Steptoe LLP | Alexandra Melia and Elliot Letts
General restrictions
What restrictions apply in relation to the trade of goods, technology and services?
The Sanctions and Anti-Money Laundering Act 2018 (SAMLA) permits the implementation of a range of trade sanctions, including controls on the:
- export, supply and delivery, making available or transfer of specified goods and technology;
- import, acquisition, supply and delivery of specified goods and technology;
- provision and procurement of services related to specified goods and technology;
- provision and procurement of certain other specified services; and
- movement, making available or acquisition of specified goods and technology in UN-designated ships, as well as the provision and procurement of services relating to such ships.
The nature and extent of the trade sanctions implemented under particular sanctions regimes vary.
The United Kingdom also imposes strategic export controls under the Export Control Order 2008 (ECO) on the export of goods, software and technology listed on a “consolidated control list“. Licensing issued by the Export Control Joint Unit (ECJU) is required to export or transfer these controlled items from the United Kingdom to a place outside it. The UK government can require licensing to export items not included on the consolidated control list if there is a risk relating to the end-use of the particular item. For example, the item is intended for military use in a destination subject to an arms embargo, or may be intended or diverted for purposes connected with weapons of mass destruction (WMD) or their means of delivery (including the provision of WMD-related technical assistance). Further details of the UK strategic export controls regime are set out in ECJU guidance. The export of certain items may require licensing under both the trade sanctions and export controls regimes. In some circumstances, licensing may also be required from HM Treasury’s Office of Financial Sanctions Implementation (OFSI) when both trade and financial sanctions are triggered by proposed trade activity.General exemptions
Do any exemptions apply to the general trade restrictions?
Exceptions to trade sanctions restrictions are set at the regime level and there is variance between the nature and extent of the exceptions available in relation to different items subject to trade sanctions under a particular sanctions regime, as well as between regimes.
The Export Control Order 2008 also specifies exceptions that apply to particular types of export-controlled items. For example, certain prohibitions will not apply to transfers of technology that are in the public domain or represent the minimum technology required for the installation, operation, maintenance or repair of non-military or controlled dual-use goods or software, a patent application or in the course of basic scientific research.Targeted restrictions
Have the authorities in your jurisdiction imposed any trade sanctions against dealing with any particular individuals or entities?
UK trade sanctions implemented under SAMLA can be directed towards dealings with named individuals and entities in relation to specified goods and technology subject to trade sanctions (as has historically been the case with certain controls on dual-use goods and technology under the Russia regime). However, it is more typical for trade sanctions to be directed towards dealings with “persons connected with” a sanctioned country in relation to goods and technology subject to trade sanctions. A person is “connected with” a sanctioned country if they are an individual located or ordinarily resident in the country, or an entity domiciled or incorporated in the country.
UK trade sanctions giving effect to obligations under UN sanctions also may target dealings with particular individuals and entities under both thematic and geographic sanctions regimes.Licensing – scope
In what circumstances may the competent sanctions authorities in your jurisdiction issue a licence to trade in goods, technology and products that are subject to restrictions?
Trade sanctions licensing is the responsibility of the Department for Business and Trade (DBT). Broadly speaking, the ECJU administers the licensing provisions for trade sanctions on exports and ancillary services. The Import Controls Team (ICT) has responsibility for licensing trade sanctions on imports and ancillary services. The Office of Trade Sanctions Implementation (OTSI) administers licensing for standalone trade services. In early 2026, OTSI will expand its licensing remit to cover all exports of items subject to trade sanctions except strategically export controlled items.
ECJU has issued a number of open general export licences (OGELs) in relation to certain trade sanctions restrictions imposed under UK sanctions regimes. For example, under the Russia regime in relation to fertilisers and vessels. Specific trade sanctions licensing grounds vary by regime and the particular goods, software and technology subject to trade sanctions restrictions. For some trade sanctions prohibitions, there are specific activities that DBT considers likely to be consistent with the aims of the particular sanctions regime and capable of being licensed. These activities are described in the statutory guidance for the relevant regime.Licensing – application process
What is the application process for a licence? What is the typical timeline for a licence to be granted?
The process varies depending on whether a general or specific licence is required. Each licensing agency also has its own licence application process. To utilise a general trade sanctions licence (ie, an OGEL), the proposed user generally must register first use of the OGEL and comply with any record-keeping and other conditions imposed by the OGEL.
Applications for specific trade sanctions licences typically should be submitted via the ECJU’s SPIRE portal, ICT’s import licence service or via OTSI’s trade services licensing page and are considered on a case-by-case basis, taking into account whether granting a licence would be consistent with the purpose of the particular sanctions regime, as well as any other UN or international law obligations of the United Kingdom. Timelines for the issuance of a specific licence can vary significantly depending on the type of licence sought and the nature of the activity to be licensed.Approaching the authorities
To what extent is it possible to engage with the competent sanctions authorities to discuss licence applications or queries on trade sanctions compliance?
For guidance on licence applications, applicants can contact ECJU via email at exportcontrol.help@businessandtrade.gov.uk or by telephone on 020 7215 4594, ICT via email at importsanctions@businessandtrade.gov.uk or OTSI using its enquiry form.
This article first appeared on Lexology | Source
