Finance Act 1964

Section 6.

SCHEDULE 6 Hydrocarbon Oils

PART I Purposes for which Regulations may be made under Section 6(5) of this Act

As to grant of relief under section 6(1), (2) or (4)

1 Regulating the approval of persons for purposes of section 6(1), (2) or (4) of this Act, whether individually or by reference to a class, and whether in relation to particular descriptions of oils or generally; enabling approval to be granted subject to conditions and providing for the conditions to be varied, or the approval revoked, for reasonable cause.

2 Enabling permission under section 6(1) of this Act to be granted subject to conditions as to the giving of security and otherwise, and providing that where permission is given thereunder in the case of any oils no allowance thereon shall be paid under section 206 of the Customs and Excise Act 1952.

3 Requiring claims for repayment under section 6(2) of this Act to be made at such times and in respect of such periods as are prescribed ; providing that no such claim shall lie where the amount to be paid is less than the prescribed minimum ; and preventing, where such a claim lies, the payment of drawback or of an allowance under the said section 206.

As to mixing of oils

4 Imposing restrictions, in lieu of those contained in section 208(1) of the Customs and Excise Act 1952, on the mixing with other oils of any rebated oils or oils delivered without payment of duty.

As to marking of oils

5 Prescribing the substances which are to be used as markers.

6 Providing that the presence of a marker shall be disregarded if the proportion in which it is present is less than that prescribed for the purposes of this paragraph.

7 Requiring as a condition of allowing rebate on, or delivery without payment of duty of, any oils (subject to any exceptions provided by or under the regulations) that there shall have been added to those oils, at such time, in such manner and in such proportions as may be prescribed, one or more prescribed markers, with or without a prescribed colouring substance (not being a prescribed marker), and that a declaration to that effect is furnished.

8 Prohibiting the addition to any oils of any prescribed marker or prescribed colouring substance except in such circumstances as may be prescribed.

9 Prohibiting the removal from any oils of any prescribed marker or prescribed colouring substance.

10 Prohibiting the addition to oils of any substance, not being a prescribed marker, which is calculated to impede the identification of a prescribed marker.

11 Regulating the storage or movement of prescribed markers.

12 Requiring any person who adds a prescribed marker to any oils to keep in such manner and to preserve for such period as may be prescribed such accounts and records in connection with his use of that marker as may be prescribed, and requiring the production of the accounts and records.

13 Requiring, in such circumstances or subject to such exceptions as may be prescribed, that any drum, storage tank, delivery pump or other container or outlet which contains any oils in which a prescribed marker is present shall be marked in the prescribed manner to indicate that the oils are not to be used as road fuel or for any other prohibited purpose.

14 Requiring any person who supplies any oils in which a prescribed marker is present to deliver to the recipient a document containing a statement in the prescribed form to the effect that the oils are not to be used as road fuel or for any other prohibited purpose.

15 Prohibiting the sale of any oils the colour of which would prevent any prescribed colouring substance from being readily visible if present therein.

16 Prohibiting the importation of oils in which any prescribed marker, or any other substance which is calculated to impede the identification of a prescribed marker, is present.

As to control of storage, supply etc. of oils, entry of premises, etc.

17 Regulating the storage or movement of oils.

18 Restricting the supplying of oils in respect of which rebate has been allowed and not repaid or on which duty has not been paid.

19 Requiring a person owning or possessing a vehicle to which section 200 of the Customs and Excise Act 1952 applies which is constructed or adapted to use heavy oils as fuel to keep such accounts and records in such manner as may be prescribed, and to preserve such books and documents relating to the supply of heavy oils to or by him, or the use of heavy oils by him, for such period as may be prescribed.

20 Requiring the production of books or documents relating to the supply or use of oils or the use of any vehicle.

21 Authorising the entry and inspection of premises, other than private dwelling houses, and the examination of vehicles, and authorising, or requiring the giving of facilities for, the inspection of oils found on any premises entered or on or in any vehicle and the taking of samples of any oils inspected.

Interpretation

22 In this Part of this Schedule—

• " oils " means hydrocarbon oils ;

• " prescribed " means prescribed by regulations made under section 6(5) of this Act;

and subsection (8)(a) of section 200 of the Customs and Excise Act 1952 shall apply for the purposes of paragraph 19 above as it applies for the purposes of that section.

