HM Revenue and Customs Brief 20/12
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Excise duty: Notification of inclusion of fuel additives
within Control and Movement Directive
Issued 29 June 2012
Purpose of this brief
This Revenue & Customs Brief provides further
information to that given in Revenue & Customs Brief 31/11
issued on 3 August 2011, regarding changes that are being made to the
treatment of fuel additive products falling under commodity code 3811.
It advises producers/importers of these products of the recent Excise
Committee decision on the treatment of additive products falling under
CN 3811 21 00 (additives for lubricating oils - containing petroleum
oils or oils obtained from bituminous minerals) and 3811 29 00
(additives for lubricating oils - other).
Please note that the new arrangements have also been deferred
until 1 January 2013, rather than 1 July 2012 as originally stated.
Who needs to read this?
If you produce and/or import fuel additives covered by the
commodity codes 3811 21 00 and 3811 29 00, you may be affected by a
recent EU vote to amend a previous decision to change the EU treatment
of products falling under CN code 3811.
Commodity code 3811 includes anti-knock preparations,
oxidation inhibitors, viscosity improvers, anti-corrosive preparations
and other prepared additives, for mineral oils (including gasoline) or
for other liquids used for the same purposes as mineral oils.
As advised in Revenue & Customs Brief 31/11, the EU
Excise Committee recently voted to subject products falling under CN
code 3811 to the control and movement provisions of Directive 2008/18.
The decision meant that with effect from 1 July 2012 these products
will become subject to the holding and movement provisions contained in
EU Directive 2008/118.
There was a residual question as to how products that fell
under CN 3811, but were additives to lubricants rather than motor fuel,
were to be treated. The Excise Committee agreed to look at this issue
again and voted on it at their meeting on 12/13 March.
We can now confirm that the Excise Committee voted positively
to amend the original decision. This means that those products that are
to be used as additives to lubricants will be excluded from the H
& M provisions. More precisely, the decision removes additives
for lubricating oils falling within CN codes 3811 21 00 (additives for
lubricating oils - containing petroleum oils or oils obtained from
bituminous minerals) and 3811 29 00 (additives for lubricating oils -
other) from the scope of the Directive.
For all other products falling under CN 3811, the new
arrangements will proceed as planned. However, the implementation date
has been deferred until 1 January 2013, rather than 1 July 2012 as
What do I need to do now?
If you only deal in products that fall under CN codes 3811 21
00 and/or 3811 29 00, you will need to do nothing as these products
will be excluded from the new provision. However, for all other
products within CN code 3811, you will need to follow the advice
contained in Revenue & Customs Brief 31/11, which is reproduced
With effect from 1 January 2013, these products will have to
travel under community duty suspension arrangements between approved
tax warehouses. Movements of fuel additives will have to be controlled
using the electronic Excise Movement and Control System (EMCS). If
producers or importers of these products do not have tax warehouse
approval, excise duty will be due on production and/or importation.
You may already be approved as a tax warehouse, in which case
you will not need to apply for re-approval. However, you will need to
amend your approval to include fuel additives. You can find out how to
amend your approval from the guidance contained in section 4 of Notice
196 Excise goods: authorisation of warehousekeepers and approval of
If you do not have warehouse approval, and you wish to move
these products under duty suspension arrangements, you should apply
following the guidance in section 3 of Notice 196. If you do not apply
for approval as a tax warehouse, then you will have to account for
excise duty upon production or importation of the goods.
Fuel additives (other than those CN codes specified above) are
treated in the same way as other oil products that move under duty
suspension arrangements. The products must move between tax warehouses
and with the relevant accompanying document. These are called
Electronic Accompanying Documents (eAD) which are submitted using the
Please see Public
Notice 197 for further details on oils warehousing. General
warehousing and movement issues are also covered by Public
the EMCS guidance
Further help and advice can be obtained from the Oils Policy
team in Manchester.
Tel: 0161 827 0910
About the Author
© Crown Copyright 2012.
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Article Published/Sorted/Amended on Scopulus 2012-07-05 12:09:27 in Tax Articles