HCOTEG152530 - Deficiencies in warehoused oil: Trader's explanations for deficiencies: Consideration of explanations
Local Officer
If the excise duty on an occasional excess deficiency does not exceed 拢100 the officer for the despatching warehouse may, in the absence of suspicion, write off a loss without requiring an explanation from the trader.
A trader鈥檚 explanation of a loss may be accepted if the facts establish that the quantity deficient is accounted for by one or more of the following occurrences:
- The oil was lost or destroyed (e.g. by evaporation or spillage) and cannot reasonably be recovered
- The oil was diverted to premises approved for duty-free use, and was put to such use
- As a result of accounting errors or inaccuracy of measurement, less oil was delivered or more was received than originally certified.
The explanation and all available information are to be considered as a whole.