Notice

NTE 2025/31: UK exporter pays compound settlement for breaches of export controls

Published 1 December 2025

© Crown copyright 2025

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This publication is available at https://www.gov.uk/government/publications/notice-to-exporters-202531-uk-exporter-pays-compound-settlement-for-breaches-of-export-controls/nte-202531-uk-exporter-pays-compound-settlement-for-breaches-of-export-controls

Introduction

In September 2025, a UK exporter paid a compound settlement offer of £620,515.04 to HM Revenue and Customs (HMRC). This was in relation to unlicensed exports of military goods controlled by The Export Control Order 2008.

Export control legislation is enforced by HMRC, working with the appropriate prosecuting authority. Where appropriate, HMRC can use their powers to offer a compound settlement in lieu of prosecution.

Compound settlements criteria

Compound settlements may be offered where an exporter has both:

  • committed a breach that was inadvertent or due to weaknesses in internal controls – HMRC will not normally offer a compound settlement where an exporter intended to breach the controls

  • voluntarily told HMRC about sanctions or export control breaches

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