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HMRC internal manual

Oils Technical Manual

Deficiencies in warehoused oil: Trader's explanations for deficiencies: Consideration of explanations

Local Officer

If the excise duty on an occasional excess deficiency does not exceed £100 the officer for the despatching warehouse may, in the absence of suspicion, write off a loss without requiring an explanation from the trader.

A trader’s explanation of a loss may be accepted if the facts establish that the quantity deficient is accounted for by one or more of the following occurrences:

  • The oil was lost or destroyed (e.g. by evaporation or spillage) and cannot reasonably be recovered
  • The oil was diverted to premises approved for duty-free use, and was put to such use
  • As a result of accounting errors or inaccuracy of measurement, less oil was delivered or more was received than originally certified.

The explanation and all available information are to be considered as a whole.