What are excise duties?

There are two types of federal levies on a limited range of products manufactured or produced in Canada: excise taxes and excise duties.

Excise duties are charged on spirits, wine, beer, and tobacco products. The rates of duty on spirits, wine, and tobacco products are set out in the Excise Act, 2001 and duty rates on beer are contained in the Excise Act.

When duty is payable

When these good are manufactured in Canada, duty is payable on goods at the point of packaging rather than at the point of sale. Generally, when they are imported into Canada, duty is payable by the importer at the time the goods are imported.


All persons who manufacture those goods in Canada must be licensed. Most licensees must provide security of at least $5,000.

Additional information