Your Guide to Managing Export Control Efficiently

Managing export controls is crucial to keeping your business moving in an global economy – to keeping your shipments on time, and your clients and customers happy.

Governments use export controls refer to regulate the export of goods, software and technology. Those products which are deemed “controlled” may require an export licence in order for you to be able to ship them internationally. Failing to comply with export controls can be immensely costly; with businesses found in breach of these regulations facing penalties and even prosecution. However, managing export control can be complex and very time-consuming.

In this article, we’ll explain what you need to know about export controls before exploring how to manage them efficiently and protect yourself from costly penalties down the line.

What are export controls and why are they so important?

The first step to being able to efficiently manage export control is to understand what export controls are and why they’re so important for UK businesses.

Export controls cover a wide range of goods – including physical exports, electronic transfers and even academic research – and aim to preserve national and international security, as well as help prevent the violation of human rights. Some of the restricted goods are fairly self-explanatory, such as military items, while others, called “dual-use items”, are goods that have both civil and military applications. While the standard use for these items could be quite harmless, bad actors might have ways to use them in more illicit or dangerous ways.

UK export-controlled goods include:

• Aerospace articles
• Military items
• Firearms
• Electronics and Communications
• Classified and authorised explosives

While this isn’t an exhaustive list, it should give you a good idea of the scope of goods that are included in the regulations. Certain items may be subject to the export control rules of more than one country.

How do I know if my goods are subject to UK export controls?

There are two main ways for UK businesses to determine if their products, goods or software are subject to export controls and therefore require a licence. The first is to manually review the UK Strategic Export Controls List (sometimes called the consolidated lists) to see if your goods are controlled. However, this can be a very time-intensive process, and there is a much higher chance of error.

The Department for International Trade also has online checker tools that will help you to establish if your items are controlled, as well as identify if an appropriate Open General Export Licence (OGEL) exists. OGELs are reusable licences for exporters who send items overseas on a regular basis. There are different types of OGEL that cover different types of goods and locations.

It’s also worth noting that even if your goods aren’t listed in the UK Strategic Export Controls List, the Export Control Joint Unit, or ECJU, is able to invoke ‘end-use controls’ if there are specific concerns about the items end-use. This means that you may still need a licence, even if your goods aren’t on the Control Lists.

What do I do if my goods are on the Export Control lists?

The UK government uses an online system called SPIRE for businesses to apply for licences in order to export controlled goods. This is the platform you’ll most likely be using to make sure you have the right licences in place for your businesses. Different classifications of items require different licences, so it’s important that you know what is relevant for your business.

These are the most common licences required for goods that are subject to export control:

• OGEL (open general export licence) These are pre-published, re-usable export licences available for sending specific miltary and dual-use items to specific destinations.  OGEL’s are the most flexible type of strategic licence. If you can meet the pre-set conditions, you can register to use these licences.
• OGTCL (open general trade control licence): you’ll need this if you are involved in trade of military goods between two seperate overseas countries. (These licences cover trafficking and brokering activities).
• OIEL (open individual export licence): this type of licence covers multiple shipments of certain controlled goods to specific destinations. They typically last 3-5 years
• SIEL (standard individual export licence): Where a OIEL or OGEL is unavailable, it is possible to apply for a SIEL.  These are very similar to OIEL, but only last for 2 years. They tend to be more prescriptive over the quantities and values of the item.
• Transhipment licences: if you’re moving controlled goods through the UK on their way to another destination, you’ll need a transhipment licence

Once you know which of these licences you need, you can begin the process of applying through SPIRE.

Creating efficiency in your export control processes

There are a number of things that businesses can do to make the management of export control more efficient. Your main priority should be keeping up to date, whether that’s through training, through ECJU notifications, or just by reviewing your procedures.

Keeping up to date with the ECJU

Export controls are informed by global relationships and international agreements, which means they can change from time to time. The Export Control Joint Unit (ECJU) publishes updates to exporters to keep businesses informed of changes to legislation, changes to the list of goods, and amendments to licences. It’s highly recommended that you subscribe to their notices to avoid missing any crucial changes to legislation that impacts how you’re able to trade overseas.

Reduce inefficiencies with training

As with most legislation, there are a lot of intricacies and things to know when it comes to export controls. Rules and regulations change, and it’s important to empower your team with the knowledge to feel confident that all regulations have been met. Enrolling your team in training that thoroughly explains the export process and how export controls fit into that ecosystem can be very useful for reducing inefficiencies and risk.

Following conditions of your licence

Export licences come with their own set of requirements and conditions that you should consider both before you apply, and after you’ve received your licence. Some licences, such as the OGEL, require detailed records of any exports done that use the licence, or even require an annual ‘Open Licence Return’ to be submitted. Make sure you have a full understanding of any deadlines or dates that are associated with your licence to make sure subsequent documentation is completed in good time. This will help avoid any hurdles further down the line.

Managing export control efficiently with clearBorder

Ensuring you have the right licences and processes in place to be able to transport your goods can be a hugely time-consuming endeavour; with jargon, red tape and differing procedures making a business-critical function that much more complicated. That’s why the team at clearBorder can help. Our experts are specialists in the world of cross-border movement of controlled goods, helping you to navigate regulations and restrictions so that you can avoid risk and maintain efficiency. Whether you’re looking for accessible training for you or your team, or expert advice to help manage your trade operations, get in touch today.