Official Statistics

Strategic export controls commentary: 1 April to 30 June 2024

Published 12 December 2024

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This publication is available at https://www.gov.uk/government/statistics/strategic-export-controls-licensing-statistics-1-april-to-30-june-2024/strategic-export-controls-commentary-1-april-to-30-june-2024

Statistical commentary

Coverage: UK

Frequency: Quarterly

Date of publication: 12 December 2024

Statistical Contact: ECJU[email protected]

Website: Strategic export controls licensing statistics

The strategic export controls licensing statistics provide data on decisions made on licence applications to the Export Control Joint Unit (ECJU) of the Department for Business and Trade (DBT).  These statistics are currently Official Statistics in Development as decided by the Department’s Chief Statistician and Chief Analyst..

Headline results

Latest quarter

  • In 2024 Q2 (between 1 April and 30 June 2024), there were a total of 2,823 licensing decisions for standard individual export licences (SIELs), down 379 (12%) from 3,202 in the previous quarter (2024 Q1).

  • Of these standard licensing decisions in 2024 Q2, 2,713 (96.1%) were issued, 110 (3.9%) were refused, and none were revoked.

  • In 2024 Q2, 64% of SIELs were processed to first outcome within 20 working days, up from 58% in the previous quarter. 89% of SIELs were processed to first outcome within 60 working days, up from 84% in the previous quarter. Note: These SIEL licence type figures do not include data on licence applications closed in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

Latest full calendar year

  • In the 2023 calendar year, there were a total of 12,032 licensing decisions for standard individual export licences (SIELs), down 1,684 (12.3%) from 13,716 in the previous calendar year (2022).

  • Of these standard licensing decisions in 2023, 11,343 (94.3%) were issued, 687 (5.7%) were refused, and 2 were revoked.

  • In the 2023 calendar year, 52% of SIELs were processed to first outcome within 20 working days, down from 62% in the previous year. 87% of SIELs were processed to first outcome within 60 working days, down from 89% in the previous year. Note: These SIEL licence type figures do not include data on licence applications closed in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

Introduction

This commentary accompanies the latest strategic export controls licensing statistics, published on the DBT strategic export controls statistics web page on 12 December 2024.

These statistics provide data about decisions made on export and trade control licence applications to the Export Control Joint Unit (ECJU) of the Department for Business and Trade (DBT). The ECJU is the regulatory body which controls exports of military goods and dual-use goods (civilian goods that can be used for military purposes) from the UK. ECJU’s issued licences give permission for certain strategic exports to be made from the UK to another destination, and for overseas trade in strategic goods.

These statistics are used within ECJU, to inform policy and operational decision-making. These statistics are also regularly used by the press, non-government organisations and academics to evaluate strategic export control policies – see Background notes for further details.

Period

These statistics cover licensing decisions made in each quarter from 2008 Q1 to 2024 Q2. Statistics are provided at both a quarterly and annual level. Statistics at an annual level are published for the first time alongside the Q4 statistics for that year. For instance, the latest annual level statistics (2023) were first published in the 2023 Q4 publication.

The data in this release is sourced from SPIRE and LITE and is accurate as of 15 October 2024.

System Transition

Licence applications are submitted to and processed by ECJU online. Historically, a purpose-built digital licensing system called SPIRE has been used. However, ECJU is currently in the process of developing and rolling out a new digital licensing system, known as LITE, which will eventually replace SPIRE. During the transition period, ECJU are handling applications on both SPIRE and LITE.

These statistics have included data from LITE since 2021 Q3, the period in which the first licensing decision was made in LITE. This transition has impacted upon the timeliness and comprehensiveness of the publication:

  •  From the 2021 Q3 publication onwards, there have been some delays in publishing these statistics due to the transition from SPIRE to LITE.  To minimise the ongoing impact of these delays, the data for the 2024 Q1 and 2024 Q2 release were published simultaneously.

  • From the 2023 Q1 publication onwards, there have been some limitations in the LITE data we have published, with impacted statistics having been caveated in each impacted publication appropriately.

Please see Background notes for further details.

Official Statistics in Development

From the 2024 Q1 publication until further notice, these statistics have been reclassified and published as Official Statistics in Development – see Background notes for further details.

1. Commentary on licence types

Standard individual export licences (SIELs) are by far the most common licence type issued. The number of OIELs issued is much smaller than the number of SIELs issued, however the quantity of goods for exportation is generally not limited on OIELs.

Notable historic trends in volumes of licence types have been highlighted in the commentary for previous publications.

Latest quarter

Latest full calendar year

2. Commentary on licensing decisions

Chart 1 shows that the numbers of SIELs and SITCLs refused and OIELs and OITCLs rejected tend to be much lower than the numbers issued.

