On September 2, 2025, the Department of Commerce’s Bureau of Industry and Security (BIS) published a Final Rule in the Federal Register easing licensing requirements for civilian exports to Syria. The rule implements the policy on Syria established in Executive Order 14312, “Providing for the Revocation of Syria Sanctions” (June 30, 2025) that called for the removal of sanctions on Syria, and also issued waivers that allow for the relaxation of export controls on Syria. See Thompson Hine Update of July 3, 2025. Effective September 2, 2025, U.S.-origin goods, software, and technology that have purely civilian uses (i.e., those classified as “EAR99” items of low technology), as well as consumer communications devices and certain items related to civil aviation, can generally ship to Syria without an export license. This Final Rule relaxes the Export Administration Regulations (EAR) existing restrictions on exports and reexports to Syria by making the following changes: (i) revising certain restrictive license application review policies that had applied to most items subject to the EAR to be more favorable; (ii) expanding existing license exceptions to apply to Syria; and (iii) adding new license exceptions for Syria, including for EAR99 items.
In addition, the Final Rule facilitates the approval of licenses for exports to Syria related to telecommunications infrastructure, sanitation, power generation, and civil aviation. All other applications for exports of dual-use items to Syria will be reviewed on a case-by-case basis. BIS notes that it will continue to restrict exports when the end-users of items are malign actors, including certain Syrian individuals and entities that remain subject to sanctions.
More Permissive Licensing policy
BIS’s Syria licensing policy is set forth in 15 C.F.R. § 746.9(c). Since export controls were placed on Syria, BIS has had a “general policy of denial” when considering license applications for the country. Effective September 2, 2025, BIS will now review license applications under a presumption of approval for exports and reexports of items on the Commerce Control List (CCL) to Syria for commercial end uses that support economic and business development or that support the Syrian people, including through the improvement or maintenance of telecommunications, water supply and sanitation, power generation, aviation, or other civil services that support peace and prosperity in Syria without making a significant contribution to the military potential of Syria or the ability of Syria to support acts of international terrorism. License applications for the export or reexport of items that do not meet these conditions will be reviewed on a case-by-case basis (as well as any other specific licensing policies associated with a specific CCL item) to determine whether the items will be used in a manner consistent with U.S. national security and foreign policy interests.
The Final Rule does not make changes to provisions of the EAR that specify requirements that are based upon Syria’s designation as a State Sponsor of Terrorism. Thus, when it is determined that an export or reexport could make a significant contribution to the military potential of Syria, or could enhance Syria’s ability to support acts of international terrorism, the Secretaries of State and Commerce will notify Congress prior to the issuance of the license. Exports of EAR99 items or items controlled only for anti-terrorism (AT) reasons generally will not trigger this notification requirement.
New License Exception for Syria
A license exception is a general authorization to export or reexport items without a license from BIS under specified terms and conditions. The Final Rule expands the eligibility of license exceptions for Syria by adding a new license exception called License Exception “Syria Peace and Prosperity (SPP)” under 15 C.F.R. § 740.5. License Exception SPP will authorize exports and reexports to Syria of all items designated ‘‘EAR99’’ subject to the terms and conditions therein and any remaining general restrictions for Syria. This License Exception will be allowable provided that the transactions do not otherwise require a license based on the end-use or end-user, including individuals or entities identified by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and placed on the Specially Designated Nationals (SDN) List.
The Final Rule also expanded or modified the availability of several existing license exceptions for exports and reexports to Syria.
New Export and Sanctions Landscape for Syria
With these changes to the EAR for exports and reexports to Syria and the removal of the Syria Sanctions Regulations by OAFC (see Thompson Hine Update of August 27, 2025), the landscape for conducting business in Syria by U.S. persons and/or involving U.S. origin goods and technology has expanded. Exporters, however, must continue to screen all parties to any potential Syria transactions against relevant restricted/prohibited parties lists – including OFAC’s SDN List. Further application of any of the above new and/or modified BIS License Exceptions now available for Syria must be closely reviewed to ensure that the proposed transaction is in fact eligible for the license exception. That said, with the more permissive license policy implemented by BIS under this Final Rule, and the use of License Exception SPP, exports of EAR99 items should no longer be restricted or require a license for export or reexport to Syria.