STOP Shells Act
Sponsored By: Representative Self, Keith [R-TX-3]
Introduced
Summary
Extends U.S. export licensing to affiliates of entities on the Commerce Department's Entity List or Military End User List.
Show full summary
- U.S. exporters of controlled items would need a license to send goods or technology to affiliates that are 50 percent or more owned in aggregate by a listed entity. This creates a new compliance step for companies with complex global supply chains.
- Foreign affiliates that meet the 50 percent ownership threshold would be treated like the listed company for licensing purposes, which can restrict their access to U.S. goods and technology.
- The Commerce Secretary would have to complete a Foreign Direct Product Rule assessment before adding an entity to either list and provide that assessment to congressional committees within 2 days of a listing. The Secretary could grant narrow, case by case waivers after consulting the Secretaries of State, Defense, and Energy and must notify committees within 2 days with a detailed explanation.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Export licenses for listed affiliates
If enacted, affiliates that are 50% or more owned by a company on the Commerce Entity List or the Military End User List would need an export license. The Commerce Secretary would apply existing export licensing rules to those affiliates. Affected exporters could face more applications, delays, and compliance costs. This would take effect upon enactment.
Pre-listing review and quick Congress notice for export lists
Before adding a company to the Entity List or the Military End User List, Commerce would review whether to apply the Foreign Direct Product Rule. Within 2 days after listing, Commerce would send that review to Congress. Commerce could grant case-by-case waivers from the affiliate licensing rule, after consulting State, Defense, and Energy, and must tell Congress within 2 days with reasons. The bill defines the two lists and the Foreign Direct Product Rule by reference to Commerce rules, so exporters know what applies. These steps would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Self, Keith [R-TX-3]
TX • R
Cosponsors
Rep. Case, Ed [D-HI-1]
HI • D
Sponsored 7/17/2025
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 9/4/2025
Rep. Moolenaar, John R. [R-MI-2]
MI • R
Sponsored 9/26/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov