense articles and services to on Venezuela. The US took first step toward imposing this ban when it named Venezuela as a country supporting international terrorism on May 15, 2006 . Technically, however, the new State Department ban is not directly tied in a legal sense to Venezuela being identified as a “Country Supporting International Terrorism.”

(Contrary to popular belief, these actions are not based on the State Department identifying Venezuela as a “Country Insulting George Bush.”

Specifically, State:

• Revoked all licenses and approvals (agreements) for exports or transfers to Venezuela
• Revoked the use of ITAR exemptions for Venezuela , except for the use of ITAR 123.17 for personal use firearms
• Imposed a policy to deny all new applications for Venezuela

Lebanon:

To implement the United Nations arms embargo (UNSCR-1701) on Lebanon , the US State Department announced its new policy for transfers of defense articles and services to Lebanon. The US sanctions are intended to allow transfers of defense articles and services to the Government of Lebanon and the United Nations International Force in Lebanon (UNIFIL).

Specifically, the sanctions say:

• Any existing license or authorization for the export to Lebanon of ITAR-controlled defense articles or services is hereby suspended unless the end-user is the Government of Lebanon or UNIFIL.
• Holders of other existing licenses or authorizations, including exemptions, must submit documentation for review by the Directorate of Defense Trade Controls (DDTC) supporting the authorization of the transaction by the Government of Lebanon or UNIFIL.
• For future authorizations, exceptions to this policy of denial will be made, in accordance with the ITAR, on a case-by-case basis to determine whether they conform to UNSCR 1701.

You may not use any license, authorization or exemption for transfers to parties other than the Government of Lebanon and UNIFIL.

This notice has not yet appeared in the Federal Register. You may read it at the DDTC web site: www.pmddtc.state.gov/defense_trade_lebanon_arms_embargo.htm

Libya:

No news, is, in this case, no news. The Commerce Department has written up the new rules to revise the EAR to remove “Anti-Terrorism”(AT) controls on items such as 9A991 commercial aircraft parts for Libya. This rule is still being reviewed by the government and select industry representatives. Sooner or later, (I’m giving 2 to 1 odds on later), there will be a notice in the Federal Register removing the AT controls. I am staking my reputation on my prediction that this change will happen in 2006.

On the Libya ITAR front, the State Department has to remove Libya from the ITAR 126.1 proscribed country list. Seeing as how it is taking State 2–3 months before it even looks at normal agreement application, I think it is safe to say that it will be a while before the ITAR is revised.