Bureau of Industry and Security rule, “Relaxing Export Controls for Syria,” significantly eases restrictions for Syria
September 23, 2025
Bureau of Industry and Security rule, “Relaxing Export Controls for Syria,” significantly eases restrictions for SyriaSeptember 23, 2025 On September 2, 2025, the US Department of Commerce (DOC) Bureau of Industry and Security (BIS) published a final rule loosening export controls relating to Syria under the Export Administration Regulations (EAR). Titled “Relaxing Export Controls for Syria,” the rule implements provisions of Executive Order 14312, published in June 2025, which directs the removal of sanctions on Syria. Previously, the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 required the DOC to prohibit the export and reexport to Syria of all items on the Commerce Control List (CCL) as well as all EAR99 items (items subject to the EAR but not specifically listed on the CCL, such as low-technology goods for civilian use) other than food and medicine. The new rule expands eligibility for existing license exceptions, creates a new license exception, and eases the license application review policy for most exports and reexports to Syria. Expansion and Extension of Existing License Exceptions Under the new Relaxing Export Controls for Syria rule, several license exceptions (that is, exceptions to the requirement to obtain a license) have been either extended to Syria or expanded in scope with respect to Syria:
Exporters must remain mindful that the exceptions are subject to some limitations: Some exceptions contain important limiting language, and none of the exceptions authorize exports or reexports that are otherwise prohibited under an end-user or end-use control (for instance, certain nuclear, rocket system, or UAV end-uses or end-users on the Entity List, which includes individuals or addresses “reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States”) found in part 744 of the EAR. Nor does this rule authorize transactions with persons who are on the US Department of the Treasury Office of Foreign Asset Control (OFAC) Specially Designated Nationals and Blocked Persons List (SDN). New License Exception for Syrian Peace and Prosperity Authorizes Export and Reexport of EAR99 Items to Syria The “Relaxing Export Controls for Syria” rule also adds a new license exception for Syria called the License Exception for Syria Peace and Prospertity (SPP). This exception authorizes the export or reexport of all items designated EAR99 to Syria. This includes consumer goods, commercial products, and low-level, non-sensitive technologies that are not listed on the CCL. As with the expanded license exceptions discussed above, SPP does not authorize exports or reexports that are otherwise prohibited under an end-user or end-use control, found in part 744 of the EAR, nor does it authorize transactions with persons who are on the OFAC SDN list. Permissive License Review Policy In addition to the new and expanded license exceptions noted above, the new rule also directs the adoption of a more permissive license review policy for exports and reexports to Syria when no exception applies. Previously, under General Order No. 2, BIS had adopted a general policy of denial for license applications on exports and reexports to Syria of almost all items subject to the EAR, except for EAR99 food and medicine. This new rule removes General Order No. 2 and disposes of the general policy of denial. Instead, it adopts a bifurcated approach that is generally permissive. First, it directs a presumption of approval for items on the CCL with end-uses that “support economic and business development in Syria and support the Syrian people.” Such end-uses include the improvement or maintenance of telecommunications, water supply and sanitation, power generation, aviation, and other civil services that support peace and prosperity in Syria, but not those that contribute to Syria’s military or the ability of Syria to support international terrorism. Second, for all other end-uses, the rule adopts a case-by-case licensing policy to determine whether approval would be in the national security and foreign policy interests of the United States. Importantly, all CCL items will continue to be reviewed pursuant to the relevant destination-based license review policies set out in part 742 of the EAR, as well as end-use and end-user controls set out in part 744 of the EAR. Some Restrictions Remain While the new rule significantly loosens export controls on exports and reexports to Syria, it technically does not eliminate the trade embargo specific to Syria found in part 746.9 of the EAR. Further, Syria has not been removed from list E:1 within Supplement 1 to part 740 of the EAR, designating terrorist-supporting countries. All restrictions applicable to those sections remain in effect as of this writing. Further, those seeking to enter the Syrian market should remain mindful that while the Secretary of State announced a 180-day waiver of sanctions restrictions imposed by the Caesar Syria Civilian Protection Act (Caesar Act) on May 23, 2025, the Caesar Act remains valid law, placing these loosened restrictions on tentative ground with respect to those entities or individuals seeking to transact with sanctioned parties under the act. The decision to repeal or extend the Caesar Act is presently one aspect of congressional debate over the National Defense Authorization Act of 2026. Jeffrey W. Cottle | Partner | +1 202 383 0247 | EmailE. Patrick Gilman | Partner | +1 202 383 0195 | Email Neal Higgins | Partner | +1 202 383 0168 | Email Matthew Schmitt* | Associate | +1 202 383 0214 | Email
*Not admitted to practice. __________ If you have any questions about this Legal Briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work. Latest Insights
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