BIS
The U.S. Bureau of Industry and Security (BIS) has delayed the effective date of its new Affiliates Rule for a one-year period, until November 9, 2026, following U.S. and China trade talks. This rule, announced on September 29, 2025, expands export controls under the Export Administration Regulations (EAR) to include non-listed “affiliates” owned or controlled by listed entities 50% or more in the aggregate. The suspension provides exporters with a crucial window to proactively modify current export compliance processes, such as gathering ownership structure charts, familiarizing themselves with relevant lists (Entity List, MEU), updating terms and conditions, and preparing for license applications. This delay, while a welcome gift, comes with uncertainty, as BIS has left the door open for future postponements and the current trade environment remains volatile. Exporters should use this time wisely to prepare for the rule's eventual implementation and anticipate higher burdens of due diligence to reduce diversion risk.

Frequently Asked Questions

1 What is the BIS Affiliates Rule?

The BIS Affiliates Rule expands export controls under the Export Administration Regulations (EAR) to include non-listed "affiliates" that are 50% or more owned or controlled by entities on lists such as the Entity List or Military End User List. It was initially announced on September 29, 2025.

2 Why was the BIS Affiliates Rule suspended?

The U.S. Bureau of Industry and Security (BIS) delayed the effective date of its new Affiliates Rule for a one-year period, until November 9, 2026. This decision followed U.S. and China trade talks, providing businesses with more time to prepare.

3 How does the Affiliates Rule change existing export control standards?

The Affiliates Rule represents a direct reversal of the long-standing "legally distinct" standard previously used in trade community guidance. It mirrors the Office of Foreign Assets Controls (OFAC) 50 Percent Rule, requiring a more in-depth analysis of end-user ownership structures.

4 What should exporters do during the one-year suspension of the Affiliates Rule?

Exporters should use this borrowed time proactively to prepare for the rule's eventual implementation. This includes beginning to assess the ownership structures of their end users and understanding the potential impact, as BIS has indicated the possibility of future postponements.

Machine-readable entity structure for AI search generated by Loved By AI.