When oil which is liable to customs duty is used in a process
which is not permitted to be performed in a warehouse, and that
process does not in itself give entitlement to customs duty relief,
that duty becomes payable at the time the oil is taken into
process. However, arrangements may be made (as explained in
Public Notice 171) for claiming suspension of
customs duty when the products of the process are intended for
exportation.
You must ensure that suitable procedures (as explained in
paragraph 20 of Public Notice 171) are complied with, and that the
trader adopts a reasonable method of estimating home use and export
allocations.
If a product of the process is an oil, it is to be
re-warehoused, the quantity derived from the export allocation
being entered in the records as “for export only”. Any
diversion of this oil to home use would attract EU customs duty
charge, at the rate and on the value applicable to the oil from
which it was derived, at the time that the oil was put into
process.
