On 17 October 2019, the European Commission adopted the annual Delegated Regulation that updates the EU dual-use export control list in Annex I to Regulation (EC) No 428/2009 and brings it in line with the decisions taken within the framework of the international non-proliferation regimes and export control arrangements in 2018.

Will you be affected?

Note that the new Commission Delegated Regulation will not enter into force until publication, approximately 2 months after its adoption.
A useful, easy to read, summary to help you check and be prepared can be found at:



The Export Control (Amendment) (No.2) Order 2019, which came into effect on 14 August 2019, introduced UK unilateral controls on submersible vehicles and their specially designed components, not controlled under existing dual-use controls.  Controls were also introduced on subsea ploughs and specially designed components.

The new controls also extend to acoustic, propulsion, navigation, lighting, vision and communications systems, in some cases “for use with”, as distinct from specially designed for, such platforms.

Exporters should review their product, technology and software controls accordingly and, in view of the unilateral nature of the control, be wary of diversionary procurement.



What is a broker? There is a tendency to think “Arms Broker” and “No, not me”.

Military brokering controls apply to some extent to all goods on the UK Military List, not exclusively to weapons as the case below illustrates.

It may be that you are a UK company, with a centralised purchasing function in the UK, that sources military goods from outside the UK to be drop shipped to a non-UK branch of your company.

If you are a UK company or person and engage in any activity that results in the movement of military list goods, regardless of origin, between non-UK countries, it would be prudent to consider your risk profile in this area.



Her Majesty’s Revenue & Customs (HMRC) recently issued a compound penalty of £10,234.26 to a UK exporter/trader.

The penalty was in relation to unlicensed trading of body armour. The goods were not exported from the UK, but the transaction involved a UK national. The Export Control Order 2008 requires a trade control licence when certain goods are exported from a country other than the UK.

Exporters should be aware that trafficking and brokering military goods outside the UK will need a trade control licence, even if the goods do not pass through the UK.



This free location app is becoming popular with emergency services here in the UK.

It could however be useful in the trade compliance world, especially if you have a large facility and no reliable in-house system to locate assets. In a nutshell, every 3 metre square in the world has been given a unique three word identification, thereby enabling pretty accurate asset location.

Slightly more prosaically, if your facility is in the middle of nowhere and visitors have difficulty finding it, this app works with Google maps and is far better than post or zip codes.



On 29 March 2019, the European Commission published Directive 2019/514, updating the Common Military List.

Her Majesty’s Revenue & Customs (HMRC) recently issued a compound penalty of £82,152.33 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.



On 29 March 2019, the European Commission published Directive 2019/514, updating the Common Military List.

The update Directive may be found at:



On 8 May 2018, President Trump announced the decision to withdraw from the Joint Comprehensive Plan of Action (the JCPOA) and to re-impose US extraterritorial sanctions on Iran.

In response to this action by the US, the EU amended the annex to the so-called “Blocking Statute”, under which EU persons are prohibited from complying with a specified list of US extraterritorial sanctions, to include those newly reimposed US extraterritorial sanctions against Iran.

In the UK, any UK entity or individual breaching the Blocking Statute shall be guilty of an offence punishable by:

  1. an unlimited fine on indictment; or
  2. a fine not exceeding the statutory maximum on summary conviction.

Historically, enforcement of the “blocking statute” has been very limited.  This lack of enforcement has provided a degree of reassurance to companies that complying with US extraterritorial sanctions carried little risk from an EU perspective.

This new UK legislation may change that situation and the risks associated with complying in the UK with US extraterritorial sanctions against Iran may be increased as a result.



A retired company boss has been jailed for trafficking fighter jet parts to Iran in violation of Weapons of Mass Destruction controls.

Alexander George, 77, from Bristol, has been jailed for two-and-a-half years for shipping military items to Iran, including Russian MiG and US F4 Phantom parts sent through various companies and countries, following an investigation by HM Revenue and Customs (HMRC).

Two others, Paul Attwater, 65, and his 66-year-old wife Iris, both of Telford, Shropshire, were handed suspended six-month prison sentences last month for sourcing dual-use aircraft parts from the US and shipping them to George’s companies in Malaysia and Dubai, which then sent them to Iran.

The UK operates a strict licensing regime to uphold international sanctions and to ensure military equipment and dual-use items, which could be used by both the military and civilian sectors, do not fall into the wrong hands.

HMRC investigators found George was shipping the aircraft parts to Iran via companies he owned in Malaysia and Dubai. He brought in the Attwaters to try and hide the smuggling operation further and they shipped parts, including those that they knew were restricted under Weapons of Mass Destruction controls, through their company.

Simon York, Director, Fraud Investigation Service, HMRC, said:

“These three sold banned items that ended up in Iran. They didn’t care what these parts might be used for, as long as they got paid.

“This was a calculated and cynical attempt to undermine strict trade embargoes and internationally agreed

controls. They knew the rules and weaved increasingly elaborate plans to stay under the radar.

“This case, and these sentences, send a clear warning to others that if you try and shift illegal goods to

sanctioned and embargoed countries – we will catch you and you will face justice.”

Effective controls and enforcement on Weapons of Mass Destruction, military and dual-use goods contribute to the UK’s national security and is a priority for the UK government.

George bought the aircraft parts from the United States and sent them to his companies in Malaysia and Dubai before illegally sending them on to Iran.

But he became concerned he was being investigated and even searched the internet to find out who was wanted by the FBI, CIA and Interpol for selling aircraft parts to Iran. George then brought in the Attwaters, who operated Pairs Aviation Ltd from Crawley, East Sussex, to act as a buffer by ordering the parts and shipping them to George’s companies in Malaysia.

A number of exports from Pairs Aviation had been blocked by early 2010 over fears the items were ending up in Iran. All three directors were warned about exporting without a licence. George was questioned by HMRC officers at Heathrow Airport in August and December 2010 and denied he was dealing in aircraft parts. He told officers he was dealing in wheelbarrows, goggles and gloves for the construction industry.

The trio decided to add an extra layer to the supply chain in a bid to further disguise their criminal trade. They began shipping the items to Holland, in the name of a company registered in the British Virgin Islands called Wiky Global Corp, before they were sent to Malaysia and then Iran.

George and Iris Attwater were convicted of knowingly exporting controlled military or dual-use goods between February 2010 and March 2016 after a trial at Southwark Crown Court.

Paul Attwater changed his plea to guilty towards the end of the trial. The Attwaters were each sentenced to a six-month suspended prison sentence at the same court on 26 October 2018.

George was sentenced to two-and-a-half years in prison at the Old Bailey today (22 November 2018).

HMRC estimates that George made profits of more than £5 million from the illegal sales and the Attwaters

made a further £500,000 profit.

Action to recover the money, under the Proceeds of Crime Act, will now follow.

Luke Dockwray, Senior Specialist Prosecutor at the Crown Prosecution Service, said:

“Alex George, Paul Attwater and Iris Attwater sold aircraft components to countries and customers they knew required a license from the government.

“Despite being warned the goods they were exporting were at risk of being used in a Weapons of Mass

Destruction programme, the defendants introduced new corporate entities into the trading chain to disguise the destination of the sales, in order to continue their supply.

“The CPS worked closely with HMRC to present the complex trading chains to the jury to demonstrate the

criminal activity of these defendants.”



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:

  • R-(-)-3-Quinuclidinol
  • 2-(diethylamino)ethanethiol
  • 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.

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