Chart 1: Number of licences refused/rejected by licence type

Notable historic trends in refusals have been highlighted in the commentary for previous publications.

Latest quarter

  • In 2024 Q2, there were a total of 2,823 licensing decisions for standard individual export licences (SIELs). Of these, 2,713 (96.1%) were issued, 110 (3.9%) were refused, and none were revoked.

  • For context, the number of SIELs refused in each quarter between 2008 Q1 and 2023 Q4 has averaged 74, but more recent periods have seen higher numbers of refusals, with each quarter since 2022 Q3 surpassing 100 total refusals (see Chart 1).

Latest full calendar year

  • In the 2023 calendar year, there were a total of 12,032 licensing decisions for standard individual export licences (SIELs). Of these, 11,343 (94.3%) were issued, 687 (5.7%) were refused, and 2 were revoked.

  • For context, the number of SIELs refused in each year between 2008 and 2023 has averaged 285, but more recent periods have seen higher numbers of refusals, with both 2022 and 2023 surpassing 400 total refusals.

3. Commentary on value of licences

Within this section, SIEL licence type figures for the 2024 (Q1) reporting period onwards do not include data on licensing decisions made in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

Chart 2 shows how the value of goods issued for exportation under SIELs can vary a lot from quarter to quarter, with a handful of high value licences often explaining peaks in the data. The goods included on the licence are valued by the exporter during the application process, which means that the actual exports that take place under the licence may not be of such a high value

  • Note 1: The actual number and value of transactions made under the licences is likely to be less than the total made available under the licences issued. This is because some licences will not be used to make all of the exports authorised and others will not be used at all.

  • Note 2: Unlike SIELs for permanent export, a temporary SIEL may permit the export of the goods to multiple destinations, provided they are returned to the UK within 12 months of export. For example, an item might be exported from the UK for an exhibition in one country, before being moved directly to another exhibition in a second country, and so on, before they are returned to the UK. Currently the total value of temporary goods is calculated as the sum of temporary goods licensed to each destination, meaning that the same goods can be counted multiple times.

Chart 2: Value of goods issued for exportation under SIEL licences

  • Notable historic trends in licence values have been highlighted in the commentary for previous publications.

Latest quarter

  • In 2024 Q2, the total value of all SIELs issued was £22.3 billion, down from £50.3 billion in 2024 Q1.

  • 33 high value licences for China, Hong Kong, India, Indonesia, South Korea and Taiwan accounted for over 90% of the total value of all SIELs issued in 2024 Q2. These licences, valued at £20.4 billion, were for information security equipment and software for information security equipment.  These licences were all for a single exporter. Through conversations with this exporter, we have come to understand that the values included on these high value licences were speculative and the actual exports that will take place under these licences will not be of such a high value.  Such behaviour skews statistics presented on the value of licenses, meaning these should be treated with care. We have been engaging with exporter to minimise the impact of this in future reporting periods.

  • 54 high value licences for China, India, Singapore, Taiwan and United States accounted for 93% of the total value of all SIELs issued in 2024 Q1. These licences, valued at £46.9 billion, were for information security equipment and software for information security equipment. These licences were all for a single exporter. Through conversations with this exporter, we have come to understand that the values included on these high value licences were speculative and the actual exports that will take place under these licences will not be of such a high value.  Such behaviour skews statistics presented on the value of licenses, meaning these should be treated with care. We have been engaging with the exporter to minimise the impact of this in future reporting periods.

Latest full calendar year

  • In 2023, the total value of all SIELs issues was £70.3 billion, up from £16.5 billion in 2022.

4. Commentary on goods categories

Within this section, SIEL licence type figures for the 2024 (Q1) reporting period onwards do not include data on licensing decisions made in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

Control entries are the codes assigned to each good on the consolidated list of goods that require export authorisation (herein ‘consolidated list’). For example, all control entries beginning ‘ML’ (such as ML1, ML8 etc) are control entries for military goods. The process of assigning control entries to goods is called Rating.

In some cases, goods can be made subject to control if they do not appear on the consolidated list. Goods that the exporter has been told, knows or suspects are, or may be, intended for ‘Weapon of Mass Destruction (WMD) purposes’ are given the rating ‘END’.

