International Trade Law News

Peter Lichtenbaum, Assistant Secretary for Export Administration, indicated today that the long-awaited regulation that would transfer jurisdiction on Iraq-related export controls and licensing from the Treasury Department's Office of Foreign Assets Control (OFAC) to the Commerce Department's Bureau of Industry and Security (BIS) should have inter-agency clearance by the end of this month and would be published in the Federal Register in June 2004.

U.S. economic sanctions on Iraq were substantially lifted in May 2003 after President Bush suspended most of the provisions of the Iraq Sanctions Act of 1990. At that time the administration indicated that primary licensing jurisdiction over exports and reexports to Iraq would be returned to BIS. Treasury and Commerce staff have encountered numerous delays while drafting the implementing regulations over the past twelve months. Until the regulations that transfer licensing jurisdiction to BIS are published, exporters must continue to obtain licenses from OFAC to export or reexport controlled goods or technology to Iraq.