U.S. Relaxes Export Controls on Syria – What Has Changed and What Remains?

On September 2, 2025, BIS published a final rule revising the Export Administration Regulations (EAR) to relax export controls related to Syria.

• The most significant change is the addition of a new license exception for EAR99 items, though restrictions remain for end-use and end-user controls under Part 744 of the EAR (e.g., the Entity List, nuclear end-uses, chemical and biological weapon end-uses).
• BIS also extended eligibility for key license exceptions that will have an outsized impact on certain sectors, including consumer electronics, cloud services, and logistics/aviation.
• For items that still require a license to be exported to Syria, BIS has adopted a presumption of approval for most commercial and civil end-uses and a case-by-case policy for other transactions not subject to other more restrictive controls.

I. Background and Overview

On September 2, 2025, BIS published a final rule implementing Executive Order (E.O.) 14312, which directed the removal of most U.S. sanctions and restrictive export controls on Syria under the EAR. This regulatory action is part of a broader U.S. government policy shift aimed at supporting Syria’s stabilization and economic recovery, following the U.S. president’s May 13, 2025 announcement and subsequent determination that lifting Syrian sanctions aligns with U.S. national security and foreign policy interests.

The rule complements recent actions by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) after President Trump terminated the national emergency underpinning the Syria sanctions program via E.O. 14312 (summarized in more detail in our prior alert on this issue). To implement E.O. 14312, on August 26, 2025, OFAC removed the SySr from the Code of Federal Regulations on August 26, 2025. Subsequently, on September 25, 2025, OFAC amended the Syria-Related Sanctions Regulations (a distinct sanctions program) to, among other things, further implement E.O. 14312 by expanding coverage to certain persons previously designated under the SySR and to rename the Syria-Related Sanctions Regulations the Promoting Accountability for Assad and Regional Stabilization Sanctions Regulations, along with other technical updates.

While BIS’s rule significantly expands the range of permissible activities with respect to Syrian civil end-users, several important aspects of prior controls remain in place, particularly for transactions involving restricted end-users and end-uses under Part 744 of the EAR and for deemed exports to Syrian nationals who are not “U.S. Persons.”

II. Key Changes

The rule operates by amending the EAR in two key respects, including by (1) adding or expanding license exception eligibility for exports and reexports to Syria, and (2) adopting a more permissive license review policy for exports and reexports that continue to require a license. These changes are summarized below, with commentary on potential implications for certain industries.

Expanded License Exception Eligibility

New License Exception: Syria Peace and Prosperity (SPP)

New License Exception SPP authorizes exports and reexports of all items designated “EAR99” to Syria, subject to other restrictions that may apply, such as with respect to restricted end-uses and end-users under Part 744 of the EAR. EAR99 items are those subject to the EAR but not specifically enumerated under an export control classification number (ECCN) on the Commerce Control List (CCL).

Expansion of Existing License Exceptions

BIS’s final rule extends eligibility for exports and reexports that would require a license under Part 746.9 of the EAR to several existing license exceptions (listed below), several of which are also expanded to account for this new eligibility.

