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HMRC internal manual

Oils Technical Manual

Gains and losses shown in trade records: Purpose of this section

The purpose of this section is to determine whether any deficiency notified by the trade,can be attributed to natural wastage or other legitimate cause.

Under section 94 of CEMA, traders can be required to pay the duty on any part of aloss, which cannot be attributed to an acceptable cause. The warehousekeeper, the owner ofthe oil or any other person who has given security for duty may have to pay the duty on any deficiency, which cannot be shown to be due to natural wastage or other legitimatecause. In these circumstances VAT may also be due.

Stock discrepancies in duty-suspended storage

If discrepancies arise in stocks of warehoused oil, HMRC may call for the warehousekeeper’s explanation and evidence to account for the variation. We will charge duty on losses for which there are no satisfactory explanation.