On 18 November 2024, EDM Limited was sentenced for breaches related to UK export controls. The company was found guilty on three counts of exporting military goods without the necessary licence and was fined £89,359.80 (including costs). The value of the goods involved was £38,967.68, with the maximum penalty available to the court being approximately £116,000.00 (three times the value of the goods).
This case involved the evasion of UK export licensing controls on three exports of goods related to a military flight simulator. These goods required an export licence under the Export Control Order 2008. Unauthorised exports are contrary to section 68(1) of the Customs and Excise Management Act 1979.
HM Revenue and Customs (HMRC) offered EDM Limited a compound settlement, which the company did not accept within the allotted time. A compound settlement is a financial agreement that allows both parties to settle offences out of court as an alternative to legal proceedings. The offender is under no obligation to accept such an offer.
HMRC takes these matters extremely seriously and will pursue prosecution where appropriate. If an agreement to compound cannot be reached, cases will be referred to the relevant prosecuting authority.
If you discover that you have imported or exported goods or transferred controlled technology without the appropriate export licence, it is crucial that you seek legal assistance. Reporting the irregularity to HMRC (known as ‘voluntary disclosure’) is important and this needs to be done as soon as possible.
If you become aware of any breaches of trade prohibitions or licensing provisions then Hammad Baig can assist.
HAMMAD BAIG © 2024
BARRISTER
Mr Baig practices, international trade law, tax law and commercial litigation, arbitration and insolvency law. Should you wish to instruct Mr Baig, then please do not hesitate to contact his clerk Mark Byrne.
This article is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted.
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