UK export control legislation requires the exporter to consider whether they need to comply with any export controls and with regulations increasing quickly, the danger of not complying – and facing severe penalties – have never been greater.
Many commercially available materials, products, technologies and chemicals could have a military application, which means they are likely to be subject to export licences, or may be covered by end-use controls or sanctions.
It is the exporter’s responsibility to clarify whether they need an export licence from the Export Control Joint Unit and failure to obtain a licence, when one is required, or failure to observe the terms of a licence, is a criminal offence for which the exporter is likely to be liable and ignorance is not an excuse.
The war in Ukraine has magnified the importance of export compliance and due diligence, with up to 200 sanctions a day being imposed and exporters need to ensure they are compliant with the requirements of any new legislation.
Photographs of a captured Russian tank, showed systems which contained British parts and further investigation discovered multiple military systems, using western technologies and now EU and UK customs are investigating how they get there and who supplied them.
Controlled items often find their way into countries under bans or sanctions, because exporters have not carried out due diligence with the Export Control Joint Unit or on their buyer. But risking non-compliance may incur financial and reputational damage, with fines running to hundreds of thousands of pounds.
There is no need for exporters to risk export compliance issues because our customs experts can provide them with the help and guidance that will build an effective export compliance regime, that avoids the risk of penalties and creates competitive advantage.
Exporting firms need to understand the intricacies of their supply chains, including all components and in particular US parts which, even if they only form a small part of the end-product, may exceed limits that mean they can only be re-exported with authorisation from the US Department of Commerce.
The risk of getting US export compliance wrong is very expensive, with fines that have been known to run into tens of millions of dollars and potentially liberty threatening, with long jail sentences of convicted.
Global Forwarding handle the most demanding cargoes and we have the customs expertise, resources and capability to make the most complex export supply chains compliant.
EMAIL Chloe Chloe Henshall, our Customs Compliance Manager, for further information, or to discuss your exporting situation.
