Explanatory note

These regulations, which come into force on 17th July 2003, are made under the powers conferred on the Commissioners of Customs and Excise by section 20AB of the Hydrocarbon Oil Duties Act 1979. Section 20AB provides that the Commissioners may make regulations allowing reliefs from excise duty on the fuel used within pilot projects approved by them. These projects must be connected with the technological development of more environment-friendly fuels. It also provides that the Commissioners may impose conditions and give directions in connection with such reliefs, which they are doing separately.

Regulation 3 describes the fuel (methanol) that will be subject to the relief and regulation 4 sets out the period for which the relief will apply. Regulation 5 describes the form of the duty relief. The Schedule contains details of this particular project.