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Global Trade & Sanctions LawPublished on:
BIS Extends Its Suspension of the “Affiliates Rule” Until January 2027
In a final rule published on November 5, 2026, the Bureau of Industry and Security (BIS) further stayed its “Affiliates Rule,” which would otherwise have taken effect on November 10, 2026, until January 10, 2027.
This action formalizes the extension of the U.S.-China “Busan Agreement,” a truce in ongoing trade tensions between Washington, DC, and Beijing, as announced by Treasury Secretary Scott Bessent on September 23, 2026, which we discuss here. As part of the broader détente, China also extended its suspension of rare earth export controls on November 9, while the United States extended tariff exclusions for 178 Chinese products.
Background on the Affiliates Rule
The Affiliates Rule issued by BIS on September 30, 2025, amended the Export Administration Regulations (EAR) to extend certain restricted party designations, such as the Entity List and Military End User (MEU) List, to certain foreign affiliates, introducing an ownership standard similar to the Office of Foreign Assets Control’s (OFAC) 50 Percent Rule into the EAR.
Under this standard, restrictions apply to foreign entities owned at least 50 percent, directly or indirectly, by one or more parties listed on the Entity List or MEU List, or covered by certain OFAC sanctions programs referenced in EAR § 744.8(a)(1). Our prior alerts provide greater context on the implications of the Affiliates Rule, which you can read here and here.
Affiliates Rule Suspension
BIS issued the Affiliates Rule effective September 29, 2025, and subsequently suspended it for one year, beginning November 10, 2025. The November 5, 2026, action by BIS extends that suspension by approximately two months, through January 10, 2027.
The extension does not repeal or substantively amend the Affiliates Rule. Whether BIS allows the rule to resume in January, further extends the suspension or modifies the rule remains uncertain. That decision will likely be influenced by the broader political and geopolitical context, particularly U.S.-China trade relations.
BIS states that it “did not consider public comments received on the Affiliates Rule,” but will rather consider these in the future for subsequent rulemakings. The Affiliates Rule therefore remains a live issue, both in terms of future re-imposition and any subsequent amendments to its scope.
Looking Ahead
The extension gives companies additional time to prepare but leaves uncertainty about the longer-term treatment of the Affiliates Rule. BIS has deferred consideration of public comments to future rulemakings without indicating what revisions, if any, it may adopt. Our October 22, 2026, alert provides further context on the implications of the suspension and outlines mitigation and compliance measures companies can take ahead of the Affiliates Rule’s potential reintroduction in January.
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