Rule2025-16724
Relaxing Export Controls for Syria
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 2, 2025
Effective
September 2, 2025
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, the Bureau of Industry and Security (BIS) makes changes to the Syria export control measures under the Export Administration Regulations (EAR), consistent with Executive Order (E.O.) 14312, Providing for the Revocation of Syria Sanctions, which directed the removal of sanctions on Syria. This final rule relaxes the EAR's existing restrictions on exports and reexports to Syria of items subject to the EAR by making the following changes: revising certain restrictive license application review policies that had applied to most items subject to the EAR to be more favorable; expanding existing license exceptions to apply to Syria; and adding new license exceptions for Syria, including for EAR99 items.
Full Text
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[Federal Register Volume 90, Number 167 (Tuesday, September 2, 2025)]
[Rules and Regulations]
[Pages 42315-42321]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16724]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 736, 740, and 746
[Docket No. 250827-0147]
RIN 0694-AK28
Relaxing Export Controls for Syria
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
makes changes to the Syria export control measures under the Export
Administration Regulations (EAR), consistent with Executive Order
(E.O.) 14312, Providing for the Revocation of Syria Sanctions, which
directed the removal of sanctions on Syria. This final rule relaxes the
EAR's existing restrictions on exports and reexports to Syria of items
subject to the EAR by making the following changes: revising certain
restrictive license application review policies that had applied to
most items subject to the EAR to be more favorable; expanding existing
license exceptions to apply to Syria; and adding new license exceptions
for Syria, including for EAR99 items.
DATES: This rule is effective September 2, 2025.
FOR FURTHER INFORMATION CONTACT: For questions on this final rule,
contact Benjamin Barron, Supervisory Export Policy Analyst, Human
Rights and Embargoes Division, Bureau of Industry and Security,
Department of Commerce, Phone: 202-482-4252, Email:
<a href="/cdn-cgi/l/email-protection#ce86bba3afa09ca7a9a6babde08ba3acafbca9a1abbd8eaca7bde0aaa1ade0a9a1b8"><span class="__cf_email__" data-cfemail="a6eed3cbc7c8f4cfc1ced2d588e3cbc4c7d4c1c9c3d5e6c4cfd588c2c9c588c1c9d0">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
A. Export Restrictions Regarding Syria Prior to This Final Rule
Section (5)(a)(1) of the Syria Accountability and Lebanese
Sovereignty Restoration Act of 2003 (Pub. L. 108-175) (the SAA),
requires the Department of Commerce to prohibit the export to Syria of
all items (commodities, software, and technology) that are specified on
the Commerce Control List (CCL), supplement no. 1 to part 774 of the
EAR. The SAA also directed the President to select at least two
additional restrictions from a set of six enumerated restrictions. One
of these restrictions is a prohibition on the export and reexport to
Syria of products of the United States other than food and medicine,
which are items that are subject to the EAR but not specified on
[[Page 42316]]
the CCL i.e., EAR99 items. See section 5(a)(2)(A) of the SAA. In E.O.
13338 of May 11, 2004, Blocking Property of Certain Persons and
Prohibiting the Export of Certain Goods to Syria, the E.O. that
implemented the SAA, President George W. Bush selected the prohibition
set forth in section 5(a)(2)(A) of the SAA on the export of EAR99 items
apart from food and medicine.
Pursuant to section 5(b) of the SAA, the application of the
aforementioned restrictions may be waived upon a determination by the
President that it is in the national security interest of the United
States to do so and the submission of a report containing the reasons
for such a determination to the appropriate congressional committees.
Additionally, as part of E.O. 13338, the President exercised national
security waiver authority pursuant to section 5(b) of the SAA and
waived restrictions otherwise required by the SAA, thereby allowing for
the case-by-case licensing by BIS of certain specified categories of
export and reexport transactions involving items on the CCL. Further,
in E.O. 13338, the President delegated authority to issue future
waivers to the Secretary of State.
Pursuant to E.O. 13338, BIS added General Order No. 2 to the EAR
(specifically, in supplement no. 1 to part 736) as part of a May 14,
2004, final rule (69 FR 26766) that amended the EAR to reflect the new
export restrictions on Syria. As set forth in Sec. 746.9 (Syria) and
General Order No. 2, BIS imposed export controls and adopted a
restrictive license application review policy (a general policy of
denial) on exports and reexports to Syria of nearly all items subject
to the EAR except for EAR99 food and medicine.
