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  • Blends no longer considered to be fuel

    While it is clear that certain blends containing fuel components would not be considered to be a fuel (for example oil based paint), there are certain blends where it is not so apparent.

    Under section 95–5 of the Fuel Tax Act, we may determine that certain blends of fuel are not a fuel for the purposes of the Fuel Tax Act.

    We have determined that a blend is not fuel where the blend is not marketed or sold for use as fuel in an internal combustion engine, and the blend contains either:

    • biodiesel classified to tariff sub item 10.21 and a minimum concentration of either:
      • 5% by volume of surfactant; or
      • 2% by volume of oleic acid
       
    • a fuel classified to tariff sub items 10.25, 10.26, 10.27, 10.28 and either:
      • a product listed in Table 1 below at a concentration equal to or greater than the specified minimum; or
      • more than one product listed in Table 1 below and the total concentration of those products is equal to or exceeds 10% by volume.
       

    Blends that satisfy the requirements of the determination are also not considered to be a fuel blend for excise purposes.

    See also:

    • EXC 2016/5 Fuel Tax (Fuel Blends) Determination 2016 (No 1)
    Table 1: Non-fuel components

    Product

    Minimum concentration

    % volume/volume

    Tertiary butyl alcohol

    0.5

    Other alcohols (other than methanol, ethanol and isopropyl alcohol)

    10.0

    Ketones

    10.0

    Methyl tertiary butyl ether

    1.0

    Di-isopropyl ether

    1.0

    Other ethers

    10.0

    Esters

    10.0

    Surfactants

    1.0

    Silicone oils

    2.0

    Oleic acid

    2.0

    Water

    5.0

    Table 2: Examples of how blends are dealt with under the determination

    Blend

    Is it a fuel under the Fuel Tax Act?

    90% toluene with 10% volume/volume ketone

    No

    90% toluene with 8% volume/volume ketone and 2% volume/volume esters

    No

    92% toluene with 4% volume/volume ketone and 4% volume/volume esters

    Yes

      Last modified: 07 Feb 2017QC 19106