SGSAROA14175A - Assessment of risk and offence action - Pro-forma letters
Exporter/Agent: Goods assessed as LR RUS by DBT that are consigned to third countries, not Russia
Our Ref:
Entry Number:
Date: Waybill Number:
Dear [name of company/entity],
HM Revenue & Customs (hereafter HMRC) have assessed entry xxxxx as being in a higher risk group for sanctions circumvention.
This letter is to inform you thatthere is a risk the goods (within the entry number quoted), may be subject to the Russia (Sanctions) (EU Exit) Regulations 2019 (as amended), hereafter the “Russia Sanctions Regulations”, if exported directly to Russia.
The export, supply, or transfer of this product to Russia, even via third countries, is illegal under current UK sanctions. I am sure that you are already conducting due diligence on sanctioned products, but we would be grateful if you could please ensure that you are being especially mindful, in this context. Russian suppliers may be using front companies to obscure the end user.
You will want to be aware of the following regulations.
Regulation 24 of the Russia Sanctions Regulations states that:-
(2) a person must not:- (a) directly or indirectly supply or deliver restricted goods from a third country to a place in Russia.
Regulation 24 also states that:-
(2) a person who contravenes a prohibition in paragraph (1) commits an offence but:- (a) it is a defence for a person charged with the offence of contravening paragraph 1(a) to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Russia.
And Regulation 55 of the Russia Sanctions Regulations states that:
(1) a person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly-(a) to circumvent any of the prohibitions in Chapters 2 to 6 and Chapter 6B of this part or (b) to enable or facilitate the contravention of any such prohibition.
(2) a person who contravenes a prohibition in paragraph (1) commits an offence.
The goods covered by Chapters 2 to 6 can be found in Part 5 Trade of the Russia Sanctions Regulations.
It is the responsibility of UK businesses to fully consider what steps are appropriate to manage their sanctions risk exposure, including undertaking due diligence on the risk of overseas customers seeking to circumvent sanctions imposed on Russia or other jurisdictions. Business decision-making processes should take account of the risks associated with sanctions.
When a business identifies a sanctions risk, it should take steps to fully address that risk. This could include conducting your own research, requesting further information from the entity, and taking legal advice if unsure about your obligations. The UK Government does not prescribe the level or type of due diligence that should be undertaken to ensure compliance with trade sanctions – we recognise that there is no one-size-fits-all approach.
Russia needs Western technology and goods to continue its illegal war against Ukraine. Preventing Russian access to this is a Government priority, and we appreciate your assistance. Further guidance on the scope and operation of the UK’s overall sanctions regime is available. Russia sanctions: guidance - GOV.UK (www.gov.uk).
To support exporters in this, further information on assessing and addressing potential sanctions circumvention. For more information, Notice to exporters 2023/08: Russia sanctions – trade sanctions circumvention.
If you have any indication that your products have ended up being supplied or diverted to Russia, please contact HMRC. If you discover you have imported or exported goods or transferred controlled technology without an appropriate export licence in place, you should consider reporting the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible. Details for making a disclosure can be found at Export controls: military goods, software and technology - GOV.UK (www.gov.uk).
Additionally, as a result of this letter, you may discover as an exporter, that you have previously exported strategic goods, dual use goods or goods on which sanctions apply or that you have transferred controlled technology without an appropriate export licence in place.
If an irregularity is identified, it is important to report this to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible.
You should provide:
· details of the export, including dates
· any relevant documents, such as export documentation and commercial invoices
· details of how the breach was discovered, why it occurred and what steps you have put in place to ensure it does not happen again.
You can make a voluntary disclosure to HMRC via letter or courier to:
Voluntary Disclosure
Strategic Exports and Sanctions Enforcement Policy
Customs Debt, Enforcement & Law, Customs & Border Design
HMRC, 14 Westfield Avenue
London, E20 1HZ
The team can be reached by email at: exports.strategic@hmrc.gov.uk
Further advice regarding the Russia sanctions can be found at:
https://www.gov.uk/government/organisations/office-of-trade-sanctions-implementation
Please reply to this letter confirming -
1) that you have undertaken appropriate due diligence ,
2) whether you wish to proceed with the export, or
3) whether you wish to withdraw the entry.
If you wish to proceed with the export, you will remain liable for any sanctions breaches, should these occur. Non-compliance with UK sanctions is a serious offence and punishable through large financial penalties or criminal prosecution.
For more information regarding the Russian sanctions, go to GOV.UK and search ‘Office of Trade Sanctions Implementation’.
Yours faithfully
Officer of [Border Force / HM Revenue & Customs]