Red diesel: EC infringement proceedings  

EC infringment proceedings against the UK because of its continued use of marked 'red' diesel.

The European Commission opened infringement proceedings against the UK (July 2011) in regard to the UK's continued use of marked 'red' diesel for the propulsion of recreational craft where the full duty has been paid.

The Commission states that the ‘marking of fuel used for propelling pleasure boats where such fuel has not borne any exemption or rebate’ undermines the common system of fiscal marking (EU Marking Directive 95/60/EC 27 November 1995).

The RYA is working with the British Marine Federation, the Inland Waterways Association and Her Majesty's Revenue and Customs on this issue. See below for latest updates.

The RYA has obtained specialist tax advice which indicates that the UK's continued use of marked 'red' diesel does not contravene the EU marking directive, and we understand that the HMRC has been similarly advised.

Justine Greening MP, Economic Secretary to the Treasury confirmed in a letter to the RYA (Sept.11) that the Government “continue[s] to believe that procedures in the UK comply with both the Energy Products Directive and the Fiscal Marking Directive, and we intend to reply to the Commission to that effect.’ 

Diesel for use in recreational craft is also marked red in many other countries outside the EU including the USA and Norway. So any boat visiting the EU having taken on fuel in any of these countries would also lawfully have red diesel in their fuel tanks.

The details of the infringement proceedings are confidential between the Commission and the UK Government.