Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Biofuels and Fuel Substitutes Assurance

From
HM Revenue & Customs
Updated
, see all updates

Biodiesel and bioblend - production, storage and delivery: biodiesel: deliveries

Biodiesel: deliveries

Revenue requirements in respect of delivery of biodiesel will be determined by the place of production and if the biodiesel has been set aside for a chargeable use or delivered for further process (i.e. blending).

  • biodiesel set aside as road fuel must be delivered on payment of excise duty or may be held under duty suspension in an adjacent producer’s warehouse. (Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004, Regulation 12)
  • biodiesel not set aside as road fuel should be charged duty at the road fuel rate. The customer is responsible for claiming the difference between the road rate and the off-road or NIL rate and holding evidence.
  • designated as a process oil i.e. for production of bioblend and delivered to an approved tax warehouse under duty suspension. Such movements must be accompanied by a W8 and a movement guarantee should be in place (See Notice 179E).
  • biodiesel held in a tax warehouse under duty suspension, may be:

i) put to a chargeable use, entered to the Motor Fuel Record and duty paid on delivery. Duty paid biodiesel may be mixed with other duty paid oil.

(See HCOBIG7550 ‘Mixing’)

ii) designated as a process oil i.e. for production of bioblend and delivered to another similarly approved tax warehouse under duty suspension. Such movements must be accompanied by a W8 and a movement guarantee should be in place (See notice 179E, ‘Movement of biofuels’).

iii) used (self-supply) for a non-chargeable or off-road use. Evidence should be provided to show the use the fuel was put to.

iv) blended with heavy oil to produce bioblend. (Hydrocarbon Oil Duties Act 1979, section 6AB(2)).

(See HCOBIG7400 ‘Bioblend’)

v) delivered under duty suspension to a similarly approved tax warehouse in the EU. An Accompanying Administrative Document (AAD) and movement guarantee are required in respect of movements by road tanker wagon or rail tank car, but not for those either by pipeline or bulk sea movements.

vi) exported to a 3rd country. (Normal export controls apply).