These products include: cigarettes; cigars; hand-rolling tobacco; other smoking tobacco; and chewing tobacco, which are manufactured wholly or partly from tobacco or any substance used as a substitute for tobacco. Tobacco products are liable to excise duty which is generally based on the quantity or weight of the goods. Cigarettes are also liable to a duty based on the value of the goods: this is known as the 'ad valorem component' of the duty. HM Customs & Revenue Glossary
Financial and business terms. 2012.