Notice

Trade Licence for acquisition of metals

Updated 12 April 2024

1. The Secretary of State grants this Trade Licence under regulation 65 of the Russia (Sanctions) (EU Exit) Regulations 2019 (the “Russia Regulations”).  

2. Subject to paragraphs 3 and 4, this Licence authorises the direct or indirect acquisition of a warrant on a global metal exchange by the persons described in paragraph 6 of this Licence, so far as otherwise prohibited by regulation 46IH(1)(a) of the Russia Regulations, provided that: 

a) such persons do not cancel or withdraw (or request or order the cancellation or withdrawal of) such a warrant from a global metal exchange in order to take physical delivery of metal for their own account;  

b) such persons do not change the location of the metal to which the warrant relates; and 

c) the metal to which the warrant relates was produced before 23:59 on 12 April 2024. 

3. The conditions in paragraph 2 a) and 2 b) do not apply where a person acquires a warrant in relation to metal which, as at 23:59 on 12 April 2024, was under warrant on a global metal exchange. 

4. The condition in paragraph 2 c) will be met where:  

a) the warrant was issued before 23:59 on 12 April 2024;   

b) the Certificate of Analysis for the metal to which the warrant relates provides evidence that the metal was produced before 23:59 on 12 April 2024 (save where the person knows or has reasonable cause to suspect that the metal was produced after 23:59 on 12 April 2024); or  

c) other equivalent evidence of the metal to which the warrant relates being produced before 23:59 on 12 April 2024 can be demonstrated (save where the person knows or has reasonable cause to suspect that the metal was produced after 23:59 on 12 April 2024).   

5. Where a person described in paragraph 6 of this Licence has acquired a warrant on a global metal exchange under the authority of this Licence before 23:59 on 12 April 2024, such person is authorised to: 

a) cancel or withdraw (or request or order the cancellation or withdrawal of) that warrant from a global metal exchange in order to take physical delivery of the metal; and  

b) change the location of the metal to which the warrant relates. 

6. The description of persons to whom paragraphs 2 and 5 of this Licence applies are: 

a) LME Clear Limited; 

b) The London Metal Exchange; 

c) global metal exchange members; and 

d) clients of global metal exchange members. 

Conditions relating to records and reporting 

7. A person who cancels or withdraws (or requests or orders the cancellation or withdrawal of) a warrant under the authority of this Licence in order to take physical delivery of the metal to which the warrant relates must keep the following records: 

a) the unique warrant reference for the warrant being cancelled or withdrawn;  

b) a full description of the metal to which the warrant relates; 

c) the date on which the cancellation or withdrawal was requested or ordered and the date the warrant was cancelled or withdrawn; 

d) the date on which the warrant being cancelled or withdrawn was acquired by that person; 

e) whether the warrant being cancelled or withdrawn is for the person’s own account or, if not, for whose account it was cancelled or withdrawn; 

f) the name of the global metal exchange the warrant is being cancelled or withdrawn from; 

g) the person’s name and address; and  

h) a copy of the Certificate of Analysis for the metal to which the warrant relates or equivalent evidence of production prior to 23:59 on 12 April 2024. 

8. After 23:59 on 12 April 2024, a person who cancels or withdraws (or requests or orders the cancellation or withdrawal of) a warrant under the authority of this Licence for the first time after that date should notify the Secretary of State for the Department for Business and Trade in writing of the person’s name, EORI number (if applicable) and the address at which the records may be inspected, and must make a further such notification if those details change. 

9. A notification under paragraph 8 must be given no later than 30 days after a person first cancels or withdraws (or requests or orders the cancellation or withdrawal of) a warrant under the authority of this Licence, or the details change, as applicable.  

10. Records required by this Licence must be kept for a period of 4 years beyond the end of the calendar year in which the record was created. A person who is required to keep records pursuant to paragraph 7 must permit such records to be inspected and copied by any person authorised by the Secretary of State.  

