Bioblend is a mixture of biodiesel and heavy oil that has not been charged with excise duty, ( Hydrocarbon Oil Duties Act 1979, (HODA) section 6AB(2)), ( Notice 179E, ’What do you mean by biodiesel, bioblend, bioethanol and bioethanol blend?’). Bioblend may only be produced in a tax warehouse under duty suspension. It is usually delivered for use as a motor fuel.
Bioblend imported into the UK is liable to excise duty, customs
duty and import VAT. (HODA 6AB(1)(a)).
The Tariff code numbers (TCNs) would be those proper to the
heavy oil and biodiesel used in producing the bioblend, with
customs duty and excise duty at the respective rates. The relative
proportions of heavy oil and of biodiesel would have to be
expressed to 0.001%. (HODA 6 AB(4)).
Imported bioblend may be entered to excise warehousing under
duty suspension once it is in free circulation. The tax warehouse
should be approved as an import warehouse in order to receive and
to hold bioblend.
There are various methods by which blending may take place. The most common are bulk blending in tank, injection prior to bulk storage in tank or injection immediately prior to delivery at the loading gantry. In order that the legal requirements for production of bioblend are satisfied, the injection point must be within the confines of the warehouse.
Whichever method is used the officer must ensure that measurement systems meet our requirements ( See Notice 179, section 4) and take account prior to the duty point in order to comply with the regulations. Once blended the product may continue to be stored in duty suspension prior to the duty point.
