On 18 November 2024, a UK court fined English company EDM Limited £89,359.80 for export control rule violations, finding the company guilty on three counts of exporting military goods without the licence required by the Export Control Order 2008, in breach of s.68(1) of the Customs and Excise Management Act 1979. The company allegedly shipped fighter jet simulators worth £38,967.68 to a Middle East buyer.
His Majesty’s Revenue and Customs (HMRC) had offered the company a compound settlement (by which parties settle offences out of court rather than commencing legal proceedings), but EDM did not accept by the deadline. HMRC referred the matter to the Crown Prosecution Service, which took the case to trial.
A criminal conviction can pose issues for a company, such as when bidding for new business or triggering penalty clauses under existing contracts. The decision underlines the importance of understanding HMRC’s compound settlement process and actively monitoring export control rule compliance.