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Commerce Department Issues “Affiliates Rule,” Extends Entity List Restrictions to Majority-Owned Foreign Entities
On September 29, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued a long-anticipated interim final rule (IFR) amending the Export Administration Regulations (EAR) to extend Entity List and Military End User (MEU) List restrictions to majority-owned affiliates. Known as the “Affiliates Rule,” the IFR establishes a 50 Percent Rule comparable to how the Treasury Department’s Office of Foreign Assets Control (OFAC) enforces sanctions on affiliates of blocked parties.