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The 16th Notice to Exporters of 2026 confirmed two compound settlements; a compound settlement means that, through payment of a sum of money, HMRC may offer to settle an alleged offence out of court.
On July 27th 2026, the Export Control Joint Unit communicated the Notice to Exporters 2026/16 confirming two compound settlements with UK Exporters. Both settlements related to unlicensed exports of Military Goods and related activity which is prohibited by the Export Control Order 2008 and contrary to The Customs and Excise Management Act 1979.
The compound settlement offers paid to HMRC were £216,530.30 and £20,889.15
Similar to Notice to Exporters 2025/13, the latest update confirms that a compound settlement may be offered where the exporter has committed a breach that was inadvertent or due to weaknesses in their internal controls and has voluntarily informed HMRC about the export control or sanctions breaches.
The notice confirms that HMRC will not offer a compound settlement where an exporter intended to breach the controls.
It is a criminal offence to export controlled items, goods, technology, or software without the correct licence. Penalties can include seizure of goods, revocation of export licences and a criminal conviction leading to a fine and/or custodial sentence. This was communicated earlier this year in Notice to Exporters 2026/03.
The Export Control Joint Unit and the Department of Business and Trade also confirm the importance of internal export control reviews and audits, and what to do if a breach of control regulations has occurred.
Submitting a Voluntary Disclosure
Any voluntary disclosure should provide details of the export and/or intangible transfers, the dates they were made and should include any documentation that accompanied any physical exports, such as commercial invoices.
It is important to note that the disclosure must include details of how the breach was discovered and what corrective actions have been put in place to ensure the issue does not arise again.
HMRC will then follow due process and contact the business directly, either for more information or to advise of their decision.
Voluntary disclosures should be submitted by email or courier to;
Voluntary disclosure
Strategic Exports and Sanctions Enforcement Policy
Customs Debt, Enforcement & Law, Customs Policy & Strategy, HMRC, 14 Westfield Avenue
London
E20 1HZ
Description Title
This session covers the export licensing regulations for intangible transmissions of controlled items, including technology, software, and goods. It reviews the types of licences available and their usage and maintains a technology log for audits. Additionally, it addresses the use of technology by employees working overseas.
Beginners Guide to Export Licensing Controls
Whether at the start of your learning pathway or as a standalone training session, this course will equip you with the necessary knowledge to understand export licensing controls and how they work. By covering essential elements, it provides a solid foundation for understanding which goods, technology, or software could be controlled and for reviewing business-relevant areas in more detail.
The UK Export Licensing System
This course combines the key elements of the UK Export Licensing System into a practical session. By reviewing the UK strategic export control lists and the legislation surrounding financial sanctions, delegates will gain a comprehensive foundation of knowledge to support future learning and understand internal requirements.
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