Overview 

The U.S. Department of Commerce, Bureau of Industry and Security (BIS) has introduced a new Affiliate Rule that will change how companies screen parties involved in export transactions. 

Under the new Affiliate Rule, certain U.S. export restrictions will extend beyond companies named on the BIS Entity List and other covered restricted-party lists. These restrictions may also apply to foreign companies in which one or more listed entities hold, directly or indirectly, a combined ownership stake of 50 percent or more. 

What Is Changing? 

Today, Entity List restrictions generally apply to the companies specifically named on the list. Under the new Affiliate Rule, a foreign company may be subject to the same restrictions as a listed company even if its own name does not appear on the Entity List. 

The Affiliate Rule applies when one or more listed entities own 50 percent or more of a foreign company. Ownership may be direct or indirect, and the ownership of multiple listed entities is combined when determining whether the 50 percent threshold has been reached. 

What Does This Mean for U.S. Exporters? 

The most important change is that restricted-party screening may no longer be limited to checking a company's name against government lists. Exporters may also need to understand who owns the companies involved in their transactions. 

BIS has made clear that exporters are responsible for determining whether foreign parties are subject to the Affiliate Rule. If an exporter knows that one or more listed entities own a foreign company but cannot determine the percentage of ownership, the issue must be resolved before proceeding with the transaction. 

Current Status 

BIS issued the Affiliate Rule in September 2025 but subsequently suspended it for one year. Unless BIS takes further action, the Affiliate Rule is scheduled to take effect on November 10, 2026. 

In simple terms, the Affiliate Rule means that a company does not have to appear by name on a restricted-party list to be subject to U.S. export restrictions. Its ownership may also make it restricted. 

Preparing for the Affiliate Rule 

U.S. exporters should begin considering whether their current screening procedures provide enough information about the ownership of foreign customers, consignees, end users, and other parties involved in their export transactions. 

For questions about this update please contact Marken at Tradecompliance@marken.com