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Excise duty is purely a revenue tax due to the UK authorities whereas Customs duty is a protective duty collected for the EU by the Members states where it is actually paid.
The excise duty on wine is charged in various bands according to the alcoholic strength of the product with especially low rates applicable to wines not exceeding 5.5% vol. and a higher rate for sparkling wines. Duty is expressed in Pounds Sterling per hectolitre of liquid and the duty rates are normally set in the Chancellor's yearly budget.
- Click here to access current UK Excise Duty Rates .
The excise duty on spirits and fortified wines exceeding 22% is expressed in Pounds Sterling per litre of alcohol. Customs duty is common to all members of the EU, known as Common Customs Tariff (CCT), and is paid in addition to any national excise duties.
It applies to wines and spirits entering the EU from third countries and can be paid in any Member state, allowing the goods to move in what is called "free circulation" after the tax has been paid.
Customs duty on wine is expressed in Euros per hectolitre of liquid which is converted into Sterling using an "Industrial" rate, published monthly and is expressed as % vol by Tarriff Classification and product type. Customs duty on spirits is calculated in both liquid litres and litres of alcohol using Euros and the conversion rate issued by Customs with reference to the tariff classification. The only imported spirit liable to Customs duty is Rum.
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