How do I pay Excise Duty on bioblend and bioethanol blend?
If you blend biodiesel or bioethanol with duty suspended oil to produce bioblend or bioethanol blend, this can only be done in an excise warehouse. Duty payment may be deferred provided the products are placed in the same excise warehouse as the oils they are being blended with. You will need to obtain a Duty Deferment Account in order to do this. See Notice 179E Biofuels and other fuel substitutes for more information. The Excise Duty due on these blends must be pro-rated between the two grades on the HO10 and be shown against the appropriate tax types. For example, in the case of bioblend, duty must be accounted for duty under tax type 589 for the biodiesel portion and 545 for the ULSD portion. If any other type of heavy oil is used to make bioblend, that portion of the blend must be shown under the appropriate tax type. You must be able to support the apportionment from your own production and blending records.
