BIS Issues General Order No. 2 to Implement Export Sanctions Against Syria

(On May 11, 2004, President Bush issued Executive Order (EO) 13338 which implements the Syria Accountability and Lebanese Sovereignty Act of 2003 (Public Law (P.L. 108-175)). Among other things, EO 13338 generally prohibited the exportation or reexportation to Syria of (1) any item on the Commerce Control List (CCL), or (2) any product of the U.S. subject to the EAR except for food and medicine. According to BIS, General Order No. 2 implements P.L. 108-175 and is consistent with EO 13338. See ITT's Online Archives or 05/13/04 news, 04051305, for BP summary of EO 13338.)

Revocation of Authority to Export Under Existing Licenses

Effective May 14, 2004, the authority to export or reexport to Syria under existing licenses is revoked (see below for details on a "grace period" for certain pending exports).

According to BIS, license conditions requiring written U.S. Government authorization for the reexport, transfer, or resale of items already exported or reexported remain in effect, and requests for BIS authorization to reexport, transfer, or sell such items will require interagency approval.

"Grace period" for exports on dock for loading, on lighter, laden aboard, etc. BIS states that items that are on dock for loading, on lighter, laden aboard an exporting carrier or en route aboard a carrier to a port of export on May 14, 2004, shall be subject to the licensing rules applicable to such items as of May 13, 2004. Any such items not actually exported or reexported before midnight May 28, 2004, may be exported or reexported only if authorized pursuant to General Order No. 2.

License Requirements

Effective May 14, 2004, a license is required for export or reexport to Syria of all items subject to the EAR, except food and medicine classified as EAR99 (medicine is defined in 15 CFR part 772).

A license is also required for the "deemed export" and "deemed reexport" as described in 15 CFR 734.2(b), of any technology or source code on the CCL to a Syrian foreign national.

However, "deemed exports" and "deemed reexports" involving technology or source code subject to the EAR but not listed on the CCL do not require a license to Syrian foreign nationals.

License Exceptions

Effective May 14, 2004, no License Exceptions to the license requirements set forth above are available for exports or reexports to Syria, except the following:

TMP for items for use by the news media as set forth in 15 CFR 740.9(a)(2)(viii);

GOV for items for personal or official use by personnel and agencies of the U.S. Government as set forth in 15 CFR 740.11(b)(2)(i) and (ii);

TSU for operation technology and software, sales technology and software updates pursuant to the terms of 15 CFR 740.13(a), (b), or (c);

BAG for exports of items by individuals leaving the U.S. as personal baggage pursuant to the terms of 15 CFR 740.14 (a) through (d) only; and

AVS for the temporary sojourn of civil aircraft reexported to Syria pursuant to the terms of 15 CFR 740.15(a)(4).

Licensing Policy

According to BIS, all license applications for export or reexport to Syria are subject to a general policy of denial.

However, BIS states that license applications for "deemed exports" and "deemed reexports" of technology and source code will be reviewed on a case-by-case basis.

In addition, BIS states that it may consider, on a case-by-case basis, license applications for exports and reexports of items necessary to carry out the President's constitutional authority to conduct U.S. foreign affairs and as Commander-in-Chief, including those exports and reexports of items necessary for the performance of official functions by the U.S. Government personnel abroad.

BIS may also consider the following license applications on a case-by-case basis:

items in support of activities, diplomatic or otherwise, of the U.S. Government (to the extent that regulation of such exportation or reexportation would not fall within the President's constitutional authority to conduct the nation's foreign affairs);

medicine (on the CCL) and medical devices (both as defined in 15 CFR part 772);

parts and components intended to ensure the safety of civil aviation and the safe operation of commercial passenger aircraft;

aircraft chartered by the Syrian Government for the transport of Syrian Government officials on official Syrian Government business;

telecommunications equipment and associated computers, software and technology; and

items in support of United Nations operations in Syria.

According to BIS, the total dollar value of each approved license for aircraft parts for flight safety normally will be limited to no more than $2 million over the 24-month standard license term, except in the case of complete overhauls.

License applications currently pending with BIS. In a set of frequently asked questions (FAQ) regarding the Syria sanctions, BIS states that it is reviewing all pending applications requesting authorization to export or reexport to Syria.

BIS states that it will return without action (RWA) those applications that are ineligible for consideration pursuant to the licensing parameters in General Order No. 2.

Applications that qualify for consideration will be subject to interagency review and recommendation. BIS states that it will complete the processing of these applications as quickly as possible, starting with the oldest applications.

Exceptions to General Order No. 2

In addition, consistent with 15 CFR part 734, the following are not subject to General Order No. 2:

informational materials in the form of books and other media;

publicly available software and technology; and

technology exported in the form of a patent application or an amendment, modification, or supplement thereto or a division thereof (see 15 CFR 734.3(b)(1)(v), (b)(2) and (b)(3)).

- written comments may be submitted

BIS contact - Eileen Albanese (202) 482-0436

BIS final rule (D/N 040108007-4007-01, FR Pub 05/14/04) available at

http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-11059.pdf.

BIS FAQs on Syria available at

http://www.bis.doc.gov/Licensing/SyriaFAQ_May14_04.htm.

BIS implementation guidance for Syria available at

http://www.bis.doc.gov/Licensing/SyriaImplementationMay14_04.htm.