HM Customs and Excise  16
                                                  17 March 1998
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OILS - CLEARER DUTY SYSTEM


The Chancellor announced today that the Finance Bill will
contain new legislation to  change the point at which duty is
charged. This will affect oil producers and  importers. This
will bring oil into line with alcohol and tobacco, with duty
becoming  due when it is imported or  manufactured. The amount
of duty and date of payment  is unchanged.


DETAILS

Duty on oil is currently due when it is delivered for use. The
new arrangements will  simplify and rationalise the existing
provisions, clarify the point at which excise duty  becomes
due and protect revenue.


NOTES

1.     The charging provisions affected are contained in
Section 6 of the Hydrocarbon  Oil Duties Act 1979. The new
legislation is introduced as part of the Customs Legis 
programme which aims to establish common processes and
legislation across all our  duties and taxes. 

2.     This measure will have no revenue effect.

3.     Details for traders are available in Budget Notice BN
86/98, which is available  from Customs and Excise Business
Advice Centres and from the Customs and  Excise Internet site.



Press enquiries only to HM Customs and Excise, Public
Relations Office, New  King's Beam House, 22 Upper Ground,
London, SE1 9PJ.  
Telephone:  0171 865 5468/5471

Others should contact their local Excise and Inland Customs
Business Advice  Centre, listed under Customs and Excise in
the telephone book. 
Customs and Excise Internet address: 
http://www.open.gov.uk/customs/c&ehome.htm

This news release can also be found at :
http://www.hm-treasury.gov.uk. Other Treasury material can
also be found at  this address.