U.S. Commerce Department Suspends End-User Controls for Affiliates of Certain Listed Entities for One Year

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On November 12, 2025, the Bureau of Industry and Security (BIS), Department of Commerce, announced a one-year suspension of its interim final rule called “Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities.” This rule is explained in Federal Register Volume 90, Number 216.

Background on the Rule

On September 30, 2025, BIS published the “Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities.” This rule, also named the Affiliates Rule, stated that any business entity at least 50 percent owned, directly or indirectly, by a listed entity, or by one or more entities already under license requirements, would also be subject to the same restrictions as those listed entities.

One-Year Suspension Details

The new final rule, effective November 10, 2025, suspends the Affiliates Rule for one year. This suspension will end on November 9, 2026, unless it is extended.

During the suspension, the changes that the Affiliates Rule made to the Export Administration Regulations (EAR) are paused. BIS is using this time to review U.S. national security and foreign policy concerns linked to foreign affiliates not directly on the Entity List.

Plans After One Year

On November 10, 2026, the license requirements and other provisions from the Affiliates Rule will be put back into effect. The Federal Register explains that the specific parts being suspended on November 10, 2025, will be reimposed on November 10, 2026. The regulatory document lists which sections will become active again.

Legal Basis

The Export Control Reform Act of 2018 (ECRA) provides BIS the legal authority for this rule. ECRA allows BIS to make these changes using an interim final rule without needing public notice and comment.

Rulemaking Details

  • The rule has been reviewed under Executive Orders 12866 and 13563. It is not considered a “significant regulatory action.”
  • The rule is not subject to certain requirements of the Paperwork Reduction Act (PRA) unless it displays a valid Office of Management and Budget (OMB) Control Number. The OMB-approved collections involved include:
    • The Simple Network Application Process and Multipurpose Application Form (estimated at 29.7 minutes per submission)
    • Five Year Records Retention Period (estimated less than 1 minute)
    • Automated Export System (AES) Program (estimated 3 minutes per submission)
    • Procedures for parties to request removal or modification of an Entity List or Unverified List entry (estimated 15 hours per submission)
  • BIS estimates a one-time reduction of 245 license applications to be submitted during the suspension year. The burden reduction will be temporary and will revert once the rule is reimposed.
  • The rule does not affect federalism matters under Executive Order 13132.
  • Under ECRA Section 1762, this rule is exempt from requirements for public notice, comment, and delay in effective date under the Administrative Procedure Act (APA).
  • The Regulatory Flexibility Act does not apply to this rule.

Contact Information

Questions should be directed to the Chair, End-User Review Committee, Office of the Assistant Secretary for Export Administration, Bureau of Industry and Security, Department of Commerce. Phone: (202) 482-5991. Email: [protected].

The document was signed by Julia A. Khersonsky, Deputy Assistant Secretary for Strategic Trade.

Federal Register citation: 90 FR 50857–50858 (November 12, 2025). Bureau of Industry and Security Rule: Docket No. 251106-0169; RIN 0694-AK34.


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