U.S. Department of Commerce Finalizes Rule To Relax Export Controls for Syria

On August 28, 2025, the Bureau of Industry and Security (BIS) issued a final rule to relax existing restrictions on exports and reexports to Syria of items subject to the Export Administration Regulations (EAR). The rule significantly eases the standard of review for license authorization requests involving Syria, expands existing license exceptions to apply to Syria, and adds new license exceptions for Syria, including for EAR99 items. The final rule, effective September 2, 2025, follows Executive Order (EO) 14312 (summarized in our July 2025 Advisory) permitting the relaxation of export controls on dual-use goods regulated by the EAR.

Background

Prior to the final rule, extensive U.S. export restrictions to Syria had been imposed by EO 13338, which implemented the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (SAA). Together, the SAA and EO 13338 prohibited export and reexport to Syria of U.S. products other than food and medicine classified as EAR99 items. Following EO 13338, BIS added General Order No. 2, which adopted a restrictive license application review policy with “a general policy of denial” on exports and reexports to Syria of nearly all items subject to the EAR except for EAR99 food and medicine. Then, in 2013, the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) layered additional U.S. export restrictions to Syria.

In a sweeping policy shift on May 13, 2025, President Trump announced his intention to lift sanctions against Syria. Then, on June 30, 2025, he issued EO 14312, section 6 of which waived the application of section 5(a)(l) of the SAA with respect to items on the Commerce Control List (CCL), and section 7 of which waived the sanctions imposed under sections 307(a)(5) and 307(b)(2)(C) of the CBW Act. This final rule implements EO 14312 to reflect such changes in the EAR and to align the EAR with the U.S. government’s broader objective of promoting peace, economic security, and prosperity in Syria. This final rule complements the removal of the Syria Sanctions Regulations, 31 C.F.R. Part 542, implemented by the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC). Some OFAC sanctions on designated persons in or connected to Syria remain.

Overview of the Final Rule

Below is an overview of the final rule, which highlights key amendments to § 746.9 of the EAR on license exception changes, license review policy change, and other conforming changes.

License Exception Changes

• Addition of License Exception Syria Peace and Prosperity (SPP): The final rule expands the eligibility of EAR license exceptions for Syria by adding a new license exception for Syria called License Exception SPP under § 740.5. License Exception SPP authorizes exports and reexports to Syria of all items designated EAR99 subject to certain terms and conditions. Importantly, License Exception SPP is not available for exports and reexports that are prohibited under Part 744 (end-use/end-user control).
• Expansion of License Exception Consumer Communications Devices (CCD): The final rule also expands License Exception CCD to add Syria as an eligible destination. License Exception CCD authorizes exports and reexports of certain consumer communications commodities and software. While License Exception CCD does not specify any particular ineligible end users with respect to Syria (as it does for Cuban, Russian, and Belarusian governmental organizations), it remains unavailable for exports and reexports that are prohibited under Part 744 (end-use/end-user control).
• Expansion of License Exception Aircraft, Vessels, and Spacecraft (AVS): The final rule revises License Exception AVS in § 740.15 to allow exports and reexports to Syria of EAR99 items and other items that are controlled for anti-terrorism (AT) reasons only.
• Expansion of License Exception Temporary imports, exports, reexports, and transfers (in-country) (TMP): The final rule expands the scope of TMP’s eligibility for Syria-destined items, including certain technology, shipping containers, and certain exports to a foreign subsidiary of a U.S. entity, under § 740.9.
• Addition of License Exception Servicing and replacement of parts and equipment (RPL): The final rule adds License Exception RPL pursuant to the provisions of § 740.10(a) and states that License Exception RPL, while available for Syria-destined items, may not be used for items on the CCL destined to Syrian police, military, or intelligence end users or end uses.
• Expansion of License Exception Governments, international organizations, international inspections under the Chemical Weapons Convention, and the International Space Station (GOV): The final rule expands eligibility for License Exception GOV for exports or reexports made for or on behalf of a department or agency of the U.S. government under § 740.ll.
• Expansion of License Exception Technology and software-unrestricted (TSU): The final rule expands Syria’s eligibility by adding copies of technology previously authorized for export to the same recipient under § 740.13.

License Review Policy Change

The final rule further revises licensing policies for Syria to adopt more permissive license review policies.

• From “case-by-case review” to a “presumption of approval”: The final rule removes its previously implemented case-by-case policy for certain CCL items and adopts a presumption of approval for a broad range of commercial end uses.
• From the “general policy of denial” to “case-by-case review”: Relatedly, the final rule also removes the general policy of denial that applied to most categories of CCL. Instead, license applications that do not fall within the categories that receive a “presumption of approval” will now be reviewed on a case-by-case basis.
• License applications involving end use/end user controls: License applications involving items specified on the CCL and that may involve end use/end user controls are also subject to licensing review policy that applies to such items/controls.

Other Conforming Changes

The final rule makes other conforming changes as follows:

• Removal of obsolete references to the SAA and replacement with a simple cross reference to § 746.9 for Syria
• Removal of General Order No. 2 and references thereto
• Removal of references to items outside of the scope of § 746.9 (Syria) license requirements

Conclusion

The final rule permits new opportunities for trade with and investment in Syria, in line with the Trump administration’s outlook towards Syria’s newly emerged government under President al-Sharaa and towards economic stabilization in Syria as a path to regional security. As such, the final rule may be of particular interest to consumer electronics, telecommunication, commercial aircraft, agricultural, healthcare, and other industries that previously faced blanket denials for exports and reexports to Syria under the SAA and EO 13338.

Entities engaging in exports and reexports to Syria, however, must continue to verify licensing requirements, vet transactions with prohibited end uses and end users to avoid diversion risks, and ensure compliance with remaining EAR and OFAC restrictions. It is also important to note that sensitive technologies, such as cybersecurity-related technology, advanced semiconductors, and military technology, remain tightly controlled. Finally, as with sanctions, exporters and reexporters to Syria should be aware that export controls may be reimposed and this final rule reversed, if the new Syrian government does not meet the expectations of the United States, and should consider contractual protections when conducting business in Syria.

Please contact any author of this post or your Arnold & Porter relationship attorney if you have any questions or to seek further guidance or advice.

© Arnold & Porter Kaye Scholer LLP 2025 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.