HCOTEG153750 – Deficiencies in Warehoused Oil: Other Considerations

Removals by "dry brokers"

If a removal is made under the commercial contract terms “ex-works”, and all losses subsequently are for the risk of the buyer, any demand for the duty and other correspondence relating to an excess deficiency must still be addressed to the guarantor, who may be the owner of the goods, the warehouse-keeper or the transporter.

Adjustment of storage deficiencies

If an excess deficiency is explained as wholly or partly attributable to over-statement of the advised quantity or under-statement of the received quantity, it may be necessary to adjust the storage losses or gains for the premises where the error occurred.

After acceptance of an explanation of under-statement of the received quantity you should forward the local file to the Officer at the place of receipt for action as follows:

If the accounts for the month have been completed and verified, the trader should amend them as necessary.

Otherwise the officer should:

• note the deficiency reference number, the exact description of the oil and the quantity to be added to the storage loss or deducted from the gain; and
• if necessary, to amend the record of percentage gains and losses. (If these amendments are frequent, this may be carried out quarterly.)

Increase in transit

If an increase in transit is unduly large or if substantial increases are frequent, the Local Officer should investigate and establish that the methods and procedures for measurement are reliable.

Amendments of errors in warehoused accounts and central accounting records

Procedures to be followed

Underpayments and overpayments not exceeding £100 in total discovered in an accounting period are to be ignored in the absence of habitual carelessness or suspicion of fraud. Traders who wish to do so may adjust small overpayments or underpayments of duty providing the same limit is consistently applied.

Where errors exceed £100 or are habitual in nature assessment action is to be taken in accordance with guidance X-51.

Officers at warehouse/remote marking premise may take assessment action locally but must notify relevant details to the Central Accounting Point Officer (CAPO).

In addition to the procedures outlined in X-51 the following must be observed:

1. The assessing officer should contact the Oils Accounting Centre at Southend to obtain a Unique Reference Number which should be recorded on the EX601.
2. The assessing officer should advise the Oils Accounting Centre of the person to be assessed and the amount of the assessment.
3. Ensure that a copy of the EX601 is

4. The assessing Officer should advise the CAPO

The Oils Accounting Centre will monitor payment and advise DMU in cases of default.

Penalties

The procedures and circumstances governing the imposition of penalties are covered in guidance X-51B

Over-claim of repayment

Any repayment in excess of the amount due is to be dealt with as above. Regular over- claiming of repayments by deferment account holders are to be reported to the Oils Accounting Centre who should be advised not to make any further repayments without prior verification by the CAPO. Similar action should be taken via the Mineral Oil Relief Centre in relation to other repayment traders.