Glossary

In the context of US export controls, US ITAR stands for the US International Traffic in Arms Regulations. These International Traffic in Arms Regulations are primarily administered by the Department of State’s Directorate of Defense Trade Controls (DDTC). The ITAR are a set of US regulations on the export and import of defense-related articles and services. The International Traffic in Arms Regulations implement the US Arms Export Control Act (AECA) and can be found in the US Code of Federal Regulations (CFR) – in Title 22 CFR § 120-130. 

Items subject to control under the International Traffic in Arms Regulations are listed on the US Munitions List (USML) and include articles, services, and related technical data. The ITAR also include a specific section for space-related products, services, and technologies.

All manufacturers, exporters, and distributors of defense articles, related technical data, and defense services as defined by the ITAR are required to register with the DDTC. Anyone intending to export or temporarily import a defense article must obtain prior approval of the DDTCC unless they qualify for an exemption in line with the US ITAR. 

Shipping controlled items securely and compliantly with Export Controls software from AEB

Low-risk goods are all types of goods that are not dangerous, hazardous, prohibited, or require export licences of any kind. More specifically, goods that are not included in the following list can be seen as “low-risk goods”: List of goods imported into Great Britain from the EU that are controlled from January 2021

The National Export System (NES) is a computer-based system which enables export declarations to be submitted electronically. The use of the National Export System (NES) is mandatory for businesses. NES operates within CHIEF. 

To get access to NES, businesses need to have:

• An EORI number
• A CHIEF badge role (if using a freight forwarder, businesses do not need to apply)
• Export declarations can be sent via:
• web (requires a Government Gateway user ID and password)
• email (requires a CHIEF-compatible software package (EDIFACT) and an SMTP (standard) email connection)
• XML (requires a CHIEF-compatible software package (EDIFACT), including an XML wrapper, an HTTPS internet connection and a Government Gateway user ID)
• Community Systems Providers

Transit procedures are used when goods are transported within the same customs territory (EU) or between the customs territories of different contracting parties (Common Transit). Using the Common Transit procedure means that customs clearance formalities that are applicable at import are temporarily suspended at the point of entry into the customs territory. Duties, taxes, and commercial policy measures are only applied when the goods reach their destination.

The New Computerised Transit System (NCTS) has replaced the paper-based procedure with an exchange of electronic messages. Within the context of NCTS, the external Union transit procedure (T1) is particularly relevant for UK traders as it applies mainly to the movement of non-Union goods. Since the UK is no longer part of the European Union and Customs Union, goods traded from the UK are now most likely to fall under this category.

Learn more about how to use the NCTS (UK.gov).

NCTS is available from the AEB “Basic” price plan. Additional setup costs apply. NCTS is not available with the Easy Mode in the “Starter” price plan.

In the context of US export controls, the abbreviation OFAC stands for US Office of Foreign Assets Control. The OFAC is a US government body that forms part of the US Department of the Treasury. The US Office of Foreign Assets Control administers and enforces economic and trade sanctions based on US foreign policy and national security goals. Restrictive measures issued by the OFAC target foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and any other threats to the national security, foreign policy, or economy of the US.

The Office of Foreign Assets Control administers different sanctions programs. OFAC sanctions can be either comprehensive or selective, using the blocking of assets, indirect or direct bans on provisions, as well as other trade restrictions to accomplish foreign policy and national security goals. It is to note that the OFAC does not maintain a specific list of countries that US persons cannot do business with because the different US sanctions programs vary in scope. Some are broad-based and oriented geographically and others are targeted (i.e. counter-terrorism, counter-narcotics) and focus on specific individuals and entities. 

OFAC sanctions programs may encompass broad prohibitions at the country level as well as targeted financial sanctions against individuals. OFAC sanctions lists include the Specially Designated Nationals List and the Consolidated non-SDN Sanctions List. 

