U.S. Department of Commerce Bureau of Industry and Security (Finally) Eases Export Controls on Syria; Some Limitations Remain

On September 2, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) published a final rule (the BIS Rule) easing certain U.S. export controls on Syria. The long-awaited BIS Rule follows President Donald Trump’s June 30, 2025, executive order (the June 30 EO), which authorized the relaxation of export controls and sanctions on Syria. The U.S. Department of the Treasury took action to ease U.S. sanctions on Syria immediately following the issuance of the June 30 EO (see Sidley’s prior client alert on the rollback of Syria sanctions). In contrast, BIS had not, until now, similarly acted to remove the extensive U.S. restrictions on the export or reexport to Syria of any goods, software, or technology subject to the Export Administration Regulations (EAR). As a result, until now, the easing of restrictions on Syria as envisioned in the June 30 EO was only partially implemented.

The BIS Rule finally addresses and eases the applicable export restrictions on Syria and aims to further the June 30 EO’s determination “that it was in the national security and foreign policy interests of the United States to remove sanctions, restrictive export controls, and other forms of restrictions on Syria.”¹ However, as discussed below, the changes to U.S. export policy toward Syria in the BIS Rule do not amount to a wholesale reversal of and widespread relief from all applicable export restrictions on Syria — certain limitations remain. Businesses should continue to exercise vigilance to ensure that they comply with the relevant restrictions in place.

Summary of the BIS Rule

The BIS Rule effectively eases U.S. export controls on Syria by doing three key things.

1. The BIS Rule creates a new license exception for the export of EAR99 items to Syria.

This new license exception, called “Syria Peace and Prosperity (SPP),” authorizes exports and reexports to Syria of all items designated EAR99, which are items that are generally low-level technology consumer items and do not require a license in most situations. The SPP license exception nevertheless has some restrictions: the exception does not authorize exports or reexports prohibited under an end-use or end-user control. This means, in particular, that it is still prohibited to export items subject to the EAR to certain persons on the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List), including former members of the Bashar al-Assad regime.

2. The BIS Rule expands certain existing license exceptions to include exports to Syria.

Alongside creating a new, Syria-specific license exception, the BIS Rule now enables the application of certain preexisting license exceptions to exports to Syria.

In particular, Syria is now an eligible destination under license exception Consumer Communications Devices (CCD), which captures a broad range of consumer items such as computers, mobile phones, and consumer software that are not classified as EAR99. This means that the devices and software eligible for export under CCD can now be exported to Syria, provided that they meet the relevant requirements under the license exception.

In addition to CCD, the following license exceptions were also expanded to capture exports to Syria:

- Temporary imports, exports, reexports, and transfers (in-country) (TMP)

- Servicing and replacement of parts and equipment (RPL)

- Governments, international organizations, international inspections under the Chemical Weapons Convention, and the International Space Station (GOV)

- Technology and software — unrestricted (TSU)

- Baggage (BAG)

- Aircraft, vessel and spacecraft (AVS)

Parties exporting items subject to the EAR must continue to meet the specific conditions tied to each applicable license exception to lawfully benefit from its use.

3. The BIS Rule revises the license review policies for Syria to “be more favorable.”

Prior to issuance of the BIS Rule, BIS had adopted a restrictive license application review policy with regards to Syria, generally denying license applications related to the export and reexport to Syria of nearly all items subject to the EAR, except for food and medicine classified as EAR99.

The BIS Rule now provides for a presumption of approval for license applications related to “commercial end uses that support economic and business development in Syria 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.”²

All other license applications for controlled items will be subject to a case-by-case review to determine “whether the items will be used in a manner consistent with U.S. national security and foreign policy purposes, including to promote peace and prosperity in Syria.”³

Key Takeaways

Although these changes represent a significant policy shift in how the United States is shaping its relations with the new Syrian government, they do not amount to a wholesale reversal of and widespread relief from all applicable export restrictions on Syria. There are still extensive restrictions in place, particularly for items not classified as EAR99. This means that with respect to non-EAR99 items, companies must still conduct thorough analyses to confirm the application of a particular license exception. If an existing license exception does not apply, companies will need to formally submit a license application to BIS to authorize the export. While BIS may now have a more favorable policy with respect to Syria, if a license is required, companies must undertake the effort of applying for and obtaining such licenses prior to export. And at this time, BIS is still behind on issuing export licenses in the normal course of business.

We further note the following:

- The June 30 EO did not “authorize or otherwise provide relief to Bashar al-Assad or his associates, to ISIS or other terrorist organizations, human rights abusers, or other persons that threaten the peace, security, or stability of the United States, Syria, and its neighbors.”⁴ Such individuals and entities continue to be on OFAC’s SDN List, meaning that transactions involving them may remain subject to license requirements under the EAR.

- All end-use and end-user controls (set out in part 744 of the EAR) and general restrictions (set out in part 740.2 of the EAR) continue to apply. Moreover, certain license exceptions include restrictions that apply specifically to Syria. For instance, the license exceptions RPL and AVS cannot be used for exports and reexports that support the Syrian police, military, or intelligence end uses or end users.

- The BIS Rule did not change Syria’s designation as State Sponsor of Terrorism. It also did not make changes to EAR provisions that specify requirements or impose restrictions based on this designation, meaning that the relevant EAR restrictions related to this designation continue to apply to exports to Syria.

These limitations demonstrate that the relaxation of controls does not amount to a rescission of all the barriers to doing business in Syria. Businesses must continue to take measures to ensure that they comply with the relevant restrictions in place.

Businesses operating across borders or using international supply chains should also assess whether their activities trigger compliance obligations under non-U.S. laws. As generally discussed in Sidley’s prior client alert on the rollback of Syria sanctions, other jurisdictions maintain their own restrictions targeting Syria, which are subject to change as such other countries reevaluate and recalibrate their trade policies concerning Syria in the aftermath of the Assad regime. These measures may differ from U.S. export controls in scope, licensing requirements and exceptions, and enforcement priorities. Overlooking these parallel regimes can expose businesses to legal and reputational risks. For this reason, a comprehensive, multijurisdictional approach to export compliance is essential to ensure lawful and responsible (re)engagement in the Syrian market.

Sidley attorneys are closely monitoring the developments in Syria sanctions and export controls restrictions and advising on measures related to doing business in Syria and are available to answer your questions.

¹ BIS Rule, p. 4.

² BIS Rule, p. 13. 

³ BIS Rule, p. 23. 

⁴ BIS Rule, p. 5.