Adjusting Imports of Timber, Lumber and their Derivative Products into the United States
October 1, 2025
BIS Expands Entity List Controls to Cover Affiliates
Effective September 29, 2025: The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued a new interim final rule that expands Entity List controls.
What Changed
- 50% Rule: Any entity owned 50% or more by one or more parties on the Entity List, Military End-User (MEU) List, or certain OFAC sanctions programs is now automatically restricted.
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- Note: BIS FAQ number 44 says in part, “the Affiliates Rule applies if the total ownership by parties listed under all three programs (Entity List, MEU List, and SDNs designated under programs listed in § 744.8(a)(1)) or parties that meet the Affiliates Rule criteria is greater than 50 percent, even if the ownership by parties listed on one of these lists alone is less than 50 percent.”
- Most Restrictive Standard: If multiple listed entities hold ownership, the strictest license requirement applies.
- Due Diligence Required: Significant minority ownership or unclear ownership structures are red flags. Exporters must resolve them or obtain a BIS license before proceeding.
- Temporary General License: A limited TGL is in effect through November 28, 2025 for some affiliates.
What This Means for You
- Screening must go beyond the government’s published lists; the new rule captures affiliates not separately named.
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- Note: The Consolidated Screening List will no longer be not an exhaustive list of entities subject to the Entity List control as a result of this new rule.
- Exporters are responsible for verifying ownership and control of business partners.
- Failure to comply may result in strict liability penalties.
Next Steps
- Review your current and future partners for ownership ties to restricted parties.
- Document due diligence on ownership checks.
- Contact your Western Overseas representative with any questions or concerns regarding current shipments which may be impacted by this rule.
Resources:
Please contact your Western Overseas representative with any questions or concerns.