• Consumer Communications Devices (CCD) (§740.19)
• License Exception CCD permits the export, reexport, and transfer within Syria of a broad range of “consumer” communications devices and software, including personal computers, phones, networking equipment, and related software, including items controlled under ECCN 5A992 and similar ECCNs controlled for Anti-Terrorism (AT) Reasons for Control that would—absent this exception—still require a license to Syria.
• Notably, BIS permits a broader range of items to Syria that are also eligible for Cuba that remain restricted with respect to Russia and Belarus.
• Further, BIS did not restrict the use of CCD to “independent non-governmental organizations,” as it has for Belarus, Cuba, and Russia, making CCD potentially more useful for transactions with governmental organizations.
• Technology and Software Unrestricted (TSU) – Four subparagraphs of License exception TSU are now available for Syria, covering the following types of transactions:
• (a) Operation technology and software, i.e., the “minimum technology necessary for” the installation, operation, or repair of commodities and software previously exported or reexported to Syria.
• (b) Sales technology, i.e., data supporting a prospective or actual quotation, bid, or offer to sell, lease, or otherwise supply an item.
• (c) Software updates for the “correction of errors” (bug fixes).
• (g) Copies of technology previously authorized for export to the same recipient.
• Aircraft, Vessels, and Spacecraft (AVS) – License Exception AVS is now available for Syria for U.S.-registered civil aircraft and vessels and temporary reexports of U.S. and foreign-registered civil aircraft and vessels to Syria on temporary sojourn that meet certain conditions, including that they do not support the Syrian police, military, or intelligence end-uses or end-users.
• Temporary Imports/Exports (TMP) – Five sections of License Exception TMP are now available, including for exports to a U.S. person’s foreign subsidiary, affiliate, or facility abroad that meet certain conditions.
• Servicing and Replacement of Parts (RPL) – License Exception RPL’s provisions authorizing the export and reexport of “one-for-one replacement” parts, components, accessories, and attachments are now available, subject to certain conditions.
• Government (GOV) – License Exception GOV is now available for certain exports and reexports related to U.S. and allied government activities.
• Baggage (BAG) – License Exception BAG is also available for exports of personally owned items by individuals leaving the United States.

Revised Licensing Policies

BIS’s final rule significantly relaxed its license review policies for items that still require a license under Part 746.9 of the EAR.

• Presumption of Approval
• License applications for items on the CCL for commercial end-uses supporting economic/business development or the Syrian people are now subject to a presumption of approval.
• These include activities related to the “improvement or maintenance” of services in several listed industries, including “telecommunications, water supply and sanitation, power generation, aviation,” and 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.”
• Case-by-Case Review
• Other CCL items will be reviewed individually for consistency with U.S. national security and foreign policy, including to “promote peace and prosperity in Syria.”
• Exporters should note that other license review policies imposed by other parts of the EAR (e.g., under end-use or end-user controls in Part 744) remain in place.

III. Key Controls Remain in Place

Although BIS’s rule makes important changes to restrictions on civil and commercial activity between the United States and Syria, several key restrictions remain in place:

• Country Group E:1 Status – The rule did not change Syria’s status as a Country Group E:1 destination, which applies to countries designated as State Sponsors of Terrorism (SSOT). As such, license requirements and limitations that flow from this status remain, including for items listed on the CCL and controlled for AT Reasons for Control (which are most items on the CCL).
• Deemed Exports/Reexports – Relatedly, the rule does not alleviate deemed export and reexport license requirements for technology and software subject to AT controls, though as noted above, the rule does provide a more favorable license review policy for activities related to Syria, which will presumably apply to deemed exports and reexports.
• Part 744 End-Use/-User Controls – The rule makes changes to existing end-use and end-user restrictions under Part 744 of the EAR. These include transactions with entities on the Entity List, Denied Persons List, or other restricted-party lists, and transactions involving U.S. Person activities with certain restricted end-uses and -users under Part 744.6 of the EAR.

Key Implications for Industry Sectors

Next Steps and Recommendations

In the wake of relaxed OFAC and BIS rules, companies should consider the following steps:

• Review internal compliance procedures to reflect expanded license exception eligibility for Syria.
• Consider reevaluating classifications of items previously assumed to be listed on the CCL or subject only to AT controls to identify items that may now be eligible for License Exception SPP.
• Continue to screen transactions for end-user and end-use controls and evaluate the need for deemed export and reexport licenses.

Importantly, companies should also be aware that OFAC’s revised Syria sanctions continue to impose residual restrictions. In particular, transactions involving Specially Designated Nationals (SDNs) or other blocked persons remain prohibited, underscoring the need for careful screening and ongoing compliance vigilance.

Morrison Foerster’s National Security practice stands ready to offer counsel on the scope and sufficiency of corporate compliance programs and, where compliance efforts may have failed, guidance on resolving potential enforcement matters.