Aircraft manufacturer breached Strategic Export Controls

30 Jul 2026 12:50 PM

Airbus Operations Limited has paid a record £6.4 million compound settlement.

Airbus Operations Limited (AOL) has paid more than £6.4 million to HM Revenue and Customs (HMRC) after admitting multiple breaches of Strategic Export Controls.   

The payment represents the highest compound settlement ever reached by HMRC for strategic export offences.  

AOL announced the breach in its quarterly earnings notes and details have been published on GOV.UK.

The company failed to keep records of any tangible or intangible export or transfer of controlled technology over a sustained period. 

AOL self-reported the breaches to HMRC and fully cooperated with the investigation. 

Edwige Hill, Deputy Director in HMRC’s Fraud Investigation Service, said:   

The UK operates a strict licensing regime to uphold the UK’s Export Control regime to ensure military equipment does not fall into the wrong hands. 

We use a range of powers to ensure effective controls and enforcement on military goods, which contributes to the UK’s national security. This settlement shows we will not hesitate to take action.

 The breaches made by AOL included: 

• Article 29(2)(a-g) on multiple occasions for failing to keep accurate records of transfers of controlled technology as per the conditions of three of their Open General Export Licences (OGELs) 
• Article 29(3) on multiple occasions for failing to keep registers in relation to their OGELs 
• Article 29(2)(i) on multiple occasions for failing to keep accurate records contrary to the conditions of one of their OGELs 
• Standard Individual Export Licence – on one occasion relating to a failure of licence conditions  

Further information

The United Kingdom operates an export control licensing regime for certain strategic goods such as military items, dual use items and goods that can be used in Weapons of Mass Destruction programmes. The licensing regime is part of an international framework and is based upon various international agreements.  

A compound settlement is the means where, through payment of a sum of money, HMRC may offer to settle alleged Strategic Export offences committed under the Customs and Excise Management Act and the Export Control Order, out of court. This saves time and money – both for the offender and HMRC – by avoiding the need for legal proceedings. HMRC will only offer a compound settlement where it is believed there is sufficient evidence to prosecute. 

Last month Petrofac Facilities Management Limited (PFML) became the first company to be publicly named by HMRC for accepting such a penalty.  PFML self-reported the breaches to HMRC and fully cooperated with the investigation.  Naming the company marks a shift in how HMRC handles compound settlements in relation to strategic exports.  The new approach will improve transparency and ensure greater consistency with other UK law enforcement bodies. 

When deciding if a compound settlement is appropriate and the level of the offer; HMRC’s considerations will include:   

• the seriousness of the alleged offence   
• whether fraudulent intent can be proven   
• the extent of the efforts to perpetrate the alleged offence   
• the type and value of any goods involved   
• the offender’s previous history   
• the extent to which the offender has co-operated with any investigation   
• the level of financial penalties known to have been imposed by courts for similar offences  

Effective controls and enforcement on military goods are vital to the UK’s national security, and HMRC supports this by operating a voluntary disclosure process for unlicensed exports of strategic or sanctioned goods or transfers of controlled technology; all disclosures are assessed and may result in educational visits, written warnings, compound settlements, or, in the most serious cases, referral to UK prosecution authorities. 

Information on payments of compound settlements is published by the Export Control Joint Unit (ECJU) via Notices to Exporters (NTEs).

Further guidance on the voluntary disclosure regime is available at GOV.UK.

You can find out more about HMRC’s approach to strategic export violations at GOV.UK.