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Is it allowed to bring Bukhoor (incense - air perfume) to the UK from abroad?

I've bought a couple of packets from Dubai and was wondering if it will be seized in customs, or would it be fine as long as I declare it?

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I think that this will depend on the type of wood used in the product. If it is a species on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) list, for example types of agarwood, then it is likely to be seized unless you present the right paperwork to Customs. https://www.gov.uk/guidance/cites-imports-and-exports

If the wood isn’t on the CITES list and the product is commercially packaged, then AFAIK you shouldn't have a problem if you declare it on arrival.

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