What is an Excise License?

by Michael Kotendzhi | Logistics
What is an Excise License

What is an excise license? An excise license is a document that is required during the logistics process to show that the excise tax has been paid. It is usually used by alcohol and tobacco manufacturers who need to pay regional taxes on goods before they can be sold, distributed, or exported.

In this article, we will go through what an excise license entails and how to get it.

What are Excise Taxes?

Excise taxes are taxes on goods and services that are levied on manufacturers. These taxes are paid directly to the government as a way of controlling the production and distribution of goods and services.

There are several types of excise taxes that are charged by different governments around the world, focusing on such things as alcohol production (and its effects on society), tobacco products, and various other products.

How Does a Business Get an Excise License?

Businesses that have to pay excise tax will need an excise license to ship and store their goods. An excise license can be acquired in a number of different ways. The process depends on the type of business that is being registered and the type of excise license that is needed.

In BC, businesses will need to apply for manufacturing licenses. Upon completion, they will be given an excise number which can be used to file and pay excise taxes in Canada.

Excise taxes occur in all countries of the world, and they are often hard to understand. Working with a professional third-party logistics provider is the best way to ensure your business is compliant.

At 18 Wheels Logistics, we can manage the entire process of acquiring an excise license and filing excise taxes. We have experience with excise taxes in various countries, making us a reliable and capable partner.

For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.

If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.