BIS IMPOSES One-Year Suspension of the “Affiliates Rule” | ECTI

On November 12, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule in the Federal Register (90 FR 50857) confirming a one-year suspension of the Affiliates Rule, originally issued on September 30, 2025 (90 FR 47201).

Check out the New ECTI Rule Tracker for highlights on this and other Federal Register notices important to the ITAR, EAR and OFAC developments.

This final rule formalizes comments made by U.S. Treasury Secretary Scott Bessent on October 30, 2025, regarding the pause on enforcement of the Affiliates Rule as part of trade negotiations with China.

What does this mean?

Phase 1: November 10, 2025-November 9, 2025

• BIS has temporarily suspended all changes previously made to the Export Administration Regulations (EAR) by the Affiliates Rule.
• This includes the suspension of amendments to 15 CFR parts 732, 734, 736, 744, and 748 of the EAR.

Phase 2: Effective November 10, 2026

• Unless BIS takes further action, the changes removed in phase 1 will be added back to the EAR, reinstating the Affiliates Rule.

Implications for Exporters, Reexporters, and Transferors

The final rule temporarily suspends the Affiliates Rule. As a result, exporters, reexporters and transferors are not currently required to determine a foreign customer’s or supplier’s ownership structure and percentage to determine if there is a U.S. denial of export privileges.

You may even breathe a sigh of relief, thinking this is business as usual. However, do not be lured into this thinking, if this administration has shown us anything, this is not business as usual.

BIS has clearly stated that the suspension is temporary, and the Affiliates Rule is scheduled to return on November 10, 2026, unless BIS decides otherwise. BIS’s decision to specify a reinstatement date signals that the agency fully intends for this rule to return.

Final Thoughts: Use This Year Wisely

The September 29, 2025, Interim Final Rule expanded the scope of End-User controls to include any entity owned 50% or more, directly or indirectly, by multiple entities subject to EAR license requirements under the Entity List, MEU List, or SDN List. Exporters should expect these requirements to be reinstated no later than November 10, 2026. 

This suspension period provides a valuable window to prepare. Exporters, reexporters, and transferors should use this time to evaluate and update your export compliance manuals, review your screening and due diligence processes, begin developing “new” procedures to document ownership structures, and prepare workflows to determine whether the BIS Affiliate Rule (50%) applies to your transactions. 

This is your advanced notice: by November 2026, these requirements are expected to be a part of your standard compliance process.