The European Court of Justice’s ruling on alcohol imports is a blow for armchair drinkers but the battle for cheap booze may not be over just yet.
Although it ostensibly puts an end to the British dream of being able to order cheap beer and wine from abroad on the internet, the severity of today’s judgment should give fresh impetus to the argument for a relaxation of the rules.
Indeed, no sooner had the ECJ handed down its decision than the European Commission reiterated its commitment to relaxing its rules governing when consumers can transport alcohol from abroad without having to pay excise duty.
Maria Assimakopoulou, an EC spokeswoman, said today that the Commission was disappointed with the ruling adding that it had already drafted a proposal to allow consumers more flexibility to transport cheaper beer or wine, but was facing stiff opposition from countries like Britain and Sweden that have been holding up the plan since 2004.
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Despite this opposition, which shows no sign of softening, lawyers said today’s restrictive ruling shows that the existing rules - as interpreted by the ECJ - are unworkable and the decision will add weight to the argument for reform.
The ECJ was asked to interpret Article 8 of the European Directive on the general arrangements for products subject to excise duty. In doing so, it decided that only goods transported directly by the purchaser should be taxed in the country of origin rather than destination, a decision that Oliver Bretz, an expert in European and UK trade law at Clifford Chance, believes is unworkable.
“Suppose you ask a friend to drive to France in his car to help you bring back the 50 cases of wine you plan to buy there. According to today’s judgment, the 25 cases which you bring back in your car will be charged excise duty in France but the 25 cases your friend brings back for you will be charged in the UK,” Mr Bretz said.
“The distinction between whether you transport the goods yourself or get someone else such as a friend or, as in the case of Mr Joursta, a courier company, to do it for you is totally arbitrary and I do not believe it will be maintained in the long run.”