What happens when a Military product is ordered to a UK company but the product is made in another EU country and sent direct to the end customer without the product coming into the UK?

Question

What happens when a Military product is ordered to a UK company but the product is made in another EU country and sent direct to the end customer without the product coming into the UK?

(This question was asked at one of our recent webinars on Export Controls. You can listen to this webinar on our recent webinars page at http://opentoexport.com/info/webinars/)

Answer

In this case you are brokering the deal and would need to ascertain whether the brokering transaction require a licence – see the guidance here: https://www.gov.uk/guidance/export-controls-on-controlled-military-goods

You would obviously also need to take account of the export regulations in the country of manufacture.

Answer

This is known as Trade or trafficking and brokering – [facilitating] movement of controlled goods from one third country to another. This will include to embargoed and non-embargoed destinations and covers specific activities ie supplying or delivering; agreeing to supply or deliver; or doing any act calculated to promote the supply or delivery of said items. Look at the 3-tier structure of controls Cat A, Cat B and Cat C to determine which of these acts is applicable to your export. Export Control Order 2008 Schedule 1 Part 1 for the breakdown of categories https://www.gov.uk/guidance/export-controls-on-controlled-military-goods

You will need a trade control licence for activities in all three categories https://www.gov.uk/guidance/trade-control-licences-for-brokering

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