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The Consolidated Appropriations Act of 2016

The Consolidated Appropriations Act of 2016

As you have already heard, on Friday December 18, 2015, the President signed the Consolidated Appropriations Act of 2016.  As part of that bill the legal basis for prohibiting the US export of crude oil was removed.  Pursuant to that action the Department of Commerce, Bureau of Industry and Security, has clarified that a license is no longer required to export crude oil.  Exports of crude oil can now be classified as EAR99 (the general export commodity classification provision) instead of 1C981.

As with other non-restricted commodities, exports of crude oil to non-embargoed, non- sanctioned countries or persons, may now proceed with the designation NLR (No License Required) on the electronic export declaration (EEI) filed with the Census Bureau.  Additionally, since no EEI is required for exports to Canada that do not require an export license, now exports of crude to Canada no longer require an EEI. We have confirmed that no Census filing is required for December pipeline movements (which otherwise would be due today January 4, 2016).

BIS reminds the trade that this change in condition does not relieve an exporter/re-exporter of its responsibility for any violation that may have occurred prior to the removal of the license requirement. While no license is required for exports to permitted destinations and entities from this point forward, any previous export under license must still comply with the license conditions authorized for that shipment.

We await formal amendment to the Export Administration Regulations by BIS.

Please contact compliance@charterbrokerage.net if you have any questions or comments regarding this alert.