Our Island Plan

Strategic Export and Trade Controls

This page is intended as a general guide and has no force in law. If you think you may be affected by the provisions, you are advised to seek independent legal advice.

This general guide is intended to assist exporters and their agents in understanding the requirements of the law concerned with certain controlled exports from the Isle of Man and United Kingdom, and also provide a guide to what goods and services are subject to strategic export and trade controls.

It is the policy of the Isle of Man Government to maintain the laws relating to the import and export of goods aligned to those in the United Kingdom. Guidance produced by the UK Government in relation to export and trade controls are also applicable in the Isle of Man.

What is subject to the controls

Strategic export controls are imposed on:

  • Diamonds
  • Radioactive substances
  • Military goods, services and technology
  • Items that can have both civil and military uses
  • Goods that could be used for torture or capital punishment
  • Firearms, ammunition and related equipment

when exported from the Isle of Man or United Kingdom. These items can be found in the UK Strategic Export Control Lists. There are also controls on the brokering of dual-use items.

Strategic trade controls are imposed on certain activities, including trafficking and brokering, that involve:

  • The supply or delivery of certain controlled goods from one overseas country to another
  • The agreement to supply or deliver controlled goods from one overseas country to another
  • Any activity that will promote the supply or delivery of certain controlled goods from one overseas country to another

These items are listed in Schedule 1 to the Export Control Order (Category A, B or C goods).

Who is affected by strategic export and trade controls

The controls apply to 'Island persons'. These are:

  1. A British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen who is resident in the Island

  2. A person who under the British Nationality Act 1981 (c.61 of Parliament) is a British subject who is resident in the Island

  3. A British protected person within the meaning of that Act who is resident in the Island

  4. A body incorporated under the law of the Island

  5. A limited liability company registered in the Island

Please note that certain elements of the controls have an extra-territorial element, i.e. they apply to actions by Island persons that take place overseas. You should also note that UN and UK sanctions legislation may also have extra-territorial aspects, and these are often broader in their scope.

Where is the law on strategic export and trade controls

The UK legislation concerned with strategic export and trade licensing controls are:

Links to legislation on this page are to UK law, which are given legal effect in the Isle of Man under the Customs and Excise Act 1993 and the European Union and Trade Act 2019.

You may also need to consider trade sanctions law. You can find more information about sanctions on the Sanctions Guidance page.

Export Controls

Controlled military items

Controlled military items include military goods, software and technology (specific technical information and data), specially designed or modified for military use. These items are specified in Schedule 2 to the Export Control Order.

You must not export military goods, or transfer military software or technology by electronic means, unless you have an export licence, or there is an exception in law.

Controlled dual-use items

Under the Export Control Order, you must not export controlled dual-use goods, or transfer controlled dual-use software or technology by electronic means, to:

  • A prohibited destination

  • Where the exporter or transferor knows that the final destination of the items is a prohibited destination and that no processing or working is to be formed on the items

  • Where a person suspects, or is informed, that dual-use items may be used for weapons of mass destruction purposes or to a destination subject to an arms embargo

Unless you have an export licence or there is an exception in law.

Controlled dual-use items are specified in Schedule 3 to the Export Control Order. They are not necessarily designed or modified for military use, but could be used for military purposes as well as civilian use.

A prohibited destination is a place which is referred to in Schedule 3 in relation to a specific item.

Under the dual-use Regulation, there is a separate list of dual-use items contained in Annex I. You must not export any of the items listed in Annex I unless you have an authorisation (which may include a general authorisation under the law).

You can find the complete list on the UK Strategic Export Control Lists.

There are also controls on the brokering of dual-use items under the dual-use Regulation. Brokering is the selling or buying of dual-use items or the deal, negotiation or transaction for purchasing or supplying dual-use items from a third country to any other third country.

In practice, brokering could include the following activities - this list is not exhaustive:

  • Arranging supply from overseas factories/warehouses

  • Arranging intra-company transfers

  • Drop shipping

  • Acting as a ‘project manager’ for a project in one third country who sources supplies for that project in other third countries.

Brokering, under the dual-use Regulation, does not include ancillary services (defined as ‘transportation, financial services, insurance or re-insurance or general advertising or promotion’).

Further information on brokering can be found on the UK Government website.

Find out how military and dual-use 'technology' is defined for export controls.

Military end-use controls

The military end-use control is a catch-all control in the dual-use Regulation. This means that even if the items that you intend to export are not listed in Schedule 1 to the Export Control Order (also known as the UK Military List), you might still require an export licence under this control.

