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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

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HM Revenue & Customs
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Authorisation/Approval: Biodiesel and fuel substitute production

See also HCOBIG7000 on Biodiesel and bioblend - production, storage and delivery.

Biodiesel and fuel substitute production - approval and authorisation

Biodiesel and fuel substitute production can be carried out in registered production premises or suitably approved warehouses and bioethanol production in a tax warehouse, subject to conditions.

Production premises

Before 2,500 or more litres of biodiesel or fuel substitutes can be produced, entry of premises (registration) must be made. (Biofuels and Other Fuel Substitutes(Payment of Excise Duties etc) Regulations 2004, (BoFSR) Regulation 8 - as amended by the Biofuels and Other Fuel Substitutes (Amendment) Regulations 2007). (Customs and Excise Management Act 1979, (CEMA) Section 108 - as amended by the Biofuels and Other Fuel Substitutes (Amendment) Regulations 2007), (BoFSAR).

Registration is made by completion of form EX 103 or EX 103A as appropriate. The completed EX103/103A should be submitted to the Mineral Oils Relief Centre (MORC) in Newcastle. (See Notice 179E, ‘Making Entry (registration of premises)’).

Biodiesel that has been charged with excise duty while on entered premises may be removed to a tax warehouse adjacent to the producer’s premises.(BoFSR) 2004, Regulation 12).

Most commercial producers of biodiesel will require tax warehouse approval, (see below).There are however some commercial producers, where no tax warehouse exists. In these circumstances, all the biodiesel delivered ex-producers premises is liable to excise duty on delivery at the road rate. (BoFSR, Regulation 17(2) - as amended by BoFSAR.

Warehouses

Biodiesel may be produced in a tax warehouse (BoFSR, Regulation 7(1)).

Motor and heating fuels warehouse approval is requested by completion of form EX70/EX71,which should be submitted to the National Registration Unit (NRU),Glasgow.

Before biodiesel can be produced in warehouse, the premises must be approved to produce and to hold biodiesel. The producer must be the occupier and an authorised warehouse-keeper, and be authorised by the terms of their approval to hold biodiesel. In this instance the producer is not required to make entry of premises. (BoFSR, Regulation 6).(CEMA, Section 92). (Warehousing and Owners of Warehoused Goods Regulations 1999,Regulation 3).

Application for authorised warehousekeeper status is made on forms EX 61 and if necessary, EX61A, which should be submitted to NRU, Glasgow. (See Notice 197,paragraphs 3.7.3 and 17.2).