2002 No. 1773
The Hydrocarbon Oil (Marking) Regulations 2002
Made
Laid before Parliament
Coming into force
The Commissioners of Customs and Excise, in exercise of the powers conferred on them by sections 24(1) and 24A(3) of, and Schedule 4 to, the Hydrocarbon Oil Duties Act 1979M1; and additionally, being a department designatedM2 for the purposes of section 2(2) of the European Communities Act 1972M3 in relation to excise matters of the European Communities, in exercise of the powers conferred by that section, and of all other powers enabling them in that behalf, hereby make the following Regulations:
PART I PRELIMINARY
Citation and commencement1
These Regulations may be cited as the Hydrocarbon Oil (Marking) Regulations 2002 and come into force on 1st August 2002.
Interpretation2
1
In these Regulations—
“the Act” means the Hydrocarbon Oil Duties Act 1979;
“ASTM” means American Society for Testing and Materials;
“Colour Index” means the Colour Index, compiled by the Society of Dyers and Colourists and the American Association of Textile Chemists and Colorists, published 1997, ISBN 0 90195 671 6;
“the common fiscal marker” means N-Ethyl-N-[2-(1-isobutoxyethoxy)ethyl]-4-(phenylazo)aniline together with CI Solvent Yellow 124 as described in the Colour Index;
“coumarin” means 1:2 benzopyrone;
“dark oil” means heavy oil that is darker than ASTM colour 3.0 in the Table of Glass Colour Standards included in “Standard method of Test for ASTM Colour of Petroleum Products” adopted as a joint ASTM-IP standard with ASTM designation D 1500-98 and IP designation IP 196/97, which appears in “IP Standard Methods”, when the heavy oil and ASTM Colour 3.0 are compared in the manner described in that publication for that method of test;
“duty” means the excise duty charged on hydrocarbon oil by section 6(1) of the Act M4;
“heavy oil vehicle” means a vehicle to which section 12 of the Act M5 (rebate not allowed on fuel for road vehicles) applies;
“IP” means Institute of Petroleum;
“IP Standard Methods” means “IP Standard Methods for Analysis and Testing of Petroleum and Related Products and British Standard 2000 Parts 2002”, 61st edition, May 2002, published by the Institute of Petroleum, ISBN 0 85293 348 7;
“kerosene” means heavy oil of which more than 50% by volume distils at a temperature not exceeding 240°C;
“marker” means, except where the context requires otherwise, a marker or colouring substance prescribed by these Regulations and includes, in regulation 10, a composite solution of the type referred to in regulation 9;
“oil” means hydrocarbon oil;
“quinizarin” means 1,4-dihydroxyanthraquinone;
“solvent red” means CI Solvent Red 24 as described in the Colour Index.
2
Any reference in these Regulations to marked oil means oil to which a marker has been added and related expressions must be construed accordingly.
PART II REQUIREMENT TO WORK
Prescribed markers and colouring substance3
1
The following markers and colouring substance are prescribed by these Regulations—
a
for gas oil and light oil, the markers described in paragraph (2)(a) and (b) and the colouring substance described in paragraph (3);
b
for kerosene, the markers described in paragraph (2)(a) and (c).
2
The markers are—
a
the common fiscal marker added in the proportion of not less than 6 kilograms per 1,000,000 litres of oil;
b
quinizarin added in the proportion of not less than 1.75 kilograms per 1,000,000 litres of oil;
c
coumarin added in the proportion of not less than 2 kilograms per 1,000,000 litres of oil.
3
The colouring substance is solvent red added in the proportion of not less than 4 kilograms per 1,000,000 litres of oil.
Marking required for rebate4
Subject to Part III (Exceptions to marking requirements), no rebate of duty on the delivery for home use of—
a
gas oil under section 11 (1)(b) or (ba) of the Act M6; or
b
kerosene under section 11(1)(c) or 13AA(1) of the Act M7; or
c
light oil under section 14(1) of the Act;
may be allowed unless there is added to the oil, in accordance with these Regulations, the markers and, in the case of gas oil, the colouring substance, prescribed by regulation 3.
Marking required for delivery of oil without payment of duty5
Subject to Part III (Exceptions to marking requirements), the Commissioners may not permit any gas oil or kerosene to be delivered for home use without payment of duty on that oil under section 9 of the Act M8, unless there is added to the oil, in accordance with these Regulations, the markers and, in the case of gas oil, the colouring substance, prescribed by regulation 3.
PART III EXCEPTIONS TO MARKING REQUIREMENTS
Commissioners’ power to waive marking6
The Commissioners may waive the requirements of regulation 4 (marking required for rebate) and regulation 5 (marking required for delivery of oil without payment of duty) only where they are satisfied that it is necessary for technical reasons or for reasons of public health or safety.
PART IV TIME AND MANNER OF MARKING
Application7
This Part applies for the purpose of determining the time and manner in which any oil required to be marked by these Regulations is to be marked.
Time of marking8
Except as otherwise provided in regulations made by the Commissioners, oil must be marked before delivery for home use of that oil.
Use of composite solution9
Any oil may be marked by the addition to it of a solution containing the markers.
