US Closing Loophole in Exports to Blacklisted Companies

The new rule covers subsidiaries that are majority-owned by the listed entity.

U.S. Department of Commerce in Washington on Jan. 31, 2022. Peter Silverman/Shutterstock

The Department of Commerce’s Bureau of Industry and Security said on Sept. 29 it is changing export control rules to automatically cover subsidiaries of companies on the Entity List that are at least 50 percent owned by the listed company.

The change, which goes into effect 60 days after the rule is published in the Federal Register on Sept. 30, tightens a significant loophole that lawmakers and experts have flagged over the past several years.