Still, under Direct Representation, the declarant must work to the exporter’s instruction, who must check that the consignment is declared correctly.  

Under Strategic Controls, goods can be Military, Dual Use or No Licence Required. For Military and Dual-Use Goods, an export licence is a mandatory requirement. This will either be in the format of an Open approval, an OGEL (Open General Export Licence), a GEA (General Export Authorisation) or a licence that is specific to the exporter’s requirements - a SIEL (Standard Individual Export Licence) or OIEL (Open Individual Export Licence). There could be instances where the exporter does not own the goods (for example, when the exporter returns the product to the owner after repair), but the rule is simple. The exporter, identified by their name, address and EORI, is responsible for obtaining a valid licence and ensuring it is declared to HMRC in Box 44 of a CHIEF declaration or Data Element 2/3 for CDS.

Technology and Software can also be licensable under Export Control regulations. Intangible transfers will require a licence, but if the controlled data is a tangible transfer (in instances where information is stored on a laptop or USB stick, for example), an export licence must be obtained.            

Even if the goods are not licensable for Military or Dual Use, the No Licence Required classification for exports is still subject to due diligence by the EORI holder to ensure that there are no other reasons why export approval is a requirement. The exporter must check Embargoes and Sanctions, Prohibitions on Trade, and End-Use Controls to ensure that every aspect of the trade is not licensable.

If the declarant has not declared the exporter’s licence, a C81 or C1700 will not resolve the issue. The C81 can be used to make a statistical amendment to an export Customs declaration but will not resolve the problem of the licence not being declared to HMRC. A C1700 can correct the quantity declared against a SIEL, but it will not fix the problem if the licence was not declared to HMRC in the first place. It is a Criminal Offence to breach UK Export Controls. A Voluntary Disclosure should be prepared and submitted to HMRC by the exporter for any breach of UK Export Control regulations.

When CDS finally replaces CHIEF for export declarations, LIC99 will also leave the building. LIC99 confirms that the exporter has not declared a licence. Trade compliance relates to the Commodity Code of the product the exporter declares to Customs. Checking the restrictions against the 8 Digit Code in Volume 2 of the UK Trade Tariff will be imperative to ensure that the goods are declared correctly to HMRC. 999L will be a short-term waiver with CDS and could be the exporters and declarants equivalent to LIC99; that will not always be the case.

To declare at export that goods are Dual Use, does X002 or Y999 confirm this information on CDS? The tariff has the answer, but CHIEF to CDS is not a like-for-like change, as we have all seen for imports. If the requirement still needs to be clarified, this emphasises the importance of accurate Tariff Classification. If the declared Commodity Code is incorrect, the provision relating to the code could also be wrong.

Export Controls and Customs Compliance go hand in hand. Exporters must consider both requirements.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Beginners Guide to Export Licensing Controls

Applying for and Using UK Export Licences

The UK Export Licensing System

Focus On: Controlling Technology & Intangible Transfers

Focus On: Embargoes, Sanctions and End-Use Controls

Focus On: Dual Use Export Compliance - The Dual-Use Exporter

Focus On: Preparing for an Export Control Audit