Skip to main content

EXCISE

A GUIDE TO CUSTOMS CLEARANCE AND EXCISE

Excise duty is an indirect tax that is often charged on a specific unit, such as a litre or kg, rather than the customs value.

Industrial government policies establish what will be prescribed for excise, which is often used as a taxation system to influence the consumption of certain goods, and achieve desired policy outcomes.

Excise duty is also a hypothecated tax, where public funds are collected on behalf of a specific cause. The proceeds of excise duty are directed to the consequences of excise consumption, for example tobacco excise is used to treat tobacco-related health issues in public funded hospitals, and establish tobacco related public heath campaigns.

Fuel duties are used to create roads and highways, and develop new technologies for non-polluting fuels. Alcohol excise duty is directed to treat the consequences of alcohol-related illnesses.

Excise duty in the UK is chargeable, in addition to any customs duty which may be due, on the goods described as follows:

  • Wine and made-wine

  • Beer

  • Cider and perry

  • Spirits

  • Low alcohol beverages

  • Imported composite goods containing alcohol

  • Tobacco products

  • Hydrocarbon oil

  • Climate change levy

  • Biofuels

This is established by confirming the commodity code of the goods, and the tax type code, which will be used to determine the type and rate of excise duty payment.

If goods are released into free circulation, the rate of duty must be manually calculated, according to quantities and values involved in the transaction detailed on the commercial invoice and/or packing list, by the customs agent, and submitted to HMRC on the C88 (SAD) customs declaration.

HELPFUL LINKS

Visit: UK Trade Tariff

Tax type codes and rate of tariff: UK Trade Tariff: excise duties, reliefs, drawbacks and allowances

Carbon border adjustment mechanism (CBAM): Policy Summary – UK government publishes draft secondary legislation

Carbon border adjustment mechanism (CBAM): Policy Summary – UK government publishes draft secondary legislation

Alinea Customs Briefing On 10 February 2026, the UK government published secondary carbon border adjustment…
TEFAF Maastricht – Preparatory steps when moving Fine Art and Cultural Goods into the European Union

TEFAF Maastricht – Preparatory steps when moving Fine Art and Cultural Goods into the European Union

Alinea Customs provide insight into the preparatory steps that are required to comply with the…
Alinea Customs selected for Customs Brokerage services to the Carrington plant by Highview

Alinea Customs selected for Customs Brokerage services to the Carrington plant by Highview

Alinea Customs has been selected to provide customs brokerage services to Highview for the Carrington…
The Exporter’s Playbook

The Exporter’s Playbook

Alinea Customs are pleased to publish The Exporter’s Playbook in partnership with Trade Treasury Payments. This practical…
The United Nations Convention on Negotiable Cargo Documents (NCD) is adopted by the UN General Assembly

The United Nations Convention on Negotiable Cargo Documents (NCD) is adopted by the UN General Assembly

Alinea Customs Briefing: The United Nations Convention on Negotiable Cargo Documents (New York, 2025) (the…
Webinar: The Exporter’s Playbook 16 December 2025

Webinar: The Exporter’s Playbook 16 December 2025

Join Alinea Customs and Trade Treasury Payments for the webinar launch of The Exporter's Playbook at…