In certain scenarios, goods will be physically labeled to show that the excise tax has already been paid to the government.
Which products are subject to excise tax?
Carbonated drinks: All aerated beverages except for unflavored aerated water. Products used for making aerated beverages, including concentrates, powders, gels, and extracts will also be considered excise goods.
Tobacco and tobacco products
Energy Drinks: Certain beverages include energizers which provide mental and physical stimulation, such as caffeine, taurine, ginseng, and guarana. Any concentrate, powder, gel, or extract that is made into an energy drink is also subject to excise tax.
A person must register and pay excise tax if they are involved in the following activities:
Importing excise products.
Producing or manufacturing excise goods.
Transferring excise products out of a Designated Zone
Stockpiling excise goods in the normal course of business.