UK Issues Sanctions, Export Control Guidance as It Departs From EU

The United Kingdom officially began operating its autonomous sanctions and export control regimes Jan. 1 and issued a range of guidance for industry as it left the European Union. The documents include a 32-page guidance covering penalties for breaches of U.K. sanctions, a list of the U.K. sanctions regimes and a host of export control guidance, including new procedures for applying for export licenses.

The U.K. is now implementing its own sanctions covering more than 30 regimes, including specific countries and areas of concern, such as terrorism, misappropriation, unauthorized drilling activities and chemical weapons. The U.K. also clarified that it is no longer imposing sanctions on 113 entries designated by the EU, including 109 people and four entities.

The U.K. said it will impose sanctions penalties if it finds a person or entity breached one of the country’s sanctions regulations or “had reasonable cause to suspect” it had violated U.K. sanctions, the country said in its penalty guidance. Violations do not have to occur within the U.K. for penalties to be enforced, the guidance said, but added that the country “will not artificially bring something within UK authority that does not naturally come under it.” Some countries, including the EU member states, have been critical of U.S. extraterritorial sanctions (see 2012020042).

The U.K. will impose penalties based on an assessment of the severity of the violation, including a review of “aggravating factors.” It also said “mitigating factors may reduce a penalty we impose or lead us not to take enforcement action.” The country also said it “values” voluntary disclosures, which may be considered a mitigating factor during investigations.

The U.K. also published export control guidance that covers new procedures and legislation for general export authorizations, exporting chemicals, torture and capital punishment goods, military items and more. The country also issued guidance on new information for industry when using SPIRE, the country’s online export licensing system.

The U.K. outlined other changes in a Jan. 4 message to World Trade Organization members, including how Brexit will impact trade in goods and its tariff-rate quota commitments. The U.K. also stressed that it will now be able to “launch and defend WTO disputes in its own right” and plans to continue to “engage fully and constructively with other Members in the regular work of the WTO.”