HCOTEG121510 - Marking: background: introduction

Introduction

Marking refers to the addition of prescribed chemical markers and dyes to mineral oils and biodiesel to show that they have borne a lower (rebated) rate of duty.

See Notice 179, paragraph 8.1.

Gas oils, kerosenes, light furnace fuel, adn biodiesel can be removed from duty suspension on payment of duty at ‘rebated’ rates, provided that they are used in an excepted machine.

As an indication of the rebated rate of duty being charged, the Hydrocarbon Oil (Marking) Regulations 2002 (as amended by the Hydrocarbon Oil (Marking) (Amendment) Regulations 2007), provide for these rebated oils to be marked (or marked and dyed).

This is done to deter misuse of the rebated oil fuel and to provide for detection of marked oil by Mobile Enforcement Teams (METs).

For details of Oil products and their markers see HCOTEG212250

Chemical marking and dyeing may be done in duty suspended premises before the duty is charged, or after the duty has been charged at registered Remote Marking Premises (RMPS).

Marked gas oil can be used legitimately in those machines listed as ‘excepted’ machines in Schedule 1a of the Hydrocarbon Oil Duties Act 1979.

For further information on the use of rebated oils in machinery and vehicles see Notice 75.