{"id":542,"date":"2025-07-14T11:54:36","date_gmt":"2025-07-14T15:54:36","guid":{"rendered":"https:\/\/exportcompliancesolutions.com\/blog\/?p=542"},"modified":"2025-07-14T11:54:36","modified_gmt":"2025-07-14T15:54:36","slug":"bis-considers-50-rule-for-entity-list-ddtc-updates-itar-country-lists-and-policies-and-ofac-updates-syria-sanctions","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2025\/07\/14\/bis-considers-50-rule-for-entity-list-ddtc-updates-itar-country-lists-and-policies-and-ofac-updates-syria-sanctions\/","title":{"rendered":"BIS Considers 50% Rule for Entity List, DDTC Updates ITAR Country Lists and Policies, and OFAC Updates Syria Sanctions"},"content":{"rendered":"

BIS Expected to Issue 50% Rule for Entity List<\/strong><\/p>\n

The Department of Commerce, Bureau of Industry and Security (BIS) is expected to issue a rule extending Entity List<\/a> restrictions to other entities (e.g., subsidiaries or joint ventures) owned or controlled by entities identified on the Entity List.<\/p>\n

While details are limited prior to publication, the change is expected to cover previously unlisted entities that are owned or controlled (50% or more) by a person on the Entity List.\u00a0 The change would be intended to make it more difficult for members of the Entity List to route shipments through related, but unlisted entities.\u00a0 This would impose additional screening and due diligence responsibilities on exporters as restrictions would apply to unlisted parties worldwide.<\/p>\n

The Entity List began in 1997 as a Weapons of Mass Destruction (WMD) anti-proliferation effort.\u00a0 It now includes both individuals and entities involved in \u201cactivities that are contrary to the national security or foreign policy interests of the United States.\u201d (EAR \u00a7744.11<\/a>).\u00a0 Listed entities are subject to license requirements for EAR-controlled items (including EAR99 or other items that would otherwise be shipped No License Required, or NLR), typically with a presumption of denial.<\/p>\n

Revisions to ITAR Country Policies: Proscribed Countries, NATO, and Major Non-NATO Allies<\/strong><\/p>\n

On July 7, 2025, the Department of State, Directorate of Defense Trade Controls (DDTC) issued a final rule (90 FR 29720<\/a>) updating the International Traffic in Arms Regulations (ITAR) country policies and lists.<\/p>\n

The first changes were revisions to \u00a7126.1 proscribed country policies for the Central African Republic, the Democratic Republic of the Congo, Haiti, Libya, Somalia, South Sudan, and Sudan.\u00a0 These revisions are based on recent United Nations Security Council resolutions.\u00a0 No countries were added to or removed from the proscribed country list.<\/p>\n

Second, Finland and Sweden were added to the list of NATO member countries and the name of the Czech Republic was updated to Czechia.<\/p>\n

Third, the list of Major Non-NATO Allies (MNNA) was updated to add Colombia, Kenya, and Qatar while removing Afghanistan.<\/p>\n

Fourth, redundant references to the Russian Federation were removed from \u00a7120.54.\u00a0 When originally published, \u00a7120.54 (the ITAR Cloud Rule<\/a>) excluded data stored or sent from 126.1 countries or Russia.\u00a0 Russia\u2019s subsequent addition to \u00a7126.1 made the reference redundant.<\/p>\n

Finally, the text of \u00a7126.1(a) was revised for clarity and other minor changes were made.<\/p>\n

OFAC Updates Syria Sanctions<\/strong><\/p>\n

Following an Executive Order<\/a>, the Department of the Treasury, Office of Foreign Assets Control (OFAC) took multiple actions including a General License, Fact Sheet, and FAQs and changed the Syria-related sanctions program to the \u201cPromoting Accountability for Assad and Regional Stabilization Sanctions (PAARSS) program<\/a>.\u201d<\/p>\n

These actions also include revisions and numerous removals from the\u00a0 Specially Designated Nationals and Blocked Persons List (SDN List<\/a>) and Sectoral Sanctions Identifications List (SSI List<\/a>).<\/p>\n

For more information, refer to OFAC\u2019s June 30 press release<\/a>.<\/p>\n

While these actions reduce the scale of OFAC\u2019s comprehensive sanctions on Syria, the country remains subject to significant export restrictions under both the ITAR and Export Administration Regulations (EAR).\u00a0 It is an ITAR \u00a7126.1(d)(1)<\/a> proscribed country subject to a policy of denial and a member of EAR Country Groups D:5 and E:1<\/a> subject to comprehensive export restrictions under EAR \u00a7746.9<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

BIS Expected to Issue 50% Rule for Entity List The Department of Commerce, Bureau of Industry and Security (BIS) is expected to issue a rule extending Entity List restrictions to other entities (e.g., subsidiaries or joint ventures) owned or controlled by entities identified on the Entity List. While details are limited prior to publication, the […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,3],"tags":[],"class_list":["post-542","post","type-post","status-publish","format-standard","hentry","category-all","category-compliance"],"yoast_head":"\nBIS Considers 50% Rule for Entity List, DDTC Updates ITAR Country Lists and Policies, and OFAC Updates Syria Sanctions - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"BIS Considers Entity List 50% Rule, DDTC Updates ITAR Country Lists and Policies, and OFAC Updates Syria Sanctions\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exportcompliancesolutions.com\/blog\/2025\/07\/14\/bis-considers-50-rule-for-entity-list-ddtc-updates-itar-country-lists-and-policies-and-ofac-updates-syria-sanctions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BIS Considers 50% Rule for Entity List, DDTC Updates ITAR Country Lists and Policies, and OFAC Updates Syria Sanctions - 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