The following goods are given the rating ‘MEND’:

  • goods that the exporter has been told are, or may be intended, in their entirety or in part, for use by a relevant entity (where a relevant entity is any military forces, para-military forces, police forces, security services or intelligence services of a country that is an embargoed destination, subject to an arms embargo imposed by a decision of the Organization for Security and Co-operation in Europe, or subject to an arms embargo imposed by a binding resolution of the Security Council of the United Nations)

  • goods that the exporter has been told or knows are, or may be, intended for use as components in, or production or test equipment for, military equipment in an embargoed destination; or may be intended for use as parts of military goods illegally obtained from the UK, irrespective of destination

Both ’END’ and ‘MEND’ ratings are also sometimes referred to as ‘catch all’ ratings.

The list of items subject to export control can be found on the UK strategic export control lists page.

Control entries provide in-depth descriptions for the classification of licensable goods. Table 1 and Table 2 provides summary descriptions of control entries based on the consolidated list of goods that require export authorisation. High ranking control entries have been combined where they cover similar goods (specified in square brackets in Tables 1 and 2). Note that licence counts are only an indication of export volumes and counts are not the same as goods quantity.

Military goods licensed

Table 1: Top-5 military goods licensed on permanent standard SIELs in 2023, by number of licences

Top-5 military use Number of licences
Aircraft, components and related equipment [ML10] 835
Firearms [ML1] 651
Bombs, missiles and related equipment and components [ML4] 427
Vehicles and components [ML6] 420
Military Technology [ML22] 392

Source: Table H, Strategic export controls licensing statistics

Non-military goods licensed

Table 2: Top-5 non-military goods licensed on permanent standard SIELs in 2023, by number of licences

Top-5 non-military use Number of licences
Equipment and software with “information security” capability [5A002, 5D002] 1,214
Non-Military Firearms (Firearms Regulation Annex I) [FR AI] 863
Imaging cameras [6A003] 390
Human and animal pathogens and “toxins” [1C351] 324
Chemical manufacturing facilities, equipment and components [2B350] 299

Source: Table H, Strategic export controls licensing statistics

5. Commentary on end-user destinations

Within this section, SIEL licence type figures for the 2024 (Q1) reporting period onwards do not include data on licensing decisions made in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

End-user destinations by number of licences

  • In 2023, the United States of America was the end user destination with the highest number of licences issued for exportation of strategic goods under permanent standard SIELs, with 1,041 licences. The next end users with the highest number of licences issued for exportation of strategic goods under permanent standard SIELs were China (807) and India (587).

Map 1: Number of licences issued per end user destination in 2023

Chart 3: Top 10 end-user destinations licensed, 2023

End-user destinations by value

  • In 2023, China was the end user destination with the highest value of licences issued for exportation of strategic goods under ‘Permanent Standard’ SIELs, with licences issued for exportation of £25.6 billion worth of goods (as valued by applicants). The next end users with the highest value of licences issued for goods under Standard SIELs were South Korea (£13.1 billion) and India (£8.4 billion). The goods included on the licence are valued by the exporter during the application process, which means that the actual exports that take place under the licence may not be of such a high value.

Map 2: Value of licences issued per end user destination in 2023

Chart 4: Top 10 end-user destinations licensed in terms of licence values, 2023

6. Commentary on performance data

Within this section, SIEL licence type figures for the 2023 (Q1) reporting period onwards do not include data on licence applications closed in LITE during these periods. Comparing figures with previous reporting periods should be done with care – see Background notes for further details.

On receipt of a SIEL application, ECJU’s target is to process 70% of cases within 20 working days and 99% within 60 working days. ECJU also aim to process 60% of OIEL applications within 60 working days.

Latest quarter

  • In 2024 Q2, 64% of SIEL applications were completed within 20 working days, up from 58% in 2024 Q1. By 60 working days, 89% of SIELs had been completed, up from 84% in 2024 Q1. By 60 working days, 40% of OIEL applications were completed, up from 33% in 2024 Q1

  • There was a combination of factors during 2024 Q2 that impacted upon ECJU’s ability to meet processing targets. These factors included the ongoing impact of transitioning from our existing digital service (SPIRE) to a new digital licensing service (LITE)

Table 3: Processing statistics for SIEL applications closed during 2024 Q2

Types of licences Number of applications completed in 20 working days % applications completed in 20 working days Number of applications completed in 60 working days % applications completed in 60 working days Median processing time (days)
Total SIELs 1,821 64 2,535 89 15
Permanent 1,579 64 2,192 88 15
Temporary 99 75 128 97 12
Transhipment 4 100 4 100 1
Incorporation 135 61 202 92 16
For items covered by the Torture Regulation (Permanent or Temporary) 4 40 9 90 24

Source: Table B, strategic export controls licensing statistics

Table 3 includes data for applications that were stopped or withdrawn before the application was closed as well as applications that were processed, but did not require a licence. Therefore, the number of applications completed will be different to the total number of licensing decisions.

