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Short Supply License Requirements for Crude Oil Exports Removed

Thursday, May 12, 2016
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued a final rule removing from the Export Administration Regulations the short supply license requirements that applied to U.S. exports of crude oil prior to the Dec. 18, 2015, entry into force of the Consolidated Appropriations Act of 2016, which prohibits the federal government from restricting crude oil exports. Specifically, this rule removes and reserves section 754.2, which described the short supply license requirements and licensing policies that applied to exports of crude oil to all destinations, and removes Export Control Classification Number 1C981, which controlled crude petroleum, including reconstituted crude petroleum, tar sands and crude shale oil.

As a result, crude oil is now an EAR99 item and exports of it will be treated similarly to exports of most petroleum products. This includes a requirement for BIS authorization of exports to embargoed or sanctioned countries or persons and persons subject to a denial of export privileges.

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