United Kingdom — Export Controls

The United Kingdom's export control regime is established under the Export Control Act 2002 (c. 28), which received Royal Assent on 11 July 2002 and replaced the export control provisions of the Import, Export and Customs Powers (Defence) Act 1939. The Act provides the statutory framework enabling the government to impose controls on the exportation of goods, the transfer of technology (including intangible electronic transfers), the provision of technical assistance overseas, and activities connected with trade in controlled goods such as brokering and trafficking.

The Act itself is an enabling statute; the operative controls are imposed through secondary legislation made under its authority. The principal implementing instrument is the Export Control Order 2008 (SI 2008/3231, as amended), which came into force on 6 April 2009 and consolidates earlier Orders made under the 2002 Act. The 2008 Order has been amended numerous times to reflect changes to control lists and embargo destinations.

Scope of controls

The Export Control Act 2002 confers broad powers upon the Secretary of State to impose controls by Order. Section 1 authorizes controls on the export of goods based on their physical description or based on the uses to which the goods may be put or information obtainable from the goods. Section 2 permits controls on technology transfers—the transfer of technical data, software, or information by any means other than the physical export of goods—including electronic transmission. Section 3 covers the provision of technical assistance (instructions, skills, training, working knowledge, consulting services) outside the UK. Section 4 authorizes controls on trafficking and brokering activities—the acquisition, disposal, or movement of goods, or activities facilitating such transactions—within or outside the UK when conducted by UK persons or persons under UK control.

The controls apply extraterritorially: Section 2(7) and Section 3(7) provide that controls may be imposed on things done outside the UK where the activity is conducted by a UK person or a person acting under the control of a UK person. UK persons are subject to the Act's prohibitions wherever they are located, not only when exporting from UK territory.

Categories of controlled items

The Export Control Order 2008 distinguishes between:

• Military goods, software, and technology – listed in Schedule 2 to the Order (the UK Military List, which reflects the Wassenaar Arrangement Munitions List);
• UK-controlled dual-use items – listed in Schedule 3 to the Order (items with both civilian and military applications not already covered by the EU Dual-Use Regulation); and
• EU dual-use items – controlled under assimilated Council Regulation (EC) No 428/2009 (in Northern Ireland, Regulation (EU) 2021/821 applies directly).

In addition, the UK controls goods that could be used for torture or capital punishment under assimilated Regulation (EU) 2019/125.

End-use controls (catch-all provisions)

Even if an item is not on a control list, a licence may still be required under "catch-all" or end-use controls. Article 6 of the Export Control Order 2008 imposes a WMD end-use control: exporters must not export, and must not transfer technology or provide technical assistance relating to, items that they know or have been informed by the Secretary of State are or may be intended in whole or in part for use in connection with weapons of mass destruction or their means of delivery. Article 12A (inserted by the Export Control (Amendment) Order 2022, SI 2022/491) imposes a military end-use control for exports to destinations specified in Schedule 4, Part 2, where the Secretary of State has informed the exporter that dual-use items may be intended for use by military, paramilitary, police, or intelligence forces of an embargoed country or territory.

Administering authority: Export Control Joint Unit (ECJU)

Export licensing and enforcement are administered by the Export Control Joint Unit (ECJU), part of the Department for Business and Trade. ECJU brings together operational and policy expertise from the Department for Business and Trade, the Foreign, Commonwealth and Development Office (FCDO), and the Ministry of Defence (MOD). The ECJU is responsible for:

• Assessing and granting (or refusing) export licence applications;
• Providing guidance and classification advice to exporters;
• Maintaining the UK Strategic Export Control Lists;
• Monitoring compliance and conducting audits of licence holders; and
• Enforcing export control legislation in coordination with His Majesty's Revenue and Customs (HMRC).

Exporters apply for licences through the SPIRE (Strategic Export Processing and Information Retrieval Environment) system for most applications, or through the newer LITE (Licensing for International Trade and Enterprise) system for certain Standard Individual Export Licences (SIELs). Open General Export Licences (OGELs) do not require individual application but require registration on SPIRE to use.

