Section 7 of 7

Export Controls & Licensing

Why export controls exist

Most goods can be exported freely. But some cannot — at least not without permission. Export controls are restrictions imposed by governments on the movement of certain goods, software, technology, and technical knowledge across borders. They exist to prevent goods that could contribute to weapons development, military capability, or human rights abuses from reaching the wrong hands.

Understanding export controls is not optional. Exporting controlled goods without the correct licence is a criminal offence in the UK, carrying the potential for prosecution, significant fines, and reputational damage that is difficult to recover from. The fact that you did not know a licence was required is not a defence.

The reassuring reality is that the majority of goods traded internationally are not subject to controls. But the only way to know whether yours are is to check — and checking is a process of elimination that needs to be done systematically, not assumed away.

One point worth emphasising before going further: export controls apply not only to physical goods but also to the intangible transfer of technology and knowledge. Sending technical specifications by email, sharing software electronically, or providing technical assistance to an overseas party can all require a licence in the same way that shipping a physical product does.

What you need to check — goods, people, and places

Export control compliance comes down to three checks. All three need to be considered for every export.

Goods — the starting point is the commodity code. The UK Trade Tariff will indicate whether a product is subject to export controls or has a dual-use classification. Dual-use goods are products designed for civilian purposes that could also be adapted or used for military applications — electronic components, certain chemicals, optical equipment, and software with encryption capabilities are common examples. If the Tariff flags a control or dual-use indicator, the next step is to check the UK Strategic Export Control List and use the Online Goods Checker to determine whether a licence is needed. There is also a catch-all control that applies regardless of commodity code: if you have reason to believe goods may be used for weapons development or other prohibited purposes, controls apply even if the product is not otherwise listed.

People — the identity of the end user matters. The UK maintains a sanctions list of individuals, organisations, and entities to whom exports are prohibited or restricted. Checking the buyer, any known intermediaries, and the stated end user against the UK Sanctions List is a necessary part of the process. Where there is any doubt about who the goods will ultimately reach or how they will be used, an End User Undertaking may be appropriate.

Places — the destination country matters too. The UK operates sanctions regimes against a number of countries, imposing restrictions that range from targeted measures against specific individuals to broad prohibitions on trade in certain goods or sectors. Sanctions are political tools, and the landscape shifts — what was permitted last year may not be permitted today.

Licences — what is available and when you need one

If a check indicates that a licence is required, the type of licence needed depends on the goods, the destination, and the circumstances of the export.

Open General Export Licences (OGELs) are pre-approved licences that allow the export of specific categories of goods to a range of listed destinations, without requiring a separate application for each shipment. If your goods and destination are covered by an OGEL, you simply register to use it rather than applying for individual permission.

Standard Individual Export Licences (SIELs) are required where an OGEL does not cover the situation. A SIEL permits the export of a specified quantity of goods to a named importer in a specific country. Applications are assessed by the Export Control Joint Unit (ECJU).

Open Individual Export Licences (OIELs) cover multiple shipments to multiple destinations and are typically used by businesses that export controlled goods regularly.

The ECJU is the right point of contact if you are uncertain whether a licence is required or which licence applies. Seeking their advice is far preferable to proceeding without it.

Keeping records — the importance of evidence

Whether or not a licence is required, the process of checking should be documented. If HMRC or the ECJU ever asks why a decision was made that a licence was not needed, the ability to demonstrate a systematic, documented check is your protection. Checking is a process of elimination — retain the evidence to show you went through it.

When to seek specialist advice

Export controls is one area of international trade where the consequences of getting it wrong are serious enough to warrant specialist input when there is any uncertainty. A guide can explain what controls are, what the checks involve, and what the licence types are. It cannot assess whether your specific goods, your specific buyer, and your specific destination create a controlled situation — that requires a proper review.

If you have any doubt about whether your exports are compliant, or if you are moving into new markets or new product areas, speaking to a specialist before you ship is the right course of action. Our team can support businesses with export controls compliance, licence applications, and the due diligence processes that underpin a defensible position. Get in touch at team@exporter-services.co.uk.