Notice

NTE 2023/09: Compound penalties issued

Published 26 May 2023

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Guilty Plea at Court

Op Afoot was an investigation into the suspected deliberate evasion of UK export licencing controls on one shipment of controlled chemicals, namely Di-Sodium Sulphide Hydrate, the shipment was stopped by Border Force.

Sodium Sulphide is controlled under 1C350.50 to Annexe 1 to EC Regulation 428 of 2009.

CPS therefore charged the company for one offence pursuant to section 68(1)(b) CEMA 1979:

“On 25 October 2019 the company brought 4kg of sodium sulphide (a dual use good) without a licence to a place in the UK for the purposes of exporting or shipped as stores contrary to the restriction contained under 1C350.50 to Annexe 1 to EC Regulation 428 of 2009 and section 68(1) (b) of the Customs and Excise Management Act 1979.”

On 28 November 2022 legal representation pleaded guilty on behalf of the company to one offence pursuant to section 68(1)(b) CEMA 1979 and as a result a fine of £600 was imposed and a £60 statutory surcharge, in addition £2659.50 in costs were imposed by the court against the company.

Compound settlements

Between January and May 2023, HM Revenue and Customs (HMRC) issued compound settlement offers to 4 UK exporters totalling over £1.1 million.

These related to unlicensed exports of dual use goods, military goods and related activity controlled by The Export Control Order 2008 and Retained Regulation 428/2009. Offences are contrary to section 68 Customs and Excise Management Act 1979.

The 4 settlements made by UK companies were:

  • in January 2023, £4,100.00 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008.

  • in March 2023, £2,912.16 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008.

  • in April 2023, £217,012.50 was paid relating to the unlicensed exports of dual use goods controlled by Retained Regulation 428/2009, as amended.

  • in May 2023, £920,437.20 was paid relating to the unlicensed exports of dual use goods controlled by Retained Regulation 428/2009, as amended.

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