BIS Issues Rule Relaxing Export Controls on Syria, Authorizing EAR99 Items, and Expanding License Exceptions

On August 28, 2025, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a final rule relaxing export controls on Syria in response to the June 30, 2025 Executive Order (EO) 14312 “Providing for the Revocation of Syria Sanctions.” The much anticipated rule follows the Office of Foreign Assets Control’s (OFAC) prior relaxation of Syria sanctions (OFAC also officially eliminated the Syria Sanctions Regs at Part 542), and implements another key component of the Trump Administration’s policy to open the path for more U.S. engagement in Syria.

The new rule will authorize exports of EAR99 items to Syria and expand the eligibility of license exceptions for certain items included on the Commerce Control List (CCL). However, the final rule leaves in place many of the existing export controls for Syria. Those planning to engage in dealings with Syria should carefully review whether a license is still required and evaluate other trade control compliance risks.

The rule will become effective upon publication in the Federal Register, which is scheduled for September 2, 2025.

Key Parts of the Final Rule

All items “subject to the Export Administration Regulations (EAR),” except food and medicine classified as EAR99, remain formally controlled for export to Syria. This means that export control authorization, in the form of a license or the use of a license exception, remains required to supply virtually all items subject to the EAR to Syria. However, the new rule introduces a new license exception and expands the eligibility of other existing licenses that will authorize the supply of many less sensitive items to Syria.

Most notably, the final rule creates a new License Exception Syria Peace and Prosperity (SPP) (31 C.F.R. 740.5) that authorizes the export and re-export to Syria of all EAR99 items, so long as prohibited end user and end use restrictions do not apply, and the transaction otherwise complies with the requirements of the license exception. Importantly, License Exception SPP does not allow exports of EAR99 items to certain persons on OFAC’s Specially Designated Nationals (SDN) List or to Entity List parties. OFAC relisted many parties in Syria as SDNs under various sanctions authorities for their continued association with the former Al-Bashar regime, human rights abuses, terrorism, and other malign activities.

Most non-EAR99 items on the Commerce Control List (CCL) will still require a license for export to Syria; however, the new rule expands or allows the use of additional license exceptions to authorize the supply of certain CCL-listed items under certain circumstances:

• Consumer Communications Devices (CCD): Syria was added as an eligible destination, authorizing the export of listed commodities and software, including computers, phones, computer accessories, and certain consumer software for use on those devices. Of note, all end users in Syria except for restricted parties are eligible for CCD, which is broader than the scope of end users eligible for CCD in Belarus, Russia, and Cuba.
• Aircraft, Vessels and Spacecraft (AVS): authorizes exports to vessels in Syria under this license exception so long as the export only involves EAR99 items and items controlled only for anti-terrorism (AT) purposes.
• Temporary Exports (TMP): expands the circumstances under which license exception TMP can be used for exports and re-exports to Syria, including for temporary exports to foreign subsidiaries.
• Servicing and Replacement (RPL): adds Syria as an eligible destination for license exception RPL except for items destined to Syrian police, military, or intelligence end users or end uses.
• Government (GOV): expands scope of activity authorized under license exception GOV to cover a broad range of exports made for or on behalf of various U.S. government agencies.
• Technology and Software (TSU): expands Syria eligibility to include exporting copies of technology previously authorized for export to the same recipient.

Those seeking to export items on the CCL to Syria may be able to use one of the above exceptions. If no license exception is available, the final rule also made license review policies for Syria more permissible, which means that obtaining an export license to supply CCL-listed items to Syria will be reviewed under a more favorable standard than in the past.

In particular, items intended to support economic and business development in Syria or to support the Syrian people will be reviewed under a presumption of approval. Items that could make a significant contribution to the military potential of Syria, including its military logistics capability, or could enhance Syria’s ability to support acts of international terrorism will be reviewed case-by-case. Prior to issuing a license under the case-by-case review standard, BIS will provide a 30-day notice to Congress, except if the items are EAR99 or AT-controlled only.

Overall, far more exports to Syria will be permitted without a license or will be subject to a presumption of approval, although Syria remains in Country Group E with other embargoed countries and is still designated as a State Sponsor of Terrorism. EO 14312 directed the State Department to initiate the process for rescission of that status, but a further relaxation of export controls will take time, as rescission requires certain executive findings and reporting to Congress with designated timelines.

Practical Considerations

Before proceeding with any new exports or other transactions with Syria, companies should consider taking these steps:

• Verify none of the parties to the transaction are SDNs, Entity List parties, or other prohibited parties.
• Verify the export control classification of items for export and determine whether License Exception SPP or CCD apply. Closely review the terms of other applicable license exceptions and stay within the strict confines of those exceptions when relying on them.
• Cite the specific license exception when exporting, including when exporting EAR99 items using License Exception SPP.
• Gather end use certifications or otherwise conduct sufficient diligence to identify prohibited end uses.
• Apply for export licenses when required and anticipate potential transaction delays during application review.
• Confirm other jurisdictions’ restrictions on Syria do not apply.
• Evaluate banking covenants and other agreements for any restrictions on doing business with parties in Syria.
• Confirm that banking partners are willing to facilitate payments to and from Syria in support of legally permissible business.
• Be aware of anti-boycott risks of doing business in Syria and ensure transactions are screened for impermissible boycott requests.
• Note that it is generally prohibited to sell, transfer, export, reexport, finance, order, buy, remove, conceal, store, use, loan, dispose of, transport, forward, or otherwise service any item that you know or should know was exported, re-exported, or transferred (in-country) in violation of the EAR in the past.
• Take a holistic approach to addressing compliance risks before entering the market, as Syria remains a generally high-risk country, including from a money laundering, terrorist financing, and anti-corruption perspective.

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