PART V STORAGE, LABELLING ETC
Storage of markers10
1
The occupier of any premises where marking occurs must keep any marker—
a
separately from all other substances; and
b
except when removed for immediate use, in containers bearing a description of their contents.
2
At the end of each month, the occupier of any premises where marking occurs must—
a
take stock of the markers that he stores for use or that are in use at those premises;
b
make a written record of that stocktake;
c
preserve that written record for not less than 6 years.
Storage of marked oil11
Marked oil must be stored separately from unmarked oil.
Labelling of delivery points for marked oil12
Any drum, storage tank or other container or any delivery pump or pipe must bear an indelible notice to the effect that—
a
where it contains, or is an outlet for, any gas oil or kerosene marked under regulation 4 (marking required for rebate), such oil is not to be used as road fuel;
b
where it contains, or is an outlet for, any light oil marked under regulation 4 (marking required for rebate), such oil is to be used only as furnace fuel;
c
where it contains, or is an outlet for, any oil marked under regulation 5 (marking required for delivery without payment of duty), such oil is not to be used as fuel for any engine, motor or other machinery or as heating fuel.
Particulars to be recorded on delivery notes13
1
Any person who supplies—
a
gas oil marked under regulation 4 (marking required for rebate); or
b
a quantity not exceeding two hundred and fifty litres of kerosene, marked under regulation 4 (marking required for rebate);
must provide to the recipient a delivery note bearing a statement to the effect that such oil is not to be used as road fuel.
2
Any person who supplies light oil marked under regulation 4 (marking required for rebate) must provide to the recipient a delivery note bearing a statement to the effect that such oil is only to be used as furnace fuel.
3
Any person who supplies oil marked under regulation 5 (marking required for delivery for home use without payment of duty) must supply to the recipient a delivery note bearing a statement to the effect that such oil is not to be used as fuel for any engine, motor or other machinery or as heating fuel.
PART VI PROHIBITIONS
Prohibitions relating to prescribed markers14
1
No oil may be marked except in the circumstances prescribed by these Regulations.
2
No marker may be removed from any oil.
3
No substance calculated to impede the identification of any marker may be added to any oil.
Prohibition relating to other markers15
1
No person may add any chemical identifier or dye other than a marker to any gas oil or kerosene required by these Regulations to be marked (other than gas oil or kerosene to which regulation 6 applies).
2
Where any person contravenes this regulation, his contravention shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) M9 and any oil to which such a chemical identifier or dye has been added shall be liable to forfeiture.
Prohibition on importation of certain oil16
No oil of a description required by these Regulations to be marked may be imported where there has been added any substance calculated to impede the identification of any marker.
Prohibition on the sale of dark oil17
No dark oil may be sold as fuel for a heavy oil vehicle.
PART VII AMENDMENTS, OMISSIONS AND REVOCATIONS
The Hydrocarbon Oil Regulations 197318
1
Amend the Hydrocarbon Oil Regulations 1973 M10 as follows.
2
In regulation 2, omit—
a
the definition of “dark oil”; and
b
the definition of “the duty deferment regulations”.
3
For paragraph (1)(f) and paragraph (2)(b) of regulation 12 (delivery notes), substitute “if the oil is required by the Hydrocarbon Oil (Marking) Regulations 2002 to be marked, the statements required by regulation 13 of those Regulations”.
4
Omit regulations 17 to 30A.
The Hydrocarbon Oil (Designated Markers) Regulations 199619
1
Amend regulation 2 (designation of markers) of the Hydrocarbon Oil (Designated Markers) Regulations 1996 M11 as follows.
2
In regulation 2(2)—
a
for the second designated marker, substitute—
“N-Ethyl-N-[2-(1-isobutoxyethoxy)ethyl]-4-(phenylazo)aniline”; and
b
omit the third designated marker.
Revocations20
1
Revoke the Hydrocarbon Oil (Amendment) Regulations 1985 M12.
2
Revoke the Hydrocarbon Oil (Amendment) (No. 2) Regulations 1994 M13.
1979 c. 5; section 24 was amended by the Finance Act 1981 (c. 35), section 6(2), the Finance Act 1982 (c. 39), section 4(3), the Finance Act 1987 (c. 16), section 1(2), the Finance Act 1994 (c. 9), Schedule 4, paragraph 58, the Finance Act 1996 (c. 8), section 5(5) and section 7(2) and Schedule 41, Part I, the Finance Act 1997 (c. 16), section 7(7) and Schedule 6, paragraph 6(6), the Finance Act 2000 (c. 17), section 10(4) and by the Finance Act 2001 (c. 9), section 3(2); section 24A(3) was inserted by the Finance Act 1996, section 7(1); Schedule 4 was amended by the Finance Act 1981, section 6(3), the Finance Act 1982, section 4(6) and by the Finance Act 1996, Schedule 41, Part I; section 1(2) defines “hydrocarbon oil”; section 27(3) applies the definition of “the Commissioners” in section 1(1) of the Customs and Excise Management Act 1979 (c. 2); section 27(3) was amended by the Finance Act 1985 (c. 54), Schedule 4, paragraph 3 and the Finance Act 1997 (c. 16), Schedule 6, paragraph 6(7).