What is Customs and Excise?

July 19, 2021 3:48 pm

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In the United Kingdom, customs and excise is a tax that is imposed by the government on goods coming into the country or on exported goods leaving the country. Excise, on the other hand, is the direct tax that a national government collects. Both excise and customs duties are always applied when importing or exporting goods, however in some cases, one may apply both at the same time.

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What is the purpose of collecting these taxes? The main purpose of custom and excise duties is to raise money for the UK government. Excise, on the other hand, is used to reduce the amount of money that would be paid in the United Kingdom if the same activities were performed in other countries. By putting these taxes in a uniform national amount, it makes the goods imported or exported more affordable for consumers. For advice on the best practice for bonded warehouses, consider Bonded warehouse management software from a site like Gaina Software

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Why are these taxes collected on goods imported or exported? The customs and excise department of the government takes a variety of factors into consideration before determining the duty level to be charged for a particular product. Some factors considered include the economic development of the country, current prices of goods, type of the merchandise, and the cost of procuring the specific goods from suppliers in the country of origin as well as how to transport the goods to different points abroad.