Penalties

Breaching UK export controls is a criminal offence. Article 34 of the Export Control Order 2008 provides that a person who contravenes a prohibition in the Order commits an offence and may be arrested. Penalties include revocation of licences, seizure of goods, compound penalty fines issued by HMRC, and criminal conviction leading to a fine and/or custodial sentence. Exporters who discover a licensing irregularity may voluntarily report it to HMRC, which may be taken into account in enforcement decisions.

Source: Export Control Act 2002, c. 28 Source: Export Control Order 2008, SI 2008/3231 Source: UK strategic export controls guidance, GOV.UK Source: Export Control Joint Unit, GOV.UK

UK export licences fall into three principal categories: Standard Individual Export Licences (SIELs), Open Individual Export Licences (OIELs), and Open General Export Licences (OGELs). The Export Control Order 2008 defines "UK licence" as a licence in writing granted by the Secretary of State that authorises an act or acts that would otherwise be prohibited by the Order, and distinguishes "general" licences (not granted to a particular person but available for use generally) from individual licences granted to named applicants.

Standard Individual Export Licence (SIEL)

A SIEL is an individually tailored licence specific to an exporter and allows shipments of a stated quantity of specified items to a named consignee or end-user. SIELs cover single or multiple shipments of specific controlled goods, software, or technology to a named destination. The exporter must specify the items for export, their quantity, and their destination (consignee and/or end-user) and provide appropriate supporting documentation, such as a completed End-User and Stockist Undertaking (EUSU) form. SIELs for permanent exports are generally valid for two years or until the quantity specified has been exported, whichever occurs first.

Applicants use the LITE (Licensing for International Trade and Enterprise) service to apply for most SIELs. SPIRE (the earlier Strategic Export Processing and Information Retrieval Environment system) remains the route for certain categories: exports to sanctioned destinations where ancillary services (services related to the export of tangible goods) are provided, exports under Sanctions End-Use Controls where notified by the Office of Trade Sanctions Implementation (OTSI), and for goods with specific control list entries. Applications to provide standalone services (professional and business services not tied to goods exports) to sanctioned destinations require a separate licence to provide sanctioned trade services, not a SIEL.

Open Individual Export Licence (OIEL)

An OIEL covers multiple shipments of specific controlled goods to named destinations and is designed for exporters with repeat business, long-term contracts, or project-based exports. OIELs are usually valid for three to five years. Unlike SIELs, exporters applying for an OIEL do not always need to name the consignee or end-user on the application, though all OIEL applications require a consignee undertaking in accordance with licence conditions after the licence is granted. OIELs are restricted to three years for exports of military items from Northern Ireland to the EU; this restriction does not apply to exports from Great Britain (England, Scotland, and Wales).

If an OIEL application is rejected, there is no appeals process. The exporter may still apply for a SIEL covering some or all of the same destinations and goods; factors influencing the OIEL refusal will be taken into account.

Open General Export Licence (OGEL)

OGELs are pre-published licences with set terms and conditions, available for use generally—not granted to a particular person—for less restricted exports to less restricted destinations. OGELs are defined in Article 2 of the Export Control Order 2008 as "general" licences. Some OGELs are for military goods, others for dual-use goods, and a small number cover both. Recent destination-specific OGELs include India, AUKUS nations, and the Global Combat Air Programme.

Exporters must pre-register on SPIRE for each OGEL they intend to use, unless the terms of the OGEL permit use without registration. A "licence user" is defined in the Export Control Order 2008 as a person registered under Article 28 to use a general licence or entitled to use a general licence without registration owing to the terms of that general licence. Exporters must state the SPIRE registration or OGEL reference on all shipping documentation for HMRC purposes. Exporters must comply with all terms and conditions of the OGEL; if they cannot, they must apply for a SIEL or OIEL instead. OGELs remain valid unless revoked or suspended by the Secretary of State. Exporters must re-register if they move premises (where the UK address where records are available for inspection changes), as failure to do so constitutes a breach of the licence.

Trade Control Licences (trafficking and brokering)

Trade control licences authorise trafficking and brokering activities—the acquisition, disposal, or movement of controlled goods between third countries by UK persons or persons under UK control—governed by Article 4 of the Export Control Act 2002. Open General Trade Control Licences (OGTCLs) are reusable licences permitting the trading of specific items between specific destinations. Different OGTCLs are available depending on the goods and destinations involved. Standard Individual Trade Control Licences (SITCLs) are bespoke licences specific to a named trader covering their involvement in trading specific goods between overseas sources and overseas destination countries and/or specified consignees or end-users.

