in effect
This is an interim final rule from the Commerce Department’s Bureau of Industry and Security (BIS), effective September 29, 2025, that expands who is automatically covered by U.S. export restrictions. It amends the Export Administration Regulations (EAR) to extend controls beyond specifically named companies to include companies those named companies own.
Previously, export restrictions applied only to entities explicitly named on the Entity List — a legally separate subsidiary of a blacklisted company was not automatically restricted unless BIS separately added it. Under this rule, any foreign company that is 50 percent or more owned (directly or indirectly, individually or in combination) by one or more Entity List companies is now automatically subject to the same export restrictions as its listed owner. The same 50 percent ownership rule now also applies to companies owned by entities on the Military End-User (MEU) List and to certain parties on the Treasury Department’s Specially Designated Nationals (SDN) List. When a company has multiple restricted owners with different restriction levels, the most restrictive set of requirements applies. A temporary general license permits certain transactions with newly covered affiliates through November 28, 2025, and affected companies may request removal from coverage at any time after September 29, 2025.
U.S. and foreign exporters, reexporters, and freight forwarders who ship items subject to U.S. export regulations now have an affirmative legal duty to investigate the ownership structure of their foreign business partners — not just check whether a company’s name appears on a government list — and can be held strictly liable for violations. Foreign companies that are majority-owned by a blacklisted entity are now automatically restricted from receiving U.S.-controlled goods or technology, even if those companies have never been individually named on any list.