BUYUSA.GOV -- U.S. Commercial Service

Egypt Local time: 12:42 AM

Doing Business With Libya

The United States announced that it will effectively lift most of the sanctions imposed on Libya under the International Emergency Economic Powers Act of 1996 (IEEPA) and that it has taken the necessary steps to have the Iran-Libya Sanctions Act of 1996 (ILSA) terminated with respect to Libya.

The Treasury Department’s Office of Foreign Assets Control (OFAC) is issuing a general license that will authorize most new transactions with Libya. The license will take effect on the date the Federal Register publishes the Department of Commerce’s revised regulations on exports to Libya.

The general license will lift much of the economic embargo that has been in place against Libya since 1986:

  • Most trade and investment activities between the U.S. and Libya will be permitted, including the importation and exportation of goods or services, subject to export controls maintained by the Department of Commerce.
  • U.S. companies will be able to enter into and implement most industrial, commercial or government contracts, as well as invest in Libya, again subject to export controls based on Libya’s status on the State Sponsors of Terrorism List.
  • U.S. banks and other financial service providers will be able to participate in and support transactions with Libya.
  • Libyan students may study in the U.S. if they are accepted by an American university and qualify for a student visa.
  • The U.S. has assigned American personnel to staff an Interest Section in Tripoli.



The United States has terminated the national emergency declared in 1986 under the International Emergency Powers Act (IEEPA), and revoked Executive Orders. This rescinds the remaining economic sanctions under IEEPA and ends the need for Treasury Department licenses for trade with Libya. It also permits direct air service and regular charter flights, subject to standard safety and other regulatory requirements. This action also unblocks assets belonging to Libyan and non-Libyan entities that were frozen when the national emergency was imposed.

Adopted as a general policy, the strategy of providing a level playing field for US business in Libya through the use of U.S. Government programs such as those administrated by the Departments of Agriculture and Commerce, the Export-Import Bank, overseas Privates Insurance Corporation, and Trade Development Agency, as well as to waive the prohibitions on the availability of foreign tax credits. This policy will be furthered through the use of statutory waiver authorities where necessary and in some cases through proposed legislative relief from sanctions that would otherwise stand in the way.

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