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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Exports: Aircraft and ships stores and bunkers

Aircraft stores and fuel

AVGAS may be loaded duty-paid on an aircraft at any place in the UK for use on a flightto a place outside the UK. Either ‘netting’ or direct drawback of excise dutymay be claimed on duty-paid oil to be used after the aircraft has cleared outwards at thecustoms airport of departure, in which case evidence of loading (e.g. invoice or receipteddelivery note) and of the aircraft movement will be required. Neither ‘netting’nor direct drawback may be claimed on oil used on flights to the Isle of Man.

Stores and bunkers for foreign going ships

Oil may be removed from warehouse for shipment free of customs duty and excise duty asstores (e.g. deck and engine-room stores) or bunkers on entitled foreign-going ships.These include ships clearing from one British port for foreign via another British portand also to such fishing boats as are treated as clearing for foreign and thereforeentitled to duty-free stores.

Delivery documents and certificates of receipt

For oil shipped duty-free from warehouse as bunkers or other stores on foreign-goingships, warehouse-keepers are to obtain a certificate of receipt. The receipt should begiven by the master, mate or chief engineer on a copy of the relevant delivery note, andretained by the warehouse-keeper for production to the officer, if necessary. Such copy isadditional to any copy which may be obtained and disposed of by the warehousekeeper the customer’s head office.

If it is impractical to obtain certificates signed by any of the specified ship’sofficers, e.g. in the case of certain trawlers and quick turn-around ships, the signatureof a shore superintendent or similar responsible individual acting for the owners (orcharterers) of the ship may be accepted.

Advice notes for packaged goods removed for shipment as stores, which bear agents or shedreceipts may be accepted in the absence of suspicion.

Bunkering to specific order by craft

A craft, whether or not owned by the warehousekeeper, may load a quantity of heavy oilto fulfil a specific bunkering order or a series of bunkering orders. The removal by craftfrom the duty-suspended installation to the ship or ships requiring bunkers, even if itinvolves a coastwise voyage, should be treated as a duty-free removal in the course of atransaction for ship’s stores under the warehousekeeper’s responsibility and issubject to the provisions in ‘Stores and bunkers for foreign going ships’ and‘Delivery documents and certificates of receipt’ (above).

The warehouse records are to be adopted as necessary to show clearly the quantities loadedinto the craft and a comparison made with the quantities shipped on ships requiringbunkers, and any significant remnants.