Navigating the Complexities of Exporting Military Goods from the US to the UK
With the recent increase in global conflicts, the export of military goods between the US and UK has intensified. Between 2019 and 2023, the UK was the second biggest importer of arms in Europe (the first being Ukraine). In this same time period, 55% of arms imports by European countries came from the US.
The governments of both countries have regulations in place to streamline the export of military goods between the two countries, while also maintaining national security.
In this article, we’ll take you through the military goods export regulations in the UK and US. We’ll discuss the key requirements for shipping military goods from the US to the UK and how an Open General Export Licence for military goods can streamline the process.
Overview of Military Goods Export Regulations
Due to the nature of military goods, exporting military goods from the US to the UK is a highly regulated process. Both US and UK regulations ensure that sensitive military technology, weapons, and defence-related products are transferred securely and in accordance with international agreements.
In the US, the export of military goods is primarily controlled by the International Traffic in Arms Regulations (ITAR), overseen by the Department of State. ITAR regulates the export, re-export, and transfer of defence articles, services, and technical data listed under the United States Munitions List (USML).
Exporters must obtain the necessary licences or authorisations for any military goods they ship abroad, including to the UK. Licence agreements and thorough documentation are required to ensure compliance.
Training and consultation with international trade consultants can provide exporters with guidance on the necessary licences and documentation.
In the UK, the import and transit of military goods are regulated by the Export Control Order 2008, managed by the Export Control Joint Unit (ECJU) under the Department for Business and Trade.
Licences are mandatory for importing military goods, and specific documentation, such as a customs declaration, is required to meet the legal standards set by His Majesty’s Revenue and Customs (HMRC).
Both the UK and US adhere to international arms control treaties and trade sanctions, imposing additional controls on the movement of military goods, particularly to countries under embargoes or restrictions.
Close coordination between US and UK authorities and compliance with national security standards are essential to ensuring the lawful and secure export of military goods between the two countries.
Key Requirements for Exporting Military Goods to the UK
Exporting military goods from the US to the UK requires strict adherence to both US and UK export control regulations. Below are the key requirements that businesses must follow to ensure compliance:
ITAR Compliance (US)
Exporters must apply for the appropriate export licence through the US Department of State. Any transfer, re-export, or transhipment of ITAR-controlled goods requires prior approval. US-based companies must also ensure that foreign customers comply with re-export controls.
UK Export Licensing
In the UK, military imports are controlled under the Export Control Order 2008. Exporters must obtain an Open General Export Licence (OGEL) or a Standard Individual Export Licence (SIEL) from the UK’s Export Control Joint Unit (ECJU).
Licences are required for the import of controlled goods, including military vehicles, firearms, and defence-related software.
Customs Declaration
A detailed customs declaration must be submitted to HMRC upon the import of military goods. This includes information about the origin, value, and description of the items. Accurate documentation is crucial to avoid delays, penalties, or rejections at customs.
National Security and Trade Sanctions
Exporters must ensure that shipments comply with national security requirements, including embargoes or trade sanctions imposed by either government. Goods destined for restricted or sanctioned countries require special approval and may be prohibited altogether.
Record Keeping
Exporters are required to maintain comprehensive records of all transactions, licences, and shipments for a minimum of five years for audit purposes by US and UK authorities.
What is an Open General Export Licence?
An Open General Export Licence (OGEL) is a type of export licence that allows multiple shipments to be sent using one licence, provided the conditions of the licence are met.
Unlike standard export licences, OGELs are designed to streamline the export process for military goods being sent to low-risk destinations. This system reduces administrative burdens and ensures adherence to export control regulations.
The UK government issues an Open General Export Licence (OGEL) for the export of specific controlled dual-use or military goods from the UK to certain low-risk countries.
The US Directorate of Defense Trade Controls (DDTC) also offers an Open General Licence for entities exporting certain defence articles under the International Traffic in Arms Regulations (ITAR). A US Open General Licence also applies to military exports to low-risk destinations, including the UK.
How to Apply for an Open General Licence
Applying for an Open General Export Licence to ship military goods from the US to the UK requires careful preparation and strict adherence to regulations in both countries. Below is a step-by-step guide to help you navigate the application process:
1. Register with DDTC: Submit the relevant forms and supporting documentation to register with DDTC and obtain a registration code.
2. Identify the appropriate OGEL: Review the various OGELs available on the DDTC website to determine which one covers the specific defence articles being exported to the UK.
3. Prepare application documents: Gather the required information and documents specified in the OGEL application guidelines. This typically includes details about the company, items, end-users, end-uses and compliance procedures.
4. Submit application: Submit the application along with the supporting documents and pay the application fee.
5. Respond to DDTC questions: DDTC may request additional information or clarification during the review process.
6. Wait for approval: Once approved, DDTC will issue the company an OGEL authorization code valid for the specified duration.
If you’re having difficulty navigating the application process for an Open General Export Licence, clearBorder can help. We’re here to assist in preparing your application, ensuring the correct documentation is submitted.
Common Pitfalls in Military Goods Exports
Exporting military goods is a highly regulated process, and it’s common for businesses to encounter several issues along the way.
Failing to Obtain the Correct Licence
One of the most frequent mistakes is shipping military goods without the proper export licence or relying on a licence that doesn’t fully cover the items or destinations involved.
To avoid this, consult with compliance experts to confirm that the correct licences are in place before shipping.
Non-Compliance with End-Use Restrictions
Many businesses overlook end-use and end-user conditions attached to their export licences, leading to unintended violations of international arms control regulations. Goods exported to prohibited users or countries can lead to heavy penalties.
Always verify the end-user of the military goods you are exporting and their intended use. Strictly adhere to re-export restrictions and regularly update your compliance protocols to cover end-use and end-user checks.
Inadequate Record Keeping
Poor documentation of exports, including licences, customs declarations, and shipment details, is another common issue. Without proper records, proving compliance during audits or inspections can be a challenge, which may result in fines.
To avoid this, maintain detailed records for every transaction, including licence agreements, shipping documents, and customs filings. clearBorder offers consultation and training to ensure you properly document your exports, helping you stay prepared for regulatory audits.
Simplify the Export Process with clearBorder
Navigating the complexities of exporting military goods from the US to the UK requires in-depth research, adherence to UK and US laws and application for the correct licence. An easier way to ensure compliance when exporting military goods is to consult with an experienced international trade consultant.
At clearBorder, our trade consultants have a wealth of experience in exporting military goods from the US to the UK. We can provide you with all the guidance needed to help you acquire an OGEL, remain compliant, and avoid any customs delays or fines.
Book a free consultation with clearBorder for expert guidance on exporting military goods.