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RuleSignificant2025-190012025-09-30

Expansion of End-User Controls To Cover Affiliates of Certain Listed Entities

Commerce Department, Industry and Security Bureau

Abstract

In this interim final rule (IFR), the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to address diversion concerns involving entities on the Entity List and certain other restricted end users. Under this IFR, any entity that is at least 50 percent owned by one or more entities on the Entity List will itself automatically be subject to Entity List restrictions. This is a marked improvement over the current standard, which excludes all entities that are not specifically included on the Entity List, regardless of affiliation with Entity List entities. This IFR similarly applies restrictions to entities at least 50 percent owned by listed `military end users' and certain sanctioned parties. The 50 percent ownership standard in this IFR is designed to be consistent with longstanding Department of the Treasury practice, so as to limit the additional burden on the business community.

Action & Dates

Action
Interim final rule.
Dates
<bullet> Effective date: This rule is effective September 29, 2025.
Effective Date
2025-09-29

CFR References

Topics

Administrative practice and procedureExportsInventions and patentsReporting and recordkeeping requirementsResearchScience and technologyTerrorism

Document Excerpt

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Department of Commerce Bureau of Industry and Security 15 CFR Parts 732, 734, 736, 744, and 748 [Docket No. 250509-0083] RIN 0694-AK11 AGENCY: Bureau of Industry and Security, Department of Commerce. ACTION: Interim final rule. SUMMARY: In this interim final rule (IFR), the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to address diversion concerns involving entities on the Entity List and certain other restricted end users. Under this IFR, any entity that is at least 50 percent owned by one or more entities on the Entity List will itself automatically be subject to Entity List restrictions. This is a marked improvement over the current standard, which excludes all entities that are not specifically included on the Entity List, regardless of affiliation with Entity List entities. This IFR similarly applies restrictions to entities at least 50 percent owned by listed `military end users' and certain sanctioned parties. The 50 percent ownership standard in this IFR is designed to be consistent with longstanding Department of the Treasury practice, so as to limit the additional burden on the business community. DATES: Effective date: This rule is effective September 29, 2025. Modification request date: Non-listed foreign affiliates of listed entities, regardless of the foreign country where they are located, that are subject to restrictions under the Affiliates rule based on ownership by an Entity List party or Military End User may req

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Full Document

Citation: 90 FR 47201