Screening business partners against global sanctions lists with Compliance Screening software from AEB

OFAC sanctions lists and many more: All available lists in the AEB software Compliance Screening

Goods derived in some form from animals are referred to as products of animal origin (POAO). POAO include certain live animals for human consumption, foodstuffs such as meat, milk, and eggs, and further by-products. When importing POAO from third countries, which will include EU countries as from January 2021, you must generally notify the competent Border Control Post (BCP) at the port or airport ahead of the arrival of your goods. For imports from EU countries, the requirement for pre-notification and health documentation for POAO will apply as from April 2021.

ROW refers to UK transports to and from countries that are not EU member states. When exporting to and importing from EU member states, the RoRo transport type is used for most transports. RoRo transports are not possible for exporting to and importing from the rest of the world. Customs formalities for ROW are more complex.

RoRo implies a specific type of transport. For the UK, RoRo relates to any kind of transport from the UK to the mainland EU (or the other way round), which is either done by ferry (east coast, Dover,…) or via the Euro Tunnel (by train). Furthermore, RoRo may relate to goods transported on trucks (with a driver) or unaccompanied trailers (without a driver). The customs clearance location is most likely to be located near a port. In the UK, not all customs clearance locations can be used for the RoRo use case; only the ones listed on the following page: Roll on Roll off location codes.

The transition period (also called implementation period) started on February 1, 2020 and will end on December 31, 2020. During the transition period, the United Kingdom is not a Member State of the European Union anymore, however, it is still part of the EU customs union and single market. This means that many things will stay the same as before until the end of the transition period. During the transition period negotiations take place between the UK and the EU to determine their future relationship, for example regarding a free trade agreement.

As from January 1, 2021, the UK Global Tariff will apply to all goods imported to the UK unless an exception applies. It will replace the EU’s Comment External Tariff which applies until December 31, 2020.

• UK tariffs from 1 January 2021
• Check UK trade tariffs from January 1, 2021

In the context of US export controls, the abbreviation USML stands for United States Munitions List. The USML is found in the US Code of Federal Regulations (CFR) in Title 22 CFR § 121 and is administered by the Department of State’s Directorate of Defense Trade Controls (DDTC). Amendments of the United States Munitions List are published in the Federal Register.

The USML lists articles, services, and related technical data that are designated as defense articles or defense services in line with sections 38 and 47(7) of the Arms Export Control Act (AECA). Categories of the United States Munitions List are organized by alphanumerical paragraphs and subparagraphs that usually start by enumerating or otherwise describing end-items, followed by major systems and equipment; parts, components, accessories, and attachments; and technical data and defense services directly related to the defense articles of each USML category.

It is to note that if articles are not controlled on the USML, they may be subject to control by another US government regulatory agency – such as the US Commerce Department’s Bureau of Industry and Security (BIS), which administers the Export Administration Regulations (EAR).

Shipping controlled items securely and compliantly with Export Controls software from AEB

In the context of export controls, WA is the abbreviation for “Wassenaar Arrangement”. It is the short name for the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies and stands for the control of international trade in strategically important dual-use goods and weapons.

It is one of four multilateral export control regimes (MECR) and has 42 participating states around the world (status July 2020). The WA was established on July 12, 1996, in Wassenaar, the Netherlands. 

The WA was established to contribute to regional and international security and stability. With this goal, the WA is by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies. Measures under the Wassenaar Arrangement aim to ensure that transfers of such items do not contribute to the development or enhancement of military capabilities (directly or indirectly).

Complying with export restrictions and shipping goods efficiently with the Export Controls software from AEB

Goods and services consumed in the UK are subject to VAT. When businesses export goods (including to EU countries after January 1, 2021) and therefore the goods are “consumed” outside the UK, the VAT can be zero-rated if certain conditions are fulfilled. These conditions are as follows: 

• Businesses must hold evidence to prove that they are entitled to zero rating. 
• Businesses must adhere to defined time limits in which the goods must be physically exported from the UK. 
• Businesses must obtain evidence of export within defined time limits to support zero rating. 
• For more detailed information on the conditions and how to apply zero VAT rate, refer to VAT Notice 703.