Latest full calendar year

  • In the 2023 calendar year, 52% of SIEL applications were completed within 20 working days, down from 62% in 2022. By 60 working days, 87% of SIELs had been completed, down from 89% in 2022. By 60 working days, 39% of OIEL applications were completed, up from 26% in 2022

  • There was a combination of factors during 2023 that impacted upon ECJU’s ability to meet processing targets. These factors included the ongoing impact of transitioning from our existing digital service (SPIRE) to a new digital licensing service (LITE) and the increased workload caused by the added complexity in considering cases following the Military End Use Control refresh in May 2022

Glossary

Licence types

  • Standard individual export licences (SIELs) are specific to an individual exporter and generally allow shipments of specified items to a specified recipient up to the quantity specified by the licence. There are 5 main subtypes; permanent standard, temporary standard, incorporation, transhipment and SIELs for Goods covered by the Torture Regulation
  • Open individual export licences (OIELs) are specific to an individual exporter and cover multiple shipments of specified items to specified destinations and/or, in some cases, specified recipients. Licences permitting permanent export are generally valid for up to 5 years from the date of issue. However, OIELs covering the export to EU Member States of goods entered on the Military List and Dealer to Dealer OIELs (an OIEL subtype) are generally valid for 3 years
  • An open individual trade control licence (OITCL) is specific to a named trader and covers involvement in trading of a generally unlimited supply of specific goods between specific source and destination countries and/or specified senders, recipients and end-users. OITCLs are generally valid for 5 years
  • A standard individual trade control licence (SITCL) is specific to a named trader and covers involvement in trading of a set quantity of specific goods between a specific source and destination country with a specified sender, recipient and end-user. SITCLs will normally be valid for 2 years
  • Open general export licences (OGELs) are pre-published licences allowing the export of certain goods to certain destinations. Generally, the quantity of goods allowed for shipment is not limited

SIELs

  • Permanent standard SIELs are for items that are for permanent export to a destination
  • Temporary standard SIELs are for where the export is temporary, for example for the purposes of demonstration, trial or evaluation, and the licence is generally valid for one year only. The goods must be returned before the licence expires. Temporary SIELs can cover more than one destination
  • Incorporation SIELs are for goods that are due to be incorporated, that is, installing them into another product or higher level system. For incorporation cases there are 2 end-user types. The ‘end user’ is the person/organisation incorporating the goods. The ‘ultimate end user’ is defined as the entity that uses the product or the higher level system into which the exported goods are installed or incorporated
  • Transhipment SIELs are needed for the transhipment of certain goods through the UK enroute from one country to another, providing certain conditions are met. This subtype of SIEL is also called a Standard Individual Transhipment Licence (SITL). Most other transhipments (of certain goods through the UK enroute from one country to another) can be made under one of the open general transhipment licences, provided in all cases that the relevant conditions are met
  • SIELs for goods covered by the torture regulation concern trade in certain equipment and products which could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment. These are classed as non-military goods but can appear separately to the statistics on licences for non-military goods. Read the guidance about export controls on goods that can be used for torture or capital punishment

OIELs

Open individual export licences (OIELs) are specific to an individual exporter and cover multiple shipments of specified items to specified destinations and/or, in some cases, specified recipients. Licences permitting permanent export are generally valid for up to 5 years from the date of issue. However, OIELs covering the export to EU member states of goods entered on the Military List and Dealer-to-dealer OIELs (an OIEL subtype) are generally valid for 3 years. Standard OIELs are the most common type of OIEL issued, but there are several other OIEL subtypes:

  • Dealer-to-dealer OIELs authorise Northern Ireland registered firearms dealers to export certain categories of firearms and ammunition solely to other registered firearms dealers in the European Union only, provided that copies of valid documentation are forwarded to the Department of Business and Trade at least 2 working days before each shipment.

  • Cryptographic OIELs authorise the export of specified cryptography hardware or software and the transfer of specified cryptography technology. These licences do not cover hardware, software or technology which includes certain types of cryptanalytic functions.

  • Media OIELs authorise the export of military helmets, body armour, non-military four-wheel drive civilian vehicles with ballistic protection and specially designed components for any of these items, mainly for the protection of aid agency workers and journalists in areas of conflict. The licence permits these goods to be exported to all destinations on a temporary basis only; the goods must be returned to the United Kingdom when no longer required.

  • Continental shelf OIELs authorise the export of controlled goods to the UK sector of the continental shelf for the use only on, or in connection with, offshore installation and associated vessels. The UK sector of the continental shelf is the region of waters surrounding the UK in which the UK has rights over the seabed, subsoil and their natural resources.

