Airbus Operations Limited pays HMRC compound settlement over breaches of export control

Airbus Operations Ltd agreed a compound settlement of US$6,409,388 with HM Revenue and Customs (HMRC) for offences under the Export Control Order 2008. Before November 2022, the company repeatedly failed to maintain required records and registers for transfers of controlled technology under multiple Open General Export Licences (OGELs), breached additional OGEL record-keeping requirements, and failed to comply with the conditions of one Standard Individual Export Licence (SIEL), contrary to Articles 38(1)(a) and (b). The breaches were identified through Airbus’ voluntary disclosure. HMRC said the company fully cooperated with the investigation and implemented remediation measures, while stressing the importance of robust export control compliance and record-keeping for businesses operating under OGELs and SIELs. Airbus Operations Limited have paid HM Revenue and Customs (HMRC) a compound settlement of £6,409,388 for offences under The Export Control Order 2008. Over a sustained period before November 2022, Airbus Operations Ltd breached: Article 29(2)(a-g) on multiple occasions for failing to keep accurate records of transfers of controlled technology as per the conditions of three of their Open General Export Licences (OGELs) Article 29(3) on multiple occasions for failing to keep registers in relation to their OGELs Article 29(2)(i) on multiple occasions for failing to keep accurate records contrary to the conditions of one of their OGELs a Standard Individual Export Licence (SIEL) on one occasion, relating to a failure of licence conditions The above are offences contrary to Articles 38(1)(a) and (b) Export Control Order 2008. “This case was brought to HMRC’s attention following a voluntary disclosure by Airbus Operations Ltd, who have fully cooperated with HMRC’s investigation and implemented appropriate remediation measures,” HMRC said in a statement. “The case highlights the need for businesses operating within international supply chains to maintain strong internal controls when exporting goods and transferring technology subject to licensing requirements. For transfers made under OGELs, the requirements are set out in the Export Control Order 2008. There may be additional requirements in the OGELs and any SIELs themselves.”