The BIS Affiliates Rule returns 10 November 2026: what to do before then
The BIS Affiliates Rule is set to come back into force on 10 November 2026. Under it, any entity at least 50 percent owned, directly or indirectly, individually or in the aggregate, by parties on the Entity List is itself subject to Entity List restrictions, even if it is not named on the list (Federal Register 2025-19846). It applies the same treatment to entities 50 percent owned by listed military end users and certain sanctioned parties (Federal Register 2025-19001). If you export items subject to the EAR, learn who owns your customers before then.
The dates, from the Federal Register
| Date | What happened | Source |
|---|---|---|
| 29 Sep 2025 | Interim final rule takes effect | 2025-19001 |
| 30 Sep 2025 | Rule published, 90 FR 47201 | 2025-19001 |
| 10 Nov 2025 | One-year suspension begins | 2025-19846 |
| 9 Nov 2026 | Suspension is set to end, absent a future extension | 2025-19846 |
| 10 Nov 2026 | The rule's license requirements and related provisions are added back into the EAR | 2025-19846 |
The suspension rule was published on 12 November 2025 (90 FR 50857). It already contains the amendatory instructions that reinstate the Affiliates Rule effective 10 November 2026. A search of the Federal Register on 7 October 2026 found no later rule extending the suspension. Check the suspension notice and BIS before relying on that date.
What the rule does
- Ownership, not listing. A foreign company 50 percent or more owned by listed parties takes on the restrictions of its owners, whether or not it is named (2025-19001).
- The strictest owner wins. An affiliate owned by several restricted parties is subject to the most restrictive license requirements, license exception eligibility and license review policy that apply to any of its owners (2025-19001).
- Unknown ownership is a red flag. If you cannot determine the ownership percentage of a foreign entity owned by one or more listed entities, the rule says you must resolve the red flag, obtain a license from BIS, or identify an available license exception before proceeding (2025-19001).
- Modelled on Treasury. BIS says the 50 percent standard is designed to be consistent with longstanding Treasury practice (2025-19001), which is OFAC's 50 percent rule.
What to do before 10 November
- List every foreign party in your exports: customers, consignees, end users and intermediaries.
- Ask for ownership, with percentages, to the ultimate owners. Note where a customer cannot or will not say: under the rule, that is a red flag to resolve before you ship.
- Screen every owner against the Entity List and Military End User List, using the free Consolidated Screening List, and against OFAC's SDN list.
- Do the arithmetic for any listed owner, direct and indirect, as with OFAC's rule.
- Keep the evidence. Records required by the EAR are kept for five years (15 CFR 762.6).
For the screening itself, see denied party screening for small exporters.
Screen the OFAC side now
Run a free OFAC check on each owner against the SDN and Consolidated lists. Our search does not yet cover the Entity List or Military End User List; use the CSL on Trade.gov for those. This is screening data, not legal advice: read the Federal Register text or ask counsel before deciding whether a license is needed.