EU proposes higher duty-free allowances

Emily Pacey

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The European Commission has announced that duty-free allowances for travellers to the EU could be more than doubled by 2007

Under a new proposal adopted by the European Commission, air travellers to the EU from non-EU countries will soon be able to carry goods worth up to €500 ($595) without having to declare them.
 
The proposal, which still has to pass through the legislative process, recommends that from January 1 2007 the current allowance of €175 ($208) should be raised to €500 for air travellers and €220 ($260) for non-air travellers. The discrepancy between different forms of transport is intended to discourage cross-border shopping in countries with land borders.
 
The new proposal removes separate allowances for fragrances, tea and coffee, which will now be included in the overall allowance. It imposes a 16-litre limit on beer, which is currently the only alcoholic beverage without a limit. However there will be an increase in the wine allowance from two to four litres.
 
Duty-free tobacco campaigners have expressed concern that EU member states will be at liberty to reduce the tobacco allowance for non-air travellers. The European Commission quotes the World Health Organization's Framework Convention on Tobacco Control as grounds for this amendment.
 
The allowance changes have been adopted to shift Customs resources away from controlling and collecting import duties of low-value goods towards tackling serious smuggling and fraud.
 
"Many of the rules regarding travellers' allowances, which were set down in a directive adopted in 1969, are no longer relevant in today's world and that is why we have come  forward with this proposal," said EU taxation commissioner Laszlo Kovacs. "Citizens will benefit from the increased monetary threshold and member states will reduce administrative costs in collecting import duties of a relatively limited value."
 
The European Travel Retail Council is now assessing the implications of the new proposals.