Open general export licences (OGELs) offer a streamlined permit to responsibly export controlled dual-use goods, software, and technology from the UK. This means you don’t always have to apply for a standard individual export licence (SIEL) every time you ship.
However, using OGELs correctly comes with a price. Different licences apply to specific types of goods, users, and destinations. And a number of exporters have been proven guilty for breaching licensing conditions or using licences incorrectly.
Hence, before using an OGEL, you must confirm if your goods meet the applicable terms and conditions for a compliant transaction.
But how can you determine which OGEL to utilise and how to use it correctly?
At Blackthorne IT, his guide explains everything you need to know about using UK OGELs without risking export control violation, delays, or penalties.
Let’s dive in!
What are UK OGELs?
OGELs are pre-approved export licences issued and managed by the Export Control Joint Unit (ECJU). These licences permit the transfer of controlled goods, including software and technology, to designated destinations, users, and authorised end uses.
Unlike individual licences, OGELs allow UK exporters to ship qualifying goods without applying for a new permit for every shipment. However, the licences come with preset terms and conditions that you must fulfill at the time of registration and use.
If your goods fall outside the scope of a licence, you must apply for a Standard Individual Export Licence (SIEL) or an Open Individual Export Licence (OIEL).
Here’s the concept behind OGELs:
- Each OGEL authorises a specific export activity, such as intra-company transfers or long-term consignment.
- The licence clearly defines which controlled item it applies to, with a reference to a specific entry in the UK Strategic Export Control List.
- The licence lists the permitted destination countries and end-uses where those items can legally be sent.
Examples of OGELs with accompanying conditions include:
- Technology for Dual-Use Items OGEL: Covers the electronic transmission (e.g, fax, email, servers) of software or technical data related to dual-use items. Export is limited to countries specified in Schedule 2 of the licence.
Software/technical end-use must be non-military, with sensitive data adequately secured.
- Military Components OGEL: Permit to export specific military components (accessories and software) intended for use in equipment previously exported under the UK licensing authority, to low-risk destinations (listed in the licence).
- Cryptographic Development OGEL: Permit to export certain types of cryptographic development tools or technology to countries detailed in Schedule 2 of the licence.
Under the UK export law, exporters must confirm that goods are of non-military use and comply with software encryption controls.
How to Use UK OGELs Correctly
Using UK OGELs correctly demands a clear understanding of the export licensing procedures for your shipment.
Here is a step-by-step guide on registering and using OGELs when exporting from the UK:
Step 1: Accurately Classify Goods Using the Control List
Each OGEL aligns with specific items listed in the UK Export Control List. Hence, you must determine if your equipment, software, or technology is controlled.
If unsure of the classification of your shipment:
- Use the Goods Checker tool to search by keyword or control list entry.
- Contact the UK export licensing authorities for help with classification.
- Engage a UK export Licensing Consultant with experience in these procedures.
Step 2: Identify the Appropriate OGEL Applying to Your Shipment
The OGEL Checker Tool helps determine applicable licences for your classification.
For instance, the Cryptographic Development OGEL can be appropriate for your company if exporting encryption software to Canada.
If no OGEL exists for your goods or you are unable to meet the terms and conditions, you’ll need to apply for a SIEL.
Step 3: Verify Destination, End-Use, and End-User
Every licence details approved destinations, end users, and end uses.
You must verify:
- The end destination is approved and not subject to sanctions.
- End-use doesn’t involve Weapons of Mass Destruction (WMDs), re-exports to sanctioned countries, or unauthorised military application.
- End-user is not listed on the UK Consolidated List of Sanctions Targets.
Step 4: Register for the OGEL
You have the appropriate OGEL and have confirmed you meet the terms and conditions for using the licence.
Now is the time to visit SPIRE, ECJU’s electronic licensing system, to register your licence so you can start using it.
Step 5: Enforce Export Licensing Compliance
Export licensing compliance is non-negotiable.
Here are the steps you can take to remain compliant when using OGELs:
- Staff training: Educate relevant business personnel on specific licensing conditions and the responsibilities associated with the licences you are utilising.
- Internal controls: Establish internal audits, checklists, and compliance officers to monitor and ensure trade activities fall within licensing terms and conditions.
You can seek best practice guidance for developing internal controls from the compliance code of practice for export licensing.
- OGEL review and updating: Regularly consult the Notices to Exporters and OGEL updates for licensing changes.
- Risk mitigation: Ensure no exports are made to sanctioned users or destinations, and that all licensing requirements are met.
- Collaborate with export licensing professionals: Export licensing consultants like Blackthorne can handle OGEL compliance on your behalf or guide you through the procedures of ongoing compliance.
5 Compliance Requirements for Using OGELs
Here are the five key compliance requirements you must fulfill:
1. Licence Eligibility Requirements
To qualify for a specific OGEL, your export activity must:
- Involve a UK-based exporter or a UK-registered EOR like Blackthorne.
- Align with the controlled goods and specific destinations outlined in the OGEL.
- Involve approved end-users and end-uses as described in the licence terms.
- Avoid routes and end-uses that violate UK arms embargoes and sanctions.
2. Registration Requirements
Once you have established your eligibility for an OGEL, you must register via SPIRE, the UK’s official online licensing system.
Here’s what you need to provide for a successful registration:
- Valid Economic Operator Registration and Identification (EORI) number.
- The export control classification number of your products.
- Technical documentation supporting the classification.
- Confirm if you are exporting from Northern Ireland or Great Britain (licensing requirements for these regions differ).
