Comply with the Proposed BIS 50% Rule
The Bureau of Industry and Security (BIS) will soon publish a rule that automatically extends trade restrictions to any company that is 50% or more owned, directly or indirectly, by any organization on the BIS Entity List, regardless of whether the subsidiary, joint venture, or related company is explicitly named.
Preparing for BIS 50
The BIS 50% Rule closes loopholes where restricted parties could evade controls through affiliates, subsidiaries, or shell companies. The result: expanded compliance obligations for exporters, manufacturers, freight forwarders, and logistics providers.
Enforcement is not a question of if, but when. Acting now is the best defense against penalties, shipment delays, and reputational damage. Here is a five-step readiness plan:
- Review your screening tools – Can they trace ownership layers?
- Deepen due diligence – Map corporate structures and control hierarchies.
- Automate compliance – Integrate BIS 50 checks into your workflows.
- Update policies & training – Ensure teams understand new obligations.
- Partner with experts – Leverage technology built to handle BIS 50 risks.
See also our blog on the subject.
Descartes Visual Compliance™ offers advanced screening solutions designed to address the complexities introduced by the BIS 50% Rule, including comprehensive ownership screening, real-time list updates, and automated compliance workflows.
How we can benefit you
The most reliable way of complying with the BIS 50% Rule to help protect supply chains, reduce disruptions, & safeguard reputation
- Comprehensive Ownership Screening
Identify and assess entities with complex ownership structures that may be subject to the BIS 50% Rule restrictions. - Real-Time List UpdatesStay informed with the latest changes to the BIS Entity List and related regulations.
- Automated Compliance WorkflowIntegrate compliance checks seamlessly into your existing processes to ensure efficiency and accuracy.
- Great Customer Support – Always Here to HelpFrom addressing customer issues to meeting new government trade compliance initiatives, we provide extensive training, technical support, and regulatory-related product updates. (See also the positive reviews customers give us).
Solving compliance challenges
Bolstering organizations’ compliance workflows
Solution Highlights
Detailed BIS 50 results
Receive information-rich results, including pertinent details on ownership percentage by sanctioned entities
- Screen clients, customers, and third parties
- Easily check percentages of ownership
- Reveal true ownership
- Demonstrate BIS 50 due diligence
Easy-to-interpret results
Conveniently investigate potential matches in the same interface that your other screening results appear
- Single interface
- Familiar results screen
- Increased productivity
- Strengthened compliance
Built-in recordkeeping / audit trail
Benefit from a full range of audit recording and due diligence systems that automatically records BIS 50 screening details
- Automatically record screening details
- Easily demonstrate compliance due diligence
- For internal and official use
- Single source of truth
Effective risk mitigation
Reduce the risk of doing business with sanctioned entities
- Reveal complex ownership structures
- Gain visibility into entities in over 100 jurisdictions
- Enhance compliance with real-time list updates
- Leverage automated compliance workflows
Frequently Asked Questions
Why is BIS imposing ownership-based restrictions now?
The goal is to close loopholes where listed parties avoid controls by operating through affiliates, front companies, or shell entities. By extending licensing requirements to any entity 50% or more owned (directly or indirectly) by BIS listed parties, the rule strengthens enforcement and prevents the circumvention of export controls.
Isn’t this just another entity list update?
No. It’s a structural change that applies to unnamed entities—effectively expanding the Entity List without listing new names.
Will companies need to screen for indirect ownership?
Yes. Under the BIS 50% Rule, compliance requires identifying if an entity is owned 50% or more—individually or in aggregate—by one or more parties on the Entity List, even if the entity itself is not listed.
Will this affect our suppliers or logistics partners?
Yes. The rule applies across global supply chains—exporters, manufacturers, freight forwarders, and distributors may all be impacted. Even if a supplier isn’t listed, they may be indirectly owned by a restricted entity.
How can your solution help us stay compliant?
Our BIS 50% screening solution increases visibility into layered ownership structures and flags at-risk entities. It helps mitigate the risk of export violations, shipment delays, and reputational harm by uncovering hidden relationships in your supply chain or customer base.
Does this mean my current screening program is no longer enough?
If you only screen for named entities, it’s time to upgrade. You’ll need restricted party screening content and tools capable of uncovering indirect and aggregated ownership risks tied to the BIS Entity List. We can easily integrate additional risk management content into your existing workflows for faster adoption.
What else do I need to know?
BIS has signaled intent to act once finalized. Waiting invites risk—proactive screening builds defensible compliance. Now is the time to update systems, training, and due diligence processes to meet evolving export control obligations.
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Take the next step in your compliance journey and experience global trade securely and successfully
Call toll-free 1-877-328-7866 (Intl: 716-881-2590) and talk to one of our compliance consultants.