HCOS2525 - Registered Dealers in Controlled Oils (RDCO): failure to render returns and / or pay the duty on supplies of red diesel for use in private pleasure craft

The Departmental Trader Register (DTR) is intended to automatically identify RDCOs who have failed to render their return, and the system should automatically send a reminder / warning letter. In addition, the Mineral Oil Reliefs Centre (MORC) may ask Large Business (LB) to contact the trader direct and issue a warning letter. From then on, a late return will incur an automatic penalty, which MORC will issue. They will note these actions on DTR.

If any such penalties remain unpaid by the due date, MORC will request a visit to impress upon the trader the need to supply all outstanding returns and pay any penalties. At the same time, the trader’s records should be examined, as the trader has demonstrated non-compliance and should therefore be considered high risk. If, after this visit, non-compliance continues, revocation of RDCO approval will be considered by MORC.

RDCO suppliers of red diesel to private pleasure craft: Failure to render returns and payments

DTR will automatically identify RDCOs who have failed to render their payment return and / or payment if they supply red diesel for use in private pleasure craft and the system will automatically issue a reminder / warning letter which will be sent out by MORC. If a return is still not received, MORC will refer the case to Customer Compliance (ISBC) / LB for follow up action.

The trader should be contacted to establish why the return and / or payment has not been rendered but checks should first be made on RDCO monitor to confirm non-receipt.

If the trader confirms that the return and / or payment has in fact not been rendered:

• consider whether or not the trader has a reasonable excuse (see HCOS2575), and
• offer advice or assistance where the trader has genuine difficulty complying.

Unless reasonable excuse can be demonstrated you should consider issuing a penalty.