Statutory guidance

Lebanon sanctions: guidance

Published 1 December 2020

As required by section 43 of the Sanctions and Anti-Money Laundering Act 2018 (‘the Sanctions Act’), the Secretary of State for Foreign, Commonwealth and Development Affairs has provided this guidance to assist in the implementation of, and compliance with, the Lebanon (Sanctions) (EU Exit) Regulations 2020 (the ‘Regulations’), as amended from time to time.

The following instruments have made amendments to this instrument. If a consolidated version is not yet available on legislation.gov.uk, these instruments should be read alongside the original instrument:

• the Sanctions (EU Exit) (Miscellaneous Amendments) (No.3) Regulations 2020

As required by the Sanctions Act, this document contains guidance on the prohibitions and requirements imposed by the Regulations. It additionally provides guidance on best practice for complying with the prohibitions and requirements; the enforcement of them; and circumstances where they do not apply.

This document is intended to be read alongside more detailed sanctions guidance published by the Department for International Trade (DIT). This document contains links to those key sources of sanctions guidance, which will be regularly maintained and updated on GOV.UK. It is designed to give an overview of the prohibitions and requirements in the Regulations and, where appropriate, direct readers to further detailed guidance. This document is current on the date of publication.

1. Prohibitions and requirements imposed by the Lebanon (Sanctions) (EU Exit) Regulations 2020

The Regulations impose trade sanctions for the purpose of giving effect to the United Kingdom’s obligations under United Nations Security Council Resolution 1701 (2006) (‘UNSCR 1701’).

UNSCR 1701 includes the implementation of an arms embargo to prevent the supply of arms and related materiel into Lebanon without the authorisation of the Government of Lebanon.

In order to achieve the stated purpose, the Regulations impose a number of prohibitions and requirements. In order to enforce these, the Regulations establish penalties and offences, which are set out in detail in the corresponding report under section 18 of the Sanctions Act in relation to criminal offences.

The prohibitions and requirements imposed by the Regulations apply within the territory of the United Kingdom (UK) (including Northern Ireland) and to the conduct of all UK persons wherever they are in the world. UK persons includes British nationals, as well as all bodies incorporated or constituted under the law of any part of the UK. Accordingly, the prohibitions and requirements imposed by the Regulations apply to all companies established in any part of the UK, and they also apply to branches of UK companies operating overseas.

The maritime enforcement powers contained in Part 6 of the Regulations apply in relation to British ships in international or foreign waters, ships without nationality in international waters and foreign ships in international waters.

It is prohibited to intentionally participate in any activities if you know that the object or effect of them is directly or indirectly to circumvent the prohibitions imposed by the Regulations or to enable or facilitate the contravention of those prohibitions.

If you are unclear about any aspect of the Regulations, in particular about whether action you are considering taking could contravene the Regulations, you are advised to seek independent legal advice.

Prohibitions and requirements for the trade sanctions contained in the Regulations are set out below.

1.1 Trade sanctions

The Regulations impose trade prohibitions relating to military goods and military technology (as specified in Schedule 2 to the Export Control Order 2008). The text below specifically relates to military goods and military technology.

There are circumstances (set out in the relevant lists of controlled items) in which certain items are not controlled, for example when body armour or a helmet is accompanying a person for that person’s own protection. Please check the relevant lists as applicable.

Further detail on these trade prohibitions, including key terminology used, is explained below. Please have regard to the relevant legislation which contains full definitions of terms used herein.

Export of goods

The concept of ‘export’ is set out in customs legislation, but is further detailed in Paragraph 32 of Schedule 1 to the Sanctions Act, which clarifies that “export” means export from the UK, but does not capture where goods are removed to the Isle of Man from the UK.

The export prohibition covers exports to Lebanon as well as exports that are for use in Lebanon. This means that, even if the immediate destination is not Lebanon, the prohibition may still apply. Exporters should check the ultimate end use of goods and may apply for a licence or contact the Export Control Joint Unit (ECJU) if they know or think the items may be used in Lebanon.

Supply and delivery of goods

Supply and delivery prohibitions in the Regulations prohibit a person from directly or indirectly supplying or delivering goods from a third country to a place in Lebanon. Regulation 8(4) specifies that a third country is a country that is not the UK, Isle of Man or Lebanon.

Making goods and technology available

Prohibitions in the Regulations on making goods and technology available (e.g. through a sale) include directly or indirectly making them available for use in Lebanon or to a person “connected with” Lebanon. Regulation 6(4) sets out when a person is to be regarded as “connected with” Lebanon (and this applies where the term is used in other trade prohibitions in this Part of the Regulations).

Transfer of technology

Prohibitions in the Regulations on the transfer of technology include transfer to a place in Lebanon or a person “connected with” Lebanon.

The term ‘transfer’ is defined in Paragraph 37 of Schedule 1 to the Sanctions Act, which states that it ‘means a transfer by any means (or combination of means), including oral communication and that transfer of goods on which the technology is recorded or from which it can be derived, other than the export of such goods.’

Where military technology is contained within a good, it would be classified as a military good under the accompanying goods-related provisions. This includes information contained on USB memory devices, laptops, tablets and the like.

Technical assistance

The term ’technical assistance’ in relation to goods or technology is defined in regulation 6, which states that it means:

• technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or
• any other technical service relating to the goods or technology

Prohibitions apply where the technical assistance relates to certain specified (military) goods or technology.

The prohibitions apply to the direct or indirect provision of such technical assistance (1) to persons “connected with” Lebanon or (2) for use in Lebanon.

This means that, even if the person to whom you are providing the relevant technical assistance, is not in or “connected with” Lebanon, the prohibition may still apply if the goods or technology to which the technical assistance relates are for use in Lebanon. Therefore, if you are providing technical assistance you should check whether the goods or technology may be used in Lebanon and apply for a licence or contact ECJU if so.

Financial services and funds related to goods and technology

‘Financial services’ refer to any services of a financial nature in many different forms including insurance and banking. Financial services include payment and money transmission services. The full definition of ‘financial services’ can be found in Section 61 of the Sanctions Act.

‘Funds’ means financial assets and benefits of every kind, including cash, securities and interest. The full definition of ‘funds’ can be found in Section 60 of the Sanctions Act.

Trade sanctions prohibitions on the provision of financial services and funds apply where they relate to certain specified goods or technology.

The prohibitions in the Regulations apply to the direct or indirect provision of financial services, and the direct or indirect making available of funds to persons connected with Lebanon in pursuance of or in connection with an arrangement set out in the Regulations. This captures arrangements where the object or effect falls into one of the prohibitions, for example export of goods, or the direct or indirect supply or delivery of goods.

These prohibitions also prohibit the direct or indirect provision of financial services in pursuance of or in connection with specific arrangements, as set out in regulation 12(3).

Brokering services

The definition of ‘brokering services’ is set out in regulation 6, which states that it means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to):

• the selection or introduction of persons as parties or potential parties to the arrangement
• the negotiation of the arrangement
• the facilitation of anything that enables the arrangement to be entered into, and
• the provision of any assistance that in any way promotes or facilitates the arrangement

The Regulations prohibit the direct or indirect provision of brokering services where they relate to specific arrangements. Those arrangements are set out in regulation 13.

DIT contact details

The Department for International Trade (DIT) has overall responsibility for trade sanctions licensing. For general guidance on export controls and trade sanctions, contact the Export Control Joint Unit:

email: exportcontrol.help@trade.gov.uk or tradesanctions@trade.gov.uk

Helpline: +44 (0)20 7215 4594

1.2 Information and record keeping

Part 4 of the Regulations establishes information powers and record-keeping responsibilities in relation to the trade sanctions contained in the Regulations. It provides for offences for failing to comply with any of those requirements or intentionally obstructing an official in the exercise of those powers.

