Miscellaneous reliefs

C1C218 Fuel for ships in home waters.

C3C4C51

If, on an application made for the purposes of this subsection . . . F1 by the owner of a ship specified in the application, not being a pleasure yacht, it is shown to the satisfaction of the Commissioners—

a

that . . . F1 any quantity of heavy oil has been used as fuel for the machinery of the ship while engaged on a voyage in home waters; and

b

that no drawback was allowable on the shipment of the oil,

the applicant shall be entitled to obtain from the Commissioners repayment of the amount of any excise duty which has been paid in respect of the quantity so used F2less any rebate allowed in respect of the duty, . . . F1.

2

Subject to subsections (3) and (4) below, heavy oil in a warehouse or refinery may, on an application made for the purposes of this subsection in such manner as the Commissioners may direct by the owner of a ship specified in the application, not being a pleasure yacht, and on the prescribed security being given, be delivered without payment of excise duty to the applicant for use as fuel for the machinery of the ship while engaged on a voyage in home waters.

3

At any time not later than 12 months after any oil has been delivered as mentioned in subsection (2) above the Commissioners may require the applicant to prove in the prescribed manner that the whole of the oil, or such part of it as is not on board the ship or has not been relanded with the sanction of the proper officer, has been used as so mentioned.

4

If proof of any matter relating to the use of any oil, required by the Commissioners under subsection (3) above is not furnished to their satisfaction, any duty which but for the provisions of subsection (2) above would have been payable on the delivery of the oil shall become payable by the applicant on demand made by the Commissioners in the prescribed manner.

5

If, where oil has been delivered from a warehouse or refinery without payment of duty on an application under subsection (2) above, a person—

a

uses the oil or any part of it otherwise than as fuel for the machinery of the ship specified in the application while engaged on a voyage in home waters; or

b

relands the whole or any part of the oil at any place in the United Kingdom without the sanction of the proper officer,

F3his use or relanding of the oil or any part of it shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and, in the case of any contravention falling within paragraph (b) of this subsection, the oil relanded shall be liable to forfeiture.

6

In this section—

a

“owner”, in relation to an application, includes a charterer to whom the specified ship is demised, or, in a case where the application relates to oil used, or for use, on a ship while undergoing trials for the purpose of testing her hull or machinery, the builder or other person conducting the trials;

b

“prescribed” means prescribed by regulations made by the Commissioners; and

c

“voyage in home waters”, in relation to a ship, means a voyage in which the ship is at all times either at sea or within the limits of a port.

7

This section shall apply as if references to ships included references to hovercraft (and “pleasure yacht”, “voyage”, “reland” and other expressions shall be construed accordingly).