International Trade Law News

Today the State Department announced that the U.S. intends to rescind Libya's designation as a "State Sponsor of Terrorism" (SST), commencing a process that will lead to the removal of the remaining controls on exports to Libya. Libya was designated a SST in 1979. Under U.S. law, the Secretary of State can rescind Libya's designation as a SST, if the President submits a report to Congress at least 45 days before the proposed rescission. The report needs to justify the rescission and certify that the government of Libya has not provided any support for international terrorism during the last six months and has provided assurances that it will not support future acts of international terrorism.

Today, President Bush submitted the report on Libya to Congress and Secretary of State Condoleezza Rice announced her intention to rescind Libya's designation as a SST after the 45-day period expires. As a result, Libya will no longer be considered a SST on June 29, 2006. Thereafter, the Bureau of Industry and Security will issue a regulation which will, among other things, modify the Export Administration Regulations (EAR) to remove the "AT" designation as it relates to exports to Libya.