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MBYINVESTIGATES
The truth about
Red diesel in Belgium
Reports have come in recently of UK boaters being heavily fined for using red diesel in the EU state
What is red diesel?
It’s essentially the same as normal
‘white diesel’ you put in a car at
a filling station (though there is a
technical difference regarding sulphur
content and the percentage of biofuel
that it contains). Red diesel is marked
with a chemical fiscal marker and
a red dye to make it distinguishable
to authorities that wish to inspect it.
Why differentiate it?
The dye and chemical fiscal marker
are used to identify diesel that has
been exempted from prescribed
minimum duty levels, such as for
non-road use applications – typically
agricultural or construction site use.
Does this include boats?
Leisure boaters were free to use the
much cheaper red diesel in the UK.
However, since 2008, following
implementation of an EU directive,
red diesel to propel private pleasure
craft has been prohibited unless the
person purchasing the fuel makes
a declaration in the prescribed form
and pays the requisite additional duty.
So why does the UK not
just use white diesel?
Cost. Commercial boat operators are
still allowed to use red diesel. In many
cases, it would not have been cost
effective for suppliers to install
separate pumps to supply white
diesel for leisure craft. Consequently,
there was concern that diesel would
become unavailable to recreational
craft for long stretches of coastline.
Leisure boaters are entitled to
use rebated fuel for non-propulsive
‘domestic’ purposes like heating and
generators. Due to the complications
involved in supplying two different
types of fuel to boats that only have
one diesel tank, HRMC decided red
diesel could be legally supplied to
leisure boaters provided purchasers
declared the proportionate split to
correctly reflect the amount that
120
120
If undocumented red
diesel is found in your
tanks in Belgian waters,
you could face a heavy fine
In May 2016, with Brexit reaching boiling
point, the Belgian stance appeared to harden
would be used for domestic purposes
and for propulsion, so that the
appropriate duty could be paid.
How is that calculated?
It can’t be, so HMRC agreed a
pragmatic solution which was an
assumption that on average, 60% of
fuel would be for propulsion and 40%
for domestic use. When you buy fuel,
you sign a declaration to that effect
and if your usage differs, you must
declare the correct proportions.
Is the EU happy?
Initially the EU directorate-general for
taxation and customs confirmed that
people could acquire red diesel in the
UK and use it legally in other member
EU states if transported in the normal
fuel tank, but it changed its mind. The
UK’s solution to the implementation
of the directive is now being challenged
and in 2014, the European Commission
indicated that it was referring the UK
to the European Court of Justice.
What happens when
I take my boat abroad?
Generally you can use red diesel
purchased in the UK abroad as long
as you can demonstrate that it was
purchased in the UK. Both the French
and Dutch authorities have confirmed
that visiting craft can have red diesel
in their tanks if bought legally in the
UK. You cannot, however, legally
purchase red diesel whilst in most
other EU countries for leisure use.
How about other EU
member states?
The same should apply. But, the RYA
recommends recreational boaters
visiting other EU member states keep
receipts for diesel purchased in the
UK and request that the retailer marks
them duty paid. You should also log
the date of refuelling and engine
hours. Do not carry red diesel
anywhere other than in the craft’s
main fuel tanks and do not purchase
red diesel in a country where the
purchasing of rebated fuel by leisure
craft is prohibited by law.
What is the situation
with Belgium?
It is unlawful in Belgium to use red
diesel for propelling a private pleasure
craft. At the beginning of the decade,
boating in Belgium with red diesel in
your tanks put you at risk of a big fine.
But, the authorities soon realised this
was deterring British boaters and they
seemed to become more tolerant.
In May 2016, with Brexit reaching
boiling point, the RYA reported the
Belgian stance to this issue ‘appeared
to be hardening.’ In June 2017, a UK
boater was fined €500 for having
traces of red diesel in his tank. The
organisation has heard of a further six
yachts being fined in Belgium since.
So what advice is there
for UK boaters visiting
Belgium?
In a recent twist to the tale, the
Belgian Ambassador to the UK has
told the Cruising Association that
Belgium will suspend fines for boats
found to be carrying red diesel, until
the issue of a uniform approach by all
member states has been discussed
by the EU Committee on excise duty
on September 18. The RYA also
proactively sought to verify this
information and has been assured
that British yachts can enter Belgian
ports without fear of being fined at
present. It should, however, be noted
that this is not a change to the Belgian
legislation. It is simply a statement
that the law will not be enforced
in the short term. The anticipated
outcome of the EU level debate is
uniform treatment on the use of red
diesel in all EU ports, which should
then give boaters clarification.
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