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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Law: Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004 (BoFSR)


Regulation No. Part Title Summary and comments
3 Construction of references to hydrocarbon oil etc in the Oil Act This section lists every reference in the Hydrocarbon Oil Duties Act 1979 that is to be used as also applying to biodiesel, bioblend, bioethanol, bioethanol blend and the duty on these.
6 Production in warehouse Sections 8-12 do not apply where production is in a warehouse and the producer is the occupier and warehouse-keeper.
7 Warehousing Only ‘special energy product’ or bioethanol for bioethanol blend can be made in a warehouse or warehoused
8 Requirement to make entry of production premises Under Section 108 of the Customs and Excise Management Act 1979, before any dutiable fuel sent out. ( This has been amended to exempt producers below the registration threshold of 2,500 litres a year)
9 Storage of biofuels on production premises Different fuels must be stored separately but this doesn’t stop approved mixing to produce another type of fuel.
10 Rights of access but not to private dwelling house yet can inspect vehicles and also take samples.
11 Provision of facilities by producers etc for us to inspect or take samples.
12 Removal of biofuel from production premises for warehousing Fuels in Section 7 can be warehoused from premises entered in 8 to an adjacent warehouse.
13 Motor fuels record must be kept for 6 years and contain all the details itemised in schedule 1 to these regulations. ( this has been amended to require a simplified version for exempt producers.
14 Fuel substitutes record and biodiesel record must be preserved for 6 years and relates to the original (2002) biofuel regulations.. See “Motor fuels record” referred to above.
15 Delivery note sent with dutiable fuel must be consecutively numbered and contain specified information.
16 Measurement If we specify means of measurement they must be followed.
17 Excise duty point There is no legal distinction between individual and commercial producers, the duty point being the same for both, (provided that they produce biofuels above 2,500 litres a year) being either:
    a. when the biofuel is charged with duty, or
    b. when sent out from entered premises having been charged with duty when on those premises, the time that the biofuel is sent out, or
    c. when removed from entered premises to an adjacent warehouse (Regulation 12), the time that it was sent out from entered premises unless it is deposited in the adjacent warehouse within reasonable time. In which case duty suspension arrangements will apply and a duty point will not occur until removal from the tax warehouse.
18 Person liable the producer or the person that caused fuel to be liable – such as the person who decides to sell/use a product as a fuel.
19 Returns, time and method of payment by the 15th of the following month (HO 930) or as required under the deferment arrangements, ( monthly for large producers producing above 450,000 litres of biofuel per annum, and quarterly for producers of between 2,500and 450,000 litres per annum). See HCOBIG2400 and HCOBIG4200
20 Interpretation of this part Relief for electricity generation defines ‘qualified claimant’
21 Relief is for duty paid biofuel used as a motor fuel in a generator to produce for duty paid biofuel used as a motor fuel in a generator to produce electricity.
22 Form of relief In practice it is more likely that relief will take the form of a repayment as the qualified claimant will not be a producer. However this regulation provides for an allowance set off against biofuels duty.
23 Set off Provides that the relief can be set off against biofuels duty declared by a producer on HO930 or the HO10, if approved under the deferment regulations.
24 Applications for relief must be made under 6(2) of deferment Regulations; within three months; [for a period from 2-36 months]; and be for more than £50.
25 Cancellation of relief can be done under 26 & 27 and is repayable.
26 General conditions That there is evidence of use in a generator and there has been no other claim on the same fuel.
27 Conditions imposed by the Commissioners Relief is subject to conditions we choose.
28 Application for repayment under section 17A of HODA must be within in three months; for a period from 2-36 months; and be for more than £50.
Schedule Particulars to be entered in the motor fuels record  
  • N.B. The Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004 have now been amended by the Biofuels and Other Fuel substitutes (Payment of Excise Duties etc) (Amendment) Regulations 2007.

For further information on the ‘Amendment’ Regulations see HCOBIG2400

For further information on ‘Biofuels Simplification’ see HCOBIG4200