General 

11. This Licence does not authorise any act which the person carrying out the act knows, or has reasonable grounds for suspecting, will result in a breach of any part of the Russia Regulations, save as authorised under this Licence or other licences granted under the Russia Regulations.  

12. Information provided to the Secretary of State in connection with this Licence shall be disclosed to third parties only in compliance with the UK General Data Protection Regulation, the Data Protection Act 2018 and the Russia Regulations. 

13. This Licence came into force at 00.00 on 15 December 2023 and is of indefinite duration. 

14. Paragraph 2 of this Licence was amended so that, from 23:59 on 12 April 2024, the authorisation to acquire warrants only applies to the acquisition of warrants in relation to metal produced before 23:59 on 12 April 2024.   

15. Paragraph 3 of this Licence was inserted so that, from 23:59 on 12 April 2024, the conditions in paragraphs 2 a) and 2 b) do not apply where the metal to which the warrant relates was under warrant at 23:59 on 12 April 2024. Paragraph 2 was amended as a result of this insertion.  

16. Paragraph 4 of this Licence was inserted to clarify that the condition in paragraph 2 c) will be met where the warrant being acquired was issued before 23:59 on 12 April 2024 or where the date of production of the metal can be demonstrated through a Certificate of Analysis or other equivalent evidence (save where the person knows or has reasonable cause to suspect that the metal was produced after 23:59 on 12 April 2024). Paragraph 2 was amended as a result of this insertion.  

17. Paragraph 5 of this Licence was inserted to provide that, where a person has acquired a warrant that was issued before 23:59 on 12 April 2024, they are not prevented from taking delivery of the metal to which the warrant relates. Paragraph 6 was amended as a result of this insertion. 

18. Furthermore, record keeping and reporting conditions were inserted as paragraphs 7 to 10 of this Licence, and paragraph 12 was inserted in relation to those conditions.  

19. The variations described in paragraphs 14 to 18 came into force at 23:59 on 12 April 2024.  

20. The Secretary of State has the power to vary, revoke or suspend this Licence at any time. 

Interpretation  

21. For the purpose of this Licence: 

a) “person” includes (in addition to an individual and a body of persons corporate or unincorporate) any organisation and any association or combination of persons; 

b) “warrant” means an electronic record or physical document of title to, possession of or rights in respect of a specified lot of metal of Russian origin (where such metal is held in a third country within a global metal exchange-approved warehouse) which is created or issued in accordance with the rules of such global metal exchange; 

c) “metal(s)” means any thing specified in Schedule 3BA of the Russia Regulations;  

d) “The London Metal Exchange” means The London Metal Exchange of 10 Finsbury Square, London, EC2A 1AJ (company number 02128666); 

e) “LME Clear Limited” means LME Clear Limited of 10 Finsbury Square, London, EC2A 1AJ (company number 07611628); 

f) “global metal exchange members” means persons who are members of a global metal exchange; 

g) “clients” means persons who have a direct contractual relationship with global metal exchange members for the purchase or sale of warrants and clients of such persons in an indirect clearing arrangement pursuant to applicable law; 

h) “global metal exchange” means an existing (as at the date of this Licence) commodities exchange that trades metals internationally, including their derivatives; 

i) “unique warrant reference” means a code identifying a specific warrant, in the form prescribed by the relevant global metal exchange; 

j) “Certificate of Analysis” means a certificate of analysis relating to specific lots of metal which must state the brand name, date of creation, production cast reference or other identifying reference, content within a minimum purity as defined by the relevant global metal exchange, and any other requirements specified by the relevant global metal exchange; 

k) “EORI number” means an Economic Operators Registration and Identification number, which is an identification number for businesses which import or export goods into or out of the EU; 

l) a metal is “produced” once it is in the form of any thing specified in Schedule 3BA;  

m) unless the context otherwise requires, any other expression used in this licence shall have the meaning it bears in the Russia Regulations.  

An Official of the Department for Business and Trade, authorised to act on behalf of the Secretary of State.  

13 December 2023 

Amended on 12 April 2024

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Import controls and trade sanctions

Department for Business and Trade
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