In December 2011, to facilitate compliance, BIS amended the EAR in
a final rule by moving the substantive provisions setting forth the
controls for exports and reexports to Syria from General Order No. 2 to
a revised Sec. 746.9 and retaining the waiver provisions of General
Order No. 2 in supplement no. 1 to part 736 (76 FR 77115; Dec. 12,
2011). In June 2013, to address foreign policy concerns raised by the
Syrian civil war, then-Secretary of State John Kerry issued a waiver of
the SAA's export restrictions to permit items for the support of the
Syrian people. BIS implemented this waiver in Sec. 746.9(c)(2) of the
EAR by adding items necessary for the support of the Syrian people as a
new category of items subject to case-by-case licensing. See 78 FR
43972 (July 23, 2013).
Additionally, since 2013, Syria has been subject to export control
restrictions under the Chemical and Biological Weapons Control and
Warfare Elimination Act of 1991 (CBW Act). Syria was made subject to an
initial round of export and reexport restrictions on items controlled
under the EAR for national security reasons in September 2013 following
the State Department's August 2, 2013, determination under the CBW Act
that the Syrian Government had used chemical weapons in violation of
international law or lethal chemical weapons against its own nationals.
See section 307(a)(5) of the CBW Act and the Department of State's
September 10, 2013, Federal Register notice (78 FR 55326). In December
2013, the State Department rendered Syria subject to additional export
and reexport restrictions that extended the scope of items to most
items subject to the EAR. See section 307(b)(2)(C) of the CBW Act and
the Department of State's December 10, 2013, Federal Register notice
(78 FR 74218).
B. Basis for Changes to Export Control Measures for Syria Made in This
Final Rule
The President announced his intention to lift sanctions against
Syria on May 13, 2025, and on June 30, 2025, determined 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 in E.O. 14312. The President's announcement and
issuance of E.O. 14312 reflect the U.S. Government's commitment to
supporting a Syria that is stable, unified, and at peace with itself
and its neighbors.
In section 6 of E.O. 14312 the President waived the application of
section 5(a)(1) of the SAA with respect to items on the CCL and section
5(a)(2)(A), with respect to the export of items subject to the EAR
apart from EAR99 food and medicine. Additionally, section 7 of the E.O.
waived the sanctions imposed under sections 307(a)(5) and 307(b)(2)(C)
of the CBW Act that had imposed restrictions on the export and reexport
to Syria of items subject to the EAR.
In this final rule, BIS makes changes to the Syria export control
measures in Sec. 746.9 of the EAR consistent with E.O. 14312, in which
the President waived export restrictions that had been required under
the SAA and the CBW Act. BIS in this final rule is also removing
General Order No. 2 to part 746 from the EAR in light of the
President's termination of the national emergency declared in E.O.
13338 and revocation of that E.O. The actions taken by BIS in this
final rule support critical economic activity and stabilization efforts
outlined in E.O. 14312 and align with the U.S. Government's broader
objective of promoting peace, economic security, and prosperity in
Syria.
BIS's regulatory measures in this final rule also complement those
taken recently by the U.S. Department of the Treasury, Office of
Foreign Assets Control (OFAC) to remove certain sanctions on Syria.
Pursuant to E.O. 14312, OFAC removed the Syrian Sanctions Regulations,
31 CFR part 542 (SySR), from the Code of Federal Regulations on August
26, 2025, (90 FR 41505). E.O. 14312 further revokes six Executive
Orders which form the foundation of the Syria sanctions program and
terminates the national emergency underlying those Executive Orders.
Persons designated solely pursuant to these orders have been removed
from OFAC's List of Specially Designated Nationals and Blocked Persons
(SDN List). Certain persons, including Bashar al-Assad and other
destabilizing regional actors, remain on the SDN List due to their
designation under separate sanctions authorities. These changes follow
Syria General License 25 of May 23, 2025, ``Authorizing Transactions
Prohibited by the Syrian Sanctions Regulations or Involving Certain
Blocked Persons,'' and the Department of State's related waiver of the
Caesar Syria Civilian Protection Act on May 23, 2025, that generally
authorize transactions with the Government of Syria and certain Syria
SDNs that would otherwise be prohibited under the SySR as well as
various other sanctions authorities.
As a general matter, E.O. 14312 does 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. Notably, certain individuals and entities that have
participated in or otherwise supported malign and destabilizing actions
in Syria, including by supporting the former regime of Bashar al-Assad,
continue to be designated on the SDN List and transactions involving
these persons and entities may remain subject to license requirements
from BIS pursuant to Sec. 744.8 of the EAR.
