[Federal Register Volume 90, Number 216 (Wednesday, November 12, 2025)]
[Rules and Regulations]
[Pages 50857-50858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19846]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 216 / Wednesday, November 12, 2025 /
Rules and Regulations
[[Page 50857]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 732, 734, 736, 744, and 748
[Docket No. 251106-0169]
RIN 0694-AK34
One Year Suspension of Expansion of End-User Controls for
Affiliates of Certain Listed Entities
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule; stay.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
imposes a one-year suspension of the interim final rule, ``Expansion of
End-User Controls to Cover Affiliates of Certain Listed Entities,''.
The suspension is set to end November 9, 2026, absent a future
extension.
DATES: Effective November 10, 2025, the amendments to 15 CFR parts 732,
734, 736, 744, and 748 in the interim final rule published at 90 FR
47201, on September 30, 2025, are stayed until November 9, 2026.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary for Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
A. Publication of Affiliates Rule
On September 30, 2025, the Bureau of Industry and Security (BIS)
published the interim final rule, ``Expansion of End-User Controls to
Cover Affiliates of Certain Listed Entities'' (90 FR 47201) (Affiliates
Rule). Under the Affiliates Rule, any entity that is at least 50
percent owned directly or indirectly, individually or in the aggregate,
by one or more entities on the Entity List, or by unlisted entities
that are subject to license requirements or other restrictions based
upon their ownership, is itself automatically subject to Entity List
restrictions.
B. One Year Suspension of End-User Controls for Affiliates of Certain
Listed Entities
In this final rule, BIS imposes a one-year suspension of the
Affiliates Rule. This rule will be implemented in two phases. The first
phase, effective on November 10, 2025, and ending November 9, 2026, is
a one-year suspension of the Affiliates Rule. BIS is temporarily
suspending all changes previously made to the EAR by the Affiliates
Rule during this period. In the second phase of this final rule,
effective November 10, 2026 and extending indefinitely, the changes
included in the Affiliates Rule that are removed in the first stage
will be added back into the EAR.
During the first phase of this final rule, BIS will continue to
evaluate U.S. national security and foreign policy interests related to
these non-listed foreign affiliates of listed entities.
C. Reimposition of End-User Controls for Affiliates of Certain Listed
Entities
This final rule adds back into the EAR effective November 10, 2026,
the license requirements and related provisions from the Affiliates
Rule. These are the same changes that are described as being removed in
Sections I.C of this final rule. These changes to the EAR are the same
as those described in the Affiliates Rule. See the Affiliates Rule for
additional background information on the addition of these changes to
the EAR.
The DATES section of this final rule identifies the amendatory
instructions that, effective November 10, 2026, will reimpose the
license requirements and related provisions added to the EAR in the
Affiliates Rule. Accordingly, the provisions that this final rule
removes from the EAR on November 10, 2025, as described under Section
I.B and II.A, will be reimposed on November 10, 2026. The DATES section
of this final rule specifies that amendatory instructions 3, 6, 9, 12,
14, 16, 18, 20, 22, 24, 27, and 29 are effective November 10, 2026. For
ease of reference, each of these amendatory instructions begins with
the wording ``Effective November 10, 2026, amend,'' which will make it
easier to identify these amendatory instructions in the regulatory text
in this final rule. All of the other amendatory instructions in this
final rule are effective on November 10, 2025.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included ECRA (codified, as amended, at 50 U.S.C. 4801-4852). ECRA
provides the legal basis for BIS's principal authorities and serves as
the authority under which BIS issues this rule. In particular, and as
noted elsewhere, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the
regulation of exports, reexports, and transfers (in-country) of items
subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA
(50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, the establishment
of a list of controlled items; the prohibition of unauthorized exports,
reexports, and transfers (in-country); the requirement of licenses or
other authorizations for exports, reexports, and transfers (in-country)
of controlled items; apprising the public of changes in policy,
regulations, and procedures; and any other action necessary to carry
out ECRA that is not otherwise prohibited by law. Pursuant to Section
1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in an
interim final rule without prior notice and comment.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders (E.O.) 12866 and 13563, which direct agencies to
assess all costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (e.g., potential economic, environmental, public,
health, and safety effects, distributive impacts, and equity). Pursuant
to E.O. 12866, as amended, this final rule has not been determined to
be a ``significant regulatory action.'' This final rule is not a
regulatory action pursuant to E.O. 14192 because it is not significant
under E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply
[[Page 50858]]
with, a collection of information subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This rule involves the
following OMB-approved collections of information subject to the PRA:
0694-0088, ``Simple Network Application Process and
Multipurpose Application Form,'' which carries a burden hour estimate
of 29.7 minutes for a manual or electronic submission;
0694-0096 ``Five Year Records Retention Period,'' which
carries a burden hour estimate of less than 1 minute;
0607-0152 ``Automated Export System (AES) Program,'' which
carries a burden hour estimate of 3 minutes per electronic submission;
and
0694-0134 ``Procedure for parties on the Entity List or
the Unverified List to Request Removal or Modification of their
Listing,'' which carries a burden hour estimate of 15 hours per
electronic submission.
BIS estimates that these changes to suspend the license
requirements and related provisions for one year will result in a one-
time reduction of 245 license applications submitted during the one
year to BIS under OMB Control Number 0694-0088. However, the reduction
in burden falls within the existing estimates currently associated with
these control numbers and the burden will be returned to the prior
burden estimate once these changes are reimposed on November 10, 2026.
Additional information regarding these collections of information--
including all background materials--can be found at: https://www.reginfo.gov/public/do/PRAMain by using the search function to enter
either the title of the collection or the OMB Control Number.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), this action
is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553)
requirements for notice of proposed rulemaking, opportunity for public
participation, and delay in effective date. This final rule did not
consider public comments received on the Affiliates Rule. Public
comments received on the Affiliates Rule will be considered for future,
subsequent rulemakings.
5. Because neither the APA nor any other law requires that notice
of proposed rulemaking and an opportunity for public comment be given
for this rule, the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no Final Regulatory Flexibility Analysis is required, and none has been
prepared.
Julia A. Khersonsky,
Deputy Assistant Secretary for Strategic Trade.
[FR Doc. 2025-19846 Filed 11-10-25; 8:45 am]
BILLING CODE 3510-33-P