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Focus on Regulation

BIS Lifts Licensing Requirements for Crude Oil Exports

2000px-US-DOC-BureauOfIndustryAndSecurity-Seal_svg The Bureau of Industry and Security (BIS) announced that crude petroleum is now classified as EAR99 and may be exported from the United States without an export license. This news follows the passage of the 2016 Consolidated Appropriations Act (H.R.2029) on December 18th, which ended the export ban on crude oil.

For the text of the BIS announcement, please see below:

“Effective immediately, pursuant to section 101 of Division O of the Consolidated Appropriations Act, 2016, signed on December 18, 2015, a Department of Commerce license is no longer required to export crude oil. Crude oil is now classified as EAR99. Most exports of crude oil may now be made as NLR (no license required). Exporters should be aware that exports to embargoed or sanctioned countries or persons, including those listed in parts 744 and 746 of the EAR and persons subject to a denial of export privileges, continue to require authorization.

BIS will shortly be taking steps to amend the Export Administration Regulations to reflect this change. Companies holding current licenses for crude oil exports should be aware of section 750.7(i) of the EAR terminating license conditions upon the termination of the requirement for the export license.”