- Confirm if you are exporting, transhipping, or brokering via Great Britain or Northern Ireland.
- Still on the two regions, specify the location of a third-party exporter (if using one), the location of the ultimate end-user, and the consignee.
3. Record Keeping
Under the Export Control Order 2008 (Article 29 and Article 30), you must:
- Keep accurate export records for at least four years from the export date.
- Ensure the records are readily accessible on demand for the ECJU compliance officer’s inspection.
Records you need to facilitate the inspection include:
- Type of OGEL used
- Item classification and description
- Quantity and value
- Date of export
- Destination country
- Consignee and end-user details
- Relevant approvals and communications
4. Annual Compliance Reporting
As an OGEL user, you must submit an Open Licence Return (OLR) via SPIRE annually, usually by the end of January, for the preceding year.
Details required when filling the return include:
- Licence(s) used
- Goods exported
- Quantities and destinations
- Export dates
- Type of end user
- Number of shipments
5. Ongoing compliance
The Export Control Joint Unit routinely inspects OGEL users to ascertain the correct utilisation of licences.
The team agrees with you on the time and date of a compliance visit, six to eight weeks before the visit.
During the visit, you’re required to provide the following details:
- Records of activities carried out under your licence, including exports, trade, and technology transfers.
- Paperwork (export documentation) supporting trade control activities, exports, and transfers.
- End-user/ consignee undertakings.
- Paperwork from the Ministry of Defence (MOD).
- Any other relevant documentation demonstrating adherence to the terms and conditions of your licence.
Additionally, the following personnel from your business should be available to attend the visit:
- Technical team/project managers
- Members involved in administering the licences
- The senior responsible owner (Director or CEO)
After the inspection, the ECJU team sends a compliance report via the online licensing system.
They may share recommendations on export controls that your business should consider to improve its compliance level.
And if they encounter significant errors, such as documentation failure, you are issued a warning letter.
3 Common Mistakes When Using OGELs
Even with the right OGEL, you can easily fall victim to export control violation, unknowingly, especially when navigating rapidly changing sanctions.
Here are the three common mistakes that you should watch out for to avoid risking non-compliance when using OGELs:
1. Using Outdated OGEL
ECJU frequently updates OGELs to reflect country sanctions, regulatory and classification changes.
Using an outdated version of your licence, regardless of how well it aligns with your shipment, risks violating current regulations.
You must revise Notices to Exporters and the OGEL list for licensing amendments, revocations, and replacements before using any OGEL to lower the risk of non-compliance.
2. Breach of Licence Conditions
Your shipment can end up in unintended end-users or end-uses through export compliance diversion, resulting in a breach of licence conditions.
Having internal export control procedures to screen and verify end-users and monitor supply chain processes are essential.
3. Failure to Declare Licence to HMRC
His Majesty’s Revenue and Customs (HMRC) requires you to notify them when using an OGEL for record keeping and customs awareness.
Hence, you must declare your licence when submitting export documentation to HMRC. You can do so by quoting the relevant document code and the licence reference number in BOX 44 of the Single Administrative Document (SAD).
Note: For a contextual understanding of how export control violations occur, you can check our previous article on Risks of transferring dual-use goods to Russia, and the accompanying consequences.
OGELs Vs SIELs Vs OIELs [5 key differences]
OGELs, SIELs and OIELs are the three main types of export licences the UK government issues. Each licence serves a unique purpose depending on the exporter’s business needs, nature and quantity of goods, export frequency, and type of end-users.
This table details what sets them apart:
FAQs
1. What is the maximum penalty in the UK for exporting controlled goods without a licence?
Based on the Export Control Act 2002, the maximum penalty in the UK for exporting controlled goods without a licence is up to 10 years in prison, plus an unlimited fine.
2. What does OGEL mean?
Open General Export Licence (OGEL) means a licence with pre-defined terms and conditions to allow the transfer of specific goods, technology, or software to approved destinations and end-users.
3. Who do UK export controls apply to?
UK strategic export controls apply to anyone involved in brokering, exporting, or transferring technology, goods, and services from the UK.
4. What is the role of the OGELs checker when exporting from the UK?
OGELs checker helps UK exporters determine if an appropriate OGEL is available to facilitate the transfer of controlled goods from the UK to their desired destinations.
Role of Blackthorne EOR in UK OGEL Compliance
Export control compliance is the foundation for using UK OGELs correctly. However, without experience in global trade compliance, it can be challenging to fulfill OGEL compliance requirements.
And that’s where Blackthorne EOR comes in, especially for IT equipment exporters.
Blackthorne helps you handle the following:
- Choosing the right OGEL: We evaluate your shipment against the UK Export Control List to determine the appropriate OGEL based on the licensing requirements.
- Registration and HMRC declaration: We register your licence on SPIRE and declare it during export declaration for timely customs clearance and delivery of your shipment.
- Compliance Monitoring: We have the tools to track licensing amendments, updates and audit requirements for ongoing compliance.
- Record keeping: We keep your export transaction records for the minimum required duration to facilitate internal compliance audits and ECJU compliance visits.
- Risk mitigation: We have an optimised global supply chain with dedicated logistics providers and door-to-door deliveries to counter compliance diversion.
Whether you are expanding your data centre operations abroad or scaling IT equipment supplies internationally, we are at your service.
We combine our expertise with over 25 years of experience to offer exporters export control compliance at lower costs.
Contact us today for compliant, cost-efficient, and timely IT equipment deliveries to over 200 destinations.
