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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Deficiencies of Warehoused Oil: Diversions

Duty-suspended oil diverted to home use

Where a trader has been given permission to divert all or part of a consignment to home use, the following provisions are to be applied to losses in transit.

Whole consignment diverted to Home Use

No transit losses are to be allowed. The duty account is to be based on the total quantity originally despatched from the despatch warehouse.

Part consignment diverted to Home Use

The duty account is to be raised on the original quantity despatched from the despatch warehouse, less the quantity actually received at the duty-suspended location. There is no allowance for losses in transit.

Unauthorised Diversions

If oil is diverted to a person not authorised to receive it free of duty and no application has been made to divert the products, no allowances are to be given on the quantity diverted. Bear in mind that such diversion may be deliberate, leading to possible evasion of duty.

For each disputed consignment, the officer for the consignee’s premises should be informed whether the consignor has accepted liability and will pay the duty, or whether the deficiency is returned for charge to the consignee for adjustment of records.

See HCOTEG153500for information on ‘Payment of duty’ following diversion to dutiable use.