Statutory guidance

Libya sanctions: guidance

Updated 9 February 2023

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 Libya (Sanctions) (EU Exit) Regulations 2020 (the ‘Regulations’), as amended from time to time.

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 departments including the Department for International Trade (DIT), Department for Transport (DfT), Home Office and HM Treasury, through the Office of Financial Sanctions Implementation (OFSI). 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 Libya (Sanctions) (EU Exit) Regulations 2020

The Regulations impose financial, trade, aircraft, shipping and immigration sanctions for the purpose of giving effect to the United Kingdom’s obligations under United Nations Security Council Resolutions including 1970 (2011), 1973 (2011) and 2146 (2014) (‘UNSCR 1970’, UNSCR 1973’, ‘UNSCR 2146’); and the additional statutory purposes set out in the Regulations. As a whole, this sanctions regime is aimed at promoting respect for human rights in Libya, promoting the peace, stability and security of Libya, promoting the successful completion of Libya’s political transition, and preventing migrant smuggling and human trafficking in relation to Libya.

In order to achieve the stated purposes, 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 in relation 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 11 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 financial, trade, aircraft, shipping and immigration sanctions contained in the Regulations are set out below.

1.1 Designation of persons

The Regulations provide that the Secretary of State may designate persons for the purposes of financial and/or immigration sanctions if they are, or have been, involved in a relevant activity (as defined in regulation 6).

The Regulations also provide that each person for the time being named by the United Nations Security Council or Sanctions Committee for the purposes of paragraph 17 of UNSCR 1970, or paragraph 19 of UNSCR 1973, is a designated person for the purposes of the asset freeze.

They further provide that the Libyan Investment Authority and Libyan Africa Investment Portfolio are designated persons for the purposes of the partial asset freeze.

Persons subject to a travel ban under UNSCR 1970 are not captured by the Regulations. For further information, please refer to the Immigration Sanctions section below.

The UK Sanctions List lists the people designated under the Regulations, and details of the sanctions in respect of which they have been designated.

1.2 Financial sanctions

Asset freeze and making available provisions

The Regulations impose financial sanctions through a targeted asset freeze on designated persons and prohibitions on making funds or economic resources available. This involves the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons, either directly or indirectly.

In addition, the Regulations impose a partial asset freeze in respect of two Libyan entities, prohibiting persons (including the entities) from dealing with “relevant funds or economic resources”, being those owned, held or controlled by those entities and located outside of Libya immediately before 17 September 2011, and certain other related funds. More information on this prohibition can be found in the accompanying Libya financial sanctions guidance.

The Regulations prohibit persons entering into any financial transactions relating to Libyan oil aboard a UN designated ship. This includes the purchase, or sale, or use as credit and the taking out of transport insurance in respect of it.

More information on financial sanctions can be found in the OFSI guidance.

OFSI is the authority responsible for implementing the UK’s financial sanctions on behalf of HM Treasury. OFSI helps to ensure that financial sanctions are properly understood, implemented and enforced in the UK. Further information on how OFSI implements financial sanctions can be found on the OFSI pages of GOV.UK.

1.3 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)
• any thing which falls within Chapter 93 of the Goods Classification Table^{[footnote 1]}, other than military goods
• internal repression goods and technology (as specified in Schedule 2 to the Regulations)
• goods which could be used for migrant smuggling and human trafficking (as specified in Schedule 3 to the Regulations)
• the provision of technical assistance, armed personnel, financial services or funds or associated brokering services, where such provision enables or facilitates the conduct of armed hostilities in Libya
• causing or permitting a UN designated ship to transport Libyan oil or have Libyan oil loaded onto the ship or have it discharged from the ship
• the provision of bunkering or ship supply services in relation to UN designated ships

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.

A number of goods subject to prohibitions in the Regulations (such as goods which could be used for migrant smuggling and human trafficking) are identified by reference to commodity codes in the Goods Classification Table. The UK Tariff sets out a system for the classification of goods to enable importers to ascertain the applicable rate of import duty for their goods. It is this system of classification that is used in the Regulations in order to determine whether goods are within scope of the prohibitions.

This means that where commodity codes are used in the Regulations, the relevant goods are those which would be classified under the relevant commodity code (applying the rules in the UK Tariff) if the goods were being imported to the UK.