Record-keeping and compliance obligations

Article 29 and Article 30 of the Export Control Order 2008 impose record-keeping obligations on licence holders. Exporters using OGELs, OIELs, or SIELs must maintain records of all transactions carried out under the licence. ECJU has a statutory right under Article 31 to inspect export records to ensure correct use of licences. Export licences are not transferable to another exporter; only ECJU can amend, suspend, or revoke a licence under Article 32. It is a criminal offence to export controlled goods without the correct licence, and penalties vary depending on the nature of the offence.

Source: Export Control Order 2008, SI 2008/3231 Source: Standard individual export licences (SIELs), GOV.UK Source: Open individual export licence (OIEL), GOV.UK Source: Open general export licences (OGELs), GOV.UK Source: Using SPIRE to get an export licence, GOV.UK

The UK Strategic Export Control Lists (commonly called "the consolidated list") are the authoritative index of goods, software, and technology subject to export licensing requirements. Determining whether an item is "controlled" and identifying its correct control-list entry (or "rating") is the first analytical step for every UK exporter; only after classification can an exporter assess whether a licence is required and, if so, which licence type is available.

Structure: three principal control categories

The UK Strategic Export Control Lists are compiled from multiple pieces of legislation and reflect both international export-control-regime commitments (Wassenaar Arrangement, Australia Group, Nuclear Suppliers Group, Missile Technology Control Regime) and domestic UK controls. The lists are divided into three principal categories:

1. Schedule 2 to the Export Control Order 2008 — Military goods, software, and technology (the "UK Military List"). Schedule 2 lists military and security goods specially designed or modified for military use. The list is structured into 22 categories numbered ML1 through ML22, reflecting the Wassenaar Arrangement Munitions List. Categories include firearms (ML1), ammunition (ML3), bombs and missiles (ML4), fire-control systems (ML5), ground vehicles (ML6), chemical and biological agents (ML7), energetic materials and explosives (ML8), vessels (ML9), aircraft (ML10), electronics (ML11), directed-energy weapons (ML16), and military-support equipment (ML17). Each entry contains a detailed physical or performance description, along with notes specifying what is or is not controlled. Schedule 2 applies to exports to all destinations; military goods require a licence regardless of where they are destined.

1. Schedule 3 to the Export Control Order 2008 — UK-controlled dual-use goods, software, and technology (the "UK Dual-Use List"). Schedule 3 lists a small number of dual-use items controlled by UK legislation outside the scope of the EU Dual-Use Regulation (see below). The principal Schedule 3 entries are goods related to firearms that are not military items (entries PL9010 and PL9011) and certain other UK national controls. Goods in Schedule 3 are subject to destination-specific controls: Article 4 of the Export Control Order 2008 prohibits export of UK-controlled dual-use goods only to destinations specified in Schedule 3 as prohibited for the particular good in question.

1. Annex I to the assimilated Council Regulation (EC) No 428/2009 — EU Dual-Use items (applicable in Great Britain). Following the UK's departure from the EU, the EU Dual-Use Regulation was "assimilated" into UK law and continues to apply in Great Britain (England, Scotland, Wales). Annex I lists dual-use items — goods, software, and technology with both civilian and military applications — organised into ten categories numbered 0 through 9: nuclear materials, facilities and equipment (Category 0); materials, chemicals, micro-organisms and toxins (Category 1); materials processing (Category 2); electronics (Category 3); computers (Category 4); telecommunications and information security (Categories 5 and 5A2); sensors and lasers (Category 6); navigation and avionics (Category 7); marine (Category 8); and aerospace and propulsion (Category 9). Each category is further subdivided by item type (A = equipment, assemblies and components; B = test, inspection and production equipment; C = materials; D = software; E = technology). Items in Annex I to the assimilated Regulation require a licence for export from Great Britain to destinations outside the UK customs territory (except where an Open General Export Licence or other authorisation applies). In Northern Ireland, Regulation (EU) 2021/821 of the European Parliament and of the Council (the recast EU Dual-Use Regulation) applies directly by virtue of the Protocol on Ireland / Northern Ireland in the EU Withdrawal Agreement; Annex I to Regulation (EU) 2021/821 lists the same categories and is maintained in alignment with updates adopted by the European Commission.

