Simpson Thacher Attorneys Author Law360 Article on BIS 50% Rule for Entity List and Other Export Restrictive Lists
Partners Abram Ellis and George Wang, and Associate Shuhao Fan authored an article, "How A New BIS Rule Greatly Expands Export Restrictions," which was published by Law360. The article examines a 50% rule (the "Affiliates Rule") recently published by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) that significantly expands U.S. export restrictions. The authors explain how the Affiliates Rule restricts exports to foreign companies that are 50 percent or more owned by entities listed on the BIS Entity List and the Military End-User List and certain entities listed on the Department of the Treasury’s Office of Foreign Assets Control’s list of Specially Designated Nationals and Blocked Persons. The piece further provides analysis on the far-reaching implications of the Affiliates Rule, noting that companies involved in international trade should review and update their trade compliance programs, screening processes and contractual commitments to address the new requirements promptly.
Associate Christine Tillema also provided valuable contributions to the article.
To read the full article, please click here (subscription required).