HCOTEG152510 - Deficiencies in warehoused oil: Trader's explanations for deficiencies: Responsibility for explanation

It is the responsibility of the guarantor and the despatching warehouse to investigate any deficiency and either provide a satisfactory explanation or to pay the duty. Traders are to be encouraged to commence investigation on their own initiative as soon as the existence of an excessive loss is established and while the evidence is still fresh.

Do not suggest any explanation to traders, but some investigation by you may be necessary in:

• Routine verification:
• Critical examination of the explanation given by a trader: and
• Suspected theft or possible weakness in the trader’s procedure.

If a warehouse-keeper at a despatch warehouse persistently fails to provide explanations for excessive losses, the allowances described in HCOTEG152760may be withheld.

Points to be covered

To be acceptable, an explanation must give details of how the discrepancy arose and what happened to the oil. The explanation should be based on known facts supported as far as possible by evidence, and that explanation must be consistent with all the facts.