The government is upping the ante on its export controls enforcement, issuing an almost-£6.5m fine for licence breaches. Our export controls advisory director, Daniela Turiccki, shares her thoughts on the penalty and how international traders can keep compliant with these controls regulations.
Elsewhere, a look at the latest from the new Burnham administration on the UK-EU relationship reset, and a round-up of opportunities to get involved with government research and consultations to improve UK trade.
HMRC issues £6.5m export controls fine
Following the announcement of a six-digit fine for a breach earlier this week, the government has continued to step up its enforcement of export controls with a seven-figure fine handed to Airbus.
In a notice to exporters today (30 July), the Export Control Joint Unit (ECJU) announced that the aerospace firm had been fined £6,409,388 for offences under the Export Control Order 2008.
This includes “failing to keep accurate records of transfers of controlled technology”, a violation of three open general export licences (OGELs), failing to keep registers in relation to their OGELs and failing to keep “accurate records” in relation to one of their OGELs.
Additionally, the ECJU also said the fine was for a breach of licencing conditions in relation to one of their standard individual export licences (SIEL).
The breaches took place over the course of a “sustained period” prior to November 2022.
Chartered Institute Export Controls Advisory Practice director, Daniela Turiccki, noted the magnitude of the penalty:
“As the largest settlement of its kind to date, it serves as a powerful reminder that compliance is not simply about identifying an available licence, but about fully understanding and adhering to the conditions attached to it.”
“Many businesses continue to underestimate the requirements of OGELs, including registration obligations, record-keeping requirements and restrictions relating to specific goods, technologies and destinations,” she added, noting that the case also highlights the need for “robust compliance frameworks”.
Government guidance
“The case highlights the need for businesses operating within international supply chains to maintain strong internal controls when exporting goods and transferring technology subject to licensing requirements,” the ECJU wrote in its announcement.
The notice highlights that, while requirements for transfers made under OGELs are set out in the Export Control Order 2008, there may be additional requirements in both the OGELs and SIELs themselves which exporters should review.
A compound settlement was agreed as a result of the breaches being disclosed voluntarily.
Reuters reports that a company spokesperson said Airbus “has long since implemented comprehensive remediation measures”, while in notes to an earnings report released this week, it said that the compound settlement “closes and fully resolves the matter”.
Labour’s EU ‘reset’ approach
Having sought to calm investor fears earlier this week by setting out a collaborative, public-private approach to UK industry, returning business secretary Jonathan Reynolds has reiterated Labour’s stance on the EU customs union.
The FT also reports that Reynolds backed the party’s 2024 manifesto pledge not to rejoin the customs union, describing it as “absolutely the right one”.
Reynolds highlighted the UK’s upcoming sanitary and phytosanitary (SPS) deal with the EU, set to be announced alongside agreements on youth mobility agreement and electricity, at the now postposed ‘reset’ summit between the two parties, arguing that this is being overlooked by dissenting MPs.
At the end of 2025, 13 Labour MPs backed a bill proposed by the Liberal Democrats to compel the government to begin negotiations for a bespoke customs union with the EU.
Politico also reports that the reset mantle is being taken up with more fervour by the Foreign, Commonwealth and Development Office.
New foreign secretary, Ed Miliband, is set to attend an informal meeting of EU foreign affairs ministers in September, while new ‘Brexit minister’ Hamish Falconer has foreign policy experience, having previously served as Middle East minister.
“Britain's national economic and security interests are served by having a stronger relationship with our European allies”, Miliband said.
“As foreign secretary, I will drive this agenda into the heart of our foreign policy.”
Share your views
Government is seeking input from trading businesses on a number of issues in order to facilitate smoother trade.
This includes the recently announced ‘smart data’ call for evidence, focused on rolling out smart data schemes across industry, including trade, transport and agri-food.
Explaining why businesses should get involved, Chartered Institute Imports Advisory Practice lead, Ilona Kawka, said that the consultation “aims to look at smart data that can help improve the quality of your operations across the board, especially in the area of customer and trade data”.
“I strongly encourage traders and customs intermediaries to review the questions and submit answers. It’s really important for logistics companies and organisations engaging in international trade to respond, so that their needs are reflected in the future strategy around data sharing.”
Reflecting on the importance of businesses understanding their data, she added that “not knowing can cost you as a business as much as 25% of your revenue”.
Those interested in participating should contact SmartDataCfEInbox@businessandtrade.gov.uk.
Webinars providing more insight into smart data and the consultation will be held on 6 August at 2pm and 14 August at 3.30pm.
If you’d like to attend one of these webinars, please get in touch with the SmartDataCfEInbox@businessandtrade.gov.uk address and state your preference.
Elsewhere, there are calls for insight on a future digital service for fish imports, relating to the UK’s Illegal, Unreported, Unregulated (IUU) Fishing Import Controls.
The Department for Environment, Food & Rural Affairs (Defra) wants to hear from “seafood importers, traders, customs agents and other intermediaries involved in preparing, submitting or handling catch certificates and other import documentation”.
Anyone interested should contact Fish.Imports@defra.gov.uk to share their “current processes, challenges and opportunities”.
You can also read more about opportunities to be involved in HMRC Online Trade Tariff research in today’s feature.
Elsewhere in the headlines
- The US have resumed strikes against Iran following attempted Iranian strikes on US forces earlier this week
- The Bank of England has voted to keep interest rates at 3.75% in a 6-3 vote
Yesterday in Trade
- Reynolds set out government intention for public-private partnerships in key UK sectors
- Warnings that traders must beware potential export control breaches as a result of the new UK-India free trade agreement, given volume of sensitive goods shipped from India to Russia
You can read those stories and more here.
