UK OTSI licence required for sanctioned trade
The UK Office for Trade Sanctions Implementation (OTSI) now requires merchants and freight operators to obtain a licence before conducting any sanctioned trade. This applies to all shippers moving goods subject to UK trade sanctions regimes. The application process is handled online through the OTSI portal.
Photo: Denys Gromov / PexelsUK tightens sanctioned-trade licensing requirements
The UK's Office for Trade Sanctions Implementation (OTSI) has clarified that shippers and merchants conducting trade involving sanctioned goods, services, or jurisdictions must now apply for and hold an active licence before proceeding. Published 23 April 2026, this guidance applies to all e-commerce merchants, freight forwarders, and exporters subject to UK sanctions law.
Who needs a licence
Any party — whether a shipper, merchant, or logistics provider — planning to carry out trade in sanctioned items must first check eligibility and apply through OTSI's online portal. The requirement covers all UK trade sanctions regimes currently in force.
How to apply
Applications are submitted online. The guidance directs traders to review whether their specific transaction falls under a sanctioned activity before submitting, as operating without a valid licence may result in civil or criminal penalties under UK sanctions legislation.
What this means for shippers
If you move goods to or from sanctioned jurisdictions, or handle items on UK sanctions lists, you cannot ship legally without an OTSI licence. This affects all major trade flows involving Russia, Iran, North Korea, Syria, and other sanctioned regions or entities. Freight forwarders and customs brokers should ensure clients obtain licences before accepting shipments.
For guidance on how sanctions affect your landed cost and duty calculations, see our sanctions overview.