Global project licences

  • Global project licences (GPLs) are a form of export licence that were introduced by framework agreement partners (UK, France, Italy, Sweden, Spain and Germany) to streamline the arrangements for licensing military goods and technologies between them, where these transfers relate to their participation in specific collaborative defence projects. In relation to the collaborative project, each partner state will, as appropriate, issue their own GPLs to permit transfers of specified goods and technology where these are required for that programme. The GPLs operate on a similar basis to UK OIELs. In the UK, applications for GPLs are assessed against the strategic export licensing criteria.

Background notes

System Transition

Licence applications are submitted to and processed by ECJU online. Historically, a purpose-built digital licensing system called SPIRE has been used. However, ECJU is currently in the process of developing and rolling out a new digital licensing system, known as LITE, which will eventually replace SPIRE. During the transition period, ECJU are handling applications on both SPIRE and LITE.

These statistics have included data from LITE since 2021 Q3, the period in which the first licensing decision was made in LITE. This transition has impacted upon the timeliness and comprehensiveness of the publication.

Timeliness

From the 2021 Q3 publication onwards, there have been some delays in publishing these statistics due to the transition– please see the quality and methodology information guidance for further details.

Comprehensiveness

From the 2023 Q1 publication onwards, there have been some limitations in the LITE data we have published due to limitations in relation to the ability to extract comprehensive and accurate licensing data from LITE, with impacted statistics having been caveated in each impacted publication appropriately:

  • 2008 Q1 to 2021 Q2: Prior to the 2021 Q3 publication, licensing decisions were made solely in SPIRE. Consequently, these statistics were sourced solely from SPIRE and could be considered wholly comprehensive.

  • 2021 Q3 to 2022 Q4: Following the period in which the first licensing decision was made in LITE (2021 Q3), these statistics were sourced from both SPIRE and LITE, meaning they could still be considered wholly comprehensive.

  • 2023 Q1 to 2023 Q4:  These statistics were sourced from both SPIRE and LITE. However, there were some limitations in how the LITE data was published – any SIEL figures that provided the data broken down by initial processing times did not include SIELs processed in LITE for these reporting period.

  • 2024 Q1 onwards: These statistics were sourced from both SPIRE and LITE. However, in addition to the limitations introduced from the 2023 Q1 publication onwards, there are further limitations in how the LITE data is published – only SIEL figures that are only broken down by licence outcome and/or licence sub-type include SIELs processed in LITE for these reporting periods.

Impacted statistics have been caveated in each impacted publication appropriately. For further details, please see the statement of administrative sources guidance and the quality and methodology information guidance.

Official Statistics in Development

Statistics for the reporting periods 2008 Q1 to 2023 Q4 were published as Official Statistics. However, these statistics have been reclassified and are being published as Official Statistics in Development as decided by the Department’s Chief Statistician and Chief Analyst from the 2024 Q1 publication until further notice. This is due to limitations in the ability to extract comprehensive and accurate licensing data from LITE, and the impact this had on the publication as LITE usage increased.

The application of the Official Statistics in Development reclassification is an established procedure set out by the Office for Statistics Regulation. It is used where Official Statistics are undergoing major changes likely to affect their quality for a period of time.

For further details, please see the statement of administrative sources guidance and the quality and methodology information guidance.

Uses of the data

  • These strategic export controls licensing statistics are used within government, to inform policy and operational decision-making. Additionally, these licensing statistics are used to the Annual Report on the UK’s export control policy and practice during the year. This report is published by DBT but written in collaboration with the FCDO and the MOD. Please see the United Kingdom strategic export controls annual report.

  • The Business and Trade Committee (BTC), previously the Committee on Arms Export Controls (CAEC), use these statistics to inform their work in examining the government’s expenditure, administration and policy on strategic exports.

  • Non-government organisations such as Campaign Against the Arms Trade (CAAT) and Amnesty International use these statistics to monitor strategic exports. Academic and research institutions such as Export Control Advisory Committee (ECAC) and Export Group for Aerospace, Defence and Dual-Use (EGADD) are also known to use these statistics.

Further information

  • The most recently published accompanying data tables can be found on DBT’s strategic export controls statistics website.

  • Footnotes have been supplied to provide more context for certain licences. Country footnotes are supplied in a data table and give country-specific information on how licence applications have been assessed. Case and goods footnotes are provided on the country pivot report only and aim to offer information on how licensing decisions were made with regards to particular goods and details of their use.

  • A small number of specialised licences have not been counted within this commentary due to how they are processed. Available data on these licences can be found in the ‘other standard licences’ data table as part of each quarterly report.

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