The government has issued a series of fines to exporters for breaches of export controls and sanctions regulations.
In a pair of notices to exporters, published yesterday (4 November), HMRC said it had hit four unnamed companies with fines worth just under £2m.
Russia regime
In August, an anonymous company paid out £58,426.45 for breaching the Russian sanctions regime.
HMRC said it has issued six settlements against UK companies for exporting controlled goods to Russia since 2022, worth a total of £1.3m.
“Failure to comply with these sanctions is a serious offence and those who breach them may be subject to a range of enforcement actions, including large financial penalties or referral for criminal prosecution.”
Settlements made by UK companies
Additionally, £1.9m worth of fines was levied on three other unnamed companies for breaching rules on export controls.
- In August, £402,417.75 was paid relating to the unlicensed exports of military goods controlled by the Export Control Order 2008
- Also in August, £37,743.34 was paid relating to the unlicensed exports of dual-use goods controlled by Retained Regulation 428/2009
- In September, £1,480,785.44 was paid relating to the unlicensed exports of military goods controlled by the Export Control Order 2008
‘Warning’
Kevin Shakespeare, the Chartered Institute of Export & International Trade’s directory of advisory services, said:
“These fines are a warning for businesses exporting their goods abroad.
“The definition of ‘dual-use goods’ can be broad and it is easy to accidentally fall foul of these regulations. Since Russia’s illegal invasion of Ukraine, authorities in the US, EU and UK have been increasingly active in investigating and fining companies for breaching sanctions.
“Training staff and keeping up-to-date with the regulations are crucial. A well-equipped workforce is a company’s best way of keeping complaint with export controls and sanctions regulations.”
At the end of October, the US Treasury and state department added an additional 400 companies and individuals to its sanctions list. These included companies from China, Russia, Hong Kong, Turkey, Switzerland, India, Thailand and Kyrgyzstan.
Chartered Institute support
The Chartered Institute of Export & International Trade offers support and education on complying with export controls. Our range of courses includes an 'Introduction to export licensing controls' as well as a host of others.
For those looking for tailored advice, we also provide an export controls compliance consultancy, which can be accessed here.