If you have obligations or responsibilities under Part 4 of the Regulations, it is important that you familiarise yourself with them. If you are unclear of your obligations or responsibilities, you are advised to seek independent legal advice.

2. How will these sanctions measures be enforced?

The Regulations make it a criminal offence to contravene the trade sanctions, as well as to enable or facilitate a contravention of, or to circumvent, any of the prohibitions in the Regulations. They also prescribe the mode of trial and penalties that apply to such offences. In some cases, offences related to contraventions of prohibitions in the Regulations are contained within other legislation, such as the Customs and Excise Management Act 1979 (CEMA).

In addition to the below, further details on offences and penalties can be found in the corresponding report under section 18 of the Sanctions Act.

2.1 Trade sanctions

Any breach of the trade sanctions prohibitions in the Regulations is triable either way and carries a maximum sentence on indictment of 10 years’ imprisonment or a fine (or both). Any breach of the trade licensing provisions is also triable either way and carries a maximum sentence on indictment of 2 years’ imprisonment or a fine (or both).

HM Revenue and Customs (HMRC) is responsible for enforcing the licensing restrictions and investigating suspected offences.

If you discover that you have breached any of the trade prohibitions or licensing provisions, you should report the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible. If the irregularity was found in an Export Control Joint Unit compliance audit, the compliance inspector will have informed HMRC and you are strongly advised to do the same. Guidance is available on how to make a voluntary disclosure.

3. Are there circumstances when I can get an authorisation or licence for a sanctioned activity?

Licensing and exception provisions are contained in Part 3 of the Regulations.

3.1 Exceptions

The Regulations set out exceptions to some of the sanctions prohibitions which apply within certain defined circumstances. An exception applies automatically, and does not require you to obtain a licence issued in accordance with the Regulations.

Regulation 15A establishes an exception to Chapter 2 of Part 2 (Trade) which provides that prohibitions are not contravened if conduct is authorised by a licence which is issued under the law of the Channel Islands, Isle of Man or any British Overseas Territory for the purpose of disapplying a prohibition in that jurisdiction which corresponds to the relevant prohibition.

The Regulations include an exception in relation to any prohibition or requirement imposed by the Regulations for actions which a responsible officer has determined to be in the interests of national security, or the prevention or detection of serious crime in the UK or elsewhere.

If you are unsure whether an exception applies in your circumstances, you are advised to seek independent legal advice.

3.2 Licensing for trade sanctions

Licences may also be issued for certain trade activities that would otherwise be prohibited by the Regulations. The Department for International Trade (DIT) has overall responsibility for trade sanctions licensing. The Secretary of State for International Trade is ultimately responsible for decisions to grant or refuse a trade sanctions licence in any individual case.

The Export Control Joint Unit sits within DIT and is responsible for administering the licensing provisions on behalf of the Secretary of State for all trade sanctions, except those relating to imports which are administered by the DIT Import Licensing Branch and which are not relevant for the purpose of the Regulations. In exercising these powers, DIT seeks and considers advice from other government departments.

In making decisions on whether to grant a licence to permit something which would otherwise be prohibited under Part 2 of the Regulations, the Secretary of State will consider each application on a case-by-case basis to determine whether granting a licence would be consistent with the stated purposes of the sanctions regime and any UN or other relevant international law obligations.

For some prohibitions there are some specific activities that DIT considers are likely to be consistent with the aims of the sanctions. These are set out in the table below. If you think that your proposed activity falls within one of these specific descriptions, you should make this clear and explain why you believe this to be the case in your application for a licence.

