HCOTEG152290 - Losses of oil removed under duty suspension: Notifiable deficiencies

Public Notice 179 paragraph 14.3 provides the definition of ‘a notifiable deficiency’.

The information given here is intended to supplement the advice given in the Public Notice in order to provide guidance to Oils Assurance Officers, in how to deal with ‘excess’ deficiencies.

When a notifiable deficiency has been identified by the receiving warehouse under Public Notice 179 paragraph 14.3.1 that warehouse should:

• investigate the cause
• re-check the basic data and calculations as far as possible
• send a certified copy of the Delivery Note, W8 or AAD as appropriate as a Certificate of Receipt back to the despatching warehouse as a notification that a consignment has suffered an excess deficiency, or a loss which, although within the normal allowances, has some feature which prevents it being written off at the place of receipt.
• advise HMRC under locally agreed procedures.
• Excise Goods Accompanying Documents Regulations 2002, Regulation 14 requires copy 3 to be submitted to HMRC except when shipping more than (>) 50,000 litres of hydrocarbon oil by sea and any shortage does not exceed 0.5% of that quantity).

On becoming aware of a transit loss, the despatching warehouse under Public Notice 179 paragraph 14.3.2 must:

• investigate the cause without delay and notify HMRC.

We will ask for an explanation to be provided within 21 days ( Excise Warehousing etc Regulations, Regulation 15).

Trader

Each explanation of a deficiency must give all the relevant information.

If supporting evidence is not available, the steps being taken to obtain it must be stated. The despatching warehousekeeper must satisfy us that all reasonable steps are taken to

1. safeguard duty-suspended oil during loading, transportation and discharge;
   
   
2. measure accurately the quantities despatched, and
   
   
3. pay duty and, if appropriate, VAT, forthwith on the deficiency or on that part not already satisfactorily accounted for.

The despatching warehousekeeper must also ascertain and furnish all relevant information concerning any incident, accident or error affecting the oil.

We will not consider an explanation alleging an accidental loss, a diversion of oil, an incomplete discharge or an error in taking a despatch or receipt account without evidence.