An exporter is usually informed by the ECJU that an export licence is required for one of two reasons. Either you are exporting non-controlled items that are, or may be, intended for use with military equipment in an embargoed destination, or you are exporting non-controlled items that may be intended for use as parts of military goods illegally obtained from the Island or UK, irrespective of destination.

If you have any concerns about your end user, you can get advice through SPIRE.

Find more information on end-use controls applying to military related items.

WMD-related controls

You must not export any goods and services if they might be used for weapons of mass destruction (WMD) purposes. This includes nuclear, chemical or biological agents or technology that might be used in a WMD delivery system or in any way in a WMD programme.

This restriction covers:

  • Technical assistance such as assembly, maintenance or repair
  • Services and goods

Further information can be found on the UK Government page End-use controls applying to WMD-related items, including technical help.

Torture and capital punishment goods controls

Under the torture Regulation, you must not:

  • Import, export or transit goods used for, or could be used for, capital punishment, torture or other cruel, inhuman or degrading treatment or punishment

  • Provide brokering services in relation to those goods

  • Provide technical assistance or training relating to those goods

unless you have an authorisation or there is an exception in law.

Further information can be found on the UK Government page Export controls: torture and capital punishment goods.

Radioactive sources controls

Under the Export of Radioactive Sources (Control) Order 2006, you must not export controlled radioactive sources unless you have an export licence or there is an exception in law.

Further information can be found on the UK Government page Controls on radioactive sources.

Firearms controls

Firearms, and their parts, components, accessories or ammunition and related software and technology are controlled strategic goods. Unless an exception applies, you need a licence to export any controlled firearms from the Island to another country other than the UK.

Further information can be found on the Firearms and other weapons page.

You should also refer to information published by the Isle of Man Constabulary who issue Firearms licences.

Trade Controls

Trade controls apply to specific activities, including brokering, that involve certain controlled goods. The trade control legislation imposes different restrictions to different categories of goods. These are contained in Part 4 of the Export Control Order.

Goods which are subject to trade controls are specified in category A, category B or category C of Schedule 1 to the Export Control Order. Trade controls do not apply to ML21 or ML22 (software and technology).

There are also controls related to brokering of military and other items contained in trade sanctions.

Further information can be found on the UK Government page Export controls: military goods, software and technology.

Goods for which you cannot arrange sales or movement (category A goods)

There is a ban on trade controlled activities relating to category A goods, contained in Part 1 of Schedule 1 to the Export Control Order.

For goods in category A, or where the activity is to an embargoed destination, you cannot supply or deliver, agree to supply or deliver or do any activity that will promote the supply or delivery of category A goods.

This includes:

  • Arranging, or agreeing to, the transfer, acquisition or disposal of goods
  • General advertising and promotion (for example placing advertisements)
  • Arranging or providing freight or transport services
  • Finance, financial services, insurance or reinsurance services
  • Arranging or negotiating contracts or contract promotion activity.

Restrictions on category A goods apply to any company or a person from within the Island (whether or not they are an Island person) or by any Island person operating overseas, whether directly or indirectly.

Goods subject to strict trade controls (category B goods)

There are strict trade controls on activities relating to category B goods, contained in Part 2 of Schedule 1 to the Export Control Order.

This includes:

  • Arranging, or agreeing to, the transfer, acquisition or disposal of goods
  • General advertising and promotion (for example placing advertisements)
  • Arranging or providing freight or transport services
  • Finance, financial services, insurance or reinsurance services
  • Arranging or negotiating contracts or contract promotion activity.

Restrictions on category B goods apply to any company or a person from within the Island (whether or not they are an Island person) or by an Island person operating overseas, whether directly or indirectly.

A licence is not required for category B goods if your only involvement in the transaction is to provide financing or financial services, insurance or reinsurance services, general advertising or promotion services or a contract promotion activity where a payment is not received.

Controls on category C goods

Trade controls on category C goods includes all other goods in Schedule 1 to the Export Control Order not listed as Category A or B goods, and certain substances for the purpose of riot control or self-protection and related portable dissemination equipment.

This includes:

  • Arranging, or agreeing to, the transfer, acquisition or disposal of goods
  • General advertising and promotion (for example placing advertisements)
  • Arranging or providing freight or transport services
  • Finance, financial services, insurance or reinsurance services
  • Arranging or negotiating contracts or contract promotion activity.

A licence is not required for category C goods if your only involvement in the transaction is to provide one of the following:

  • Financing or financial services
  • Insurance or reinsurance services
  • General advertising or promotion services
  • Contract promotion activity where a payment is not received.