C. Overview of This Final Rule
In this final rule, BIS makes changes to the export control
measures for Syria under the EAR. The three sets of changes being made
are described in section II as follows:
[[Page 42317]]
A. Addition of new or expanded license exception eligibility for
exports and reexports to Syria;
B. Adoption of more permissive license review policies for exports
and reexports to Syria; and
C. Other conforming and streamlining updates, including removal of
provisions that are obsolete, e.g., General Order No. 2.
II. Amendments to the EAR
Specific changes to the EAR that are being made by this final rule
are as follows:
A. Addition of New or Expanded License Exception Eligibility for
Exports and Reexports to Syria
This final rule expands the eligibility of EAR license exceptions
for Syria by adding a new license exception for Syria called License
Exception Syria Peace and Prosperity (SPP) under Sec. 740.5, amending
the scope of existing License Exception Consumer Communications Devices
(CCD) under Sec. 740.19 to add Syria to the country scope, and making
additional paragraphs of existing license exceptions available for
exports and reexports to Syria. Additional license exception
eligibility will authorize exports and reexports to Syria under the EAR
consistent with U.S. national security and foreign policy interests and
align with the E.O. 14312's objective to support peace, stability,
security, and prosperity in Syria.
1. Changes to part 740 (License exceptions), to add new or expanded
license exception eligibility for exports and reexports to Syria.
i. Addition of new License Exception Syria Peace and Prosperity
(SPP). In Sec. 740.5, currently reserved, this final rule changes the
section to add License Exception SPP. New License Exception SPP will
authorize exports and reexports to Syria of all items designated
``EAR99'' subject to the terms and conditions therein and the general
restrictions set forth under Sec. 740.2 of the EAR. In Sec. 740.5(a)
(Scope) of License Exception SPP, this final rule specifies that this
license exception will overcome license requirements for the export or
reexport of all items designated ``EAR99.'' Items designated ``EAR99''
are items subject to the EAR but not specifically described on the CCL
in an ECCN.
In Sec. 740.5(b) (Restrictions), this final rule adds this
paragraph to specify that License Exception SPP does not authorize
exports or reexports prohibited under a part 744 end-use or end-user
control, including under Sec. 744.8 for transactions involving persons
designated on OFAC's SDN List with certain identifiers specified under
Sec. 744.8(a)(1), unless authorized under an OFAC specific license or
general license or are exempted under OFAC's regulations.
This final rule as a conforming change adds a reference to License
Exception SPP in Sec. 746.9(b)(1) to specify that it is an available
license exception for Syria, provided that the export or reexport is
not otherwise restricted under Sec. 740.2 and meets all the terms and
conditions of License Exception SPP.
ii. Expansion of existing License Exception CCD to add Syria to the
country scope. In Sec. 740.19 Consumer Communications Devices (CCD),
this final rule revises this section to add Syria as an eligible
destination under the terms of Sec. 740.19(a). In Sec. 740.19(b)
(Eligible commodities and software), this final rule revises this
paragraph to indicate that all commodities and software described in
Sec. 740.19(b) are eligible for export or reexport to Syria pursuant
to the terms of Sec. 740.19. In Sec. 740.19(c)(1) (Organizations),
which establishes eligible and ineligible organizations for
transactions pursuant to the terms of CCD, this final rule modifies
this paragraph to indicate that CCD does not restrict eligibility to
any end user in Syria. However, CCD cannot authorize transactions that
require a license under part 744 of the EAR or with persons that are
sanctioned under programs administered by another agency, including the
Departments of State and the Treasury. 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 Sec. 744.8(a)(1), unless authorized by OFAC or exempt.
Notably, members of the former regime of Bashar al-Assad may be
designated on the SDN List under various program identifiers.
This final rule as a conforming change adds a reference to License
Exception CCD in Sec. 746.9(b)(8) to specify that it is an available
license exception for Syria, provided that the transaction is not
otherwise restricted under Sec. 740.2 and meets all the applicable
terms and conditions of License Exception CCD.
iii. Revision to License Exception AVS to specify that only EAR99
and AT-only ECCNs are eligible under License Exception AVS. In Sec.
