Hydrocarbon Oil Duties Act 1979 (HODA) Sections 6 and 8:
Section 6(1) makes a distinction between 1) hydrocarbon oil
imported into the UK, and 2) hydrocarbon oil produced in the UK and
delivered for home use.
UK produced hydrocarbon oil, is not charged with, nor is it
subject to, duty unless it is delivered to home use. So, for
example, oil produced in the UK that is used within the refinery
(i.e. it never leaves the refinery to be delivered for home use)
will not be charged with duty.
Although it is commonly understood that the excise duty is
payable when the oil is delivered for home use, Section 6 of HODA,
the section that creates the charge, has no actual requirement to
pay the charged duty. Accordingly, Regulation 4 of the Hydrocarbon
Oil Regulations (HOR) 1979 is used to make an obligation to pay.
Regulation 4 of HOR also applies to regulations 15, 16 and 17 of
the Excise Warehousing etc Regulations (EWER) to entered premises
and refineries as though they were warehouses.
Third country imports - the requirement to pay the
charged excise duty is governed by Section 43 of the Customs and
Excise Management Act 1979 (CEMA), as well as Sections 46 to 48
depending on the use or destination of that oil.
Intra-EU imports – the requirement to pay
the charged duty will be subject to the excise duty points provided
by the REDS regulations 1992/3135.
Road fuel gas Section 8 of HODA - Section 8(1) and
(2) HODA charge duty on the sending out/setting aside for use of
road fuel gas with a duty of excise. The obligation or requirement
to pay duty is imposed by regulation 5 of the Gas (Road Fuel)
Regulations 1972/846.
