FREE: “US EXPORT CONTROLS: MAKE THE RIGHT DECISIONS – A PRACTICAL GUIDE FOR EXECUTIVES”
Date: 21 July 2018
Compliance with frequently changing EU and US export control regulations can be extremely challenging. It’s often considered an administrative burden, as it doesn’t seem to add any value to services or products. But non-compliance is not an option: criminal fines, administrative penalties, and costs associated with defending against enforcement actions can place a massive burden on a company’s finances. Damage to the brand image and large financial penalties can have a very direct impact on the shareholder value of the company.
That’s why David Hayes-Export Controls has teamed up with leading provider of global trade and supply chain management software, AEB, to develop a practical guide designed to support senior managers in understanding their legal responsibilities and which measures they need to implement to ensure compliance.
The guide covers the following topics:
- Importance of export controls
- Purpose of export controls
- Relevance of US export controls
- Responsibilities and obligations
- Consequences of non-compliance
- Effective compliance programmes
- Compliance of the future
This online guide “US export controls: Make the right decisions – A practical guide for executives” is tailored to executives in the senior management of companies that manufacture, trade, or distribute controlled materials. It is available free of charge at www.aeb.com/uk/media/booklet-online-us-export-controls.php
COMPANY FINED £100,000 FOR ILLEGAL EXPORTS and UNUSUAL UK PROSECUTION CASE
In April 2018 Her Majesty’s Revenue & Customs (HMRC) issued a compound penalty of £109,312.50 to a UK exporter. This related to unlicensed exports of military goods controlled by The Export Control Order 2008.
Export control legislation is enforced by HMRC, working with the Crown Prosecution Service. Where appropriate, HMRC can use their powers to offer a compound penalty in lieu of prosecution.
Also in April 2018, Her Majesty’s Revenue & Customs (HMRC) recently prosecuted Carbosynth Limited for unlicensed exports of controlled chemicals.
Unusually, this was pursuant to section 68(1) of the Customs and Excise Management Act 1979 in relation to The Export Control Order 2008 and the EU Dual Use Controls (Council Regulation (EC) No 428/2009).
Section 68(1) concerns strict liability and is rarely the basis of a prosecution, action usually reserved for the more serious Section 68(2) intentional offence.
Carbosynth made unlicensed exports of ‘dual use’ chemicals:
- benzilic acid
They also exported military list chemicals 1,2,4-butanetriol and decaborane.
The chemicals were exported variously to Japan, India, South Korea, Israel, USA, Germany and Canada.
On 18 April 2018, at City of London Magistrates’ Court, the company entered a guilty plea against the 6 counts and was ordered to pay £4,269.96.