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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Bioethanol and bioethanol blend - production, storage and delivery: receipts - ethanol for road fuel use

Ethanol imported to home use from 3rd country

Customs duty, import VAT and excise duty on the ethanol will be due at entry. The importer needs evidence the ethanol is of biomass origin and the fuel has been denatured to the UK specification to qualify to be treated as bioethanol.

Ethanol imported into a tax warehouse from 3rd country

Customs duty, import VAT and excise duty will be due at removal. In order for the ethanol to be deemed bioethanol it must be denatured to the UK specification.

The warehouse will need to be approved to receive ethanol and to have the appropriate approvals and licences to denature ethanol and distribute it. (see Authorisation/Approval)

Trader will need an oils duty deferment account.

Ethanol imported to processing under customs control (PCC), for denaturing, from 3rdCountry supply

All customs duties, import VAT and excise duty are suspended until entry is made from PCC. The ethanol will need to be denatured and then removed for entry to a tax warehouse, for further blending. On removal the product will have changed classification and the customs duty rate will be that of denatured ethanol. Trader will need PCC approval and oils deferment approval. (See HCOBIG8200 ‘Receipts– ethanol for denaturing’).

Ethanol imported from EU member state to home use

The ethanol will be liable to excise duty at the full alcohol rate. If movement is from a duty suspended premises (i.e. tax warehouse in the EU) then it will be accompanied by an eAD, and must be to a tax warehouse. Excise duty will need to be accounted for in order to discharge the eAD. The trader will need oils deferment approval.

The principal will need registration under Warehousing and Owners of WarehousedGoods Regulations 1999 (WOWGR) – Owner of goods in warehouse.