A tax levied on certain goods and services produced in this country (principally beer, wine and spirits, but also matches, mechanical Ughters, etc.) together with fees for licences necessary to produce these things, as opposed to customs duties, which are charged on goods produced outside the U.K. The duty is collected by Her Majesty´s Customs and Excise. There are some instances when goods, such as alcohol, are not subject to goods, such as alcohol, are not subject to nal purposes. One of the main reasons for licence fees is to enable the Customs and Excise to keep track of all establishments making goods liable to duty in order to ensure that the duty payable on those goods is accounted for. Generally speaking, duty is an internal levy on specified goods, made when they cease to be bonded goods. when they cease to be bonded goods. to particular products when they are outside the U.K., e.g. wines and spirits, can be purchased duty-free aboard ship. though technically duty is payable on any such goods brought on to British soil by returning travellers.
Reference: The Penguin Business Dictionary, 3rd edt.