This article is part of the series: Politics and government of the United Kingdom
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Her Majesty's Customs and Excise (HMCE) was, until April 2005, a department of the British Government in the UK. It was responsible for the collection of Value added tax (VAT), Customs Duties, Excise Duties, and other indirect taxes such as Air Passenger Duty, Climate Change Levy, Insurance Premium Tax, Landfill Tax and Aggregates Levy. It was also responsible for managing the import and export of goods and services into the UK. HMCE was merged with the Inland Revenue (which was responsible for the administration and collection of direct taxes) to form a new department, HM Revenue and Customs, with effect from 18 April 2005.
HM Customs and Excise officers guarded the borders of the United Kingdom from smugglers. Since 1971, the service has included the Waterguard, whose officers are a common sight at entry points in to the UK; its insignia include a portcullis. Customs officers (not Waterguard) have authority throughout the country, including the powers of entry to premises and of arrest.

Excise
The combined Board of Customs and Excise was formed in 1909 by the transfer of responsibility for Excise from the Board of Inland Revenue.
HMCE was not responsible for collecting direct taxes: that was the job of the Inland Revenue. In March 2004, the O'Donnell review called for the merger of Customs and Excise with Inland Revenue; in the 2004 Budget, Gordon Brown, the Chancellor of the Exchequer, announced that the merger would go ahead, and the merged was implemented by the Commissioners for Revenue and Customs Act 2005.