740.15 (License Exception AVS, for Aircraft, Vessels and Spacecraft)
under paragraph (b)(4), this final rule revises this paragraph to
ensure that only items designated as EAR99 or controlled on the CCL
only for anti-terrorism reasons are eligible to be sent to Syria under
paragraph (b) of License Exception AVS. This revised text is intended
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 the required notification to Congress,
consistent with 50 U.S.C. 4813(c)(2). This final rule also adds a Note
to paragraph (b)(4) to specify that for purposes of paragraph (b)(4),
ECCNs 2B999, 3A991, 4A994, 5A992 (except for .z), and 9A991 are treated
as ECCNs controlled exclusively for AT reasons.
This final rule as a conforming change adds a reference to License
Exception AVS in Sec. Sec. 746.9(b)(4) to specify that it is an
available license exception for Syria, provided that the transaction is
not otherwise restricted under Sec. 740.2 and meets all the applicable
terms and conditions of License Exception AVS.
2. Revising the general restriction on the use of EAR license
exceptions for Syria in Sec. 746.9(b) to allow for additional license
exception eligibility for exports and reexports to Syria. In Sec.
746.9(b) (License exceptions), this final rule revises this paragraph
to expand the scope of available license exceptions for exports and
reexports to Syria and renumbers the paragraphs as follows:
i. Section 746.9(b)(1)--Newly added License Exception SPP
eligibility paragraph for Syria. This final rule replaces the reference
to License Exception Temporary imports, exports, reexports, and
transfers (in-country) (TMP) in (b)(1) with a reference to new License
Exception Syria Peace and Prosperity (SPP) pursuant to new Sec. 740.5
of the EAR.
ii. Section 746.9(b)(2)--Newly redesignated and expanded License
Exception TMP eligibility paragraph for Syria. Prior to this final
rule, TMP for Syria was available solely for items for use by the news
media (see Sec. 740.9(a)(9)). This final rule expands the scope of
TMP's eligibility for Syria-destined items. Specifically, it adds
certain technology pursuant to the provisions in Sec. 740.9(a)(3),
shipping containers pursuant to the provisions Sec. 740.9(a)(7),
certain exports to a U.S. person's foreign subsidiary, affiliate, or
facility abroad pursuant to Sec. 740.9(a)(10), and certain personal
protective ``equipment'' pursuant to the provisions of Sec.
740.9(a)(11)(ii) of the EAR. In connection with this expansion, BIS
makes conforming changes, including by placing the contents of TMP-
related text in (b)(2).
iii. Section 746.9(b)(3)--Newly added License Exception RPL
eligibility
[[Page 42318]]
paragraph for Syria. This final rule replaces the reference to
Technology and software--unrestricted (TSU) in (b)(3) and adds License
Exception Servicing and replacement of parts and equipment (RPL)
pursuant to the provisions of Sec. 740.10(a) of the EAR. This final
rule states that RPL is not available for exports or reexports that
support the Syrian police, military, or intelligence end users or end
uses pursuant to supplement no. 2 to part 742. In practical terms, this
means that the license exception may not be used for items on the CCL
when destined to Syrian police, military, or intelligence end users or
end uses.
iv. Section 746.9(b)(4)--Newly redesignated and expanded License
Exception GOV eligibility paragraph for Syria. This final rule broadens
the eligibility for exports and reexports to Syria under Sec. 740.11,
Governments, international organizations, international inspections
under the Chemical Weapons Convention, and the International Space
Station (GOV) to enable operations of certain cooperating governments
and inspections under the Chemical Weapons Convention. As a conforming
change, it replaces the reference to License Exception Baggage (BAG) in
(b)(4) with the reference to GOV formerly for personal or official use
by personnel and agencies of the U.S. Government as set forth in Sec.
740.11(b)(2) (formerly in Sec. 746.9(b)(2)). Specifically, the
availability of the license exception is broadened by retaining the
U.S. Government authorization for Syria under paragraph (b)(2), but
revises the text to specify that all of the authorizing paragraphs
under Sec. 740.11(b)(2), including (b)(2)(iii)-(vii), are available
for Syria, not just Sec. 740.11(b)(2)(i) and (ii).
The revision to this text will clarify that exports or reexports
made for or on behalf of a department or agency of the U.S. Government
pursuant to Sec. 740.11(b)(2)(iii), items exported at the direction of
the U.S. Department of Defense or the Department of Energy pursuant to
Sec. 740.11(b)(2)(iv), items sold, leased, or loaned by the U.S.
