NTE 2026/03: company director jailed for illegal export

Introduction

A company director has been jailed for attempting to export military‑grade night vision rifle sights to Hong Kong without the required licence.

Summary

Key facts of the case include:

• Steven Gates, 47, from Wakefield, attempted to export 8 thermal imaging rifle sights classified as ML1d under the UK Military List
• he misdescribed the items as “low‑value cameras” to conceal their controlled status
• Border Force seized 3 scopes at Manchester Airport in February 2022 and another 5 in April 2023
• a search of Gates’ home uncovered evidence of 10 further unlicensed shipments to Hong Kong
• he was convicted under sections 68 and 167 of the Customs and Excise Management Act 1979
• Gates received a 2 year and 1 month prison sentence at Leeds Crown Court on 6 February 2026

HMRC enforcement

The UK operates strict export controls and a partial arms embargo on China and Hong Kong.

HMRC has increased enforcement significantly, with 51 criminal investigations in 2024 to 2025, up from 5 in 2021 to 2022.

HMRC statement

Edwige Hill, Deputy Director, Fraud Investigation Service, said:

“This was a calculated attempt to bypass the UK’s strict licensing regime. Anyone seeking to export military items without a licence will be detected and brought to justice.”

Voluntary disclosures

HMRC operates a voluntary disclosure process for unlicensed exports of strategic or sanctioned goods.

Outcomes can include:

• educational visits
• written warnings
• compound settlements
• referral for prosecution

Information on recent compound settlements is available through the Export Control Joint Unit’s Notices to Exporters collection.

Guidance on how to submit a voluntary disclosure is provided in the export controls for military goods, software and technology guidance.