Establishing the biodiesel content
of bioblend after the duty point
During the meeting of the Biofuels Working Group on 23 January 2008
HMRC agreed to provide a ‘pecking order’ of acceptable evidence
to determine the biofuel content of bioblend delivered to home use and on
which excise duty has been paid (Action point 4).
Suggested methods for determining the quantity of biodiesel present in bioblend,
which is marked at remote marking premises following delivery to home use
on payment of duty, are set out below. It is essential to establish a procedure
to ensure:
- that rebate claims (HO9s) reflect the lower duty rate applicable to the
biodiesel element
- that the calculation of any claim does not become overly complicated
and burdensome
HMRC accept that some flexibility is essential in order to achieve practical
procedures. Therefore, it is recommended that similar procedures, to those
proposed in respect of 'slops', should be adopted:
- Where Automotive Gas Oil (AGO) is marked at an RMP, and there is an audit
trail to show the biodiesel content (ie it can be traced to a particular
production source), the producer’s blend ratio for the duty period
during which the original duty payment occurred may be used.
- Where AGO is marked at a RMP, and there is no audit trail to show the
biodiesel content, the assumption will be that the AGO has been blended
to the limit (5%).
- HMRC’s understanding is that companies will not, as a matter of
routine, seek to use biodiesel in the production of an IGO blend. Where
Industrial Gas Oil (IGO) is marked at a duty-paid terminal the assumption
will be that there is no biodiesel component.
- However, IGO may, exceptionally, be blended with biodiesel and subsequently
marked at an RMP. In these circumstances, where an audit trail shows that
biodiesel has been blended with IGO, the ratio should be determined by reference
to the particular blend. Where this is not possible the ratio per b) or
e) will apply.
- Where IGO or AGO are marked at an RMP, and there is uncertainty as to
the biodiesel content, this may be established by laboratory analysis. Where
this option is used the results of analysis may be taken to provide the
basis for claims.
HMRC will not be prescriptive as to the nature of the documents required.
Any documentation, commercial or official, will be acceptable provided it
is sourced from the originator, eg the producer of the bioblend, the laboratory
conducting the analysis or other reliable source, and there is no reason to
doubt the validity of the documentation.
