British Marine would like to reassure members that we are doing all we can to provide the latest information and guidance following the ongoing conflict in Ukraine.
We are in close contact with various government departments about the trade restrictions and sanctions on Russia and will issue further updates as soon as we are able to. These updates will set out what we know, what we are seeking clarity on and what the sanctions mean for you and your business.
Update 15/3/22
The Rt Hon. Anne-Marie Trevelyan, Secretary of State for International Trade, has announced that the UK government will be introducing a ban on the export of luxury goods to Russia. We understand this will include a ban on luxury vehicles and expect this will include yachts. She has also confirmed that the Most Favoured Nation tariff will now exclude Russia and Belarus, meaning imports of items from either country will be subject to tariff increases.
The EU has announced that it is banning the export of luxury good to Russia and this includes yachts, pleasure vessels and canoes.
What we know
Sanctions and trade
We can advise our members that the government has banned high-end and critical technical equipment and components from being exported to Russia. Measures have also been brought in which prohibit the export of dual use items for military use to Russia, or to named individuals which are subject to sanctions. In addition, UK businesses must not provide, either directly or indirectly, dual-use goods or dual use technology for military use to persons connected with Russia.
This means that UK businesses must be very careful about sending dual-use items abroad, particularly if there is a risk that the goods being sent are not going to their final destination and could end up going to Russia, to individuals subject to sanctions or to individuals which have a Russian connection.
The legislation says:
Export of dual-use goods
32.—(1) The export to Russia of dual-use goods for military use is prohibited.
(2) The export of dual-use goods for military use in Russia is prohibited.
(3) The export of dual-use goods to or for use by a person mentioned in Schedule 4 is prohibited.
(4) Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).
Supply and delivery of dual-use goods
33.—(1) A person must not—
(a)directly or indirectly supply or deliver dual-use goods for military use from a third country to a place in Russia;
(b)directly or indirectly supply or deliver dual-use goods from a third country to or for use by a person mentioned in Schedule 4.
(2) Paragraph (1) is subject to Part 7 (Exceptions and licences).
Providing technical assistance and carrying out repairs
The legislation makes it clear that it is an offence to provide technical assistance if it is in relation to the goods and services which are subject to the trade sanctions. Our members should be aware that providing information, either in-person or virtually, on product warranties, carrying out repairs or general maintenance all fall within the scope of “technical assistance”. Businesses must also make sure they do not provide technical assistance to individuals subject to sanctions.
Making dual-use goods and dual-use technology available
34.—(1) A person must not—
(a)directly or indirectly make available, to a person connected with Russia, dual-use goods for military use or dual-use technology for military use;
(b)directly or indirectly make available dual-use goods for military use in Russia or dual-use technology for military use in Russia;
(c)directly or indirectly make dual-use goods available to or for use by a person mentioned in Schedule 4.
(2) Paragraph (1) is subject to Part 7 (Exceptions and licences).
Technical assistance relating to dual-use goods and dual-use technology
36.—(1) A person must not directly or indirectly—
(a)provide technical assistance relating to dual-use goods for military use or dual-use technology for military use to a person connected with Russia;
(b)provide technical assistance relating to dual-use goods for military use in Russia or dual-use technology for military use in Russia;
(c)provide technical assistance relating to dual-use goods or dual-use technology to a person mentioned in Schedule 4;
(d)provide technical assistance relating to dual-use goods or dual-use technology for use by a person mentioned in Schedule 4.
(2) Paragraph (1) is subject to Part 7 (Exceptions and licences).
This means that UK businesses must be careful about managing new orders for boats and equipment. They must also be careful and not service or repair dual-use items if there is a known Russian connection.
UK ports and access to Russian vessels
The government has also introduced legislation requiring all UK ports to refuse entry to vessels owned, controlled, chartered or operated by individuals which are Russian or have a Russian connection.
Authorities have been given the power to detain Russian vessels and subsequent guidance has been issued for UK ports.
What we’re seeking clarity on
Businesses which trade with Russia should consider the costs and associated risks to their business of continuing to trade with Russia, even if the items they export are not subject to sanctions or prohibitions. If you would like further information on what the sanctions mean and whether your goods are subject to restrictions, you are advised to check the list of dual-use items to see if your goods are listed, and contact the government’s Export Support Service on 0300 303 8955 or email exportcontrol.help@trade.gov.uk
We are aware that some of our members are experiencing issues as a result of the conflict. Currently we are seeking guidance on the steps businesses should be taking to ensure they remain fully compliant with the legislation.
We advise members to check back regularly for updates and contact the team at British Marine if they have been impacted by the conflict and require specific guidance on 01784 443377 or info@britishmarine.co.uk. Members should also read the advice prepared by our legal helpline, Epoq, which can be found below.
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