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HMRC internal manual

Oils Technical Manual

Traders accounts, records and returns: Duty deferment traders: Accounting - “Common storage”

Finished product removed from one warehouse to another for subsequent delivery to home use is normally to be charged with duty on delivery from the warehouse of despatch.

Traders who receive duty paid oils and are unable to physically segregate them from duty suspended stock should apply for a common storage concession by means of stock accounting.

Similar common storage concession may be granted when duty-paid product is returned to duty-suspension after contamination or accidental mixing has occurred and it is impossible to store the product in duty-paid tanks. A similar situation will occur where the main stock held is duty paid and the stock received is duty free, for example by importation.

Notice 179 paragraph 3.9 details the accounting requirements and in addition instructs traders to apportion storage losses or gains on “commingled” stocks between the duty free and duty paid elements in the stock accounts.

See Notice 179, Appendix G for details of ‘Accounting for Storage Loss/Gain in Common Storage Stocks’.