To be able to directly use bzip2 files with tar, use the tar patch available from the LFS FTP site. This patch will add the -y option to tar which works the same as the -z option to tar (which can be used for gzip files).
Apply the patch by running the following command:
cd src &&
patch -i ../../gnutarpatch.txt &&
Install Tar by running the following commands:
./configure --prefix=$LFS/usr --disable-nls \
--libexecdir=$LFS/usr/bin --bindir=$LFS/bin &&
make LDFLAGS=-static &&
The tar package contains the tar and rmt programs.