Restrictions on category C goods apply to any company or a person from within the Island (whether or not they are an Island person). Controls on category C goods are not fully extra-territorial, they apply to activities of Island persons carried out in the Island only. They do not apply to the activities of Island persons undertaken wholly overseas.

Trade controls for embargoed destinations

Embargoed destinations are listed in Schedule 4 to the Export Control Order. Controls apply to category A, B and C goods traded to embargoed destinations. Article 20 of the Export Control Order sets out what trade controls apply in respect of embargoed destinations (except where there is an arms embargo already applicable under sanctions legislation).

How to apply for a licence

In the Isle of Man, the Treasury may issue licences, with any applications administered by the Customs and Immigration Division. However, we strongly advise Island businesses to use the UK’s online SPIRE system provided by the Export Control Joint Unit (ECJU), who administers the UK’s system of export controls and licensing for military and dual-use items. All applications received in the Isle of Man are referred to the ECJU for the necessary checks with other departments and organisations prior to any decision on a licence.

The OGEL and Goods Checker Tools can be used to:

  • Help determine if the items are controlled
  • Identify the appropriate control entry

Export Licences

You must have an export licence if you are exporting items that are on the UK Strategic Export Control Lists and you are an Island person (including a British citizen resident overseas).

You can apply for a licence through SPIRE.

There are open general export licences available (OGELs), which are licences with set terms and conditions which you must comply with. Each licence covers a different activity that is controlled, specifies the items you are allowed to export under that OGEL and the destinations where items can be sent. You can find further information be found on the UK Government page Open general export licences (OGELs).

Trade control licences

There are 4 open general trade control licences (OGTCLs) available.

If you cannot use an OGTCL, you may be able to apply for a Standard Individual Trade Control Licence.

You can apply for a licence through SPIREy.

Who is responsible for enforcing export and trade controls and issuing export and trade licences

The enforcement of export controls is the responsibility of Customs and Immigration in the Island, and HMRC and Border Force in the UK.

The ECJU, as part of the UK Department for International Trade undertakes compliance work, including visits to licence-holders, and deals with licence applications.

The ECJU provides a wide range of guidance and online tools (including tools to help you determine if you, in fact, need a licence, or if there is a general licence which you can make use of). The ECJU can also be contacted to obtain the correct classification of your goods for export licensing purposes.

Manx law regards UK-issued licences as if issued by the Treasury, and so have full legal effect in the Island.

How do these controls interact with sanctions

The export of, and other trade in, military goods and technology is controlled under both sanctions legislation and the Export Control Order, and so you may need a licence which is valid under both pieces of legislation. This means that all licence applications relating to military goods and technology will need to be considered against the sanctions licensing purposes, and the strategic export licensing criteria. A licence under sanctions legislation is unlikely to be granted if a licence is refused for the same activity under the Export Control Order.

The way this will work in practice is that the Isle of Man and the UK will consider an application for a licence which relates to activities that are licensable under both the sanctions legislation and the Export Control Order as an application under both pieces of legislation. This means that only a single licence application is required.

The application will be considered against the relevant licensing criteria. If a licence is granted it will be valid under both the Export Control Order and the sanctions legislation.

What if I get it wrong

As an exporter, you may discover that you have exported goods or transferred controlled technology without an appropriate export licence in place. It is also possible that a compliance inspector from the Export Control Joint Unit will identify an irregularity during a compliance audit.

If this happens, it is very important to report the irregularity to the Customs and Immigration Division (sometimes known as ‘voluntary disclosure’) as soon as possible.

Send your voluntary declaration by email to sanctions@gov.im. You should provide:

  • Details of the export, including dates

  • Any relevant documents, such as export documentation and commercial invoices

  • Details of how the breach was discovered, why it occurred and what steps you have put in place to ensure it does not happen again.

We will consider the matter and contact you directly, either for more information or to let you know of our decision.

There are severe penalties for violations of export and trade control law, including attempted evasion of controls, and making false statements in order to obtain a licence. Penalties range from a fine of £1,000 to imprisonment for up to 10 years.

In addition, any goods involved may be subject to seizure and forfeiture.

Further Information

Contact Details

Customs and Immigration Division

Telephone: +44 1624 648100

Email: sanctions@gov.im

Website: gov.im - Sanctions and Export Control

Export Control Joint Unit

If you have any technical queries and wish to know if specific goods would require an export or trade licence, you should contact the Export Control Joint Unit.

Telephone: 0207 215 4594

Email: exportcontrol.help@businessandtrade.gov.uk

Website: gov.uk - Export Control Joint Unit

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