Department of Defense to a foreign country or international
organization pursuant to the Arms Export Control Act or the Foreign
Assistance Act of 1961 pursuant to Sec. 740.11(b)(2)(v), transfer of
technology in furtherance of a contract between the exporter and an
agency of the U.S. Government, if the contract provides for such
technology and the technology is not ``development'' or ``production''
technology for ``600 series'' items pursuant to Sec. 740.11(b)(2)(vi),
microelectronics items in furtherance of a contract between the
exporter or reexporter and a department or agency of the U.S.
Government, if the contract provides for such export or reexport of the
microelectronics item by the exporter or reexporter pursuant to Sec.
740.11(b)(2)(vii), and exports or reexports to ``Cooperating
Governments and the North Atlantic Treaty Organization'' pursuant to
the provisions of Sec. 740.11(c) and items for international
inspections under the Chemical Weapons Convention pursuant to Sec.
740.11(d) of the EAR are authorized for Syria under License Exception
GOV.
v. Section 746.9(b)(5)--Newly redesignated and expanded License
Exception TSU eligibility paragraph for Syria. This final rule replaces
the reference to AVS in (b)(5) with the reference to License Exception
Technology and software--unrestricted (TSU). Prior to this final rule,
BIS had allowed under this license exception operation technology and
software, sales technology, and software updates pursuant to the terms
TSU in Sec. 740.13(a), (b), or (c) formerly in (b)(3). This final rule
broadens the eligibility for Syria by adding copies of technology
previously authorized for export to the same recipient pursuant to
Sec. 740.13(g) of the EAR.
vi. Section 746.9(b)(6)--Newly redesignated, but not expanded,
License Exception BAG eligibility paragraph for Syria. This final rule
moves the reference to BAG for exports of personally-owned items by
individuals leaving the United States as personal baggage pursuant to
the terms of Sec. 740.14(a) through (d) formerly in (b)(4) to new
section (b)(6). The scope and applicability of License Exception BAG
for Syria as set out in Sec. 740.14 remains unchanged.
vii. Section 746.9(b)(7)--Newly redesignated and expanded License
Exception AVS eligibility paragraph for Syria. Prior to this final
rule, License Exception AVS was only available for foreign flagged/
owned/operated aircraft reexported to Syria on temporary sojourn
pursuant to the terms of Sec. 740.15(a)(4). This final rule broadens
the eligibility for Syria to authorize vessels and U.S. flagged
aircraft. This final rule implements this change by expanding License
Exception AVS eligibility to 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 pursuant to
the terms of Sec. 740.15(a)-(d) of the EAR. BIS notes that the
expansion of the availability of this license exception is not intended
to authorize any operations by U.S. registered civil aircraft in Syria
pursuant to regulatory regimes other than the EAR, e.g., rules or
regulations issued by the Federal Aviation Administration (FAA). As a
conforming change, this final rule moves the reference to License
Exception AVS from (b)(5) into new paragraph (b)(7).
Significantly, License Exception AVS is available subject to the
restriction that the transaction will not support the Syrian police,
military, or intelligence end users and end uses pursuant to supplement
no. 2 to part 742. As described above, License Exception AVS is also
being amended to ensure that equipment and spare parts are only
authorized to Syria--including to aircraft registered in Syria, or
controlled, leased, or chartered by a Syrian national--under AVS if
they are designated as EAR99 or controlled on the CCL for anti-
terrorism reasons only. Other equipment and spare parts destined to
Syria must be licensed by BIS and will be reviewed consistent with the
requirements in 50 U.S.C. 4813(c).
viii. Sec. 746.9(b)(8)--Newly added License Exception CCD
eligibility paragraph for Syria. This final rule adds new paragraph
(b)(8) for the export or reexport of certain consumer communications
devices pursuant to the provisions of CCD in Sec. 740.19.
B. Adoption of More Permissive License Review Policies for Exports and
Reexports to Syria
In Sec. 746.9(c) (Licensing policy), this final rule revises
licensing policies to align them with the Administration's policy
objectives as set forth in the President's May 13, 2025, announcement
and in E.O. 14312 by adopting more permissive license review policies
under paragraphs (c)(1) and (2). These more permissive license review
policies will allow for additional exports and reexports to be approved
for Syria under the EAR that are consistent with U.S. national security
and foreign policy interests and align with the E.O. 14312's objective
to support peace, stability, security, and prosperity in Syria.
1. Adoption of presumption of approval licensing policy for certain
end uses. In Sec. 746.9(c)(1), this final rule revises 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.