PART II Amendment of Section 200(3) and (4) of Customs and Excise Act 1952

23 In subsection (3) of the said section 200, for the words from " and if any heavy oils are sold" to the end of the subsection there shall be substituted the words " and any person who supplies heavy oils having reason to believe that they will be put to a particular use shall be liable to a penalty as aforesaid where that use would, if a payment under the last foregoing subsection were not made in respect of the oils, contravene that subsection:

Provided that where the act in respect of which a person is liable to a penalty under this subsection was done (whether by him or another person) with the intent by him that the restrictions imposed by the last foregoing subsection should be contravened, he shall be liable to the said penalty, or to imprisonment for a term not exceeding two years, or to both ".

24 In subsection (4) of that section—

(a) for the word " sold" there shall be substituted the word " supplied "; and

(b) after the word " subsection" there shall be inserted the words " or taken as fuel into a vehicle to which this section does not apply and remaining therein as part of the fuel supply of the vehicle when it becomes one to which this section applies ".

PART III Restrictions on Use of Oils to which Section 6(1) or (4) of this Act applies

25 Except with the consent of the Commissioners, no oil in the case of which delivery without payment of duty has been permitted under section 6(1) of this Act shall be used otherwise than as mentioned in paragraph (a) thereof or be acquired or taken into any vehicle, appliance or storage tank for use otherwise than as so mentioned, and in giving their consent the Commissioners may impose such conditions as they think fit.

26 (1) Any person who uses or acquires oil in contravention of paragraph 25 above, or is liable for oil being taken into a vehicle, appliance or storage tank in contravention of that paragraph, shall be liable to a penalty of three times the value of the oil or one hundred pounds whichever is the greater, and the Commissioners may recover from him an amount equal to the customs duty on like oils at the rate in force at the time of the contravention ; and any person who supplies oil having reason to believe that it will be used otherwise than as mentioned in section 6(1)(a) of this Act shall if that use without consent of the Commissioners would contravene paragraph 25 above, be liable to a penalty as aforesaid:

Provided that where the act in respect of which a person is liable to a penalty under this sub-paragraph was done (whether by him or any other person) with the intent by him that the restrictions imposed by paragraph 25 above should be contravened, he shall be liable to the said penalty, or to imprisonment for a term not exceeding two years, or to both.

(2) A person shall be liable for oil being taken into a vehicle, appliance or storage tank in contravention of paragraph 25 above if he is at the time the person having the charge of the vehicle, appliance or storage tank or the owner thereof, except that if a person other than the owner is, or is for the time being, entitled to possession of it, that person and not the owner shall be liable.

27 Any oil acquired, taken into a vehicle, appliance or storage tank, or supplied as mentioned in paragraph 26(1) above shall be liable to forfeiture.

28 Paragraphs 25 to 27 above shall apply in relation to oil in the case of which rebate under section 6(4) of this Act has been allowed as if—

(a) references to delivery permitted under section 6(1) of this Act referred to rebate allowed under the said section 6(4), and references to paragraph (a) of section 6(1) referred to section 6(4); and

(b) the amount recoverable by the Commissioners under paragraph 26(1) were the amount of the rebate allowed.

PART IV Sampling

29 (1) Part II of Schedule 2 to the Finance Act 1960 shall be amended as follows.

(2) For sub-paragraphs (a) and (b) of paragraph 1 there shall be substituted the following:—

“(a) if he takes it from a motor vehicle, shall if practicable do so in the presence of a person appearing to him to be the owner or person for the time being in charge of the vehicle;

(b) if he takes the sample on any premises but not from a motor vehicle, shall if practicable take it in the presence of a person appearing to him to be the occupier of the premises or for the time being in charge of the part of the premises from which it is taken”.

(3) For paragraph 2(2)(a) there shall be substituted the following:—

“(a) delivered one part to the person in whose presence the sample was taken in accordance with the foregoing paragraph, if he requires it;”.

(4) After paragraph 6 there shall be inserted the following paragraph (which reproduces the effect of section 9(7) of the Finance Act 1960):—

“7 This Part of this Schedule shall have effect, in its application to a vehicle of which a person other than the owner is, or is for the time being, entitled to possession, as if for references to the owner there were substituted references to the person entitled to possession.”.

30 The said Part II, as so amended, shall have effect with respect to any sample of hydrocarbon oils taken in pursuance of regulations made under section 6(5) of this Act.