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US Treasury Secretary Scott Bessent announced yesterday (October 30) that the U.S. Department of Commerce's Bureau of Industry and Security (BIS) plans to halt enforcement of the recently issued "Affiliates Rule." Released last month as an interim final rule, the measure expanded the reach of the Entity List, Military End User (MEU) List, and Section 744.8 restrictions to cover non-U.S. companies that are 50 percent or more owned—directly or indirectly, individually or collectively—by any party named on those lists.
Bessent stated that the rule's suspension will remain in place for one year as part of an agreement under which China will postpone its own export controls on rare earth elements. Nonetheless, because the Affiliates Rule became effective upon publication, its restrictions technically remain active until BIS issues a formal suspension notice in the Federal Register. Companies should continue to apply the rule for now and consider tightening ownership-screening and compliance procedures in anticipation that the Affiliates Rule could return in October 2026.
Braumiller Law Group PLLC will continue to monitor progress and provide updates as needed.
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