The UK also controls goods that could be used for torture or capital punishment under the assimilated Regulation (EU) 2019/125 (in Northern Ireland, Regulation (EU) 2019/125 applies directly); these items are listed in Annexes II and III to that Regulation.

How to classify: comparing item specifications to control-list entries

Classification requires comparing the technical specifications, performance parameters, and intended use of the item against the descriptive text of each potentially relevant control-list entry. The UK does not use a commodity-code system; classification is narrative and technical. Each control-list entry specifies:

• Physical or functional description — materials, components, assemblies, software, or technology described by their physical properties, technical parameters (e.g. wavelength, accuracy, speed, resolution, tensile strength), or functional capabilities (e.g. "specially designed for," "capable of," "usable in").
• Notes — most entries include notes that clarify scope, carve out items that are not controlled (e.g. "N.B.: ML7.g. does not control personal radiation monitoring dosimeters"), or cross-reference related entries in other lists (e.g. "See also 1A of Annex I to 'the dual-use Regulation'").
• Defined terms — the control lists use many defined terms (printed in quotation marks in the lists) such as "specially designed," "required," "technology," "use," "production," and "development." These definitions are set out at the beginning of Schedule 2, Annex I to the assimilated Regulation (EC) 428/2009, and Annex I to Regulation (EU) 2021/821. Understanding the defined meaning of "specially designed" (adapted or modified to perform a specific military function and unlikely to be used for non-military purposes) or "technology" (specific information necessary for the development, production, or use of a product) is essential to correct classification.

ECJU publishes the consolidated list as a single PDF document updated periodically to reflect amendments to Schedule 2, Schedule 3, and Annex I. The most recent consolidated list (as of June 2026) is the December 2025 edition. Exporters may use the online Goods Checker tool on GOV.UK (accessible via SPIRE) to search control-list entries by keyword or technical parameter; the tool returns potential matching ratings, but the exporter remains responsible for confirming that the item meets the technical description. ECJU also offers a Control List Classification Service: exporters may submit a detailed technical specification and request a formal classification opinion; ECJU's written response is not legally binding but provides a basis for compliance and may be taken into account in enforcement decisions.

Frequency of amendment and Notices to Exporters

The UK Strategic Export Control Lists are amended regularly — typically once or twice per year — to reflect changes agreed in multilateral export-control regimes (Wassenaar Arrangement munitions and dual-use lists are updated annually in December plenary meetings) and to implement UK national-security or foreign-policy decisions. Amendments are made by statutory instrument under the authority of the Export Control Act 2002. Recent amending instruments include The Export Control (Military and Dual-Use Lists) (Amendment) Regulations 2023 (SI 2023/302), which updated Schedule 2 to reflect the December 2022 Wassenaar Arrangement munitions list and updated Annex I to the assimilated Regulation to reflect Wassenaar dual-use and Australia Group / MTCR changes agreed through December 2021, and The Export Control (Amendment) (No. 2) Regulations 2025 (SI 2025/[number]), which added new dual-use entries and updated certain military-list definitions. ECJU publishes a Notice to Exporters (NTE) for each legislative change, summarising the amendments and their effective date. Exporters who register on SPIRE to receive email alerts are notified when an NTE is published; staying current with NTEs is essential to avoid exporting newly controlled items without authorisation.

End-use controls (catch-all provisions)

Even if an item is not on any control list, a licence may still be required under end-use or "catch-all" controls. Article 6 of the Export Control Order 2008 imposes a WMD end-use control: an exporter must not export, transfer technology, or provide technical assistance relating to any item if the exporter knows or has been informed by the Secretary of State that the item is or may be intended, in whole or in part, for use in connection with weapons of mass destruction (chemical, biological, or nuclear weapons) or their means of delivery. Article 12A imposes a military end-use control: for exports to destinations specified in Schedule 4, Part 2 to the Order (which includes destinations subject to UK or international arms embargoes), ECJU may inform an exporter that dual-use items may be intended for use by military, paramilitary, police, or intelligence forces of an embargoed country or territory, and a licence is then required even if the items are not on a control list. These controls ensure that proliferation-sensitive or embargo-evading transactions are caught even when the item itself is not inherently controlled.