Some of the listings of commodity codes in the Regulations have an “ex” before the code. Where this “ex” appears before a commodity code this means that the prohibitions in the Regulations do not apply to all of the items under that commodity code. The prohibitions will only apply to those items that (1) would be classified under the commodity code and (2) that match the description given next to the relevant “ex” code entry in the Regulations.

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 in the Regulations covers exports to Libya as well as exports that are for use in Libya. This means that, even if the immediate destination is not Libya, 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 you think the items may be used in Libya.

A sanctions licence is not required for exports of non-military goods covered by the Regulations from Northern Ireland to an EU Member State where the final destination is Libya. You will however have to comply with any licensing requirements that apply in the relevant EU Member State for the onward export to Libya. You will also have to comply with any other licensing requirements under UK export control legislation as applicable.

Import of goods

The concept of ‘import’ is set out in customs legislation, but is further detailed in Paragraph 33 of Schedule 1 to the Sanctions Act. This clarifies in particular that goods removed to the UK from the Isle of Man are not to be regarded as imported. Paragraph 34 details limited exceptions to this.

The import prohibition covers imports that are consigned from Libya and goods that originated in Libya. This means that even if the immediate place the goods were shipped from was not Libya, the prohibition may still apply. Therefore, importers should check the original place goods were consigned from and apply for a licence or contact DIT’s Import Licensing Branch if they think the items may have originated in or have been consigned from Libya.

A sanctions licence is not required for imports of non-military goods covered by the Regulations from an EU Member State which originate in or are consigned from Libya. You will however have to comply with any licensing requirements that apply in the relevant EU Member State for the original import into the customs territory of the EU. You will also have to comply with any other licensing requirements under UK import control legislation as applicable.

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 Libya. Regulation 25(4) specifies that a third country is a country that is not the UK, Isle of Man or Libya.

Acquiring or making goods and technology available

Prohibitions in the Regulations on directly or indirectly making restricted goods or technology available (e.g. through a sale) include making them available for use in Libya or to a “person connected with” Libya. Prohibitions in the Regulations on acquiring restricted goods or technology include acquiring such goods or technology from a “person connected with” Libya or where such goods or technology originate in or are located in Libya. Regulation 32(5) sets out when a person is to be regarded as “connected with” Libya (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 restricted technology include transfer to a place in Libya or a person “connected with” Libya.

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 or internal repression technology is contained within a good, it would be classified as a military or internal repression 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 32, 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 goods or technology.

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

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

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 Libya in pursuance of or in connection with an arrangement set out in Regulation 29(1). This captures arrangements related to the goods or technology controlled by the Regulations, for example, an arrangement for the 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 or funds to anyone, where this is in pursuance of or in connection with specific arrangements as set out in regulation 29(3). This captures arrangements for which the object or effect falls into one of the prohibitions, for example an arrangement for the export of goods to or for use in Libya.

Brokering services

The definition of ‘brokering services’ is set out in regulation 32, 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 30.

Other trade restrictions

Certain services and arrangements are prohibited in the Regulations. These include the provision of certain services in relation to ships, the direct or indirect provision of services where such provision enables or facilitates the conduct of armed hostilities in Libya, and the transportation of Libyan oil in relation to UN designated ships.

As set out in Regulation 31, the direct or indirect provision of the following services is prohibited where such provision enables or facilities the conduct of armed hostilities in Libya:

a) technical assistance (which for these purposes is defined in regulation 31(4))

b) armed personnel

c) financial services or funds, or

d) brokering services in relation to an arrangement whose object or effect is to provide, in a non-UK country any of the services mentioned in paragraphs (a) - (c)

The provision on transporting Libyan oil prohibits a person from causing or permitting a designated ship to transport Libyan oil or to have Libyan oil loaded onto or discharged from it. A “designated ship” for these purposes is defined at regulation 35(4) as meaning a ship designated by the UN Security Council Sanctions Committee on Libya (“UN Committee”), for the purpose of paragraph 10(a) of Resolution 2146.

Provisions on bunkering or ship supply services are set out in regulation 37 and prohibit the provision of such services to ships designated, by the UN Committee, for the purpose of paragraph 10(c) of Resolution 2146. The definition of ‘bunkering or ship supply services’ is set out in Regulation 37(4).