Some of the licensing grounds set out below include procedural requirements relating to prior notification, and objection or approval, by the Government of Lebanon and/or the UN Interim Force in Lebanon (UNIFIL):

• where the Secretary of State is required to give prior written notification of a licence granted under this sanctions regime, the Secretary of State will first determine whether granting a licence would be consistent with the purposes set out in the Regulations. If the Secretary of State determines that granting a licence would be consistent with those purposes, then the UK (via the FCDO) will notify both the Government of Lebanon and UNIFIL with the necessary information
• where approval from the Government of Lebanon and/or UNIFIL is required in order to grant a licence, the Secretary of State will only grant a licence when approval from either the Government of Lebanon or the UNIFIL has been received
• for some licensing provisions, the Secretary of State will not grant a licence if the Government of Lebanon raises any objections within 14 days after the receipt of the notification

You should not assume that a licence will be granted or engage in any activities prohibited by trade sanctions until your licence has been granted.

Prohibition description	Prohibition reference	Considerations for licensing
Prohibitions on the export, making available, transfer, supply or delivery of military goods or military technology	7-10	A licence may be granted for the export, making available, transfer, supply or delivery of military goods or military technology if the goods or technology are for the use by UNIFIL in the performance of its mission.
		A licence may be granted, for the export, making available, transfer, supply or delivery of military goods or military technology if the goods or technology are for the use by the armed forces of the Lebanese Republic.
		A licence may be granted, for the export, making available, transfer, supply or delivery of military goods or military technology provided that the goods or technology are not supplied, directly or indirectly, to any militia for whose disarmament the UN Security Council has called in its Resolutions 1559 (2004) and 1680 (2006). This is subject to authorisation by either the Government of Lebanon or UNIFIL. If the Government of Lebanon or UNIFIL authorises such a request, that authorisation may be construed as authorising the provision of related technical assistance.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds related to military goods or military technology.	11 - 13	A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to military goods or military technology if for the use by UNIFIL in the performance of its mission.
		A licence may be granted for the provision of technical assistance, brokering services, financial services or funds related to military goods or military technology if for the use by the armed forces of the Lebanese Republic. The Secretary of State is required to submit prior written notification to both the Government of Lebanon and UNIFIL and shall not grant a licence if the Government of Lebanon raises any objections within 14 days after the receipt of the notification.
		A licence may be granted, for the provision of technical assistance, brokering services, financial services or funds related to military goods or military technology provided that they are not supplied, directly or indirectly, to any militia for whose disarmament the UN Security Council has called in its Resolutions 1559 (2004) and 1680 (2006). This is subject to a prior written notification to both the Government of Lebanon and UNIFIL and subject to authorisation by either the Government of Lebanon or UNIFIL.

Applications for trade sanctions licences can be made through SPIRE. Information on the activities you wish to carry out and any other relevant documentation can be provided in a cover letter and attached to the application. If you have questions on trade sanctions licensing, please contact us via tradesanctions@trade.gov.uk.

When you export goods, you may need to submit an electronic export declaration via the National Export System (NES), part of His Majesty’s Revenue and Customs’ (HMRC) Customs Handling of Import and Export Freight (CHIEF) system. Guidance is available on how to make an export declaration.

3.3 Overlap with strategic export licensing

Military goods and military technology

Please note that the export of and trade in military goods and military technology are also controlled under the Export Control Order 2008 and so you may also need a licence which is valid under that legislation. This means that all licence applications relating to military goods and military technology will also need to be considered against the Strategic Export Licensing Criteria. A licence under the Regulations is unlikely to be granted if a licence is refused for the same activity under the Export Control Order 2008.

The way this will work in practice is that we will consider an application for a licence which relates to activities that are licensable under both the Regulations and the Export Control Order 2008 as an application for a licence under both pieces of legislation. This means that only a single licence application is required.

The application will be considered against the relevant licensing criteria. If a licence is granted it will be valid under both the Export Control Order 2008 and the Regulations.

Transit control

Certain goods transiting the UK are still regarded as being exported when they leave the country and are therefore subject to control. Article 17 of the Export Control Order 2008 includes a transit and transhipment exception meaning that in many situations a licence is not required. This exception does not apply to goods destined for Lebanon, meaning that a licence is required to transit goods through the UK or to tranship them in the UK with a view to re-exportation to Lebanon.

4. Further information

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