[Editor’s Note: The following update is authored by Kirkland & Ellis LLP]
At the end of July, U.S. administering authorities for economic sanctions and export control regulations took actions to expand the potential for U.S. and other companies to export and reexport certain items to Syria and Iran. Such actions are particularly notable in the current political environment in which U.S. authorities have continuously expanded sanctions and other restrictions with regard to exports and other transactions related to these two countries. U.S. authorities, however, have described the recent liberalization as consistent with U.S. national security and other policy aims. These actions are intended to allow the provision of important assistance to the ordinary people of these countries who have suffered under the current governmental regimes, which are primary targets of U.S. punitive international trade measures. U.S. and other companies in numerous sectors have the potential to benefit from these latest actions.
Additional Items Eligible for Export and Reexport Under License to Syria
Effective July 23, 2013, U.S. and non-U.S. companies may seek authorization to supply an expanded array of items in multiple sectors to Syria that previously were subject to a policy of denial under relevant U.S. export control authority.1 The U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) has announced that it will review license applications for the export or reexport of items “necessary for the support of the Syrian people” on a case-by-case basis. In applying for such a license, applicants will want to focus on how the exports or reexports would address “critical needs” of the Syrian people and “facilitate reconstruction in Syria,” as well as their contribution to supporting the national security interests of the United States. Items that are eligible for potential export or reexport under this new authority include, but are not limited to, commodities, software and technology related to water supply and sanitation, agricultural production and food processing, power generation, oil and gas production, construction and engineering, transportation, and educational infrastructure. Licenses for Syria previously were issued only for exports and reexports of medical devices and certain telecommunication commodities. Previous waivers already authorized exports and reexports of food and medicine classified as EAR99 to Syria.
This expansion of export authorization, which is aimed at supporting a political transition, restoring stability and countering destabilizing influences in the region, is reflected in amendments to General Order No. 2 and Section 746.9 of the Export Administration Regulations. Such amendments implement a limited waiver of the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 that was published by the Secretary of State on June 12, 2013. Although exporters and reexporters may immediately submit license applications for consideration under the new waiver, it is not yet clear how the waiver will be administered by BIS or how broadly BIS will interpret this authority in terms of the types of products covered by the waiver.
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