Overview
Effective October 1, 2026, the U.S. Department of State promulgated a final rule removing Syria from the list of countries subject to a policy of denial under the International Traffic in Arms Regulations ("ITAR"), 22 CFR § 126.1(d)(1) (the "Rule") (91 FR 62313). The Directorate of Defense Trade Controls ("DDTC") will now review license requests and other authorization requests for the export or brokering of defense articles or defense services included on or of a type listed in the U.S. Munitions List (“USML”) involving Syria on a case-by-case basis.
The Rule is a change in ITAR licensing policy administered by DDTC, but it is not a blanket authorization to export, reexport, or retransfer defense articles, including technical data or software, or furnish defense services, to Syria, the Syrian government, or Syrian persons or nationals, to temporarily import defense articles from Syria (e.g., for repair/refurbishment), or to otherwise engage in brokering of U.S. or foreign defense articles or defense services involving Syria. As with l ITAR-regulated export or brokering activities involving any foreign person, a license, license exemption, or other authorization from DDTC (including registration) is required.
The defense industry exporting, reexporting, or retransferring in both ITAR-controlled defense articles or defense services and items subject to the Export Administration Regulations ("EAR") should ensure that any proposed mixed shipments or transfers are fully authorized given that the U.S. Department of Commerce's Bureau of Industry and Security ("BIS") has not yet issued a companion rule. As of this writing, Syria therefore remains listed under Country Group E:1 and subject to sanctions, embargoes, or other special controls in Part 746 of the EAR, even though the U.S. government has previously stated that regulatory amendments to the EAR regarding Syria are forthcoming. Until the EAR is amended, Syria remains subject to its onerous Anti-Terrorism controls. Notably, DDTC can authorize export, reexport, or retransfer of items "subject to the EAR" if they are for end use in or with defense articles included in the license application and are also listed on the purchase documentation. However, Syria remains a jurisdiction with a relatively high number of U.S.-sanctioned or export control restricted individuals and entities, so due diligence is advisable.
The Rule is the latest step in a sequence of U.S. actions easing restrictions on Syria since the fall of the Assad government. These actions reflect continued U.S. support for Syria’s reintegration with the world economy by removing the ITAR arms embargo against Syria. Steptoe attorneys stand ready to assist clients in assessing the evolving rules, conducting diligence, managing export control and sanctions risks, and prudently undertaking Syria-related activities to limit international trade and regulatory compliance liabilities.