2. Adoption of case-by-case licensing policy for other end uses. In
Sec. 746.9(c)(1), this final rule removes the general policy of denial
that had applied
[[Page 42319]]
to most categories of CCL items consistent with the SAA's restrictions
apart from the categories of items subject to case-by-case review prior
to this final rule under Sec. 746.9(c)(2) due to the exercise of
waiver authority. Items on the CCL will now be reviewed under the
presumption of approval as described in paragraph (c)(1) or on a case-
by-case basis as described in paragraph (c)(2) to determine whether
approval would be in the national security and foreign policy interests
of the United States. Specifically, items on the CCL that will be
reviewed under the presumption of approval as described in paragraph
(c)(1) are those 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.
Items on the CCL will also be reviewed according to the license
review policies for the items set out in relevant sections of part 742,
with the exception of Sec. 742.9, which is superseded by Sec. 746.9,
as described in Sec. 742.9(e). All end-use and end-user controls set
out in part 744 of the EAR, as applicable, will continue to apply.
Additionally, this final rule does not make changes to provisions of
the EAR that specify requirements that are based upon Syria's
designation as a State Sponsor of Terrorism.
When it is determined that an export or reexport 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, the Secretaries of State and
Commerce will notify the Congress 30 days prior to issuance of a
license, consistent with 50 U.S.C. 4813(c)(2). Consistent with the
Secretary of State's December 28, 1993, determination, and as described
in supplement no. 2 to part 742 of the EAR, the export of certain items
destined to Syrian military, police, intelligence or other sensitive
end-users and end uses will trigger this notification requirement.
Exports of EAR99 items or items controlled only for anti-terrorism
reasons generally will not trigger this requirement.
C. Other Conforming and Streamlining Updates, Including Removal of
Provisions That Are Obsolete, e.g., General Order No. 2
1. Removal of obsolete references to the SAA and adding a cross
reference to see Sec. 746.9 for Syria. In Sec. 746.1(a)(3) (Syria),
this final rule revises this paragraph to remove all references to the
SAA and replaces the language with a simple cross reference to Sec.
746.9 of this part, which sets forth the specific license requirements,
licensing policy and license exceptions applicable to Syria.
2. Removal of General Order No. 2. In supplement no. 1 to part 736
(General Orders) under paragraph (b) (General Order No. 2), this final
rule removes General Order No. 2 and reserves paragraph (b). This final
rule also makes the following three conforming changes in other parts
of the EAR:
In Sec. 746.1(a)(3) (Syria), this final rule removes the reference
to General Order No. 2.
In Sec. 746.9 introductory text, this final rule removes the
reference to General Order No. 2. and the rest of the introductory text
to Sec. 746.9 that referred to legal authorities that are no longer
applicable. Lastly, in Sec. 746.9, this final rule deletes the Note to
Sec. 746.9 that provided a cross reference to General Order No. 2.
3. Removal of reference to certain items not subject to the EAR
being outside the scope of Sec. 746.9 license requirements. In Sec.
746.9(c)(3), this final rule removes this paragraph because it is not
needed. The limitation is already addressed under the exclusions from
the scope of the EAR under part 734 of the EAR as well as under Sec.
746.9(a) (License requirements), which specifies that the license
requirements for Syria apply to items ``subject to the EAR'' as
described in paragraph (a).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included ECRA (codified, as amended, at 50 U.S.C. 4801-4852). ECRA
provides the legal basis for BIS's principal authorities and serves as
the authority under which BIS issues this rule. In particular, and as
noted elsewhere, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the
regulation of exports, reexports, and transfers (in-country) of items
subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA
(50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, the establishment
of a list of controlled items; the prohibition of unauthorized exports,
reexports, and transfers (in-country); the requirement of licenses or
other authorizations for exports, reexports, and transfers (in-country)
of controlled items; apprising the public of changes in policy,
regulations, and procedures; and any other action necessary to carry
out ECRA that is not otherwise prohibited by law. Pursuant to Section
1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in a
final rule without prior notice and comment.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders (E.O.) 12866 and 13563, which direct agencies to
assess all costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (e.g., potential economic, environmental, public,
health, and safety effects, distributive impacts, and equity). Pursuant
to E.O. 12866, this final rule has been determined to be a
``significant regulatory action'' and has been reviewed by the Office
of Information and Regulatory Affairs. This rule is exempt from the
requirements of E.O. 14192, because it is being issued with respect to
a national security function of the United States, per section 5(a) of
E.O. 14192.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) Control Number. This rule
involves the following OMB-approved collections of information subject
to the PRA:
<bullet> 0694-0088, ``Simple Network Application Process and
Multipurpose Application Form,'' which carries a burden hour estimate
of 29.4 minutes for a manual or electronic submission;
<bullet> 0694-0096 ``Five Year Records Retention Period,'' which
carries a burden hour estimate of less than 1 minute; and
<bullet> 0607-0152 ``Automated Export System (AES) Program,'' which
carries a burden hour estimate of 3 minutes per electronic submission.
