The booze cruise was saved yesterday when European judges dashed hopes that consumers would be able to order cheap alcohol and cigarettes over the internet.
Ferries to France remain the best way to beat the Chancellor for cheap Christmas drinks after the landmark ruling, which will save the Treasury millions of pounds in duty.
After a long legal battle brought by a Dutch group of wine enthusiasts, the European Court of Justice ruled that VAT can be avoided on drinks and tobacco purchased abroad only if the items are physically brought back by the individual purchaser.
The wine club had hired a van to fetch bottles from France, where duty is much lower. But the judges ruled that the Dutch Government was right to demand extra VAT because none of the group accompanied the wine on its journey.
The ruling was welcomed by ferry companies, health campaigners and corner shops, but ended any prospect of a loophole in the strict rules for bringing alcohol and tobacco back from low-tax EU countries.
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It also effectively killed off a proposal by the European Commission to make it easier to buy cheaper alcohol, which had been awaiting this judgment for two years. The proposal would have allowed individuals to bring back drinks for their friends or to arrange for it to be delivered if they could not carry their full allowance.
The potential savings to British consumers from internet ordering within the EU are huge. A can of beer that costs 89p in Britain can be bought for 45p in France, 30p in Latvia and 26p in Poland. Cigarettes are available in some EU countries for as little as one-tenth of the British price because of the high Treasury duty.
So-called booze cruises to French coastal towns such as Calais and Dieppe have become popular because of the low duty levied in France on wine. Bottles that cost £4.99 in British supermarkets are routinely available for £2.99 from French outlets such as Wine & Beer World. Big savings are possible because a personal allowance of 90 litres of wine has been set before Revenue & Customs can demand VAT.
Richard Ashworth, a Conservative MEP, said: “This ruling is a disappointment for many consumers. The European Commission should now remove the limits on booze cruisers bringing goods back from abroad for their personal use. It is wrong that innocent consumers are treated like criminals for exercising their single market rights.”
But the Treasury made it clear that the Chancellor, who reaps about £16 billion a year in excise duty on alcohol and cigarettes, was delighted and would ensure that the EU did not relax the rules in any way.
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A spokesman confirmed that the Treasury made representations to the European Court in support of the Dutch Government. Britain, he said, would join the Dutch in vetoing any attempt by the European Commission to relax the rules.
“We think the current arrangements are the right ones,” he said. “Consumers will still be able to travel to the EU and purchase goods for private consumption without paying UK duty. The UK continues to have the highest levels for determining personal use in the EU set at 3,200 for cigarettes; 3kg for handrolling tobacco; 110 litres for beer; 90 litres for wine and 10 litres for spirits.”
Maria Assimakopoulou, a spokeswoman for the European Commission, said that it was disappointed with the ruling. “We believe the court gave a rather restricted interpretation,” she said.
The Forum of Private Business said that small retailers would be relieved at the continued protection against cheap internet imports.
Deborah Arnott, director of the anti-smoking group ASH, said: “If the Dutch case had been considered lawful it would have been disastrous for the health of Britons.”
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EU allowance
3,200 cigarettes
200 cigars
400 cigarillos
3kg tobacco
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110 litres beer
90 litres wine
10 litres spirit
20 litres fortified wines