Page 25 - SA Chamber UK-NOV News letter 2023

The answer is found in Regulation 21:

“For the purposes of this Part, a person is to be regarded as “connected with” Russia if the
person is –

(a) an individual who is, or an association or combination of individuals who are,

ordinarily resident in Russia,

(b) … an individual who is, or an association or combination of individuals who are,
located in Russia,

(c) a person, other than an individual, which is incorporated or constituted under
the law of Russia, or

(d) a person, other than an individual, which is domiciled in Russia.”

So under Regulation 21, if you sell to an individual who is ‘ordinarily resident’ or ‘located’ in

Russia (a or b above), you may be committing an offence as the export of luxury goods to him
or her is “prohibited”.

Your only defence may be under 46B(4)(b) if it can be shown that you “did not know and had
no reasonable cause to suspect that the person was connected with Russia” – showing this

may be onerous.

These provisions are not just theoretical: government lawyers are actively engaged in pursuing
consignments where these provisions do – in their view – apply.

Another very reasonable speculation may occur to you – individual business/shipping
transactions apart. Could not, for example, Harrods, be caught by selling something across
the counter to “a person … “connected with Russia”?

Border Force can, and do, seize consignments which are in apparent contravention of
Regulation 46B. HMRC may then also become involved.

As much due diligence as is reasonably possible is the only answer.

- By Milton Silverman, Partner, Streathers; first published in the Antiques Trade Gazette on

November 11, 2023

www.streathers.co.uk/

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SA CHAMBER UK NEWSLETTER NOVEMBER 2023