- The Department for International Trade has revealed in a notice to exporters that HMRC has received settlements totalling £700,368.01 for export control violations between March and September 2020.
- Fines of up to £211,250 were issued to exporters across 19 settlement actions for unlicensed exports of dual use goods, military goods and related activity controlled by the Export Control Order 2008. This is the highest annual total for export control fines to date.
- HMRC has a discretionary power to impose civil monetary penalties in lieu of criminal prosecution for violations of the UK’s export control laws. These powers to issue monetary penalties exist alongside prosecutorial enforcement options, which can result in the imposition of criminal fines or imprisonment. Depending on the seriousness of the offence, any intent, compliance steps taken, and other aggravating and mitigating factors, HMRC may decide to issue a compound penalty, for example if the exporter has taken remedial actions to correct compliance issues and has voluntarily made a full and comprehensive disclosure of violations.
Author Sunwinder Mann
Sunny Mann is a Partner in Baker McKenzie's London office and co-leads the UK Compliance and Investigations Practice, as well as the UK International Commercial and Trade Practice. Both these practices are ranked Tier 1 by Legal 500 UK. He has also worked in our Firm's Washington DC, New York and Sydney offices. Sunny also advises many clients on risk matters in India. He advises clients (including numerous FTSE 100 and Fortune 100 businesses) on compliance and investigations with respect to export controls, trade sanctions and anti-bribery rules. The Legal 500 ranked Sunny as a “Leading Practitioner", and as "excellent", with a ‘calm’ and "very practical" approach. The India Business Law Journal also noted that Sunny is "excellent and has deep experience in India". He is a Visiting Professor at the College of Europe, the leading institute for post-graduate European studies, where he teaches a course on Corporate Compliance.