SPE16540 - Hydrocarbon oils: collection of Customs duty on chargeable products under chemical transformation relief

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The quantity and value of oil put into the chemical transformation process must be apportioned over all products within 6 months of production. If the specific process or further transformation is to be carried out at the refinery, you may approve an arrangement which enables the trader to show to your satisfaction that the requisite conditions are fulfilled.

Example of calculation of Customs duty liability/Data/INPUT

Oil of total value = £P chargeable at X%

Oil of total value = £Q chargeable at Y%

Goods of total value = £R chargeable at Z%

Goods not chargeable with Customs duty PRODUCED

Oils set aside for ‘specific process’ or further chemical transformation Weight = A

Other goods set aside for ‘specific process’ or further chemical transformation Weight = B

(Note: (5) and (6) apply only to oil and other goods within Tariff headings

2710, 2711, 2712)

Dutiable oil Weight = C

Other dutiable goods Weight = D

(7) and (8) comprise the Tariff headings and subheadings listed in paragraph 8.2.2)

Other goods Weight = E

Total weight = F

Liability

(a) Oil and other goods set aside for further process are potentially liable to Customs duty at the Tariff rate for the description of goods concerned. Duty is payable if the further process is not performed within six months of production.

(b) Oil within (7) above is to be warehoused or the Customs duty is to be paid on presentation of Form C18, the potential or actual charge being calculated as follows:

C x total duty liability of input, i.e. C x (PX + QY + RZ)

F 100

(c) Duty is to be paid on goods within (8) above using a Form

C18 calculated as follows:

D x £(PX + QY + RZ)

F 100

Note: Northern Ireland (NI) customs authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979.