Source: Export Control Order 2008, SI 2008/3231 Source: UK Strategic Export Control Lists (consolidated list), GOV.UK Source: UK strategic export controls guidance, GOV.UK Source: Export controls: dual-use items, software and technology, GOV.UK Source: The Export Control (Military and Dual-Use Lists) (Amendment) Regulations 2023, SI 2023/302

UK export controls extend beyond physical shipments of goods to the transfer of controlled technology and software by intangible means. Section 2 of the Export Control Act 2002 empowers the Secretary of State to impose transfer controls on technology of any description, prohibiting or regulating its transfer "by any means (or combination of means), including oral communication and the transfer of goods on which the technology is recorded or from which it can be derived, other than the exportation of such goods." This statutory framework, operationalised through the Export Control Order 2008, treats the electronic transmission of technical data, software, or know-how as a licensing trigger equivalent to the physical export of controlled goods.

What constitutes a "transfer" of technology

Article 2 of the Export Control Order 2008 defines "transfer" as "transfer by electronic or non-electronic means (or any combination of electronic and non-electronic means) from a person or place within the United Kingdom to a person or place outside the United Kingdom." Electronic transfer is further defined to include transmission by facsimile, telephone, email, or other electronic media—including oral transmission of technology by telephone where the technology is contained in a document the relevant part of which is read out over the telephone, or is described over the telephone in such a way as to achieve substantially the same result. Non-electronic transfer means disclosure of software or technology by any means, including oral communication, other than exportation of physical goods or transfer by electronic means.

"Technology" is defined in Article 2 as "information (including but not limited to information comprised in software and documents such as blueprints, manuals, diagrams and designs) that is capable of use in connection with the development, production or use of any goods." The Export Control Act 2002 Section 2(6) similarly defines technology as "information (including information comprised in software) that is capable of use in connection with ... the development of, or the carrying out of, an industrial or commercial activity or an activity of any other kind whatsoever."

When a licence is required for technology transfers

A licence is required for the transfer of technology or software listed in Schedule 2 (UK Military List) or Schedule 3 (UK-controlled dual-use items) to the Export Control Order 2008, and for technology or software in Annex I to the assimilated Regulation (EC) No 428/2009 (EU dual-use items applicable in Great Britain) or Regulation (EU) 2021/821 (applicable in Northern Ireland). ECJU guidance states that "any transfer, permanent or temporary, of controlled technology overseas requires an export licence," including transfers for demonstration, bidding or tendering for overseas contracts, contract fulfilment, training material for maintenance and servicing, screen-sharing to overseas audiences in video conferences, and access to controlled technology by overseas personnel via remote desktop, cloud storage, or email.

The location of the intended recipient at the time of transfer determines the destination for licensing purposes. The routing or storage of data in transit—such as passage through overseas servers—does not by itself constitute a transfer to that intermediate location, but if controlled technology is uploaded to a UK or overseas server and subsequent access to it is controlled by a person located outside the UK, a licence is required for the transfer to the location of that person. Uploading controlled technology to cloud services accessible by foreign nationals or overseas subsidiaries therefore triggers a licensing requirement.

Deemed export and foreign-national access in the UK

Unlike the United States' "deemed export" rule under the Export Administration Regulations, which treats release of controlled technology to a foreign national within the US as an export to that person's country of nationality, the UK Export Control Order 2008 does not generally impose a licensing requirement for transfers of controlled technology to foreign nationals physically present within the UK. Article 2's definition of "transfer" requires movement "from a person or place within the United Kingdom to a person or place outside the United Kingdom." A foreign national employee working at a UK facility who accesses controlled technology on-site is not, by virtue of that access alone, causing a "transfer" under the Order.

