EU Export Controls

Export controls regulate the trade of military or dual-use goods. This includes goods, technology, or services which could have a negative effect on national security, foreign policy, or an economy.

Here are some examples of export controls:

• Requiring businesses to comply with export administration regulations.
• Prohibiting the export of goods to specific countries.
• Requiring special permits for trading or handling certain commodities.
• Requiring businesses to perform due diligence on clients to prevent circumvention.

There are many layers of export controls which can overlap, including:

• Local export administration regulations.
• Commodity-specific export controls.
• Destination-specific export controls.
• International agreements such as the Missile Technology Control Regime (MTCR), and the Nuclear Suppliers Group (NSG).

By adding this additional layer of export compliance, governments can help prevent dangerous products from reaching adversaries such as foreign military, terrorist organisations, or countries under trade restrictions.

Customs Support Group helps you to gain clarity on and navigate your export control obligations. Contact us for more information.

As with most compliance regulations, the best way to determine your obligations is to confirm the commodity code for your goods. By getting binding goods classification, you can ensure that you are working to be compliant with the right export controls.

As well as by description, a commodity code can be based on the purpose of your goods. This is why it is essential to have the right due diligence processes in place with your clients. Without this, there is a chance that your goods can be exported on a similar code without the correct export controls being applied. Whether deliberate or not, this is a form of circumnavigation, which can carry severe penalties.

Customs Support Group provides peace of mind for businesses across Europe, helping them to have a clear understanding of their obligations, and then meeting them.

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No. When you are exporting controlled goods, you do not always require an export licence. Whether or not you need one depends on several factors:

• The commodity you are exporting.
• The destination country.
• The entity you are selling to.

Export licences for controlled goods can come in several forms. For example:

• A general export licence to sell a commodity.
• An export licence to sell a commodity to a country.
• An export licence to sell a commodity to a single entity in a country.

You could also be given a licence to supply goods for a certain period, to supply a certain number of shipments, or only for a single shipment.

Customs Support Group can help you to apply for an export licence, maintain compliance with your export control obligations, and protect yourself from risk.

Contact us for more information on how we can support your business.

Due to the real risks to national and international security, the economy, or geopolitics, there can be severe penalties for violating export controls.

In the EU and other European countries, some of the penalties are as follows:

• Removal of an export licence, AEO certification, or the right to apply for grants.
• Fines.
• Embargo and restriction or prohibition of trade.
• Legal prosecution of directors or other responsible persons.

In addition to the official penalties imposed by the authorities during the infringement, other penalties can include:

• Reputational damage.
• Loss of business.
• More frequent audits and more scrutiny when applying for other permits.

Noncompliance with export controls is a serious offence which can carry harsh penalties. CSG helps you avoid these by gaining clarity on your obligations, following best practices, and leveraging digital solutions to help maintain compliance.

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To maintain your compliance with export controls and with trade regulations in general, it is important to understand what they are and have systems in place for meeting them.

Some of the areas you should seek to cover internally are:

Goods Classification

Your commodity code will determine which export controls, sanctions, and embargoes you need to navigate. Your goods could be classified in several ways, depending on the description, purpose, and risk of inappropriate use. This is why binding goods classification is often a good idea when you are trading dual-use goods.

Supply Chain Mapping 

You are exporting controlled goods to a client, but do you know where they are sending them to? Performing due diligence on your client and understanding their onward supply chain is important because your obligations could change with every country that is involved.

This step is essential for covering yourself. In the event that you do have an issue with circumnavigation, the authorities will want to see that you followed best practices and haven’t willfully been involved with sending goods to sanctioned or embargoed destinations.

Training

Any person involved with the export of controlled goods needs to know what their responsibilities are, and when to raise concerns.

Export Compliance Checks

As well as following procedures during shipment, it’s important to keep records and review your processes so you can keep on top of information gaps and training requirements.

Customs Support Group provides customs and trade solutions which keep you compliant with export controls. From help with goods classification to internal training and powerful digital tools, we are here to keep you running safely, efficiently, and on time.

Contact us to see how we can simplify your export controls today.