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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

HM Revenue & Customs
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Biodiesel and bioblend - production, storage and delivery: bioblend


Bioblend is a mixture of biodiesel and heavy oil that has not been charged with excise duty, (Hydrocarbon Oil Duties Act 1979, (HODA) section 6AB(2)), (Notice179E, ’What do you mean by biodiesel, bioblend, bioethanol and bioethanol blend?’). Bioblend may only be produced in a tax warehouse under duty suspension. Itis usually delivered for use as a motor fuel.

Importation of bioblend as a finished product

Bioblend imported into the UK is liable to excise duty, customs duty and import VAT.(HODA 6AB(1)(a)).

The Tariff code numbers (TCNs) would be those proper to the heavy oil and biodiesel used in producing the bioblend, with customs duty and excise duty at the respective rates. The relative proportions of heavy oil and of biodiesel would have to be expressed to 0.001%.(HODA 6 AB(4)).

Imported bioblend may be entered to excise warehousing under duty suspension once it is in free circulation. The tax warehouse should be approved as an import warehouse in order to receive and to hold bioblend.


There are various methods by which blending may take place. The most common are bulk blending in tank, injection prior to bulk storage in tank or injection immediately prior to delivery at the loading gantry. In order that the legal requirements for production of bioblend are satisfied, the injection point must be within the confines of the warehouse.


Whichever method is used the officer must ensure that measurement systems meet our requirements (See Notice 179, section 4) and take account prior to the duty point in order to comply with the regulations. Once blended the product may continue to be stored in duty suspension prior to the duty point.