However, two important caveats apply. First, Articles 10 and 11 of the Export Control Order 2008 impose WMD end-use controls on intangible transfers that have broader geographic scope: Article 10 prohibits transfers of software or technology to a person or place within the UK if the transferor has been informed by the Secretary of State that the technology is or may be intended for WMD purposes and knows it may be or is intended to be used outside the customs territory, or is aware that it is intended for WMD purposes. Article 11 applies the same WMD end-use control to transfers by UK persons located outside the UK from one third country to another, or from a third country back into the customs territory if the final destination and use are outside the customs territory. Second, the Article 2 definition of "transfer" includes exceptions for Articles 10 and 11, stating "except in articles 10 and 11 where the limitations as to the origin and destination of the transfer do not apply."

Extraterritorial application: UK persons abroad

Section 2(7) of the Export Control Act 2002 provides that transfer controls may be imposed on things done outside the UK where the activity is conducted by a UK person or a person acting under the control of a UK person. Article 11 of the Export Control Order 2008 implements this extraterritorial reach for WMD-related transfers. A UK national or Scottish partnership conducting business in a third country and transferring controlled technology from that country to another overseas destination may require a UK licence if informed by ECJU or aware that the technology is or may be intended for WMD purposes.

Exceptions and exemptions

Article 18 of the Export Control Order 2008 decontrols certain categories of technology. Technology in the public domain is exempt: Article 2 defines "in the public domain" as "available without restriction upon further dissemination (no account being taken of restrictions arising solely from copyright)." Technology that needs to be purchased from a supplier who controls the supply, requires registration, is subject to access restrictions, or is classified under the Official Secrets Act or similar confidentiality obligations is not in the public domain.

Article 18(1)(b)(i) decontrols technology that is "the minimum required for the installation, operation, maintenance or repair" of goods or software that are not military goods, military software, UK-controlled dual-use goods, or UK-controlled dual-use software. For example, a repair manual for a civil aircraft component that might also be usable for a military aircraft is decontrolled if it is the minimum technology necessary for the civil item.

Article 26(2) provides that a UK licence to export goods or software also authorises the transfer of the minimum technology required for installation, operation, maintenance, or repair of those goods or software to the same destination and end-use, with no time limit between the goods export and the subsequent technology transfer. This automatic authorisation applies only to the minimum technology necessary; broader technical data (such as source code, design blueprints, or production know-how) requires a separate licence.

Article 4 of the assimilated Regulation (EC) No 428/2009 and Articles 6–8 of the Export Control Order 2008 impose WMD end-use controls with no exemption for public-domain information or basic scientific research. A licence is required under these catch-all provisions if the exporter knows, has been informed by the government, or has grounds for suspecting that the technology will be used for WMD development, production, or related purposes, even if the technology is published or otherwise publicly available.

Open General Export Licences for technology transfers

Several Open General Export Licences (OGELs) cover routine technology transfers. OGEL: Military Goods, Software and Technology permits transfers of certain military technology to low-risk destinations (Australia, Canada, Japan, New Zealand, United States, and specified European countries) subject to conditions including approved encryption for electronically transferred security-classified material and end-user undertakings. OGEL: Overseas Access to Software and Technology for Military Goods (Individual Use Only) permits individual foreign nationals to access UK-held controlled military technology under restrictive conditions. OGEL: Technology for Dual-Use Items covers transfers of dual-use technology to specified destinations. Exporters must register on SPIRE to use an OGEL and must comply with all terms and conditions; non-compliance is a criminal offence.

Where no OGEL is available, exporters must apply for a Standard Individual Export Licence (SIEL) or Open Individual Export Licence (OIEL) covering the technology transfer. SIELs and OIELs for technology transfers are subject to ECJU compliance audits under Article 31 of the Export Control Order 2008.

Source: Export Control Act 2002, c. 28, Section 2 Source: Export Control Order 2008, SI 2008/3231, Article 2 (definitions) Source: Export Control Order 2008, SI 2008/3231, Articles 10 and 11 (WMD end-use controls) Source: Exporting military or dual-use technology: definitions and scope, GOV.UK Source: Export controls: military goods, software and technology, GOV.UK

Breaching UK export control legislation is a criminal offence that can result in seizure of goods, financial penalties, or custodial sentences. Enforcement is divided between the Export Control Joint Unit (ECJU), which administers licensing and conducts compliance audits, and His Majesty's Revenue and Customs (HMRC), which investigates breaches and exercises criminal and civil enforcement powers at the border and post-export.

