The Bureau of Industry and Security released a notice Nov. 10 officially suspending its Affiliates Rule for one year, beginning immediately. The stay of the rule, which applies Entity List prohibitions to unlisted entities owned at least 50% by companies on the Entity List, will run through Nov. 9, 2026, as expected.

The U.S. will suspend the Bureau of Industry and Security's 50% rule, known as the Affiliates Rule, for one year starting Nov. 10, the White House said in a fact sheet released Nov. 1. The supension was negotiated during trade talks between U.S. and Chinese officials this past week.

The U.S. is postponing the Bureau of Industry and Security's 50% rule for one year in exchange for Beijing delaying its rare earth export controls for one year, Treasury Secretary Scott Bessent said in an Oct. 30 interview with Fox Business. "We are going to be suspending [the BIS 50% rule] for a year in return for the suspension on the rare earth licensing regime," he said.

The U.S. will soon impose a 100% tariff on China, “over and above any Tariff that they are currently paying,” along with new export controls on “any and all critical software,” President Donald Trump announced on Truth Social. Trump said the measures, which could take effect Nov. 1 or sooner, are in response to China’s recent announcement that it will impose new export license requirements on overseas exports if they contain certain levels of Chinese-origin material.

The Bureau of Industry and Security is adding 26 entities to the Entity List for illegally supplying aircraft parts, drone components, electronic items and other products to Iran, and the agency is adding three addresses to the list for links to an Iranian procurement network. Nineteen of the new entries are based in China, nine are in Turkey and one is in the United Arab Emirates, BIS said in a final rule released and effective Oct. 8. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial.

The Bureau of Industry and Security officially released a new regulation to introduce a 50% ownership threshold rule for parties on the Entity List and Military End-User List. The interim final rule, released and effective Sept. 29, will impose the same export license requirements as the parent company for any affiliate owned 50% or more by a party on the Entity List or Military End User List, similar to how sanctions are applied under the Office of Foreign Asset Control's 50% rule. The rule includes a 60-day temporary general license that “permits certain export, reexport, and transfer (in-country) transactions involving non-listed 50-percent or more owned foreign affiliates of parties on the Entity List or Military End-User List.” BIS is accepting public comments on the changes by Oct. 30.

The Bureau of Industry and Security has drafted and is preparing to soon publish an interim final rule that will introduce a 50% rule for parties on the Entity List and Military End-User List, according to a copy of the rule seen by Export Compliance Daily. The rule would impose the same export license requirements as the parent company for any affiliate owned 50% or more by an entity on those two lists, and it includes a 60-day temporary general license to authorize certain transactions with some non-listed entities before the new restrictions apply.

The Bureau of Industry and Security is adding 32 entities to the Entity List for either circumventing export controls on China, supplying controlled items to Russia, evading BIS end-use checks or other activities that BIS said breached U.S. export rules. The additions include 23 entities located in China, along with others based in India, Singapore, Taiwan, Turkey and the United Arab Emirates, the agency said in a final rule released and effective Sept. 12. They will be subject to license requirements for all items subject to the Export Administration Regulations, and licenses will be reviewed under a presumption of denial or policy of denial.

The Bureau of Industry and Security is removing Samsung China Semiconductor Co., SK hynix Semiconductor (China) and a third SK hynix-owned semiconductor facility in Dalian from the agency’s Validated End-User List, which will make them ineligible for a general authorization that had allowed them to receive certain U.S.-controlled technology. BIS called the VEU program a “loophole” because it allows certain foreign firms to export chip manufacturing equipment and technology to China without a specific license. The final rule takes effect Dec. 31.

The Bureau of Industry and Security released a final rule Aug. 28 that will ease export controls on Syria by making the country eligible for more license exceptions and revising current BIS license review policies for Syria to “be more favorable.” The rule, effective Sept. 2, will also create a new License Exception Syria Peace and Prosperity, which will authorize exports and reexports to Syria of items designated under the Export Administration Regulations as EAR99.