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HMRC internal manual

Customs Special Procedures Manual

Hydrocarbon oils: warehouse and refinery procedures for relief under Tariff headings

Warehouse control procedure

Warehouse keepers making regular deliveries of oil of Tariff headings 2707and 2901 for use other than as power or heating fuels, should be aware that, as from 1 July 2001, the use of C88s for supplementary declarations has ceased and traders should now be authorised for CFSP where such supplementary declarations will be provided electronically.

Refinery control procedure

A refiner may use the oils under Tariff headings 2707 and 2901 without payment of the uncollected duty, provided that the use to which the oils are to be put is specified. The oils must not be used for power or heating purposes.

Note: ASTM reference fuels n-heptane and iso-octane,, used for calibrating gasoline’s, are not regarded as power or heating fuels and can therefore qualify for End-use relief under sub-heading 290110 90.

Completion of End-use

In general, End-use should be considered complete when oil has either been: put to a qualifying use; or processed in such a way that it is no longer possible to use it for power or heating.

However, Oil of Tariff heading 2707 put to a ‘specific process’ listed in Additional Note 4 to Chapter 27 of the tariff is considered to have completed End-use, even if by products which could be used for power or heating may have been produced.

When oil has been packed in closed containers, each containing not more than 25 litres and there is no reason to believe that the oil is to be used for power or heating purposes, End-use is to be considered complete and no further control is necessary. These oils may be used as lubricants within the terms of End-use relief.