Criminal offences under the Export Control Order 2008

Article 34 of the Export Control Order 2008 provides that a person who contravenes a prohibition in Part 2 (export of military goods, UK-controlled dual-use goods, or goods for WMD purposes) or Part 4 (trade-control activities involving trafficking or brokering of controlled goods) commits an offence. On summary conviction, the offender is liable to a fine not exceeding level 4 on the standard scale (currently £2,500 in England and Wales). The Export Control (Amendment) Regulations 2025 increased the maximum summary fine from level 3 (£1,000) to level 4 effective 30 May 2025.

Articles 35 and 36 impose parallel offences for contraventions of the assimilated Council Regulation (EC) No 428/2009 (dual-use items in Great Britain) and the assimilated Regulation (EU) 2019/125 (torture goods), respectively, also punishable by a fine not exceeding level 4 on summary conviction. Article 37 creates an offence for knowingly or recklessly furnishing false or misleading information in a licence application, and Article 38 penalises failure to comply with licence conditions.

Customs and Excise Management Act 1979 — indictable offences for export with intent to evade

Article 41 of the Export Control Order 2008 applies the Customs and Excise Management Act 1979 (CEMA) enforcement provisions to export control breaches. Section 68(2) of CEMA provides that any person knowingly concerned in the exportation of goods with intent to evade a prohibition or restriction (including an export control licensing requirement) is guilty of an offence and is liable:

• On summary conviction: to a penalty of three times the value of the goods or level 3 on the standard scale (whichever is greater), or to imprisonment for a term not exceeding six months, or to both; or
• On conviction on indictment: to a penalty of any amount, or to imprisonment for a term not exceeding ten years, or to both.

Article 42 of the Export Control Order 2008 increases the maximum custodial sentence on indictment from seven years (the CEMA default) to ten years for offences committed in connection with export controls on military goods, dual-use goods controlled under the assimilated Regulation, or torture goods.

The ten-year maximum applies when the Crown Prosecution Service (CPS) or the Procurator Fiscal (in Scotland) brings the case on indictment in the Crown Court or the High Court of Justiciary. Summary-only offences remain in the jurisdiction of magistrates' courts and sheriff courts, with the lower penalties specified in Article 34.

HMRC enforcement powers and compound penalties

HMRC has policy responsibility for enforcing UK export controls on strategic goods and sanctions and for investigating breaches. HMRC officers exercise powers under CEMA to:

• Detain or seize goods that have been or are about to be exported without a required licence;
• Require production of evidence of destination, end-use, or licensing authorisation at the time of export;
• Arrest persons suspected of committing export control offences; and
• Offer compound penalties in lieu of preparing a file for criminal prosecution.

A compound penalty is a financial settlement that allows the exporter and HMRC to resolve the offence out of court. HMRC may offer a compound settlement where it has sufficient evidence of an offence but considers that settlement is appropriate in the circumstances. If the exporter accepts and pays the compound penalty within the time allowed, no criminal prosecution is brought and no criminal conviction is recorded. If the exporter does not accept the compound offer within the deadline, HMRC may refer the case to the CPS for prosecution.

Compound penalty amounts in recent enforcement actions

HMRC publishes Notices to Exporters (NTEs) summarising enforcement actions. Recent examples include:

• Between March and November 2021, HMRC issued compound penalties between £1,000 and £54,000 to 10 UK exporters for unlicensed exports of dual-use and military goods (NTE 2022/01).
• Between December 2021 and February 2022, HMRC issued compound settlement offers between £1,000 and approximately £2.7 million to 8 UK exporters, covering unlicensed exports of military and dual-use goods and breaches of licence conditions (NTE 2022/12).
• In October 2024, HMRC issued a compound settlement offer of £374,326.07 to a UK company for unlicensed exports of dual-use goods and failure to declare a licence to customs as required by licence conditions (NTE 2025/05).
• In May 2025, HMRC concluded a compound settlement of £1,160,725.67 for making goods available to Russia in breach of The Russia (Sanctions) (EU Exit) Regulations 2019—the largest compound settlement for a Russia sanctions offence as of that date (NTE 2025/18).

