Why you might need an export licence
Any item exported from the UK that is subject to export control needs a license. Export licencing is controlled by the Export Control Organisation (ECO) in order to promote global security and facilitate responsible exports within the law. The ECO are responsible for assessing and issuing (or refusing) export, trade transshipment and trade control licenses for a wide range of controlled so called 'strategic' goods, which includes military and dual-use items.
Whether a licence is required depends on various factors such as whether the items are listed on the UK Strategic Export Control Lists, they are subject to end-use controls or to sanctions. This means that you as the exporter are responsible for complying with the law, understanding the regulations and keeping yourself informed.
All licence applications are risk assessed on a case by case basis, with regard to the Consolidated EU and National Arms Export Licensing Criteria. You can find out more about export controls, licence applications and how to comply here.
There is also guidance available explaining what will change for exporters of controlled goods from 1 January 2021, following the end of the transition period for the UK to leave the EU.
Here are some key do's and don'ts!
Whether you need an export licence will depend on the type of goods and the country you are exporting to. You apply for a licence using the ECO’s online system SPIRE - however you may find it helpful to consider some of our key do’s and don’ts should you find yourself needing to apply for a licence.
Quality Control – Build export control checks into your quality control processes
Share Knowledge – Make sure that you don’t rely on one individual to know or do it all
Accurate Classification – It’s important you accurately identify the control classification used for your products
Market Awareness – You should make sure that you are aware of political situation of the country of destination
End User Issues – Try to check out both existing and potential end-user issues
Understand Licencing – It’s important to read the terms & conditions of all licences
Facilitate Training – You should make sure all relevant people in your organisation are trained – from sales to procurement to shipping
Keep Records – You will need to keep records of all relevant documents for exporting controlled goods
Get Help & Advice from the Experts!
To summarise, when trading overseas, export controls are taken very seriously, especially in light of the volatile and security-conscious times we find ourselves living, so it goes without saying that you should always seek expert guidance from the relevant authorities. This will be especially important in the light of Brexit and the impact this will have on both European and global trading markets for UK exporters.
– Use Kompass Business Data to research and find contacts in your target markets.
– Your Local Chamber of Commerce can help with export documentation and finance.
– UK Export Finance provides trade finance and insurance for exporting.
– B2BCentral works with partners to bring the benefits of B2B eCommerce to British SMEs.
– The Institute of Export gives advice, guidance, offers courses and qualifications.
– Build your brand & global online presence with Kompass Digital Marketing solutions.
At Kompass we have more than 60 years experience, helping businesses grow – providing our customers with business data to help improve the results of their sales and marketing activity and driving relevant enquiries through globally optimised company profiles from more than 7.5M Kompass users. Contact us to find out more about how we can help you as you plan your export strategy.
Our Kompass Export Zone builds on our business information expertise, by giving access to straightforward guidance on some of the key factors to consider when exporting, research advice and country specific market information. For more advice on getting started on your export journey, see our guide on How legislation affects overseas trade for UK companies.
Disclaimer: Please note that this blog only contains general information and insights about legal matters. The information is not advice, and should not be treated as such. Kompass.com