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HMRC internal manual

Oils Technical Manual

From
HM Revenue & Customs
Updated
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Pipelines: Other information

What are pressure relief tanks and what impact do they have on us?

These are relatively small tanks that are located at strategic points along the pipelines and are used to relieve excess pressure on the pipelines. Such tanks are considered to be part of the pipeline system. Uplifts of the product from them are by road tank wagon (RTW) and are treated in the same way as uplifts from pipeline interface tanks. The frequency with which they are emptied can vary. The duty on the uplifts is to be included in the pipeline operators’ duty adjustment accounting system.

How is product measured and accounted for?

The flow of goods down pipelines is measured and monitored remotely and at both the ingress (inlet) and egress (outlet) points of the pipeline. The measurements into and out of the pipeline will ideally be metered but at some installations account is raised based upon the despatching/receiving tank dips. Approved pipeline operators will produce monthly adjustment statements and, as part of this account, a measurement ration will be calculated for the pipeline system. This compares the pipeline receipt volumes with the delivered from pipeline volumes and is used in the duty adjustment calculation. In general the traders systems to ensure accurate metering and recording are taken as sufficient evidence either for payment or the re-claim of duty.

Duty Adjustment Statement (DAS)

The approved pipeline operator must produce a monthly ‘Duty Adjustment Statement’ (DAS) for both the pipeline network and also for each individual shipper using the pipeline. This will be in the format as shown in Public Notice 179, Appendix S.

Where the shipper is approved for duty deferment the duty adjustment (either duty payment or credit) will be included the company’s next HO10 declaration.