NTE 2026/03 Company Director Jailed for Attempting Illegal Export

BY:

Sandra Strong
23 February 2026

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Highlighted in the most recent Notice to Exporters (NTE), why compliance matters. A company director has received a prison sentence after attempting to export controlled military-grade equipment without the required UK licence. The case, published in the UK government’s Notice to Exporters 2026/03 19-02-2026, highlights the seriousness with which UK authorities enforce export controls and Customs.

At Leeds Crown Court on February 6th 2026, Steven Gates, 47, of Wakefield, received a 2-year and 1-month prison sentence after being convicted under the Customs and Excise Management Act 1979 for trying to export eight thermal imaging rifle sights — classified as military equipment — to Hong Kong without authorisation.


HM Revenue & Customs (HMRC) investigators found that Gates had misdescribed the goods as “low-value cameras” on export documentation to disguise their true nature and evade licensing requirements. Border Force officers intercepted the shipments at Manchester Airport in two separate seizures in February 2022 and April 2023, and a subsequent search of his home uncovered evidence of further unlicensed shipments.


In announcing the sentence, HMRC officials emphasised that this was a deliberate attempt to bypass the UK’s strict export controls. “Anyone seeking to export military items without a licence will be detected and brought to justice,” said a senior enforcement representative.


This case is a clear demonstration that intent is a central factor in export control prosecutions. Actively concealing the true nature of the goods and attempting to avoid the regulations is very different from a trader making an error or being unaware that the goods require a licence, although both are major non-compliances.  Export control and Customs compliance are not limited to the most serious or obvious cases, such as military hardware or sending goods to sanctioned destinations. They encompass a broad range of regulatory requirements, including:


  • Export licensing regimes (strategic, dual-use and military lists)
  • Customs and trade declarations
  • Complying with the three pillars of Customs compliance - Tariff Classification, Origin and Valuation law
  • End-use and end-user obligations
  • Sanctions and trade restriction rules


Even in scenarios where goods might appear low risk, deliberately mis-declaring goods to avoid controls or misinforming authorities undermines legal frameworks designed to protect national and international security. The law treats deliberate circumvention as an aggravating factor, often resulting in heavier penalties than purely administrative mistakes.


Businesses must know their responsibilities. Not just identify whether your products fall under controlled regimes and whether a licence is required but also be transparent and accurateAnd if in doubt, seek guidance early: If unsure whether a licence is needed, consult official guidance or seek a voluntary disclosure rather than risk concealment.


So be clear: intent matters. Deliberate attempts to circumvent controls, even in less serious cases, can turn an administrative breach into a criminal offence.


This prosecution reinforces that UK enforcement agencies are stepping up investigations and will pursue cases where there’s evidence of deliberate non-compliance. Exporters should treat compliance as an integral part of their business processes, not an optional or bureaucratic exercise. 


NTE 2026/03

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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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This practical session provides the necessary information for applying for individual licences and helps you determine when an open licence is suitable for specific movements or transfers of controlled items. The workshop is designed to instruct participants on using the UK export licensing system.


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