BIS Extends Suspension of the Affiliates Rule (50 Percent Rule) Until January 10, 2027

Written by Michael Ford, International Operational Trade Consultant, Tradebridge Consulting

The Bureau of Industry and Security (BIS) has extended the suspension of its Affiliates Rule until January 10, 2027. The final rule (stay), FR Doc. 2026-22793, is on public inspection now and publishes in the Federal Register on November 9, 2026. The suspension was set to end on November 9, so this pushes it out about two more months.

Link to notice will be included once published on November 9, 2026.

Background

BIS issued the Affiliates Rule as an interim final rule on September 30, 2025 (90 FR 47201). It was stayed for one year on November 10, 2025 (90 FR 50857), following the October 2025 U.S.-China trade truce. BIS did not give a reason for this latest extension in the notice.

When in effect, the rule extends the license requirements and license exception limits that apply to parties on the Entity List and the Military End-User (MEU) List to any entity owned 50 percent or more, individually or in the aggregate, by one or more listed parties. That includes indirect ownership, and it applies whether or not the affiliate appears on a list itself.

BIS did not consider the public comments on the original rule in this action.

What exporters should do now

1. Keep screening. The automatic extension of restrictions to 50 percent owned affiliates is paused, but parties on the Entity List and MEU List are still restricted. Red flag and know-your-customer expectations under the EAR didn’t go away either. If you know or have reason to know a counterparty is tied to a listed party, treat that as a risk now, not in January.
2. Check your screening tool against the 50 percent aggregate test. Many tools only flag a single owner at 50 percent or more. The rule counts several listed owners added together. Ask your software vendor whether the tool can do that, and whether it’s pulling ownership data deep enough to catch indirect holdings.
3. Map your exposure. Run your customers, distributors, resellers, freight forwarders, and end users, especially in China and Hong Kong, against ownership data. Make a list of the ones with any ownership link to a listed party, even a small one.
4. Look at what ships near and after January 10. Review open orders, long-lead contracts, and service or support commitments that fall on or after that date. If a counterparty could become restricted overnight, you need to know which shipments and licenses would be affected before it happens.
5. Update contracts and order terms. Consider language that lets you hold, delay, or cancel shipments if a counterparty becomes restricted, and make sure your customers have to tell you about ownership changes.
6. Don’t plan on another extension. It may happen, but BIS hasn’t said so. Set an internal date in early December to decide what you’ll do if the rule returns on schedule.
7. Document everything. Write down your screening process, ownership checks, and the decisions you make on flagged parties. If BIS ever asks, that record is what shows you acted in good faith.
8. Watch for updates. Keep an eye on the Federal Register and the BIS website for a further extension, a revised rule, or guidance. BIS’s contact on the notice is Noah Jaffe, [email protected].