DMBM535085 - Debt and return pursuit - Excise Duties (other than APD): Who is liable to pay the debt? Duty on mineral oils?

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Duty is charged on oil imported into the UK or produced in the UK and delivered for home use from any mineral oil producer's premises or direct-import warehouse. See X-27 Mineral Oils.

Duty is charged either at the full rate of excise duty or at a (rebated) reduced rate. For example:

Unleaded petrol is liable to duty at the full light oil rate, and does not attract rebate. Gas oil (DERV/ULSD) is liable to duty at the appropriate heavy oil rate but duty can also be accounted for at a rebated (reduced) rate when gas oil is marked and dyed and delivered for a qualifying off-road use.

Kerosene can be delivered at a fully rebated rate (NIL) when marked for use as heating fuel.

Relief from excise duty is available in specific circumstances such as oil used for manufacturing purposes, use in ships engines, etc.

Drawback of excise duty can be claimed when oils are exported or destroyed.

The warehouse keeper, refiner or producer

The warehouse keeper, refiner, or producer, is responsible for keeping accurate records and paying duty due.

However, payment of the duty may be deferred on mineral oil removed from warehouses. Section 127A of the Customs and Excise Management Act 1979, and the Excise Duties (Deferred Payment) Regulations 1992 [S.I. 1992/3152] referred to as ED(DP)R ,provide that the payment of any excise duty on mineral oil may be deferred subject to such conditions or requirements as the Commissioners may impose. The deferment accounting period for excise duty is from 0000 hours on the 15th day of each month to 2400 hours in the 14th day of the following month. Payment day is the last business day of the latter month. Payment is to be made in accordance with Notice 179 Mineral (Hydrocarbon Oils: Duty and VAT: Warehousing and related procedures).

Warehouse keepers may be acting as agents for the approved person

Regulation 5 (1) of the Other Fuel Substitutes (Payment of Excise Duty etc) Regulations1995 [S.I 1995/2717], provides:

(1) Subject to paragraph (2) below, a producer shall in relation to his premises not later than the fifteenth day of the month next following the preceding month-

(a) pay the Commissioners at the address the amount of excise duty charged by section 6A of the Act in respect of all liquid fuel and all liquid additive or extender sent out from those premises in the preceding month and in respect of all liquid fuel and all liquid additive or extender put to a chargeable use (within the meaning of section 6A) at those premises in the preceding month; and

(b) furnish the Commissioners at the place which for the purposes of subparagraph (a) above

constitutes the address a return in respect of the preceding month on the form set out in Schedule 2 to these Regulations containing full information in respect of the matters specified in the form and a declaration, signed by him, that the return is true and complete.

Where the 15th day is not a working day, the due date is the last working day before the 15th.

This Regulation does not apply to those producers who apply for authority, and have been authorised, to pay duty arising under the terms of s6A of the Hydrocarbon Oil Duties Act 1979, in accounting periods beginning on the 15th of one month and ending on the 14th of the following month. Such producers declare this liability on Form HO10 in lieu of Form HO930 set out in Schedule 2 to these regulations.