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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Deficiencies in warehoused oil: Payment of Duty

Rates of duty and rebate

The rates of duty (including customs duty) and rebate (if applicable) to be charged are those in force at the time of the despatch of the oil. Excise duty must be adjusted for any regulatory surcharge or rebate operative at that time.

In the absence of grounds for suspicion of misuse as road fuel, duty should be called for at the appropriate rebated rate on the following:

  • Heavy oil other than gas oil or kerosene: and
  • Marked gas oil and marked kerosene.

Chargeable deficiencies in oils of other descriptions are to be charged at the unrebated rate.

Payment of Excise duty

All chargeable deficiencies are to be brought to account by immediate payment on Form EX601. This includes instances where the explanation for the deficiency is that all or part of the deficiency has been diverted to dutiable use.

Explanations accepted after duty payment

If you accept an explanation of an excess deficiency after duty has been paid, as the assessing officer you should reduce or withdraw the assessment using Form EX602. The EX602 should then be sent to Oils Accounting Centre in Southend.

Diversion to dutiable use

Where it is established that any part of a deficiency has been diverted to dutiable use a EX601 assessment should be issued as above. This should be amplified by a demand for payment of duty (C18) in respect of any customs duty when appropriate.

If the Assurance Manager or Team Leader (Senior Officer) thinks it is possible that offence action may follow, the duty should be accepted “without prejudice to the Commissioners decision as to the subsequent action to be taken”.