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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Biodiesel and Bioblend - Production, storage and delivery: Movement of biofuels

Process Oils

Biodiesel and bioethanol that are used in the production of another product, such as bioblend, can be designated as “process oils” – see Notice 179.

Warehouse-keepers and producers may deliver process oils under duty suspension provided they are delivered to a tax warehouse that is approved to store biofuels for the purposes of producing bioblend or bioethanol blend.

Otherwise duty must be paid subject to normal tax point rules (see HCOBIG9100 )

Movement of other fuels under duty suspension for blending

With the advent of the Renewable Transport Fuel Obligation (RTFO) a steadily increasing proportion of road fuel will contain blends of biofuel. The general policy is that biofuel will move (as a process oil) under duty suspension for blending with diesel and petrol.

However, some arrangements, for movements of diesel/petrol, have been made (and some with policy approval) to facilitate the trade in, and production of, biofuels.

There will not be a sudden withdrawal of arrangements but, at the time of publication, the UoE is undertaking a review to establish their extent.

Following this review any change considered necessary to these arrangements will be brought in over an agreed timescale - this might be up to 2 years or perhaps longer if there are economic and practical constraints. Consultation will take place before any change is announced.


Biofuels exported from the UK

Where biofuel is removed from a UK tax warehouse to a tax warehouse in another EU member state it can travel under duty-suspension, subject to the requirements of Regulations 10 and 11 of the Excise Goods (Holding, Movement, Warehousing and REDS) Regulations 1992 (EGWMR) (i.e. movement documentation and security).

Where duty paid product is transferred to another EU member state a simplified accompanying administrative document (‘SAAD’) must be completed, in accordancewith Part III of the Excise Goods (Accompanying Documents) Regulations 2002.