Closing Loopholes: How the BIS 50% Rule is Changing Export Compliance

Description

Register for free here: https://bit.ly/3Wkxcoy 

This webinar will examine the changes and challenges introduced by this new rule and discuss its impacts. The Department of Commerce’s Bureau of Industry and Security (BIS) has issued a new rule that closes a significant loophole in restricted party lists, strengthening the export control regime overall. Under this rule, any entity that is at least 50 percent owned by one or more entities on the Entity List or the Military End-User (MEU) List will itself automatically be subject to Entity List/MEU List restrictions. In addition, significant minority ownership by an Entity List/MEU List company is a red flag that triggers additional due diligence requirements for exporters. 

Previously, the Entity List and MEU List excluded entities not specifically named, even if there were extensive ties with listed companies. This update brings BIS in line with OFAC’s ownership-based restrictions and significantly expands the scope of compliance obligations. 

Jeffrey I. Kessler, Under Secretary of Commerce for Industry and Security, stated: “For too long, loopholes have enabled exports that undermine American national security and foreign policy interests. Under this Administration, BIS is closing the loopholes and ensuring that export controls work as intended.” 

The restrictions are effective immediately, with some exceptions available up to 60 days after publication in the Federal Register. The public may submit comments within 30 days of publication. Full details: BIS Rule Expansion PDF. 

This session will help demystify the new “50% Rule,” highlight parallel enforcement challenges for importers, and provide actionable guidance for strengthening compliance programs. 

Join us to better understand these changes and reduce your risk of non-compliance—protecting your business from potential fines, penalties, and reputational damage.