OTSI Expands Export Licensing Powers for Sanctioned Goods

The Office of Trade Sanctions Implementation (OTSI) has announced a significant expansion of its licensing remit, marking a structural shift in the UK’s export sanctions framework. From 27 April 2026, OTSI will assume responsibility for licensing sanctioned goods and associated ancillary services exported to sanctioned destinations, building on its existing role overseeing standalone services such as professional and business services.

This change clarifies the division of responsibilities between OTSI and the Export Control Joint Unit (ECJU). While OTSI will take the lead on sanctions-related licensing for goods, ECJU will retain authority over items that fall within both sanctions regimes and strategic export controls, as well as goods subject solely to export control regulations. This delineation preserves ECJU’s role in managing dual-use and military-sensitive exports, while consolidating sanctions expertise within OTSI.

From an operational perspective, the application process remains unchanged. Exporters must continue to submit applications through the Department for Business and Trade’s SPIRE platform. OTSI will begin processing relevant applications submitted from 27 April onwards, issuing Standard Individual Export Licences (SIELs) where appropriate. These licences will be immediately accessible to HM Revenue & Customs (HMRC) and Border Force, mitigating the risk of delays at the border.

For applications involving both sanctions and strategic export controls, ECJU will continue to assess submissions within SPIRE. Meanwhile, exporters seeking licences for standalone services will still use OTSI’s dedicated online portal, maintaining a bifurcated but functionally consistent system.

The reform is primarily administrative but has practical implications for compliance teams. Firms must ensure internal export control frameworks correctly identify whether transactions fall under OTSI or ECJU jurisdiction, particularly where goods and services overlap with strategic controls. The forthcoming updated statutory guidance will be critical in clarifying these boundaries.

Overall, the expansion reinforces the UK’s effort to streamline sanctions enforcement while maintaining alignment with broader export control obligations. Businesses engaged in cross-border trade with sanctioned jurisdictions should review their licensing processes ahead of the 27 April implementation date to avoid disruption.

Read the press release here.