Industry welcomes European ruling on duty levels

Emily Pacey

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Ferry operator P&O has welcomed the European Court of Justice ruling against consumers buying cut-price liquor and tobacco over the internet from other EU countries

The European Court of Justice (ECJ) has ruled that customers who buy liquor and tobacco products online will still have to pay import duty at national levels. The surprise ruling will be welcomed by many UK ferry and duty-free operators who would have stood to lose sales.

A spokesperson from UK ferry operator P&O told RavenFox.com: “This whole situation has benefited us hugely. It has brought to public attention the differences in tax regimes between the UK and France, thereby highlighting the bargains that can be found across the channel. And on top of that, today’s ruling means that the law remains the same.”

In its ruling the ECJ stated: "Only products acquired and transported personally by private individuals are exempt from excise duty in the member state of importation."

Ferry retail operations would have been particularly badly hit due to a drop in the number of day trippers, had the law been changed. Under the current rules day trippers can bring liquor and cigarettes back to the UK provided they are for personal use, thereby paying only the tax and duty rate of the country of purchase.

At present the UK government loses duty of more than £1bn ($1.9bn) per year through "booze cruises", and would have lost considerably more if the ruling had been different.