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BIS Finalizes One-Year Suspension of Affiliates Rule

The move formalizes a White House pledge linked to Chinese concessions on rare‑earth exports.

Overview

  • The final rule pauses the Affiliates Rule from November 10, 2025 through November 9, 2026, after which the suspended provisions are scheduled to snap back absent an extension.
  • Under the two‑phase framework, BIS suspends all EAR changes made by the September 29 rule during the one‑year window and then reintroduces them on expiration.
  • China agreed to suspend its rare‑earth export controls and to issue general licenses for rare earths, gallium, germanium, antimony, and graphite to U.S. end users and their suppliers.
  • The suspension does not repeal the Affiliates Rule, which had expanded controls to entities 50% or more owned by parties on the Entity List, Military End‑User List, or specified SDN programs.
  • The action resolves the earlier implementation gap by placing the suspension in the Federal Register, while advisors caution companies to treat the pause as temporary and continue compliance preparations.