EXPLANATORY NOTE
(This note is not part of the Order)
This Order is part of the United Kingdom implementation of United Nations Security Council Resolution 1737 (2006) (“UNSCR 1737”), which imposes restrictions on trade with Iran. The Council of the European Union has adopted a Common Position (Council Common Position 2007/140/CFSP20 – “the Common Position”) in response to UNSCR 1737. Council Regulation (EC) No 423/2007 (“the Regulation”) implements the elements of the Common Position that fall within Community competence. This Order implements the provisions of the Regulation that relate to strategic export controls.

Article 15 of the Regulation allows its Annexes (with lists of goods etc.) to be amended by the Commission. Article 1(3) of the Order ensures that, if the Regulation is amended by this procedure, the Order does not need to be changed to give effect to those amendments.

Articles 2 and 3 create offences for contravention of the provisions of the Regulation referred to there. There are already offences relating to prohibited importation and exportation of goods in sections 50, 68 and 170 of the Customs and Excise Management Act 1979.

Article 4 supplements the provisions of the Regulation that allow a competent authority to authorise activities that are otherwise prohibited. Article 4(1) makes it an offence knowingly or recklessly to provide false information for the purpose of obtaining an authorisation. Authorisations may be subject to requirements or conditions that continue even after the activity authorised has been carried out. Article 4(2) makes it an offence to fail to comply with such continuing requirements or conditions unless they were imposed after the activity was carried out or amended after that time in such a way as to give rise to non-compliance.

Article 5 sets out the penalties relating to the offences in the Order.

Her Majesty’s Revenue and Customs will enforce the provisions of the Order. Article 6 ensures that the same ancillary provisions as apply to their enforcement of customs and excise legislation apply in this context.

A full regulatory impact assessment has not been produced for this instrument as no or minimal impact on the private or voluntary sectors is foreseen.