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HMRC internal manual

Oils Technical Manual

From
HM Revenue & Customs
Updated
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Receipts into Warehouse: Receipts from customers’ tank cleaning services: disposal by flooding into duty-suspended stocks

Treatment prior to flooding into duty-suspended stocks

When the warehouse finds it necessary to treat the returned oil or sludge to remove solid matter or excessive water before flooding into duty-suspended stocks, you should require one of the following methods to be adopted.

  1. If it is possible to “de-bond” (i.e. remove duty-suspended status from) the sludge treatment tank and take account of the oil recovered during treatment before flooding into duty-suspended stocks, this should be done with duty being charged on any existing stock in that tank. Duty credit may be authorised on the quantity of recovered oil actually removed from that de-bonded sludge tank and flooded into duty-suspended stocks. The trader need not give a certificate of receipt to the customer or give you notice of the return of each consignment resulting from tank cleaning operations when deposited in the treatment tanks but must:
  • Record the date each consignment is returned, and details of the total quantity in the consignment, the customer’s name, and address of the site cleaned;
  • Where required by you, give prior notice of the intention to flood into duty-suspended stocks the oil recovered from the treatment tanks, specifying the quantity of recovered oil; and
  • provide facilities for you to witness the taking of account and sampling of the recovered oil before flooding-in.

The trader should take an account of the quantity flooded-in to duty-suspended stock on each occasion and account for it under HCOTEG71250.

  1. If method (a) cannot be adopted, e.g. because the settlement tanks are also used to treat slops from interceptors or residues arising in duty-suspended vessels, it will be necessary for the trader to comply with HCOTEG72000 and to declare the oil content for each consignment received.