BY:
SHARE:
HM Revenue and Customs (HMRC) have issued two Notices to Exporters relating to compound settlement offers issued by HMRC to UK exporters to date August 2024
NTE 2024/29, dated 4th November 2024, relates to four settlement offers made to UK exporters in August 2024, one settlement offer of just over £58,000 paid relating to the export of goods in breach of The Russia (Sanctions) (EU Exit) Regulations 2019
NTE 2024/28 gives details of fines for breaches of export control regulations.
NTE 2024/29:
Following Russia’s illegal invasion of Ukraine, the UK and international partners have implemented the heaviest package of sanctions imposed on a major economy, which has deprived the Russian state of over $400 billion in funding for its war on Ukraine.
Failure to comply with these sanctions is a serious offence. Those who breach the regulations may be subject to various enforcement actions, including significant financial penalties or referral for criminal prosecution.
This action follows six compound settlements against UK companies made since February 2022, in which UK businesses were caught breaching Russian sanctions regulations. Preventing Russian access to technology is a major UK Government priority, and the private sector is obligated to support Government policy
The total settlement reached is £1,363,129. This includes a settlement in August 2023 for £1 million. A link to the S&H article is below:
UK Business Faces £1 Million Fine Following Russian Sanctions Violation, ECJU Reveals August 2023
A UK business is also obligated to advise HMRC where it is possible that any products subject to sanction restrictions may have been supplied to Russia, whether exported directly or diverted by a third country.
Suppose a UK business discovers that controlled goods or technology have been supplied to Russia without the appropriate export licence permissions in place, and the UK business is advised to consider making a voluntary disclosure to HMRC. Details can be found at the end of this article.
NTE 2024/28: compound settlement for breaches of export control – August 2024
NTE 2024/28, published 4th November 2024, details that HM Revenue and Customs (HMRC) issued compound settlement offers to 3 UK exporters worth £1.9 million in August and September of the same year.
These settlements (fines) relate to unlicensed exports of military-listed goods, Dual-Use goods, and related activity that fall under the Department of Business and Trade's control under The Export Control Order 2008 and Retained Regulation 428/2009.
Settlements made by UK companies
The settlements made by UK companies for August and September 2024 are detailed as follows:
- August 2024 - £402,417.75 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
- August 2024 - £37,743.34 was paid relating to the unlicensed exports of dual-use goods controlled by Retained Regulation 428/2009
- September 2024 - £1,480,785.44 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
Details of both Notices to Exporters can be found below:
NTE 2024/29: compound settlement for breaches of Russian sanctions – August 2024 - GOV.UK
Russia sanctions: guidance - GOV.UK
NTE 2023/28: compound settlement for violations of export control – August 2024 - GOV.UK
In addition, a Strong and Herd Article, Putting Regulation into Working Practice: Russian Import Sanctions, summarising all updates to the Russian Import Sanctions regulation to May 2024 can be found here: Putting Regulation into Working Practice - NTI 2953: Russian Import Sanctions
Should you determine that your business has breached export control regulations, guidance on making a Voluntary Disclosure to HMRC can be found at the link below:
Export controls: military goods, software and technology - GOV.UK
If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP:
Focus On: Embargoes, Sanctions and End-Use Controls
This half-day session highlights the importance of understanding embargoes and sanctions, focusing on UK regulations and the growing sanctions on Russia. It reviews current financial sanctions managed by OFSI and the severe consequences of non-compliance, including fines, reputation loss, and criminal charges. The course emphasises the need for exporters to comply with embargoes and sanctions. It identifies areas where companies can unintentionally become non-compliant, such as end-use, end-user, and transit codes.
Focus On: Preparing for an Export Control Audit
Trading goods worldwide can expose companies to greater risk & cost in the form of lost goods or unnecessary delays or disputes. The simple allocation of responsibilities in the supply chain can help, which is what Incoterms® Rules have been doing since 1936. Generally, Incoterms® are misunderstood and frequently misused; ensure you are using them correctly by joining us on this full-day interactive course.
The UK Export Licensing System
This course combines the key elements of the UK Export Licensing System into a practical session. By reviewing the UK strategic export control lists and the legislation surrounding financial sanctions, delegates will gain a comprehensive foundation of knowledge to support future learning and understand internal requirements.
Beginners Guide to Export Licensing Controls
Whether at the start of your learning pathway or as a standalone training session, this course will begin your journey to understand export licensing controls and how they work. Covering essential elements gives delegates an excellent springboard to understand what goods, technology or software could be controlled and review business-relevant areas in more detail.
OneCall™ Email assistance as and when required; A one-call solution for all your import, export and customs enquiries. Export help. Import help. Customs help.
Stay informed about customs and international trade matters by subscribing to our OneCall™ service. This comprehensive offering includes a dedicated email helpline for support, timely practical updates direct to your inbox (Did You Know?), monthly UK Customs & Trade Briefings and access to an interactive members' area with an exclusive community for our subscribers.
International Trade Updates & Spotlight Newsletter
Subscribe to our free information emails covering international trade topics...
MORE INDUSTRY INSIGHTS...
