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HMRC internal manual

Oils Technical Manual

From
HM Revenue & Customs
Updated
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Deliveries from Warehouse: Introduction

Oils may be removed duty-suspended from warehouse or be delivered to home use on payment of excise duty. If “process oils” they may be removed duty-suspended for transfer to other production premises or otherwise to export without payment of excise duty.

Tied Oils

Oils may also be removed from warehouse relieved from duty under the Tied oils scheme, provided that they are not to be used as motor or heating Fuel. These oils remain of interest to HMRC beyond their removal from warehouse, as their supply duty free is conditional on their being put to an eligible use.

Marine and aircraft fuel

Relief from duty may be allowed for oil used on board ships, hovercraft, or any vessel that can move, including oil rigs (but not pleasure craft engaged on ‘marine voyages’ - a voyage during which the vessel is at all times either at sea or within the limits of a port). See HCOTEG92260 andNotice 263 (HMRC website).

Heavy oil may be shipped duty-free from warehouse for direct delivery into the entitled vessel, or shipped duty-paid and repayment claimed. Light oil must be shipped duty-paid and repayment claimed.

Not to be confused with Marine Voyages Relief is the partial rebate available for non-propulsion uses on vessels on inland waterways such as canals and lakes (not ports or marinas). End users must declare the split of propulsion to heating / lighting of any gas oil they buy for their barges or other inland boats to their dealers, who should be registered as an RDCO and be paying over the payment of tax (on the propulsion use) to HMRC. See Notice 554 for details.

USAF/Visiting Forces

Aviation spirit, motor spirit and heavy oil may be delivered from warehouse to the United States Forces free of customs duty, excise duty and VAT for use exclusively for official purposes by those forces. AVGAS and AVTAG may be delivered from warehouse free of duty to NATO aircraft at airports where duty-suspended oil stocks are available.

For further information on Reliefs from Mineral Oil Duty see HCOTEG12840