The final rule
BIS is extending the suspension of the interim final rule (IFR), “Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities.” The suspension was set to end November 9, 2026. This final rule extends the suspension through January 10, 2027.
The rule was filed for public inspection on November 5, 2026, and is scheduled for publication in the Federal Register on November 9, 2026 (FR Doc. 2026-22793). The text is available here.
BIS issued the rule under the Export Control Reform Act of 2018 (ECRA). Under Section 1762 of ECRA, the rule is exempt from the Administrative Procedure Act’s notice-and-comment and delayed-effective-date requirements. BIS states that it did not consider the public comments received on the Affiliates Rule in this action. Those comments will be considered in future rulemakings. In short, the rule is a pure timing measure. It leaves the 50% ownership threshold and the underlying license requirements unchanged.
Background
In broad terms, the Affiliates Rule would extend the Export Administration Regulations (EAR) restrictions that apply to parties on the Entity List or the Military End User (MEU) List, and to certain Specially Designated Nationals and Blocked Persons (SDNs) sanctioned by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), to any foreign company that such parties own 50% or more, whether directly or indirectly, collectively or individually.
The original one-year suspension was part of the US-China trade arrangement announced by the White House on November 1, 2025. BIS implemented it in a final rule published November 12, 2025, effective November 10, 2025. That rule provided that the Affiliates Rule’s provisions would be added back into the EAR on November 10, 2026, absent a further extension.
Timeline
| Date | Event |
| September 29, 2025 | Affiliates Rule IFR becomes effective (published September 30, 2025, at 90 FR 47201). |
| November 1, 2025 | White House announces a one-year suspension of the Affiliates Rule as part of the US-China trade deal. |
| November 10, 2025 | One-year suspension takes effect (final rule published November 12, 2025, at 90 FR 50857). |
| Late September 2026 | US and China announce a two-month extension of the trade truce through January 10, 2027. |
| November 5, 2026 | BIS files the extension rule for public inspection. |
| November 9, 2026 | Extension rule is published and takes effect. The prior suspension would otherwise have ended this day. |
| January 10, 2027 | Extended suspension ends, absent further action. |
A short reprieve, not a resolution
Until this week, the Affiliates Rule was on track to return on November 10, 2026. When Washington and Beijing agreed in late September to extend their trade truce to January 10, 2027, the market expected the Affiliates Rule pause to follow. BIS, however, did not publish the rule needed to make that happen until November 5. The final rule now closes that gap, days before the Affiliates Rule would have returned.
Because the new end date is tied to the US-China truce, the rule’s future depends on how those negotiations go. Whether the suspension is extended again, allowed to lapse, or replaced by a modified rule will likely depend on the next round of US-China talks.
BIS has also signaled that it will consider the public comments on the Affiliates Rule in future rulemakings, which leaves open the possibility of substantive changes. Companies should not assume that any further extension will be announced, or formally implemented, well before January 10, 2027.
What companies should do now
Companies should treat the new date as extra time to prepare, not as relief from preparing. Exporters, reexporters, and transferors of items subject to the EAR should use the additional time to complete ownership diligence on customers, distributors, and other counterparties, with particular attention to direct, indirect, and aggregated ownership by Entity List, MEU List, and relevant SDN parties. Companies should also identify transactions, shipments, and contracts that could require a license if the Affiliates Rule returns in January 2027, and build that timing into order management and delivery schedules. Where licenses may be needed, companies should assess whether to prepare applications in advance.
Companies should also review contract terms, such as compliance representations, ownership disclosure obligations, and termination or suspension rights, so they can respond quickly if the rule returns. Finally, companies should monitor US-China developments and the Federal Register closely as January 10, 2027 approaches.
For more information about this alert or about export controls and sanctions compliance, please contact Alexandra López-Casero, Christopher D. Grigg, or David F. Crosby or your Nixon Peabody attorney.