On September 2, 2025, the U.S. Commerce Department, Bureau of Industry and Security (“BIS”) published in the Federal Register a final rule titled Relaxing Export Controls for Syria (the “Syria Export Controls Rule”). The rule eases certain export controls applicable to Syria under the Export Administration Regulations (“EAR”) by adding a new license exception applicable to Syria, expanding the applicability to Syria of certain existing license exceptions, and adopting a more permissive license review policy related to the export and reexport of certain items to Syria that still require licensing under the EAR. Significantly, however, the final rule does not lift the U.S. trade embargo applicable to Syria or remove Syria from the list of terrorist supporting countries under the EAR.
This action follows the issuance on June 30, 2025, of Executive Order (“EO”) 14312, which effectively lifted the comprehensive U.S. sanctions against Syria administered by the U.S. Treasury Department, Office of Foreign Assets Control (“OFAC”) and paved the way for the easing of export controls administered by BIS, while maintaining and expanding list-based sanctions against certain individuals, including former Syrian President Bashar al-Assad and others associated with his regime. Also in furtherance of EO 14312, OFAC recently published on August 26, 2025, a final rule removing the Syrian Sanctions Regulations, which had codified the comprehensive U.S. sanctions against Syria, from the Code of Federal Regulations. For more on EO 14312, see our prior alert.
New License Exception Syria Peace and Prosperity
The Syria Export Controls Rule adds a new license exception, License Exception Syria Peace and Prosperity (“SPP”), at EAR § 740.5. License Exception SPP authorizes exports and reexports to Syria of all items subject to the EAR and classified as EAR99, unless otherwise prohibited by the limitations applicable to all license exceptions at EAR § 740.2 or the end-use or end-user controls at EAR Part 744. Such end-user controls include but are not limited to EAR § 744.8, which prohibits the export, reexport, and transfer of items subject to the EAR when certain entities designated to OFAC’s List of Specially Designated Nationals and Blocked Persons (“SDN List”) are parties to the transaction, unless otherwise authorized or exempted by OFAC.
In effect, while the continuing U.S. trade embargo on Syria prohibits as a baseline the unauthorized export, reexport, or transfer to or within Syria of all items subject to the EAR (with the exception of qualified EAR99 food and medicine), License Exception SPP now grants broad authorization to export or reexport to Syria all EAR99 items, again subject to compliance with EAR § 740.2 and the EAR’s catch-all end-use and end-user controls at Part 744.
Expanded Eligibility for Certain Additional License Exceptions
The Syria Export Controls Rule also revises, clarifies, and/or expands eligibility for the following license exceptions for certain exports and reexports to Syria of items subject to the EAR and classified under Export Control Classification Numbers (“ECCNs”) on the EAR’s Commerce Control List (“CCL”) (not classified as EAR99), subject to the limitations applicable to all license exceptions at EAR § 740.2:
- License Exception Consumer Communications Devices (“CCD,” EAR § 740.19): Expands eligibility to include Syria for all items covered by License Exception CCD, unless prohibited by the end-use or end-user controls in EAR Part 744. The expansion of License Exception CCD will allow for the export and reexport to, and transfer within, Syria of certain consumer communications devices and software, such as certain consumer computers, tablets, mobile phones, and software for such devices that are controlled for anti-terrorism reasons on the CCL, e.g. under ECCN 5A992.c (for mass market encryption hardware) and ECCN 5D992.c (for mass market encryption software). Notably, the end-user scope of this license exception is broader for Syria than it is for the other jurisdictions for which it is available, i.e., Belarus, Cuba, and Russia, in that for the other jurisdictions eligible end users are limited to individuals and independent non-governmental organizations, whereas for Syria all parties not restricted by Part 744 of the EAR are eligible end users (including commercial enterprises).
- License Exception Temporary Imports, Exports, and Transfers (In-Country) (“TMP,” EAR § 740.9): Expands the scope of items eligible for License Exception TMP when destined for Syria to include certain technology exported, reexported, or transferred (in country) by or to a U.S. person, or a foreign person employee of a U.S. person traveling or on temporary assignment abroad; shipping containers; and personal protective equipment; as well as certain exports to a U.S. person’s foreign subsidiary, affiliate, or facility abroad. Previously, License Exception TMP for Syria was limited to items for use by the news media.
- License Exception Servicing and Replacement of Parts and Equipment (“RPL,” EAR § 740.10): Expands applicability to Syria of paragraph (a) of License Exception RPL, which authorizes the export and reexport of “one-for-one” replacement parts, components, accessories, and attachments for certain previously exported items. License Exception RPL does not, however, authorize exports or reexports of items on the CCL that are destined to Syrian police, military, or intelligence end users or end uses. Additionally, paragraph (b) of License Exception RPL—which authorizes exports and reexports of certain commodities and software that were sent to the United States or a foreign party for servicing and replacement after having been found to be defective or otherwise unacceptable by the ultimate consignee—is not available for Syria.
