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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Marking: background: rebated and relieved oils

Tied Oils Scheme

A wide range of mineral oils may be supplied un-marked and fully rebated for qualifying industrial uses, but not for use as a road fuel under the ‘Tied Oils’ scheme. (See Notice 179 paragraph 8.5.1)

For further information on the Tied Oils Scheme see Notice 184A

Marking Waivers

Gas oil and kerosene may be supplied rebated and un-marked in exceptional circumstances under a ‘marking waiver’ where the oil is to be put to a use which is not relieved from duty under the Tied Oils scheme, provided that there are good technical or health and safety reasons why marked rebated fuel could not be used, and that the oil will not be used as a road fuel. (This also precludes their use as a fuel when used in engine bench testing).

(See Notice 179, paragraph 8.5.2)

For further information on the authorisation of marking waivers please see HCOTEG122095 

Aviation Turbine Fuel (AVTUR) which is a high specification kerosene, is supplied un-marked under a general ‘marking waiver’ for technical reasons, due to the fact that it is to be used in aircraft jet engines.

(See Notice 179, paragraph 8.5.4)

The supply and distribution of AVTUR was brought into the RDCO Scheme as a ‘controlled’ oil from November 2006. However, these traders, unless they deal in other controlled oils, are not required to submit returns.

For further information on AVTUR see Notice 179A.

Other situations where oil may be delivered unmarked

Marking of oil is also not legally necessary if the oils are fully relieved of duty because they are:

  • delivered for exportation under duty suspension
  • shipped as foreign-going ships’ or aircraft stores
  • shipped under duty suspension for use in the machinery of vessels engaged on marine voyages
  • removed for use by a general lighthouse authority or by United States or other NATO (but not UK) forces for official use
  • delivered as duty free samples

(See Notice 179 paragraph 8.5.5)

See Table L HCOTEG213000 for details of those oils we control because they are not marked.