[TIPS] 90 Days Until 2027: Who Owns Your Customer? The BIS Affiliates Rule

Host: Lalo SolorzanoGuest(s): Josh Rodman, Schulz Trade LawPublished: October 20, 2026Length: Approximately 18 minutesPresented by: Global Training Center Summary You checked your customer’s name against a restricted-party list. But do you know who owns that company? In Episode 3 of 90 Days Until 2027, Lalo Solorzano welcomes Josh Rodman of Schulz Trade Law to discuss the BIS affiliates rule and what exporters can do to prepare. Recorded while the rule was suspended, the conversation looks beyond the name on the invoice to ownership structures, potential licensing requirements, and risks that can exist even when a subsidiary is legally separate from its parent. Josh brings the issue to life through a client’s proposed sale of approximately $250,000 in electrical power equipment to a Chinese-owned subsidiary in Jamaica. The example leads to a critical question: what happens when a deal is signed before a rule takes effect, but the goods ship afterward? Lalo and Josh also explore the limitations of relying on screening tools alone, the importance of understanding different restricted-party lists, and why uncertainty about implementation is not a reason to postpone preparation. This week’s tip is to start investigating the ownership of your overseas counterparties now. Understanding those relationships can help your team identify questions that need attention before a transaction reaches the shipping stage. Main Topic / Discussion Knowing your customer’s name is not the same as understanding its ownership. Josh explains how the BIS affiliates rule would extend restrictions to certain unlisted companies based on ownership of 50% or more, including aggregated ownership. His Jamaica example illustrates why a subsidiary’s separate legal identity and location do not answer every export-compliance question. The discussion also covers export timing, the uncertainty surrounding any future temporary general license, and the possibility that a subsidiary could serve as a route for goods to reach a restricted parent. Josh recommends investigating ownership now and reviewing the distinctions among the Entity List, Military End-User List, and SDN List. Rule-status clarification — checked October 20, 2026: The published BIS suspension notice runs through November 9, 2026, with reinstatement scheduled for November 10, 2026, absent further action. The possible extension discussed in the recording should not be treated as an announced change. Check for subsequent BIS updates before relying on these dates. Federal Register Scope clarification: The episode refers broadly to the SDN List. For the BIS affiliates rule specifically, the published text identifies SDN designations under the programs listed in EAR § 744.8(a)(1), rather than every SDN designation. Federal Register Key Takeaways • Look beyond the customer’s name. Josh recommends examining ownership layers and percentages—not assuming a name-only screening result resolves the affiliates-rule question. • Signing a contract does not settle export eligibility. Josh explains why the date of export matters and why any applicable temporary general license would need to be evaluated separately. • A suspended rule does not eliminate other risks. The conversation highlights diversion concerns when an otherwise separate subsidiary could help an Entity List parent obtain goods. • Understand what each list actually restricts. Josh encourages exporters to review the Entity List, Military End-User List, and SDN List rather than treating them as interchangeable—or assuming every listing prohibits every kind of business. Resources & Mentions • Global Training Center • Josh Rodman — LinkedIn • Josh Rodman — Schulz Trade Law • BIS Affiliates Rule — Published Rule and Scope • BIS — One-Year Suspension of the Affiliates Rule • OFAC — 50 Percent Rule FAQs Follow Simply Trade for updates on companion resources and the planned 90 Days Until 2027 playbook. This episode provides general education