Customs Excise Clearance

Import duty is paid when goods are released into free circulation, either during the import clearance or when the goods are removed from an inland customs territory. This relates to the goods being imported from abroad.

Excise duty is paid on qualifying goods – primarily alcohol, tobacco, and fuels – which are manufactured, sold, or consumed within a country. They do not necessarily need to be imported. For example, alcoholic beverages which were brewed or distilled within the EU and sold onto the EU market.

Like an import clearance, an excise clearance must match the country of purchase. Therefore, the movement of goods from one member state to another adds another level of customs excise regulations, as does any onward sale. This is to prevent tax avoidance whilst ensuring that traders do not overpay their excise duty.

Customs Support Group helps you to navigate the complexities of trading excise goods, keeping your operation efficient, accurate, and compliant.

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Customs excise generally applies to products that have a health or environmental element, such as:

• Alcoholic beverages such as beer, wine, or spirits.
• Tobacco and tobacco products such as cigars or cigarettes.
• Fuels such as coal, petrol, or gas.
• Drinks containing high levels of sugar.

Note that the goods which customs excise duty can apply to vary across different jurisdictions, and can attract different excise rates.

You may also find that the excise duty is not called this colloquially or by the authorities. For example, the Soft Drinks Industry Levy (SDIL) in the UK – often called the sugar tax – is a type of excise duty.

Customs Support Group helps you to understand your customs excise obligations and pay the correct tax so that you reduce your risk of noncompliance.

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There is an important distinction between when goods become subject to customs excise duty and when that tax is owed. Whether or not the tax is paid or suspended in the meantime depends on your operation.

Goods are subject to excise duty from the moment they are produced. However, many producers keep their goods in customs warehouses so that the customs excise can be suspended until the point of sale or transfer.

Similarly, the distributor of the goods may also move the excise goods into a customs warehouse until it is sold to the store or establishment for consumers to purchase. Excise duty is always due before the point of consumption.

Customs Support Group helps you to safeguard your cash flow by suspending tax payments until they are needed, avoiding overpayment for damaged goods.

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Depending on where and when you sell your goods on, you may be able to reclaim excise duty if your buyer is also liable to pay it.

For example, if you pay the excise duty on goods in France and then sell them wholesale to another excise-authorised trader in Spain, they are liable to pay excise duty on the shipment so you can request a refund from the French authorities.

To secure a refund, you must be able to provide details of the shipment to the buyer and also for the movement or production when you paid the excise duty. This is where details on paperwork can make a significant difference to your success rate.

By partnering with Customs Support Group, you can raise your chances of success with a refund by leveraging our excise expertise, digital solutions, and Europe-wide presence.

Contact us today to make your excise supply chain more efficient.

When you are working with customs excise goods, it’s important to be compliant with regulations, and be able to demonstrate your compliance when asked.

Some of the best practices for achieving this are:

• Good record keeping and tracking: From batch numbers on paperwork to individual barcodes, being able to track your stock is an essential part of reconciling inventory, proving the right tax has been paid, and reclaiming excise on exported goods.
• Using customs warehouses: Suspending your excise duty is one benefit of customs warehousing, but that’s not all. Acquiring and maintaining a customs excise warehouse licence involves meeting high standards that will support your compliance.
• Regular compliance audits: Assess and improve your processes so that you are taking corrective action against risk exposure, addressing anomalies in good time, and removing any inefficiencies in your operation that waste resources.

CSG provides customs and trade solutions throughout Europe which support your customs excise compliance. Our clients rely on our expertise and CustomsTech to run their customs excise warehouse administration, make them more efficient, and minimise their risk.

Get in touch to streamline your customs excise management today.