Excise taxes are imposed on the import or domestic production (but not both) of certain goods. Goods are exempt from excise taxes if they are exported from East Timor within 28 days of production and are exempt from import duty, or if they relate to the Timor Gap Agreement. Goods subject to excise taxes include (but are not restricted to) the following: confectionery, fruit juices, ice cream, soft drinks, tobacco, gasoline, diesel fuel, beer, wine, other alcohol, make-up, shampoos, toiletries, electrical goods, mobile phones, televisions, automobiles, motorcycles, and arms and ammunition.
As of 2001, all imported goods were subject to an import duty of 5% of the customs value (CIF value).