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Effect of SAD Harmonisation on strategic export licence declarations and new requirement relating to ‘innocent goods’

NOTICE TO EXPORTERS 2008/01

SAD Harmonisation (SAD-H) is an EU-wide project to harmonise the rules under which import and export declarations are made using the Single Administrative Document (SAD). The new rules include changes to the way export licences are declared in Box 44 of the SAD, and a new requirement relating to declarations of so-called ‘innocent goods’. As of 20th January 2008 you will only be able to make declarations conforming to the SAD-H rules. Although you, as an exporter, may use a third-party (e.g. freight forwarder or customs agent) to make your declarations you are still responsible for the accuracy of the information in the declaration. It is therefore important that you are aware of the changes.

Changes to licence codes in Box 44 of the SAD

From 20th January 2008 licence codes of the format Li=B999 will no longer be accepted. From this date, when you are completing Box 44 of the harmonised declaration, you will be prompted to enter the relevant:

• document code
• status code
• reference of the relevant licence

Advice on completion of Box 44 of the harmonised declaration in relation to export licences issued by the Export Control Organisation (ECO), including document codes and licence references, was given in JCCC Paper (07) 27. Full details of all valid document and status codes are given in Appendices C11 and C10 respectively of the SAD Harmonisation Tariff.

Changes relating to ‘innocent goods’

Certain CN (commodity) codes may describe goods subject to an import or export restriction (such as the need for an export licence) as well as similar goods that are not subject to control. The goods within such commodity codes that are not themselves subject to the restriction are known as ‘innocent’ goods. Commodity codes containing controlled goods are generally referred to as 'ex-headings' in the Tariff.

An example of an ex-heading is 84821010 which describes ball bearings with an outside diameter not exceeding 30mm. Only ball bearings meeting certain specifications or which are specially designed for certain applications are subject to strategic export control. Ball bearings not meeting these specific requirements are not subject to control and are therefore ‘innocent’ goods.

Under SAD-H, whenever you declare any goods within an ex-heading commodity code you will be prompted to declare the relevant licence, even though your goods may not be subject to control, i.e. even if they are ‘innocent’ goods. In this case, you must make a ‘positive declaration’ that you do NOT need a licence.

This ‘positive declaration’ may be made by entering the statement LIC99 in the Additional Information (AI) field at item level within Box 44 of the Harmonised SAD. This code is equivalent to stating that the goods are “No Licence Required” (NLR). You should only enter LIC99 if you are sure you do not need a licence.

How to find out if the commodity code in question contains licensable goods or whether goods contained within an ex-heading are subject to control?

A list of ex-heading commodity codes subject to strategic export control is available here. This list also gives the corresponding control entry in the Dual-Use control list (Annex I of EC Regulation 1334/2000 as amended). In the first instance you should consult the control list to determine whether an export licence is required for goods described within an ex-heading commodity code. Alternatively, you may wish to use the Goods Checker online tool to determine whether your goods require an export licence.

Remember, goods not contained within an ex-heading commodity code or not described on the control lists may still be subject to control for other reasons, e.g. sanctions and embargoes, WMD and military end-use controls. It is your responsibility to check whether any of these apply.

Contact

Full details of SAD Harmonisation are available on the SAD-H pages of HMRC’s website. For specific export queries relating to SAD-H please email Export.enquiries@hmrc.gsi.gov.uk or telephone 02920 386 254/255

Further information on strategic export controls, including how to seek advice from ECO on the licensability of particular goods, is available from:

Export Control Organisation
1 Victoria Street
London, SW1H 0ET
http://www.berr.gov.uk/europeandtrade/strategic-export-control/index.html
Tel: 020 7215 2423

Email: eco.help@berr.gsi.gov.uk

This notice is for information purposes only and has no force in law. Please note that where legal advice is required exporters should make their own arrangements.

15 January 2008
Export Control Organisation

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