BIS Suspends "Affiliates Rule" For One Year

Washington, D.C. (November 12, 2025) - On November 10, 2025, the Department of Commerce's Bureau of Industry and Security ("BIS") issued a one-year suspension of the "Affiliates Rule" it announced on September 29, 2025. (See the previous Lewis Brisbois client alert explaining the Affiliates Rule and its implications.) In short, the rule subjected any entity that is at least 50 percent owned by one or more entities named on the Entity List or Military End-User List to the same restrictions applicable to the listed entity, bringing the BIS approach on affiliation in line with that used by the Treasury Department's Office of Foreign Assets Control.

The suspension comes after the White House released a fact sheet on November 1, 2025, announcing a suspension of the Affiliates Rule as part of the recent trade deal with China. The suspension, however, applies more broadly to all countries. Any changes made to the Export Administration Regulations by the Affiliates Rule are suspended during this one-year period. The "license requirement and related provisions added to the EAR in the Affiliates Rule" will be reimposed, effective November 10, 2026. U.S. Treasury Secretary Scott Bessent noted that, in return for the suspension of the Affiliates Rule, China agreed to a suspension of its rare earth licensing regime.

Key Takeaways

The suspension of the Affiliates Rule, which went into effect just last month, is an example of the rapid pace at which international trade regulations are changing. While the pause provides a temporary reprieve for companies, it is nevertheless important for exporters to stay current on applicable rules and regulations, and, as we have noted before, the international trade situation can change quickly in the current environment.

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