Biodiesel and bioethanol that are used in the production of
another product, such as bioblend, can be designated as
“process oils” – see
Notice 179.
Warehouse-keepers and producers may deliver process oils
under duty suspension provided they are delivered to a tax
warehouse that is approved to store biofuels for the purposes of
producing bioblend or bioethanol blend.
Otherwise duty must be paid subject to normal tax point rules
(see
HCOBIG9100 )
With the advent of the
Renewable Transport Fuel Obligation (RTFO) a
steadily increasing proportion of road fuel will contain blends of
biofuel. The general policy is that biofuel will move (as a process
oil) under duty suspension for blending with diesel and petrol.
However, some arrangements, for movements of diesel/petrol,
have been made (and some with policy approval) to facilitate the
trade in, and production of, biofuels.
There will not be a sudden withdrawal of arrangements but, at
the time of publication, the UoE is undertaking a review to
establish their extent.
Following this review any change considered necessary to
these arrangements will be brought in over an agreed timescale -
this might be up to 2 years or perhaps longer if there are economic
and practical constraints. Consultation will take place before any
change is announced.
Announcements will be made via the website and in updates to
this guidance.
Where biofuel is removed from a UK tax warehouse to a tax
warehouse in another EU member state it can travel under
duty-suspension, subject to the requirements of Regulations 10 and
11 of the
Excise Goods (Holding, Movement, Warehousing and REDS)
Regulations 1992 (EGWMR) (i.e. movement documentation and
security).
Where duty paid product is transferred to another EU member
state a simplified accompanying administrative document
(‘SAAD’) must be completed, in accordance with Part III
of the
Excise Goods (Accompanying Documents) Regulations
2002.
