The notice constitutes a new licensing requirement designed to prevent companies from inadvertently facilitating the export of goods to or from sanctioned countries or individuals through third countries.

The key message from the guidance notice is that even if you’re exporting to a non-sanctioned country, you can still be restricted if there’s a risk your goods will be diverted to a sanctioned destination. It is important to understand that this only applies when the government formally ‘informs’ you of a diversion risk. In addition, it targets goods not already covered by standard export controls (e.g., non-military items).

Put simply, you might be exporting something perfectly legal – but if authorities suspect it could end up in Russia, for example, via a third country, they can step in and require a licence.

Aside from Russia, the following sanctioned countries are listed in the guidance notice:

• Republic of Belarus 
• Democratic People’s Republic of Korea 
• Iran
• Iran (Nuclear) 
• Libya
• Myanmar 
• Russia and non-government-controlled territories of Ukraine 
• Somalia
• Syria
• Venezuela 
• Zimbabwe

As the guidance document makes clear, this measure will only apply to goods or technology related to the export of goods that are not otherwise subject to strategic export controls (i.e., items that are not included on the UK’s strategic control lists for military and dual-use items, or subject to the UK’s WMD or Military End-Use Controls). 

The key trigger for business action is ‘being informed’ by the authorities, usually contact from Border Force/HMRC.

Note that nothing changes for you until the government contacts you. If you are ‘informed’, you will receive a formal notice identifying the export which legally requires the exporter to obtain an export licence prior to exporting the goods. Failing to do so becomes a criminal offence.

The following steps must be taken when you have been ‘informed’:

1. Stop the export immediately
2. Apply for a licence
3. Provide evidence about:

a.    End User

b.    End Use

c.    Supply chain/route

d.    Your due diligence

There will then be two possible outcomes: either a licence is granted, and the export can proceed (possibly with conditions), or a licence is refused, and the export is blocked. Meanwhile, HMRC can either detain the goods or return them to you pending a decision.

The main reason the UK introduced Sanctions End-Use Controls (SEUC) was that sanctioned countries often buy goods through intermediaries. Previously, the authorities could only warn but couldn’t stop the export, meaning enforcement used to occur after the breach, not before. Now they can intervene before goods leave the UK.

Regardless of the new guidance, exporters are still expected to carry out risk-based due diligence even if they are not ‘informed’.

Attention should be paid to understanding customers, intermediaries, and routes. Watch for diversion risks (especially high-risk regions/products). Should any RED FLAGS be identified, the exporter should pause the transaction, investigate, and resolve them before proceeding.

It is often said that it costs more to do something wrong than to do something right, and in the case of SEUC, the broader ‘costs’ can be significant if an informing notice is ignored.

Penalties can include:

• Goods can be seized
• Licences revoked
• Financial penalties imposed
• Criminal prosecution possible
• You may be publicly named

Key takeaways

• This is a targeted control, not a blanket rule
• You only need a licence if the government tells you
• Once informed, you must stop and apply
• It’s mainly about preventing sanctions evasion via third countries

If it looks like your goods could end up in a sanctioned country – even indirectly – treat it as a compliance issue.

If the government formally tells you, it becomes a legal obligation.