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HMRC internal manual

Hydrocarbon Oils Strategy

HM Revenue & Customs
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Registered Dealers in Controlled Oils (RDCO): contraventions attracting penalties


Dealing in controlled oil by a revenue trader who is not a registered excise dealer and shipper (Registered dealer in controlled oil) (HODA 1979 S23A)


Failure to keep and preserve records (CEMA S118A)
Failure to produce records (CEMA S118B)  

Conditions of approval:

Failure to give notice to the Commissioners within 30 days of any change in the information that was required in the application for registration (RDCO Regs 5(1) and (2)).
Failure to comply with any conditions or restrictions imposed by the Commissioners (RDCO Reg 5(3)).  

Cessation of trade:

Failure to notify the Commissioners of the intention to cease buying, selling or dealing in controlled oils (RDCO Regs 6(1) and (4))
Failure of RDCO who has ceased dealing in controlled oils to dispose of stock in a manner allowed by the Commissioners (RDCO Reg 6(3)).

Conditions and restrictions:

Failure to comply with any conditions or restrictions on the buying, selling, loading, unloading, delivering, moving or holding of controlled oils prescribed by the Commissioners (RDCO Reg 8(2)). *

Returns and information:

Failure to make returns at such time, in such form and manner, and containing such particulars as the Commissioners may prescribe (RDCO Reg 9(1)).
Failure to notify the Commissioners of prescribed information (RDCO Reg 9(2)).  
  • The legal obligations of RDCOs in the supplying or selling of controlled oils for the purposes of Regulation 8 are set out in Notice 192 section 5 which has the force of law. Failures to comply with the requirements of Section 5 of Notice 192 may also attract £250 fixed penalties under Section 9 of the Finance Act 1994.

Contraventions of Section 5 of Notice 192 will fall into the following categories:

Information and records:

Failure to keep prescribed information about supplies of controlled oils (Para 5.5).


Failure to make prescribed checks (Para 5.14).

Payment of duty:

Failure to pay duty on supplies of red diesel to private pleasure craft in accordance with the Private Pleasure Craft (Payment of rebate etc) Regulation 8.