You screened your customer against a restricted-party list. But do you know who owns that company?
In Episode 3 of 90 Days Until 2027, host Lalo Solorzano talks with Josh Rodman of Schulz Trade Law. They unpack the BIS affiliates rule and what exporters can do now to prepare. The team recorded the conversation while the rule was suspended. It looks past names to ownership structures, potential licensing requirements, and risks that remain when a subsidiary is legally separate from its parent.
Ownership Is Not Optional Homework
Josh explains how the affiliates rule would extend restrictions to certain unlisted companies. The trigger is ownership of 50% or more, including aggregated ownership.
His example makes the point. A client proposed selling roughly $250,000 in electrical power equipment to a Chinese-owned subsidiary in Jamaica. A separate legal identity and a different location do not settle every export compliance question.
Signed Before the Rule, Shipped After
What happens when a deal closes before a rule takes effect, but the goods ship afterward? Lalo and Josh explain why the date of export matters. They also explain why exporters must evaluate any future temporary general license on its own terms.
Uncertainty about implementation is not a reason to wait. Prepare now.
Screening Tools Have Limits
Name-only screening can miss the bigger picture. Josh encourages exporters to learn how the Entity List, Military End-User List, and SDN List differ. These lists are not interchangeable, and not every listing prohibits every kind of business.
The conversation also covers diversion risk. A subsidiary can become a route for goods to reach a restricted parent.
Where the Rule Stands
BIS published a notice that suspends the rule through November 9, 2026. Reinstatement is scheduled for November 10, 2026, unless BIS takes further action. We checked these dates on October 20, 2026.
The recording discusses a possible extension. BIS has not announced one. Check for new BIS updates before you rely on these dates.
One scope note: the episode refers broadly to the SDN List. For this rule, the published text covers only SDN designations under the programs listed in EAR § 744.8(a)(1). It does not cover every SDN designation.
This Week’s Tip: Start Investigating Ownership
Start researching the ownership of your overseas counterparties today. Those relationships help your team spot questions early, well before a shipment reaches the dock.
Want an export compliance program that looks past the name on the invoice? Explore GTC’s courses on EAR, Exporting Procedures, and Due Diligence. Build the skills your team needs before the affiliates rule’s next deadline.
This episode provides general educational information and is not legal advice. Verify the requirements that apply to your transaction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]