Except for certain premises covered in
HCOTEG145000 (‘Synthesis
Refineries’), producers must compile a balanced account of
operations each month. If convenient this may take the form of the
traders’ own charge and yield accounts. If a producer’s
premises, includes a number of distinct processes, you may agree
with the producer that separate records are kept for separate
processes if this is mutually convenient to the trader and the
revenue.
If a trader wishes to balance the return by weight rather
than by volume this may be allowed but the quantity in litres must
also be shown against those items which must be reconciled with
other returns (e.g. the balanced stock account).
The record of operations need not be balanced unless the oil
produced is derived from warehoused oil feedstock. When a balanced
account is required, the balance must include oil and residues
which are not required to be warehoused.
Deliveries of warehoused oil for use in Class A activities,
e.g. manufacture of rebateable ‘cut- back’
preparations, should be included as a separate figure under the
heading “oil used duty- free for eligible purposes”.
Class A producers who neither use nor produce oil that must
be warehoused are not required to keep the record of
operations.
Oil stored in the vessels covered by warehouse approval at a
producer’s premises, should be included in the balanced stock
account. Oil in process at the end of the month should be excluded,
but must be included in the record of operations.
of chemicals from these primary products, e.g. alkylation to
produce detergents.