DIT contact details

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

email: exportcontrol.help@trade.gov.uk

helpline: +44 (0)20 7215 4594

For general guidance on import controls and trade sanctions contact the Import Controls team:

email: importcontrols@trade.gov.uk

1.4 Transport sanctions

The Regulations impose transport prohibitions relating to the movement of ships and aircraft in UK waters and airspace.

It is prohibited to provide access to a port for a ship designated by the UN. Furthermore, the master or pilot of such a ship must not cause or permit the ship to enter or remain in any UK port.

Similarly, the operator or pilot in command of an aircraft must not cause or permit the aircraft to take off, overfly or land in the UK where an aircraft is being used to transport military goods, or armed personnel, to any place in Libya.

Additionally, it is prohibited to allow such an aircraft to land or take off from an airport or to allow such an aircraft to enter UK airspace.

The Department for Transport (DfT) is ultimately responsible for the implementation of these transport restrictions, some of which are enforced through the Maritime and Coastguard Agency, National Air Traffic Services Limited (NATS) and airport operators.

DfT also has overall responsibility for issuing licences allowing access to UK ports for UN designated ships in specific circumstances.

Further details are available on how to apply for a transport sanctions licence.

1.5 Immigration sanctions

The effect of the Regulations is to impose a travel ban on persons who are designated by the Secretary of State for the purposes of being made subject to immigration sanctions under the Sanctions Act. Such persons are excluded persons for the purposes of section 8B of the Immigration Act 1971.

Persons who are subject to existing designations by the UN Security Council or its Sanctions Committee under UNSCR 1970 for travel ban purposes are not additionally designated under the Regulations as they are already excluded persons for the purposes of section 8B of the Immigration Act 1971.

Individuals designated under either the Regulations or UNSCR 1970 will be refused leave to enter or remain in the UK. Any applications they make for a visa to travel to the UK, including for transit purposes, will be refused. Any foreign national who is subject to a travel ban under the Regulations or UNSCR 1970, and who is currently in the UK, will have their permission to stay in the UK cancelled and steps will be taken to remove them from the UK.

If you are the subject of an immigration sanction and try to travel to the UK, carriers are required to deny you boarding.

Further information on how the Home Office deals with those who are subject to a travel ban can be found on the Home Office pages of GOV.UK.

1.6 Information and record keeping

For the purpose of the financial sanctions contained in the Regulations, Part 9 of the Regulations places obligations on relevant firms (the definition of which is set out in the Regulations) to report information to HM Treasury about known or suspected designated persons or about persons who may have committed an offence under specified provisions of the Regulations.

It also grants powers to HM Treasury to request information from, amongst others, a designated person, including powers to request the production of documents. It also establishes offences for failing to comply with these requests (including for providing false information).

Part 9 also 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 9 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, financial, aircraft and shipping 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 Financial sanctions

Breaches of financial sanctions are a serious criminal offence. Any breach of the main financial prohibitions in the Regulations is an offence that is triable either way and carries a maximum sentence on indictment of 7 years’ imprisonment or a fine (or both).

Offences under regulations 56(6) or 60 (information offences in connection with financial sanctions under the Regulations) are summary offences only and carry a maximum sentence of 6 months’ imprisonment or a fine (which in Scotland or Northern Ireland may not exceed level 5 on the standard scale) or both.

OFSI is responsible for monitoring compliance with financial sanctions and for assessing suspected breaches. It also has the power to impose monetary penalties for breaches of financial sanctions and to refer cases to law enforcement agencies for investigation and potential prosecution.

OFSI works with other parts of government, supervisory bodies and regulators to consider all cases reported to it, sharing relevant information accordingly.

If you find out that a person or organisation you are dealing with is subject to the financial sanctions detailed in the Regulations, you must immediately:

• stop dealing with them
• freeze any assets you are holding for them
• inform OFSI as soon as possible by either emailing ofsi@hmtreasury.gov.uk or by calling their general enquiries line: +44 (0)20 7270 5454

More detailed information on OFSI’s approach to compliance and enforcement can be found in Chapter 7 of OFSI’s guidance.

