BIS Announces that Crude Oil is now Classified as EAR99 and May be Exported from US Without a License
Following last week's passage of the omnibus appropriations bill (HR 2029) lifting restrictions on the export of crude oil from the US, today the Bureau of Industry and Security (BIS) announced that the export classification of crude petroleum is now classified as EAR99 (formerly ECCN 1C981) and may be exported from the US without a license (i.e., NLR).
Of course, the normal restrictions on the export and reexport of EAR99 will apply and therefore no transactions involving embargoed countries or with restricted parties can occur.
Of course, the normal restrictions on the export and reexport of EAR99 will apply and therefore no transactions involving embargoed countries or with restricted parties can occur.
The following is the text of BIS's announcement:
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.
|posted by Douglas N. Jacobson| Permalink 
