HCOBIG4200 - Structure of the Industry: Biofuels simplification
The Biofuels and Other Fuel Substitutes (Payment of Excise
Duties etc) (Amendment) Regulations 2007 (BoFSAR) were
introduced on 30th of June 2007 amending the Biofuels and Other
Fuel Substitutes (Payment of Excise Duties etc) Regulations 2004
(BoFSR), in order to make provision for (or ‘allow
for’) the simplification of the biofuels regime.
Under the
simplification:-
- small producers have been exempted from the requirement to register, to submit returns, and to pay excise duty on the biofuel that they produce, provided this is less than 2,500 litres per annum.
- exempt producers are required to keep records of their production and retain them for six years. They have to make entry/register their production premises, when their production exceeds or is expected to exceed 2,500 litres in any 12 month period, and to pay duty on all the biofuel they produce from the date of registration.
- most producers remaining on the register will submit their returns quarterly instead of monthly. This applies to producers of 2,500 litres or more, but less than450,000 litres per annum
- a small number of the larger producers who produce 450,000 or more litres per annum will remain on monthly returns.
Provision has also been made under BoFSAR Regulation 4,
requiring the registration of production premises used by several
producers (multiple producers) and also requiring registration by
producers of all their production premises (multiple premises) in
order to account for those producers who share premises or
equipment.
If producers share premises or equipment with other
producers, they will now be treated as a group. A group can only be
exempt if its members’ total production was less than 2,500
litres in the last 12 months, or is expected to be less than 2,500
litres in the next 12 months. Otherwise the group has to register
all their premises and to pay duty on all the biofuel that they
produce collectively. These measures are in place to prevent
co-operatives, collectives and partnerships from splitting up their
businesses to claim that they are individually below the
registration limit.
For further information on the Biofuels and Other Fuel
Substitutes (Payment of Excise Duties etc) (Amendment) Regulations
see
HCOBIG2400
For further information on ‘Biofuels
Simplification’ see
Notice 179E