2.2 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 on 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.

2.3 Transport sanctions

Transport sanctions are integral to the enforcement of the overall sanctions regime. There are serious offences associated with breaching the principal transport restrictions; these are triable either way and carry a maximum sentence on indictment of 7 years’ imprisonment or a fine (or both).

Where the conditions on which a port entry licence has been issued are broken, the offence is triable either way and those found to be culpable can be imprisoned for up to a maximum of 2 years, receive a fine, or both.

The Department for Transport (DfT) takes an overview of the enforcement of transport sanctions. The implementation of the shipping and aircraft prohibitions will, where relevant, be assisted by the Maritime and Coastguard Agency, National Air Traffic Services (NATS), airport operators and harbour authorities.

If you become aware that a breach of the transport sanctions detailed in the Regulations has taken or will take place, then you must report it as soon as possible by calling DfT on 020 7944 5999 and by emailing transportsanctions@dft.gov.uk.

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

Licensing and exception provisions are contained in Part 8 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.

The Regulations establish exceptions relating to financial sanctions including for the crediting of a frozen account by a relevant institution (any such interest or other earnings will be frozen in accordance with the relevant legislation underpinning the asset freeze). An exception also exists from the prohibition on making funds available to a designated person, for when funds are transferred to a frozen account in discharge (or partial discharge) of an obligation which arose before the recipient became a designated person.

The Regulations establish exceptions relating to transport sanctions. An aircraft which is normally prohibited from overflying or landing in the UK can do so if failing to land would endanger the lives of persons on board, the safety of the aircraft or another aircraft, or the safety of persons on the ground. A ship which is normally prohibited from entering UK ports is allowed to enter in the case of an emergency.

Regulation 46 establishes an exception to regulations 12 to 16, regulations 18 to 20, Chapters 1 and 2 of Part 5 (Trade) and regulations 35, 37 and 38 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.

There is an exception to regulations 12 to 16 and 18 to 20 in respect of “relevant activity” (being any activity which would otherwise be prohibited by regulations 12 to 16 and 18 to 20) which is necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs by:

(a) the United Nations, including its—

(i) programmes and funds,
(ii) other entities and bodies, and
(iii) specialised agencies and related organisations,

(b) international organisations,

(c) humanitarian organisations having observer status with the United Nations General Assembly and members of those humanitarian organisations,

(d) bilaterally or multilaterally funded non-governmental organisations participating in the United Nations Humanitarian Response Plans, Refugee Response Plans, other United Nations appeals, or humanitarian clusters coordinated by the United Nations Office for the Coordination of Humanitarian Affairs,

(e) any grantee, subsidiary, or implementing partner of any organisation falling within sub-paragraphs (a) to (d) while and to the extent that they are acting in those capacities (reference in the regulations to an organisation (or entity) includes reference to the employees of that organisation while acting in that capacity),

(f) any other persons authorised by the Committee for the purposes of resolution 2664.

This exception means the prohibitions of the asset freeze are not contravened by a person carrying out relevant activity which is necessary to ensure the timely delivery of humanitarian assistance or to carry out other activities that support basic human needs. This includes the provision, processing and payment of funds, other financial assets or economic resources, and the provision of goods and services necessary to ensure the timely delivery of such assistance or to support such activities.

The prohibitions of the asset freeze are not contravened where the person undertaking the relevant activity believes carrying it out is necessary to ensure the timely delivery of humanitarian assistance, or to carry out other activities that support basic human needs and there is no reasonable cause for them to suspect otherwise.

The Regulations also 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 financial sanctions

Where a person is designated for the purposes of the financial sanctions (asset freeze measures and making available provisions) contained in the Regulations, the person or a representative (on their behalf) may apply for a licence from OFSI to use their funds or economic resources (non-monetary assets, such as property or vehicles), or have funds or economic resources made available to them or for their benefit. Schedule 4 to the Regulations sets out the purposes pursuant to which, or for which activities, OFSI may grant an individual licence. In summary these are:

• basic needs
• reasonable professional fees for or reasonable expenses associated with the provision of legal services
• reasonable fees or service charges arising from the routine holding or maintenance of frozen funds or economic resources
• extraordinary expenses
• pre-existing judicial decisions etc
• prior obligations^{[footnote 2]}
• humanitarian assistance activities (non-UN designated persons only)
• diplomatic missions etc (non-UN designated persons only)
• extraordinary situations (non-UN designated persons only)

