Duties are part of the price that will be paid for a tobacco product. It is an important element as it is a payment to the government like we pay duties on petrol or alcohol.
The duty element is considered for any Tobacco product that you purchase, if you purchase a finished product the duty will already have been paid and this is not something you will usually have to think about.
Duties are a large part of the price that will be paid for a tobacco product. The price for duties is enclosed on the table below:
Product Duty Rate
16.5% of the retail price + £189.49 per 1,000
£236.37 per kg
£185.74 per kg
Other smoking tobacco and chewing tobacco
£103.91 per kg
If you are manufacture or are planning to make any quantity of tobacco leaves into a tobacco product you must contact the HMRC or relevant agency (if you are based outside the UK) to ensure you have the relevant licenses or register before you begin.
Raw Tobacco leaf is not a dutiable product if it is imported and exported under the classification tariff code: 2401
Classifying Raw & Unprocessed Tobacco
All forms of unmanufactured tobacco and tobacco refuse are classified under heading 2401 – Unmanufactured tobacco; tobacco refuse.
The term ‘unmanufactured tobacco’ includes many forms. It could be tobacco supplied as whole plants or leaves in the natural state, or as cured or fermented leaves. It also includes tobacco that has been stemmed/stripped, trimmed or untrimmed, broken or cut, including pieces cut to shape.
Tobacco leaves that have been blended stemmed/stripped and ‘cased’ (‘sauced’ or ‘liquored’) with a liquid of appropriate composition, mainly to prevent mold and drying and also to preserve the flavour, are also covered in this heading. However, it does not include tobacco which is ready for smoking.
Tobacco refuse includes all waste resulting from the manipulation of tobacco leaves or the manufacture of tobacco products and thus includes stalks, stems, midribs, trimmings, dust, etc.
The determination and application of Excise Duty is not dependent upon classification but instead upon the Tobacco Products (Descriptions of Products) Order 2003. This is listed below.
Read guidance on Tobacco Products Duty and Notice 476 for further information on how to determine any Duty due concerning your products or to assess what that charge will be.
Please refer to the links above for further information and help. If you have any queries or questions we advise in all cases that you should contact the HMRC or relevant authorities of the country in question and refer to the 476 and other links for assistance. If you are still unsure please seek legal advice