House Bill Would Codify BIS’ New 50% Rule for Entity List
House Foreign Affairs Europe Subcommittee Chairman Keith Self, R-Texas, unveiled a bill Sept. 30 to codify a new interim final rule that will place subsidiaries on the Bureau of Industry and Security’s Entity List or Military End-User List if they are owned 50% or more by companies on those lists.
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“By putting this standard into law, the bill ensures that enforcement is not left to shifting administrative priorities -- it becomes permanent, predictable and binding,” Self's press release said.
Like the rule, the proposed Stop Shells Act is intended to close an export control loophole, Self said. He said in June that he would be proposing such legislation (see 2506120073), and BIS released the rule Sept. 29 (see 2509290001 and 2509290017).
Separately, Self was joined by House Foreign Affairs Committee Chairman Brian Mast, R-Fla.; House Select Committee on China Chairman John Moolenaar, R-Mich.; and House Foreign Affairs South and Central Asia Subcommittee Chairman Bill Huizenga, R-Mich., in welcoming the new rule. "No longer will blacklisted companies be able to use subsidiaries to circumvent export controls," Mast said.