OFSI may also issue a licence to the Libyan Investment Authority or the Libyan Africa Investment Portfolio in respect of five further grounds that do not apply to any other designated persons, namely:

• humanitarian assistance
• provision of fuel, electricity and water for civilian uses
• production and sale of hydrocarbons
• establishing, operating or strengthening civilian government and public infrastructure
• the resumption of banking sector operations including to support or facilitate international trade with Libya

OFSI may need to notify, or in some cases seek approval from the relevant United Nations Sanctions Committee before issuing a licence. These requirements are set out in the relevant UN Security Council Resolutions. These requirements will lengthen the processing time for such licence applications and may in some cases prevent a licence from being issued.

Further information on exceptions and licensing grounds can be found in OFSI’s guidance.

Information on licence applications and the relevant form can be found on OFSI’s GOV.UK licensing webpage.

3.3 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. 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 5 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 requirements relating to the UN Security Council Sanctions Committee on Libya (‘UNSC’):

• where the Secretary of State is required to give the UNSC notice 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, including compliance with the UK’s UN obligations. If the Secretary of State determines that granting a licence would be consistent with those purposes, the UK (via the FCDO) will submit the necessary information to the UNSC. The Secretary of State may only grant a licence in the absence of a negative decision by the Committee within five working days of the notification
• where approval from the UNSC is required in order to grant a licence, the Secretary of State will first determine whether granting the 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, the UK (via the FCDO) will submit the necessary information to the UNSC to seek the approval of the Committee. The Secretary of State will only grant a licence when confirmation of the Committee’s approval has been received

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.	Regulations 23, 25 - 27	A licence may be granted for the export, making available, transfer, supply or delivery of non-lethal military goods or technology if intended solely for humanitarian or for protective use.
		A licence may be granted for the export, making available, transfer, supply or delivery of non-lethal military goods or technology if intended solely for security or disarmament assistance to the Libyan government.
		A licence may be granted for the export, making available, transfer, supply or delivery of military goods or technology if intended solely for security or disarmament assistance to the Libyan government. This is subject to advance UNSC approval.
		A licence may be granted for the export, making available, transfer, supply or delivery of small arms, light weapons or related materiel if they are being temporarily exported to Libya for the sole use of UN personnel, representatives of the media and humanitarian and development workers and associated personnel. This is subject to advance UNSC notification. The Secretary of State may only grant a licence in the absence of a negative decision by the Committee within five working days of the notification.
		A licence may be granted for the export, making available, transfer, supply or delivery of military goods or technology in circumstances other than those above. This is subject to advance UNSC approval.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to military goods or military technology	Regulations 28 - 30	A licence may be granted for the provision of technical assistance, financial services or funds relating to non-lethal military goods or technology intended solely for humanitarian or for protective use.
		A licence may be granted for the provision of technical assistance, financial services or funds relating to non-lethal military goods or technology intended solely for security or disarmament assistance to the Libyan government.
		A licence may be granted for the provision of technical assistance, financial services or funds relating to military goods or technology if intended solely for security or disarmament assistance to the Libyan government. This is subject to advance UNSC approval.
		A licence may be granted for the provision of technical assistance, financial services or funds relating to military goods or technology in circumstances other than those above. This is subject to advance UNSC approval.
Prohibitions on the export, making available, transfer, supply or delivery of internal repression goods or internal repression technology	Regulations 23, 25 - 27	A licence may be granted for the export, making available, transfer, supply or delivery of internal repression goods and technology if the goods or technology are intended solely for humanitarian or protective use.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to internal repression goods or internal repression technology	Regulations 28 - 30	A licence may be granted for the provision of technical assistance, financial services and funds relating to internal repression goods or technology if intended solely for humanitarian or for protective use.
Prohibitions on the export, making available, supply or delivery of goods which could be used for migrant smuggling or human trafficking	Regulations 23, 25- 27	A licence will not be granted for the export, making available, transfer, supply or delivery of goods which could be used for migrant smuggling or human trafficking where the Secretary of State considers there are reasonable grounds to believe that the goods would be used for the purpose of smuggling migrants or trafficking in human beings.
Prohibitions on the provision of technical assistance, brokering services, financial services or funds relating to goods which could be used for migrant smuggling or human trafficking	Regulations 28 - 30	A licence will not be granted for the provision of technical assistance, brokering services, financial services and funds where the Secretary of State considers that there are reasonable grounds to believe that the technical assistance, brokering services, financial services and funds relate to goods that would be used for the purpose of smuggling migrants or trafficking in human beings.
Prohibitions on transporting, etc Libyan oil in relation to designated ships	Regulation 35	A licence may be granted for the transporting, loading or discharging of Libyan oil where the Secretary of State has consulted with the Government of Libya focal point[footnote 3]
Prohibitions on bunkering or ship services in relation to designated ships	Regulation 37	A licence may be granted for the provision of bunkering or ship supply services in relation to designated ships where the services are necessary for humanitarian or safety purposes. This is subject to UNSC notification.
		A licence may be granted for the provision of bunkering or ship supply services in relation to designated ships where the ship is returning to Libya. This is subject to UNSC notification.

