Changes related to other petroleum products came into effect on 1st January 2021

Changes related to other petroleum products came into effect on 1st January 2021

The market participants were somewhat surprised by the legislator with the provisions of the implementing regulation, which has come into force on January 1st of 2021. The material flow of other petroleum products must be divided into three categories, but the fee is still HUF 114 / kg. Unfortunately, the provision does not specify exactly which oils with physical and chemical properties should be included in the given categories. We want to help our Dear Readers with the involvement of Ferenc Laczi, one of the most renowned excise experts in the country.

The three categories are as follows:

Categori I: Engine and gear oils

Categori II: Industrial oils (excluding emulsions)

Categori III: Industrial oils (emulsions)

This summary sets out guiding principles that can only be considered as a guide, but for each specific product we need to consider first of all the following “simpler” questions:

.         what is this substance?

.         • in which area?

.         for what purpose?

The answers to these three questions will mainly define which categories we can classify the products into.

I. Engine and gear oils - This category includes oils which::

a) Used in internal combustion engines to reduce friction between internal, rotating, moving engine parts These can be oils circulated inside the engine by means of an oil pump (this is usually drained and changed during the car's oil change service), which, in addition to lubrication, also play a role in cooling the engine and are therefore exposed to intense heat. This is the reason why the oil must be changed for each service cycle specified by the vehicle or machine manufacturer, as thermal and mechanical stress will reduce the capacity of the oil for which it is used. But it should not be forgotten that there are even two-stroke engines where the aforementioned form of lubrication is not technically feasible, but lubrication must still be provided. For this it was invented anno that the lubricating oil is mixed with the petrol, so the lubricating oil gets inside the engine along with the fuel, where much of it condenses on the internal metal surfaces and the rest is burns along with the petrol. That's why two-stroke engines smoke better. The fact that it burnst, does not make it fuel additives yet. That is, these so-called engine oils are oils that provide lubrication for internal combustion engines and must therefore either be poured into the engine or blended with petrol, and this will be the so-called mixture of fuel.

b) Another large category of lubricating oils that must be poured into transmission systems connected to engines in order to reduce friction in the transmission system is to ensure quieter operation and, last but not least, to reduce the heat from friction. Briefly, it multiplies the life of the system. These oils, like engine oils, must be poured into the housing of the gears (torque converter or, as is commonly known, gearbox and clutch, in common parlance, because there are also oiled coupling devices).

II. Industrial oils::

This category includes oils that are used in an industrial area or may be specifically developed for a specific activity. For example, a rolling mill oil - which is used for aluminum rolling - where the material to be rolled or rolled is sprayed with a special oil before and after the rollers, on the one hand to reduce friction and on the other hand to reduce heat during metal grid transformation. Not to mention - and this also applies to engine and gear oils - to remove metal particles from surfaces that come off during operation, so as not to cause damage to the surface or between surfaces. There are several types of such special oils, which in many cases are already referred to by the name, e.g. mold release oil for metal casting work, then electrical insulating oil, spindle oil, or hydraulic oils used in hydraulic systems, etc. Hydraulic oil is considered to be the purpose of its use as an industrial oil, and its area does not correspond at all to engine and gear oils in the first category. It is very important that these products belong to this category if they are not emulsified. formaleválasztó olaj a fémöntési munkáknál, aztán a villamos szigetelő olaj, orsóolaj, vagy a hidraulika rendszerekben használt hidraulika olajok, stb. A hidraulika olaj az mindenképpen ipari olajnak tekintendő ugyanis alkalmazásának célja, területe egyáltalán nem felel meg az első csoportba tartozó motor- és váltóolajoknak. Nagyon lényeges, hogy ezek a termékek akkor tartoznak ebbe a csoportba, ha nem készítenek belőlük emulziót.

III. Category: Industrial oils (emulsions):

An emulsion is nothing more than a substance formed by mixing certain oils with an aqueous base or even water.

Ezen logika mentén vannak az említett három csoportba sorolva a termékek a megítélésünk szerint. A megfelelő csoportba soroláshoz konkrétan ismerni kell a terméket és annak felhasználási célját, területét, arra a kérdésre keressük a választ, hogy mire való a termék. Ebben sok esetben nem segít a termék műbizonylata, biztonsági adatlapja, leírása, kizárólag a gyártó, behozó fogja tudni a megfelelő csoportba sorolni a saját termékét.

Along this logic, the products are classified into these three category in according to our opinion. In order to be classified into the appropriate group, we need to know the product and its purpose and area of use, we are looking for the answer to the question of what use the given product is for. In many cases, the product's certificate of workmanship, safety data sheet, description will not help, only the manufacturer or importer will be able to classify their own product in the appropriate category. We hope that with this professional summary we were able to help to see the connections between the three categoriess and to understand the aspects of the demarcation. In case of any further questions, Green Tax Service Kft. is available for questions related to the product fee, or for excise matters, please feel free to contact Ferenc Laczi, a forensic excise expert, who has provided guidance for understanding the current issue. In order to acces Ferenc Laczi please conntact our office.

Declaration

The Green Tax Service Ltd. hereby declares that the person compiling this professional information material performed the task to the best of his knowledge, trying to compile the deepest analysis based on the information, and acted with the expected care and caution.

This summary does not contain the regulations provided for in the Complete Product Fees Act and its implementing decree, only its most significant points. Its purpose is not to cite the references to completeness and legal norm in detail, but to provide practical guidance, the primary purpose of which is clarity.

The findings, opinions and suggestions described in the professional material reflect the legal interpretation and professional opinion of the author and qualify as a recommendation and not an exclusive method. The statement of Green Tax Service Ltd. contains the professional opinions, suggestions and methods provided by the provisions of the Product Fees Act and the applied market practice to the maximum.

Green Tax Service Ltd. excludes its liability for possible errors and omissions. GREEN TAX SERVICE Kft. has no competence to interpret the legislation, it does not bind the courts or authorities in a possible legal dispute.