Customs, tax & compliance

Dual-use goods and export controls

Licensing requirements for exporting items that can serve both civilian and military purposes – certain special steels, titanium and superalloys, carbon fibre, rare earths, some chemicals and precursors. Lists and rules are set nationally on the basis of the Wassenaar Arrangement, Nuclear Suppliers Group, Australia Group and Missile Technology Control Regime (e.g. EU Regulation 2021/821, US EAR). Exporting without a licence carries criminal penalties, so the seller should request an end-user certificate.

Related terms

Sanctions and export-control screening

Checking whether the buyer, seller, banks, vessel and end user appear on UN, EU, US (OFAC) or UK (OFSI) sanctions lists, and whether the goods are going to sanctioned countries or prohibited uses. Banks may freeze payments that carry sanctions risk, and breaches lead to heavy fines and account closures. Because sanctions change often, screening should be repeated for every deal, watching for evasion signs such as ship renaming or switched-off AIS.

HS code (Harmonized System)

The World Customs Organization’s goods classification system, used in about 200 countries. The first six digits are the same everywhere (e.g. 3902.10 polypropylene); countries add their own subdivisions – 12-digit GTİP in Türkiye, 8-digit CN and 10-digit TARIC in the EU, 10-digit HTS in the USA. The correct code determines the duty rate, import licences, anti-dumping measures, preferential origin rules and trade statistics. Misclassification can lead to back duties and penalties; where unsure, a binding tariff information (BTI) ruling can be requested.

Explained in the trade handbook

Trade handbook