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Notice

Notice to exporters 2026/16: compound settlement for breaches of export control

Published 27 July 2026

In June 2026, two UK exporters paid compound settlement offers of £216,530.30 and £20,889.15 to HM Revenue and Customs (HMRC).

The settlements relate to unlicensed exports of military-listed goods and related activity prohibited by The Export Control Order 2008 and contrary to The Customs and Excise Management Act 1979. 

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

Compound settlements may be offered where an exporter has:

  • voluntarily told HMRC about sanctions or export control breaches, and

  • 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.