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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 originally stated.

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 below.

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 premises.

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 EMCS provisions.

Please see Public Notice 197 for further details on oils warehousing. General warehousing and movement issues are also covered by Public Notice 197.

Read the EMCS guidance

Further help and advice can be obtained from the Oils Policy team in Manchester.

Tel: 0161 827 0910

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Article Published/Sorted/Amended on Scopulus 2012-07-05 12:09:27 in Tax Articles

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