Compound Penalty Cases
Brief overview of recent compounding fines for export control offences.
What are compound penalties?
Exporters who commit export control offences in the United Kingdom are investigated by Her Majesty's Revenue and Customs (HMRC) and prosecuted by the Crown Prosecution Service (CPS). The two organisations work together to enforce the UK's export controls.
HMRC has a number of options available in pursuing any enforcement action, depending on the nature of the offence. This includes seizing goods, issuing a compound penalty fine or referring the case to the CPS for criminal prosecution.
The powers to issue a compound penalty are granted by the Section 152 of the Customs and Excise Management Act 1979. You can access the published act on the Office of Public Sector Information (OPSI) website.
Compounding is the means by which HMRC can offer the exporter the chance to settle a case which would justify being referred to the CPS for prosecution, therefore saving the taxpayer and company time and legal fees.
Compounding should not be viewed as a light option as there is no maximum compound penalty limit. The largest fine currently awarded for an export control related offence was for £575,000 in 2009.
Exporters are encouraged to export with due care and attention and meet their export control responsibilities. You can find out more from the export control pages on the Businesslink website.
List of Compound Penalty Cases
Details of exporters fined for export control offences from 2009 onwards:
| Date | Cases |
|---|
| December 2011 |
£350,000 penalty paid for alleged offences in relation to the export of controlled goods to various destinations without licences between January 2009 and July 2010 |
| December 2011 |
£4,700 penalty paid for alleged offences in relation to the export of goods in contravention of a prohibition under restrictive measures against Iran in August 2011 |
| August 2011 |
£7,000 penalty paid for alleged offences in relation to an act calculated to promote the supply of controlled goods between third countries without a licence between March and July 2008 |
| August 2011 |
£20,000 penalty paid for alleged offences in relation to the trafficking of controlled goods without licences between 2008 and 2009. |
| July 2011 |
£4,000 penalty paid for alleged offences in relation to prohibitions on the export of goods to Iran in November 2010. |
| July 2011 |
£55,000 penalty paid for alleged offences in relation to the export of controlled goods to a number of destinations with licences between 2008 and 2010. |
| May 2011 |
£17,000 penalty paid for alleged offences in relation to the trafficking of controlled goods without licences in 2009. |
| March 2011 |
£239,000 penalty paid for alleged offences in relation to the export of controlled goods to various destinations without licences between January 2006 and September 2009. |
| March 2011 |
£1000 penalty paid for alleged offences in relation to the export of controlled goods without a licence in December 2008. |
| March 2011 |
£25,000 penalty paid for alleged offences in relation to the export of controlled goods to various destinations without licences between February 2008 and February 2010. |
| March 2011 |
£1000 penalty paid for alleged offences in relation to the export of controlled goods without licences between February and November 2008. |
| March 2011 |
£5000 penalty paid for alleged offences in relation to the export of controlled goods to a nubmer of destinations without licences between May and June 2009. |
| December 2010 |
£1000 penalty paid by UK company for alleged offence in relation to the transport of controlled goods to an embargoed destination without licence during July 2009. |
| August 2010 |
£10,000 penalty paid by UK company for alleged offences in relation to the export of controlled goods to a number of destinations without licences between January and June 2009. |
| June 2010 |
£35000 penalty paid by UK company for alleged offences in relation to the export of controlled goods to a number of destinations without licences between 2006 and 2010. |
| May 2010 |
£15000 penalty paid by UK company for alleged offences in relation to the export of controlled goods to a number of destinations without licences between 2007 and 2008. |
| May 2010 |
£10000 penalty paid by UK company for alleged offences in relation to trafficking of controlled goods without licences between 2004 and 2009. |
| April 2009 |
£575,000 penalty paid by UK company for alleged offences in relation to the export of controlled goods to a number of sensitive destinations without licences between 2003 and 2006. |
Export Control Organisation
Updated: 5 January 2012
