More Relief for Syria: Commerce and Treasury Ease Export Controls and Revoke Sanctions

Overview

Effective September 2, 2025, the U.S. Department of Commerce, Bureau of Industry and Security (BIS), promulgated a Final Rule easing licensing requirements for certain exports and reexports of items subject to the Export Administration Regulations (EAR) to Syria and commercial or civil agencies of its government. This follows regulatory actions taken on August 26, 2025, by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) to remove the Syrian Sanctions Regulations from the Code of Federal Regulations. Both actions further the implementation of President Trump’s EO 14312, which provides relief for Syria while continuing restrictions on the former Bashar al-Assad regime and certain other actors in the region.

BIS and OFAC’s actions mark a pivotal shift in U.S. policy toward Syria, endeavoring to balance the lifting of sanctions to aid reconstruction and development efforts with measures intended to restrict support to various actors viewed as destabilizing the region.

Actions Taken by BIS

BIS’s rule eases export controls on Syria by amending the following exceptions:

• Creating the new License Exception Syria Peace and Prosperity (SPP) in 15 C.F.R. § 740.5, which allows most items (i.e., commodities, software, and technology) designated EAR99 that are not included on the Commerce Control List (CCL) to be exported or reexported to Syria without an export license, absent prohibited end-uses or end-users under Part 744 of the EAR.
• Revising License Exception Aircraft, Vessels, and Spacecraft (AVS) in 15 C.F.R. § 740.15, to identify the scope of certain items designated EAR99 or controlled solely for Anti-Terrorism (AT) reasons on the CCL that may be exported or reexported to Syria under this license exception, but noting that temporary exports of 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 must not be exported, reexported, or transferred (in-country) in support of the Syrian police, military, or intelligence end-users or end-uses.
• Permitting the export and reexport of consumer communication devices with certain Export Control Classification Numbers (ECCNs) to Syria, or transfer (in-country) within Syria, by expanding 15 C.F.R. § 740.19, License Exception Consumer Communications Devices (CCD), to apply to Syria.

Additionally, this rule amends BIS sanctions policy regarding Syria and the Government of Syria in 15 C.F.R with the following changes:

• Expands the scope of items that may be exported or reexported to Syria under License Exception Temporary Imports, Exports, Reexports, and Transfers (in-country) (TMP), 15 C.F.R § 740.9.
• Authorizes exports and reexports of one-for-one replacement of parts, components, accessories, and attachments, provided that such exports will not support the Syrian police, military, or intelligence sensitive end-users or end-uses, under License Exception Servicing and Replacement of Parts and Equipment (RPL), 15 C.F.R § 740.10; allows certain exports and reexports to support international nuclear safeguards, U.S. government agencies or personnel, certain agencies of cooperating governments, and international inspections under the Chemical Weapons Convention under License Exception Governments, international organizations, international inspections under the Chemical Weapons Convention, and the International Space Station (GOV), 15 C.F.R. § 740.11; and permits certain exports and reexports of operation technology and software, sales technology and software, and software updates to Syria under License Exception Technology and Software – Unrestricted (TSU), 15 C.F.R. § 740.13.
• Promulgates a change in the review and approval of specific license applications for exports and reexports of CCL items to Syria for commercial end uses that support economic and business development in Syria or that support the Syrian people, including related to telecommunications, infrastructure, sanitation, power generation, civil aviation, or other civil services. More specifically, such items should be reviewed with a presumption of approval review policy, provided that they support peace and prosperity in Syria and do not contribute significantly to Syria’s military or its ability to support acts of international terrorism.

All other applications for exports, reexports, and transfers (in-country) of CCL items to or within Syria will be reviewed on a case-by-case basis consistent with U.S. national security and foreign policy, including to promote peace and prosperity in Syria.

Importantly, BIS still includes Syria on Country Group E:1 as a terrorism-supporting country in Supplement No. 1 to Part 740 of the EAR. This designation will not change until the U.S. Secretary of State first determines that Syria is no longer sponsoring terrorism, reports this determination to Congress, and after further interagency process, BIS promulgates a subsequent rule to amend AT-related export controls, including those currently promulgated in 15 C.F.R. § 742.9. Therefore, AT controls will continue to apply to the export, reexport, or transfer (in-country) of certain items that do not qualify under the above-mentioned amended license exceptions issued in the Final Rule. As such, exports and reexports of AT-controlled items subject to the EAR should be attuned to potential terrorism financing and civil liability risks, which may arise for Syria-bound items that are ineligible under license exceptions or are not specifically licensed by BIS.

Actions Taken by OFAC

On August 26, 2025, OFAC removed the Syrian Sanctions Regulations from the U.S. Code of Federal Regulations (i.e. 31 C.F.R. Part 542), which were initially issued to implement EO 13338 in 2004. This move reflects the Trump Administration’s decision to shift away from broad-based sanctions against Syria that previously: (1) prohibited U.S. persons and the United States from the export or reexport of any services to Syria; making new investment in Syria; importing Syrian-origin petroleum products into the United States or otherwise transacting or dealing in them; or facilitating or approving such prohibited transactions; and (2) blocked the property and interests in property of the Government of Syria. Now, OFAC has implemented a narrower sanctions regime targeting malign actors named Specially Designated Nationals and Blocked Persons (SDNs), including any entity in which an SDN directly or indirectly owns a 50% or more interest but is not included or named in the OFAC SDN List.

As part of implementing President Trump’s EO 14312, effective July 1, 2025, OFAC:

• Removed 518 individuals and entities from the OFAC SDN List, lifting blocking sanctions on those persons deemed critical to Syria’s development and governance. Accordingly, all property and interests in property held by such individuals and entities are unblocked.
• Designated 139 new individuals and entities affiliated with the former Assad regime under the national emergency declared in EO 13894 and pursuant to other Iran- and counterterrorism-related authorities.

The new individuals and entities designated by OFAC are divided into the following eight categories:

• Former officials of the Assad regime
• Persons acting for or on behalf of former Assad regime officials
• Persons threatening the peace, security, or stability of Syria
• Persons engaged in activities or transactions related to Captagon, an amphetamine-based drug used during the war
• Persons providing material support to the former Assad regime
• Persons providing material support to an SDN
• Persons owned or controlled or acting on behalf of an SDN
• Adult family members of certain SDNs

The standard prohibitions on U.S. persons exporting to, importing from, withdrawing, or otherwise dealing in blocked property, as well as requirements to report blocked property to OFAC, apply to all of the foregoing SDNs. The original list of newly designated entities and individuals can be found in the annexes of the Treasury’s June 30, 2025 press release. Additional guidance on OFAC’s implementation of EO 14312 can be found here.

Looking Ahead

Despite easing export controls and lifting some of the sanctions on Syria, the Trump Administration stated that it remains vigilant in preventing destabilizing activities by members of the former Assad regime and other illicit actors in the region. Therefore, exports will continue to be restricted on U.S. persons and United States dealings with malign actors, which include certain Syrian entities and individuals who remain subject to blocking sanctions, to prevent their access to U.S. goods, software, and technology. Sanctions will also remain in place against Bashar al-Assad and his associates, human rights abusers, Captagon traffickers, those linked to past proliferation activities, Al-Qaeda and its affiliates, ISIS, and Iran and its proxies.

Additionally, OFAC indicated it may still carry out investigations or enforcement actions in connection to apparent violations of the Syrian Sanctions Regulations that occurred prior to July 1, 2025.

For more information on the above, please contact a member of our Economic Sanctions team.