BIS Issues Rule to Ease Syria Export Controls, Expand License Exceptions

The final rule, released Aug. 28, comes about two months after President Donald Trump directed the government to relax export controls against the country (see 2506300055) and about three months after the Treasury Department issued a general license authorizing many Syria-related transactions that would have otherwise been prohibited by U.S. sanctions (see 2505230073). BIS said its rule is a “complement” to the sanctions relief published earlier this year by Treasury, but it stressed that certain U.S. exports, even if authorized under the BIS rule by a new or expanded general license, can’t be sent to Syria-related people or entities still sanctioned by the Office of Foreign Assets Control.

“BIS will continue to restrict exports when the end-users of items are malign actors, including certain Syrian individuals and entities that remain subject to sanctions,” the agency said.

The relaxed controls aim to support a “Syria that is stable, unified, and at peace with itself and its neighbors,” BIS said. The agency said U.S.-origin consumer communications devices, certain civil aviation items, along with goods, software and technology that have “purely civilian uses” -- such as those designated under the Export Administration regulations as EAR99 -- will be allowed to be exported to Syria without a license.

The rule also “facilitates the approval of licenses for exports to Syria related to telecommunications infrastructure, sanitation, power generation, and civil aviation,” BIS said, and all other license applications for dual-use exports to Syria will be reviewed on a case-by-case basis.

“Today’s actions follow through on the Trump Administration’s promise to allow a new start for the people of Syria as they seek a stable and prosperous future under their new government,” BIS Undersecretary Jeffrey Kessler said. “At the same time, BIS will remain vigilant to prevent bad actors worldwide from accessing U.S. goods, software, and technology.”

The rule will create new License Exception Syria Peace and Prosperity, which will authorize exports and reexports to Syria of all items designated as EAR99. But the license exception won’t apply to exports or reexports prohibited by certain BIS end-use and end-user controls, including parties designated on OFAC’s Specially Designated Nationals List.

BIS also is expanding existing License Exception Consumer Communications Devices to add Syria as an eligible destination for certain commodities and software, with certain restrictions for certain end-uses, end-users and parties subject to U.S. sanctions. “For example, License Exception CCD may not be used to export consumer communications devices to persons designated on OFAC’s SDN List with certain identifiers specified under § 744.8(a)(1), unless authorized by OFAC or exempt,” BIS said. “Notably, members of the former regime of Bashar al-Assad may be designated on the SDN List under various program identifiers.”

The rule also will revise License Exception Aircraft, Vessels and Spacecraft (AVS) so that only EAR99 items, or items controlled on the Commerce Control List only for anti-terrorism reasons, are eligible to be exported to Syria. BIS will revise language in the license exception to ensure that “no equipment and spare parts for a vessel or aircraft that could make a significant contribution to the military potential of Syria, including its military logistics capability, or could enhance Syria’s ability to support acts of international terrorism, is authorized to Syria” without a notification to Congress.

Another change to AVS broadens the scope of the license exception, which was previously available only for foreign flagged, owned or operated aircraft reexported to Syria on “temporary sojourn.” The license exception will now authorize 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.”

The agency stressed that the expanded exception “is not intended to authorize any operations by U.S. registered civil aircraft in Syria pursuant to regulatory regimes other than the EAR,” including the Federal Aviation Administration. The license exception also doesn't authorize exports that “will support the Syrian police, military, or intelligence end users and end uses.”

Another change expands License Exception Temporary imports, exports, reexports and transfers, which had applied to Syria solely for items for use by the news media. The license now will cover certain technology; shipping containers; certain exports to a U.S. person’s foreign subsidiary, affiliate or facility abroad; and certain personal protective “equipment.”

The agency also expanded, added or revised Syria-related language for several other license exceptions, including: 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); and more.

BIS also is revising its Syria-related licensing policies to be “more permissive,” including by revising the case-by-case policy for certain CCL categories of items to adopt a presumption of approval for a “broad range of commercial end uses to support economic and business development in Syria and to support the Syrian people.”

The agency also is removing the general policy of denial that had applied to most CCL categories and will now review those items under the presumption of approval or on a case-by-case basis. Items that will be reviewed under the presumption of approval include those that support Syrian economic and business development or Syrian civilians, 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 its military or to its ability to support terrorism.

If BIS determines that an export could contribute to Syria’s military or its support for terrorism, the State and Commerce departments will notify Congress 30 days before issuing the license, although exports of EAR99 items or items controlled only for anti-terrorism reasons “generally will not trigger this requirement,” BIS said.

The rule also will make other minor updates to the EAR to streamline the regulations or remove provisions that are "obsolete," including by removing references to the Syria Accountability and Lebanese Sovereignty Restoration Act.