BIS Deregulates Export Controls on Crude Oil…..A Long Overdue Export Control Reform

The Department of Commerce, Bureau of Industry and Security posted an announcement on its website dated December 18, 2015, that effective immediately export licenses are no longer required for the export of crude oil. Crude oil is now classified as EAR99 thus qualifying for export as “no license required” or NLR to most destinations. Exporters are reminded that NLR treatment is contingent up a clear screen of all consignees against the Consolidated List as well as no knowledge of pending violations of Parts 736, 7444 and 746 of the EAR.

In light of the recent surge in domestic oil production, this change is not surprising but rather a long awaited “opening” for the U.S. oil and gas industry. The ending of export controls on U.S. crude oil, marks the long overdue death knell for the export controls on oil, a policy dinosaur dating back to the Cold War era and the oil shortages of the late 1970s and early 1980s. For further details on this to be applauded move by BIS, contact TSI Global Consulting at 210-757-0618.

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