12 businesses penalised for export control rules breaches in reminder of importance of compliance

Tue 13 Dec 2022
Posted by: William Barns-Graham
Trade News

UK export controls

The government has issued compound settlements with 12 exporters it has found to have breached important export control regulation.

The settlement offers total £510,670.13, ranging from £1,000 to £271,700.25, the Department for International Trade’s (DIT) Export Control Joint Unit (ECJU) announced in its latest ‘Notice to Exporters’.

The penalties relate to breaches of the Export Control Order 2008 and unlicensed exports of dual-use goods controlled by retained European Commission regulation (No 428/2009).

Compliance is key

Control regulations are applied by governments to restrict the exports of strategic military or dual-use items. Dual-use describes products that can serve both a military and civilian purpose.

Roger Arthey, the chair of the Institute of Export & International Trade’s (IOE&IT) Export Control Profession, said the penalties were a reminder of the importance of compliance.

“Exporters should note that non-compliance with UK control regulations can result in expensive penalties, so they should be careful to avoid any deliberate or inadvertent non-compliance,” he said.

“The IOE&IT can help exporters to understand how the regulations apply to them and their business, and how to ensure compliance,” he added.

IOE&IT support

The IOE&IT offers training and consultancy in export control compliance, with IOE&IT members able to benefit from discounted rates.

It will also be launching a new ‘special interest group’ for export control professionals to network and share thoughts on best practice in early January 2023.

HMRC enforcement

While the ECJU administers the UK's system of export controls and licensing for military and dual-use items, HMRC has overall responsibility for enforcing controls and sanctions.

HMRC can issue compound penalties in lieu of a file being prepared and sent to the Crown Prosecution Service.