HMRC determines the amount of a compound penalty based on the value of the goods, the nature and severity of the breach, the exporter's compliance history, the destination and sensitivity of the goods, and whether the exporter made a voluntary disclosure.

Criminal prosecution and custodial sentences

Where HMRC does not offer or the exporter does not accept a compound settlement, or where the breach is particularly serious, HMRC may refer the case to the CPS for criminal prosecution. In November 2024, EDM Limited was convicted on three counts of exporting military goods without the necessary licence (goods related to a military flight simulator) and fined £89,359.80 including costs; the maximum penalty available to the court in that case was approximately £116,000 (three times the value of the goods of £38,967.68). The company had been offered a compound settlement by HMRC which it did not accept within the time allowed (NTE 2024/30).

Voluntary disclosure to HMRC

Exporters who discover that they have exported controlled goods without an appropriate licence, transferred controlled technology without authorisation, or breached a licence condition are strongly encouraged to make a voluntary disclosure to HMRC as soon as possible. HMRC guidance states that voluntary disclosure is "very important" because it may be taken into account in enforcement decisions and may result in a reduced penalty or a decision not to prosecute.

Voluntary disclosures for breaches of strategic export controls should be submitted in writing to:

Strategic Exports and Sanctions Enforcement Policy Customs Debt, Enforcement & Law Customs Policy & Strategy, HMRC 14 Westfield Avenue London E20 1HZ United Kingdom

The disclosure should include:

• Full details of the breach (goods, destination, end-user, dates, value, licence sought or believed to apply);
• Details of how the breach was discovered;
• An explanation of why it occurred; and
• Steps the exporter has put in place to ensure it does not happen again.

HMRC will consider the matter and contact the exporter directly, either for more information or to communicate its decision. A voluntary disclosure does not guarantee that no penalty will be imposed, but HMRC guidance and the Office of Trade Sanctions Implementation (OTSI) guidance on sanctions enforcement indicate that timely voluntary disclosure can result in a penalty reduction of up to 50% for low and medium severity cases and up to 30% for high severity cases.

Exporters may also report export control breaches committed by other persons confidentially using HMRC's online fraud-reporting tool or by contacting the HMRC Fraud Hotline.

ECJU compliance audits and enforcement referrals

ECJU conducts compliance audits of licence holders under Article 31 of the Export Control Order 2008. ECJU has a statutory right to inspect export records to ensure correct use of licences. If ECJU identifies a licensing irregularity during a compliance audit, it may recommend that the exporter contact HMRC to make a voluntary disclosure. ECJU itself does not impose penalties; its enforcement role is to suspend, revoke, or refuse to renew licences under Article 32 of the Order, and to refer suspected criminal breaches to HMRC for investigation.

Application to sanctions and end-use control breaches

The same enforcement framework applies to breaches of UK sanctions legislation (where sanctions involve customs matters, such as export bans or import prohibitions) and to breaches of the end-use controls in Article 6 (WMD end-use) and Article 12A (military end-use) of the Export Control Order 2008. HMRC enforces trade-related sanctions at the border, while the Office of Trade Sanctions Implementation (OTSI) enforces civil monetary penalties for broader sanctions breaches (including provision of services and financial restrictions) under the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024. OTSI may refer cases to HMRC for criminal investigation where the breach merits criminal enforcement.

Source: Export Control Order 2008, SI 2008/3231, Article 34 Source: Export Control (Amendment) Regulations 2025, SI 2025/532 Source: Customs and Excise Management Act 1979, c. 2, Section 68 Source: NTE 2022/01: UK Exporters fined for unlicensed strategic exports, GOV.UK Source: NTE 2022/12: UK exporters fined for unlicensed strategic exports, GOV.UK Source: NTE 2025/05: compound settlement offer for breaches of export control, GOV.UK Source: NTE 2025/18: compound settlement for breaches of export control, GOV.UK Source: NTE 2024/30: sentenced for breaches of UK export controls, GOV.UK Source: Export controls: military goods, software and technology — voluntary disclosure, GOV.UK