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ARTICLE · 25 SEPTEMBER 2026

U.S. Export Control Regulator Adopts 50% Rule

Masuda, Funai, Eifert & Mitchell, Ltd.
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Export controls are expanding beyond traditional military applications into commercial transactions, requiring businesses to implement new compliance measures. The US Bureau of Industry and Security has introduced a significant policy shift that will fundamentally change how companies screen customers and business partners. Understanding these new ownership verification requirements is essential for businesses engaged in cross-border sales of commercial items and technology.

United StatesInternational Law
Asa Markel
Asa Markel
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Export controls have become more relevant to businesses buying and selling commercial items, as well as those engaging in transactions regarding the design and production of commercial items. Export control clauses are more routinely included in business-to-business non-disclosure agreements than they were a decade ago. Export control changes have been headline news periodically since at least 2018. Many businesses that sell industrial equipment have become used to managing export control compliance in screening new customers. However, the US Bureau of Industry and Security (BIS) within the US Commerce Department, the agency responsible for enforcing US dual-use controls over items with both commercial and military uses, has recently added a new layer of necessary checks for businesses’ compliance programs.

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