what are excise goods

Excise goods are certain categories of products that are subject to excise tax. Excise duties are indirect taxes on the sale or use of specific products, such as alcohol, tobacco, and energy. Excise goods are typically associated with customs duties, which are levied on pre-existing goods when they cross a designated border in a specific direction. In contrast, excise is levied on goods that came into existence inland. Excise goods include beer, wine, intermediate products (such as sherry and port), other products containing alcohol (such as spirits), and tobacco products. Excise duties must be paid on these products when they are produced or traded. Excise duty is often applied by the affixation of revenue stamps to the products being sold. For example, producers may be given (or required to buy) a certain bulk amount of excise stamps from the government and are then obliged to affix one to every packet of cigarettes or bottle of spirits produced.