BIS estimates that these regulatory changes related to Syria under
the EAR that involve the expanded availability of license exceptions
will result in a reduction of 414 license applications submitted
annually to BIS. The reduced burden falls within the existing
[[Page 42320]]
estimates associated with these control numbers and should not be used
as an estimate for the number of anticipated future exports and
reexports to Syria under these license exceptions because the expanded
license exception availability will encourage exporters and reexporters
who may have avoided doing business with Syria because of the
restrictive export controls that had been in place under the EAR.
Additional information regarding these collections of information--
including all background materials--can be found at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search function to enter
either the title of the collection or the OMB Control Number.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. Pursuant to section 1762(a) of ECRA (50 U.S.C. 4821), this
action is exempt from the Administrative Procedure Act (APA) (5 U.S.C.
553) requirements for notice of proposed rulemaking, opportunity for
public participation, and delay in effective date.
5. Because neither the Administrative Procedure Act nor any other
law requires that notice of proposed rulemaking and an opportunity for
public comment be given for this rule, the analytical requirements of
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not
applicable. Accordingly, no Final Regulatory Flexibility Analysis is
required, and none has been prepared.
List of Subjects
15 CFR Part 736
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports and Reporting and
recordkeeping requirements.
15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
Accordingly, parts 736, 740, and 746 of the Export Administration
Regulations (15 CFR parts 730 through 774) is amended as follows:
PART 736--GENERAL PROHIBITIONS
0
1. The authority citation for part 736 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of November 7, 2024,
89 FR 88867 (November 8, 2024); Notice of May 7, 2025, 90 FR 19619
(May 9, 2025).
0
2. Supplement no. 1 to part 736 is amended by removing and reserving
paragraph (b).
PART 740--LICENSE EXCEPTIONS
0
3. The authority citation for part 740 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228.
0
4. Add section 740.5 to read as follows:
Sec. 740.5 License Exception Syria Peace and Prosperity (SPP)
(a) Scope. License Exception SPP authorizes the export or reexport
of all items subject to the EAR designated EAR99 to Syria.
(b) Restrictions. This license exception does not authorize exports
or reexports, which otherwise require a license under any part 744 end-
use or end-user control, including under Sec. 744.8 for transactions
involving persons designated on OFAC's Specially Designated Nationals
and Blocked Persons List with certain identifiers specified under Sec.
744.8(a)(1), unless authorized by OFAC or exempt.
0
5. Section 740.15 is amended by revising paragraph (b)(4) to read as
follows:
Sec. 740.15 Aircraft, vessels and spacecraft (AVS).
* * * * *
(b) * * *
(4) Cuba and Syria. Only items designated as EAR99 or controlled on
the Commerce Control List (CCL) (supplement no. 1 to part 774 of the
EAR) solely for anti-terrorism reasons (i.e., anti-terrorism must be
the only reason for control that applies to the item as set forth in
the Export Control Classification Number (ECCN) that controls the item)
are eligible for export or reexport to Cuba or Syria pursuant to this
paragraph (b).
Note to paragraph (b)(4): For purposes of paragraph (b)(4),
ECCNs 2B999, 3A991, 4A994, 5A992 (except for .z), and 9A991 are
treated as ECCNs controlled exclusively for AT reasons.
* * * * *
0
6. Section 740.19 is amended by:
0
a. Revising paragraph (a);
0
b. Revising the paragraph (b) introductory text; and
0
c. Revising the first sentence of paragraph (c)(1)(i).
The revisions read as follows:
Sec. 740.19 Consumer Communications Devices (CCD).
(a) Authorizations. This section authorizes the export, reexport,
or transfer (in-country) of commodities and software to Belarus, Cuba,
Russia, and Syria subject to the requirements stated in this section.
