From 1 January 2026, the UK will introduce a Vaping Products Duty – a major shift in how vape-related goods are taxed and regulated. This upcoming excise duty will impact importers, distributors, wholesalers, and manufacturers across the vaping supply chain.
Whether you handle nicotine-containing or nicotine-free products, preparation is crucial. Failure to comply may lead to shipment delays, financial penalties, or even seizure of goods.
As the consultation period draws to a close, here’s what your business needs to know—and how NG Terminal can support your compliance and logistics strategy.
The New Rules: A Quick Overview
The Government’s consultation paper confirms that a new excise duty will be introduced on vaping products from 1 January 2026, covering:
- Nicotine-containing vape liquids (including shortfills and disposables)
- Nicotine-free vape liquids (due to similar consumption purposes)
- Both imported and UK-manufactured goods
Like tobacco and alcohol, the vaping duty will be enforced through HMRC’s existing excise framework. This means all relevant goods must be declared, taxed appropriately, and, where applicable, stored under duty-suspended conditions.
What This Means for Importers
If your business is involved in importing vape products into the UK, you will be legally responsible for:
- Excise Registration
Importers must be registered with HMRC under the new duty scheme. Failing to register may result in legal enforcement and trading restrictions.
- Duty-Suspended Movements and Storage
Importers may use excise warehouses to hold goods under duty suspension until they are ready for sale. However, this requires formal authorisation and robust documentation procedures.
- Record-Keeping and Declarations
HMRC will expect accurate excise declarations and records, similar to existing requirements for alcohol and tobacco products. These must be made available for inspection and audit.
- Penalties for Non-Compliance
Failure to comply with duty rules may result in:
- Financial penalties
- Forfeiture or seizure of goods
- Criminal prosecution in severe cases
How NG Terminal Can Help
At NG Terminal, we’re already working closely with our clients to ensure they are prepared for the upcoming Vaping Products Duty. As a bonded warehouse operator and customs expert, we offer end-to-end support:
Duty-Suspended Storage
Our ETSF and excise bonded warehouse near Heathrow Airport allows importers to store vape products with deferred duty payment until the goods are released into circulation. This improves cash flow while maintaining compliance.
Customs Clearance & Excise Declarations
Our experienced brokerage team ensures accurate customs declarations and excise reporting under the new rules. We are also monitoring updates from HMRC and will provide real-time support as the rollout approaches.
Compliance Consultation
Unsure if your products are within the duty scope? Need advice on registration or product classification? Our compliance team can assess your product range, advise on HS codes, and guide you through the excise authorisation process.
MyNGT Platform
Track and manage your inventory, customs status, and duty movements via our MyNGT digital platform—built to give you full visibility and control over your bonded shipments.
What You Should Do Now
With less than 18 months to go, vape importers should act early to ensure readiness. Here are the key steps:
- Review Your Product Catalogue – Determine which products fall within the duty’s scope (including nicotine-free liquids).
- Contact NG Terminal – We can help you assess storage, classification, and customs declaration options.
- Apply for Relevant Registrations – HMRC will require importers to register before handling dutiable goods.
- Prepare for Excise Accounting – Start planning your internal procedures and record-keeping policies now.
- Monitor Government Updates – Stay informed as HMRC finalises its implementation and guidance.
Stay Ahead of the Curve
This duty is more than just a tax—it marks a full shift into excise territory for vape products. Those who act early will gain a competitive edge by avoiding disruptions and maintaining smooth customs flow.
Contact us at ngtbd@ng-terminal.com to learn how we can help you prepare.
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Read the Government consultation in full
