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HMRC internal manual

Oils Technical Manual

Losses and chargeable shortages on Intra-EU Movements: Shortages on goods moved from the UK

Warehousekeepers must notify the Department under locally agreed procedures when a chargeable shortage occurs. This will normally relate only to shortages established as arising while the goods are still in the UK having been consigned from a UK warehouse or when the goods fail to reach their destination and it cannot be established where the shortage occurred. In all other cases duty will be chargeable at the rate in force in the Member State where a shortage is established as arising or where it was detected.

Oils assurance officers will need to ensure that traders set up systems to ensure that copy 3 of the accompanying documents for goods despatched is received back and that all chargeable shortages are automatically accounted for at UK rates of duty. Traders must include duty on goods lost in the UK or failing to reach their destination on accounting documents as removals from warehouse. Duty must be calculated using the rates of duty in force on the date of despatch for the goods not reaching their destination or the date that the irregularity occurred or was detected for goods lost in transit, and paid immediately on Form W50.

Where the duty of another Member State is payable, although in oils, shortages are rarely found or dealt with this way, the relevant fiscal authority in that Member State may make a formal claim for their duty to the UK’s Excise Mutual Assistance Centre, also now known as the Central Excise Liaison Office (CELO) in Glasgow, who will contact the oils assurance team with responsibility for the warehousekeeper of despatch. Local staff will be asked to secure payment for transmission to the other Member State’s fiscal authority. It is, however, more likely that the OMS fiscal authority would contact and assess the UK business directly. But if a shortage occurs and the OMS is considering raising an assessment, they may refer the case to the UK’s oils assurance teams, via CELO/NVC, to establish or confirm the facts prior to raising the assessment, as they would do if the goods concerned were either alcohol or tobacco