This section does not authorize U.S.-owned or controlled entities in
third countries to engage in reexports of foreign produced commodities
to Cuba for which no license would be issued by the Department of the
Treasury pursuant to 31 CFR 515.559.
(b) Eligible commodities and software. Commodities and software in
paragraphs (b)(1) through (8) of this section are eligible for export,
reexport, or transfer (in-country) under this section to and within
Belarus, Cuba, Russia, and Syria. Commodities and software in
paragraphs (b)(9) through (18) of this section are eligible for export
reexport, or transfer (in-country) to Cuba or Syria only.
* * * * *
(c) * * *
(1) * * *
(i) The license exception in this section may be used to export,
reexport, or transfer (in-country) eligible commodities and software to
Syria or to and for the use of independent non-governmental
organizations in Belarus, Cuba, or Russia.
* * * * *
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
0
7. The authority citation for part 746 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899;
Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp.,
p. 320; Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 2006
Comp., p. 325; Pub. L. 118-50; E.O. 14312.
0
8. Section 746.1 is amended by revising paragraph (a)(3) to read as
follows:
Sec. 746.1 Introduction.
(a) * * *
(3) Syria. Section 746.9 of this part sets forth the specific
license requirements, licensing policy and license exceptions
applicable to Syria.
* * * * *
0
9. Section 746.9 is amended by:
0
a. Removing the introductory text to the section;
[[Page 42321]]
0
b. Revising paragraphs (b) and (c); and
0
c. Removing the Note to Sec. 746.9.
The revisions read as follows:
Sec. 746.9 Syria.
* * * * *
(b) License Exceptions. No License Exceptions to the license
requirements set forth in paragraph (a) of this section are available
for exports or reexports to Syria, except the following:
(1) SPP for the export or reexport of ``EAR99'' items pursuant to
Sec. 740.5;
(2) TMP for technology pursuant to the provisions in Sec.
740.9(a)(3), containers pursuant to the provisions in Sec.
740.9(a)(7), items for use by the news media pursuant to Sec.
740.9(a)(9), exports to a U.S. person's foreign subsidiary, affiliate,
or facility abroad pursuant to Sec. 740.9(a)(10), and personal
protective ``equipment'' pursuant to the provisions of Sec. 740.9
(a)(11)(ii) of the EAR;
(3) RPL pursuant to the provisions of Sec. 740.10(a) of the EAR,
provided that such exports will not support the Syrian police,
military, or intelligence sensitive end users or uses pursuant to
supplement no. 2 to 742;
(4) GOV for exports or reexports under the United States Government
authorization pursuant to Sec. 740.11(b)(2), exports, reexports and
transfers (in country) to ``Cooperating Governments and the North
Atlantic Treaty Organization'' pursuant to the provisions of 740.11(c),
and items for international inspections under the Chemical Weapons
Convention pursuant to 740.11(d) of the EAR;
(5) TSU for operation technology and software, sales technology,
and software updates pursuant to the terms in Sec. 740.13(a), (b),
(c), and (g) of the EAR;
(6) BAG for exports of personally-owned items by individuals
leaving the United States as personal baggage pursuant to the terms of
Sec. 740.14(a) through (d) of the EAR;
(7) AVS for 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 pursuant to the
terms of Sec. 740.15(a) through (d) of the EAR provided that such
export, reexport, or transfer (in-country) will not support the Syrian
police, military, or intelligence end-users or end uses pursuant to
Supp 2 to 742; and
(8) CCD for the export or reexport of consumer communications
devices pursuant to the provisions in Sec. 740.19.
(c) Licensing policy. (1) Presumption of approval licensing policy
for certain commercial end uses and to support the Syrian people.
License applications for exports and reexports of items on the CCL to
Syria will be reviewed under a presumption of approval review policy
for 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) Case-by-case licensing policy. License applications for exports
and reexports of items on the CCL to Syria that are not described in
paragraph (c)(1) of this section will be reviewed on a case-by-case
basis 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.
Note 1 to paragraphs (c)(1) and (2): Items on the CCL will also
be reviewed according to the license policies for the items set out
in relevant sections of part 742 with the exception of items
controlled for Anti-terrorism (AT). For AT items, see Sec.
746.9(c). All end-use and end user controls set out in part 744 of
the EAR will continue to apply.
Julia A. Khersonsky,
Deputy Assistant Secretary for Strategic Trade.
[FR Doc. 2025-16724 Filed 8-28-25; 11:15 am]
BILLING CODE 3510-33-P
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