Update: Trade Truce Suspends BIS 50% Rule
On October 30, U.S. President Donald Trump and PRC President Xi Jinping agreed to a one-year trade truce. Key terms include suspending export controls on technology, rare earth minerals, and semiconductors, as well as reducing U.S. tariffs on Chinese fentanyl-related goods.
Although the truce temporarily pauses the BIS 50% Rule — which took effect on September 29 — this rapid shift highlights how quickly regulations can change. To maintain compliance and operational resilience during unpredictable times, organizations need reliable, up-to-date corporate ownership data. Read more here.
Why the rule matters
In April, Landon Heid, nominee for BIS Assistant Secretary of Export Administration expressed interest in implementing a Majority Ownership rule for the BIS Entity List and Military End User (MEU) List.
Such a rule would mirror the Office of Foreign Assets Control’s (OFAC) 50 Percent Rule to close a “subsidiary loophole” suspected of contributing to export control evasion. Because traditional screening lists do not include subsidiaries of listed entities on the BIS Entity list, this could create compliance vulnerabilities for companies should the rule go into effect.
How Sayari helps
Sayari, in anticipation of this seismic regulatory shift, announced the release of its BIS50 Signal Screening Solution, an extension of Sayari’s existing robust screening capabilities, that empowers organizations to prepare for this rule by providing shareholder relationship data with precise ownership percentages. This module delivers the immediate, actionable intelligence companies need to strengthen compliance, reduce risk, and protect their business — particularly in the face of swift regulatory changes.
Webinar: impact on industry
Watch this webinar* aired on Tuesday, July 1st at 11am ET** to hear from Akin’s Kevin Wolf, Matt Borman, and Eileen Albanese, and Sayari’s Harry Hayllar. This session includes:
- An overview of the regulatory context and compliance challenges
- A discussion of the legal and practical implications of a BIS Majority Ownership rule and how exporters should prepare
- Strategies to protect against subsidiary risk with Sayari’s BIS50 Signal Screening Solution
Watch the webinar to start helping your organization confidently navigate today’s complex regulatory environment.
*Attendees of this webinar are eligible for one (1) CE credit for CCS/MCS, CES/MES, LCB credit type(s). If you would like credit, please attend the full webinar and email us afterward. We will verify your attendance and provide you with a code.
**Due to scheduling conflicts, this session was pre-recorded on Friday, June 27th. Sayari and the presenters involved will make every effort to ensure that it’s up-to-date at the time of its broadcast.
