Skip to stories
National edition Independent news

The Union Press

Law & Regulation

U.S. extends pause on 50% export controls rule for affiliates

The Commerce Department extended the stay to January 10, 2027. An example with two listed owners shows what the delay means for an unlisted buyer.

In the bureau’s example, two listed owners hold a combined 50% of a foreign company, reaching the threshold in the suspended rule. · The Union Press
In the bureau’s example, two listed owners hold a combined 50% of a foreign company, reaching the threshold in the suspended rule. · The Union Press

A foreign buyer can be absent from the U.S. Entity List and still be the company an export rule is designed to reach. On November 9, the Commerce Department’s Bureau of Industry and Security extended its stay of the Affiliates Rule to January 10, 2027. The stay covers the amendments that would automatically extend certain export restrictions to foreign companies based on who owns them. November 9 final rule.

The previous stay was set to end November 9, 2026. The bureau’s 2025 rule had scheduled the affiliate restrictions to return November 10. The new stay took effect November 9 and pushed that return back. January 10 is the date in the new rule and could change if the bureau extends the stay again. 2025 suspension · 2026 extension.

The ownership calculation shows why an exporter would need to look beyond the buyer’s name if the rule returns. In an example in the original rule, one company on the Entity List owns 35% of a foreign company and another owns 15%. The stakes add up to 50%, enough to trigger the rule’s affiliate provisions. Where the two owners have different Entity List license requirements, the stricter requirements apply under the rule. The stay postpones that automatic extension based on the ownership stakes. Original Affiliates Rule, example on pages 47204–47205 · 2026 extension.

Existing licensing rules still matter for the same sale. If a listed owner is itself a party to the transaction, its Entity List entry can require a license for an item subject to the Export Administration Regulations. The item, destination and intended use can also trigger controls. A search that turns up no listing for the buyer answers only one part of the licensing question. Entity List licensing provision · General export prohibitions.

This post is available in the following languages: