Red Diesel can only be used in UK Waters!

[Deleted User YDKXO]

I'd only add that this is prima facie the case, though as i've said many times, I suspect this is a tactic to ultimately try and get rid of the 60/40 split.

That is the crux of the matter. The EU takes the view that the availability of marked diesel to private users and the different level of duty applied to it compared to diesel used for other forms of private propulsion contravenes EU directives. As I understand it, the EU directives require the same level of duty to be applied to all diesel used for any kind of propulsion purpose in order to stop individual EU countries favouring their own specific industries with reduced duty rates. In other words, in the EU's terms, the 60/40 reduced duty rate favours the UK marine fuel supply industry and the UK boating industry and is anti-competitve. What the EU wants to see is diesel sold at the same duty rate as all other types of diesel used for propulsion (ie road diesel duty rates) with, if necessary, rebates given to commercial users and if diesel is to be marked (ie red), it should only be sold to commercial users.
The whole 60/40 duty rate only came about because, at the time, the UK's road diesel duty rates were so much higher than the rest of the EU that it was deemed to be too much of a financial shock to the UK boating industry to apply road diesel duty rates to red diesel used by private users. So, in effect, the UK has to blame itself for this situation to some degree because of the excessively high rate of duty applied to road fuels

 

[ian38_39]

I don't think that is the case. The EU insists on a minimum level of duty on fuel for propulsion but there is no maximum.

It is UK HMRC that will not allow more than one level of duty to be used for any one fuel for the reason of fraud prevention.

As the UK level is way above the minimum level there is plenty of room for lower priced fuel but they won't do it with white as everyone would put it in their cars but more problematic would be organised fraud.

 

[rafiki_]

That is the crux of the matter. The EU takes the view that the availability of marked diesel to private users and the different level of duty applied to it compared to diesel used for other forms of private propulsion contravenes EU directives. As I understand it, the EU directives require the same level of duty to be applied to all diesel used for any kind of propulsion purpose in order to stop individual EU countries favouring their own specific industries with reduced duty rates. In other words, in the EU's terms, the 60/40 reduced duty rate favours the UK marine fuel supply industry and the UK boating industry and is anti-competitve. What the EU wants to see is diesel sold at the same duty rate as all other types of diesel used for propulsion (ie road diesel duty rates) with, if necessary, rebates given to commercial users and if diesel is to be marked (ie red), it should only be sold to commercial users.
The whole 60/40 duty rate only came about because, at the time, the UK's road diesel duty rates were so much higher than the rest of the EU that it was deemed to be too much of a financial shock to the UK boating industry to apply road diesel duty rates to red diesel used by private users. So, in effect, the UK has to blame itself for this situation to some degree because of the excessively high rate of duty applied to road fuels

Excellent summary, backed up by Bart in Belgium.

 

[gjgm]

Excellent summary, backed up by Bart in Belgium.

Ok, but it is still 60/40 in UK, and maybe a great many people think that is a better deal. CIs are still in bound.
Hell, every time I am out of the Solent-Weymouth I never see another motorboat anyway.
Now, if we could combine a VAT/Red inspection thread, we would really be onto something