- License Exception Governments, International Organizations, International Inspections under the Chemical Weapons Convention, and the International Space Station (“GOV,” EAR § 740.11): Expands applicability for Syria by making available all U.S. Government authorizations under EAR § 740.11(b)(2), including certain exports, reexports, and in-country transfers made for, on behalf of, or at the direction of a department or agency of the U.S. Government, including but not limited to the U.S. Departments of Defense and Energy. Previously, the U.S. Government authorizations available for Syria were limited to items for personal use by personnel and agencies of the U.S. Government (EAR § 740.11(b)(2)(i)) and exports, reexports, and transfers (in-country) made by or consigned to a department or agency of the U.S. Government (EAR § 740.11(b)(2)(ii)) solely for its official use. The final rule also authorizes for Syria certain exports or reexports to “Cooperating Governments and the North Atlantic Treaty Organization” pursuant to EAR § 740.11(c), as well as items for international inspections under the Chemical Weapons Convention pursuant to EAR § 740.11(d).
- License Exception Technology and Software—Unrestricted (“TSU,” EAR § 740.13): Expands applicability to authorize exports, reexports, or transfers of copies of technology previously authorized for export, reexport, or transfer to the same recipient in Syria under EAR § 740.13(g). License Exception TSU had previously only authorized exports or reexports to Syria of certain, limited operation technology and software, sales technology, and software updates pursuant to EAR § 740.13(a)-(c).
- License Exception Aircraft, Vessels, and Spacecraft (“AVS,” EAR § 740.15): Expands the eligibility to authorize exports and reexports to Syria of civil vessels and U.S.-flagged civil aircraft on temporary sojourn, in addition to foreign flagged/owned/operated aircraft reexported to Syria on temporary sojourn, which had previously been authorized. The Syria Export Controls Rule also revises License Exception AVS to clarify that only items designated EAR99 or controlled on the CCL exclusively for anti-terrorism reasons are eligible to be sent to Syria—including to aircraft registered in Syria, or controlled, leased, or chartered by a Syrian national—under paragraph (b) of License Exception AVS, which authorizes the export or reexport of equipment and spare parts for permanent use on a vessel or aircraft as well as certain ship and plane stores. Further, the license exception does not authorize exports, reexports, or transfers of items on the CCL destined to Syrian police, military, or intelligence end users and end uses.
More Permissive License Application Review Policy
The Syria Export Controls Rule also eases the license application review policy for most exports and reexports to Syria. The final rule removes the general policy of denial for most categories of items on the CCL and establishes a presumption of approval for a broad range of commercial end uses aimed at supporting economic and business development in Syria or to support the Syrian people. The final rule provides that such end uses include the improvement or maintenance of telecommunications, water supply and sanitation, power generation, aviation, or other civil services that support peace and prosperity in Syria, but which do not contribute to Syria’s military potential or its ability to support international acts of terrorism.
For all other end uses, the Syria Export Controls Rule establishes case-by-case review to determine whether approval would be in the national security and foreign policy interests of the United States. CCL items will continue to be reviewed pursuant to the license review policies as set out in the destination-based controls at EAR Part 742, and the license review policies under the end-use/end-user controls at EAR Part 744 will also continue to apply.
Remaining Restrictions on Syria
As noted, while the Syria Export Controls Rule takes meaningful steps to ease the export controls applicable to Syria, certain restrictions remain in place. Importantly, the final rule does not actually lift the trade embargo applicable to Syria under EAR § 746.9, nor does it remove Syria from Country Group E:1 under Supplement No. 1 to EAR Part 740, which identifies certain terrorist supporting countries. These restrictions are likely to remain in place so long as Syria remains a designated State Sponsor of Terrorism (“SST”). EO 14312 directs the Secretary of State to take all appropriate action to review the designation of Syria as an SST, but it does not specify a timeline for this action or for any ultimate removal of Syria as an SST.
The rescission of an SST designation is governed by section 1754(c) of the Export Control Reform Act of 2018 (“ECRA,” 50 U.S.C. § 4813(c)(4)), section 40(f) of the Arms Export Control Act (“AECA”, 22 U.S.C. § 2780(f)), and section 620A(c) of the Foreign Assistance Act of 1961 (“FAA,” 22 U.S.C. § 2371(c)). Under these authorities, the President can remove a country’s SST designation without any waiting period if the President certifies in a report to Congress that, among other things, there has been “a fundamental change in the leadership and policies of the government of the country concerned.” If this condition is not met, then the President may only remove the designation after making certain certifications to Congress and giving Congress a period of at least 45 days to review the certifications, during which Congress may block the removal by joint resolution. In light of recent developments in Syria, it seems that President Trump could potentially determine that there has been a fundamental change in the leadership and policies of the Syrian government, such that Syria’s designation as an SST could be removed without any Congressional waiting period.
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We are closely monitoring developments regarding U.S. trade controls towards Syria. If you have any questions concerning the material discussed in this alert, please contact the members of our International Trade Controls practice.
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