The UN Security Council has set out in paragraph 9 of UNSCR 1970 a number of derogations, some of which may be relevant to the prohibitions on enabling or facilitating the conduct of armed hostilities (regulation 31). If you think that your proposed activity would otherwise be prohibited by the prohibitions set out in regulation 31 of the Regulations, but meets the criteria set out in paragraph 9 of UNSCR 1970 and is consistent with the aims of the sanctions, then you should make this clear, and explain why you believe this to be the case, in your application for a licence. Where relevant, the Secretary of State may notify or seek the approval of the UNSC, when considering your application for a licence.

Applications for trade sanctions licences can be made through SPIRE. Enquiries for applications for certain items and services that are not processed on SPIRE can be made to 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.

Licence applications for import of goods can be made through the online import licensing system ICMS, managed by DIT’s Import Licensing Branch (ILB). The DIT Import Licensing Branch will, to the extent possible, aim to inform the trader of the application outcome within 30 days. However, in some circumstances, for operational or legal reasons, DIT may need to take longer than the 30 day period. We will inform the applicant if this is the case.

When you import goods, you may need to submit an import declaration through His Majesty’s Revenue and Customs’ (HMRC) Customs Handling of Import and Export Freight (CHIEF) system. Guidance is available on how to make an import declaration.

3.4 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.

Overlap between trade sanctions and financial sanctions

If you import or export goods, you need to consider if financial sanctions apply to you. You may need a licence from OFSI as well as from the Export Control Joint Unit or the Import Licensing Branch.

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 Libya, 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 Libya.

3.5 Licensing for transport sanctions

Where an exception does not apply, a licence may be issued by the Department for Transport in particular circumstances to allow for time-limited and specific actions to take place which would otherwise be prohibited by the Regulations.

A port licence may be granted to permit a UN designated ship to access a UK port. A licence may be general or be issued to a particular category of person or to a particular person. Licences may contain conditions and they may be of a defined duration or of indefinite duration.

Information on how to apply for a transport sanctions licence is available on GOV.UK.

3.6 Directions in respect of immigration sanctions

If you are subject to immigration sanctions the Home Office may direct, on a case by case basis, that the sanction does not apply in particular circumstances, such as for travel to, or through, the UK for a UN sponsored meeting. You can check how to apply for a UK visa, and find further information about travelling to the UK on GOV.UK.

4. Further information

Sign up to receive Notices to Exporters and view the Notices to Importers for updates on trade sanctions.

To receive an email alerting you to any changes to the consolidated list of financial sanctions targets, you can subscribe to OFSI’s e-alert.

1. “the Goods Classification Table” means the table so named in Annex I in Part Three of the Tariff of the United Kingdom. ↩

2. Paragraph 11 of Schedule 4 sets out how this applies to UN designated persons, and paragraph 12 of Schedule 4 sets out how it applies to non-UN designated persons. ↩

3. “the Government of Libya’s focal point” means the focal point appointed by the Government of Libya as notified to the Sanctions Committee in accordance with paragraph 3 of UNSCR 2146 (2014). ↩