Key Aspects of UK Export Licensing

Understanding export licensing

What you'll learn:

* why the UK has an export control and licensing system

the main types of export licence

how to check whether you need an export licence for your goods

Why the UK issues export licences

An export licence allows trade in strategically controlled goods that would otherwise be prohibited from export. Control of these goods stems from their nature, their potential uses, or the destination market.

If you export goods from the UK, it is your responsibility to make sure you comply with UK government regulations.

You should be aware of any export controls affecting your goods and any export licences that may be required.

Goods likely to be controlled

Goods that may be subject to control include:

* most items specifically designed or modified for military use and their components, including technology and software used in or with the item

* dual-use items — goods that can be used for both commercial and military purposes, and certain components of them, such as parts, raw materials and processing machinery for manufacturing purposes

* goods that could be used for torture

* radioactive material

* any commercial items that fall within the scope of trade sanctions on a given country

Why exports are controlled

Export control exists for various reasons, including:

* concerns about internal repression, regional instability, or other human rights violations

* concerns about the development of weapons of mass destruction

* foreign policy and international treaty obligations, such as the imposition of trade sanctions or arms embargoes

* protecting the national and collective security of the UK and its allies

Main types of export licence

The Export Control Joint Unit (ECJU) administers the UK's export control and licensing system.

It issues several types of export licence:

Open General Export Licences

Open General Export Licences (OGELs) are available for certain military and dual-use controlled goods exported to a range of permitted, restricted destinations.

Standard Individual Export Licences (SIELs)

If your goods, technology, software, destination or situation are controlled and are not covered by an OGEL, you will need to apply for a Standard Individual Export Licence (SIEL).

Open Individual Export Licences (OIELs)

The ECJU also issues an Open Individual Export Licence (OIEL), designed to cover long-term contracts, projects and repeat business.

Applying for a licence

All licence applications and OGEL registrations should be submitted electronically through the ECJU's central online licensing system, SPIRE.

Record-keeping and compliance

If you do not comply with the terms of the export licences you use, you may be penalised. Penalties can include revocation of the licence, fines, and even a possible prison sentence.

It is therefore extremely important for your business to put in place clear guidelines and procedures for export licence compliance — covering record-keeping, training and lines of responsibility.