HM Customs and Excise Briefing Note - 16 June 1999
Duty paid sales for journeys within the European Union
Contents
The European Council has re-confirmed the decision taken in 1991 that duty-frees will no longer be available on journeys within the European Union (EU) from 1 July 1999. A leaflet published by HM Customs and Excise explains the new arrangements to travelers.
Travellers will still be able to buy goods during their journeys within the EU, but prices will include any tax that is due. The precise selling arrangements are up to individual operators, but the main features of the new system are set out below. Customs and Excise will continue to help the trade make a smooth transition to the new system.
Travellers will still be able to buy duty paid alcohol, tobacco and other goods for their personal use during their stay abroad or on the journey - the travel companies will have to compete with retailers across Europe.
Duty-frees are still available for travellers to and from countries outside the EU.
Before Boarding
For travellers to other EU countries, prices at ports, airports and the channel tunnel terminal will include VAT and excise duty at UK rates, as they do at any other shop. Some airports may have separate duty-free and duty-paid outlets for non-EU and EU destinations respectively; others may have single shops with dual pricing.
During A Journey
On a ferry or aircraft - the goods you buy to take away will always include duty and VAT in the price, even if you are in international waters or airspace. The operator will work out the duty and tax depending on where and when the goods are sold.
VAT is due at the rate of the country of departure for the whole journey.
There are two rates of excise duty during a journey - the rates in the countries of departure and destination. Goods sold will bear duty throughout the journey but operators will be able to arrange their sales to ensure that goods sold outside UK waters or airspace benefit from any lower duty rates in the destination country
However food and drink bought from bars or restaurants on ferries, aircraft or cruise ships will continue to be duty free.
Travellers have never been able to buy duty-frees on Eurostar or the shuttle so the arrangements have not changed.
Background
The current government has argued for, and obtained, significant simplifications to the procedures. HM Customs and Excise has been working with the trade to help them implement the new procedures from 1 July.
The European Single Market began on the first of January 1993. It removed many of the tax and other barriers that had previously existed between EU countries, to increase the free flow of goods and people.
An immediate result was that if travellers went to another member state - for example France or Greece - they could bring back goods for their own use without having to declare them - and without having to pay any UK tax, in addition to tax already paid. That meant no need to talk to Customs, and a faster transit through the port or airport - through the blue channel - to home.
Logically duty free sales for those journeying between EU states should have also ended on the first of January 1993. However the UK government of the day argued that the duty free industry needed time to adjust, so the date for abolition was set for the first of July this year.
Under Single Market rules travelers can buy what they like, provided it is for their own use. There are guidance levels for alcohol and tobacco. Travellers who bring in more than these, must be able to satisfy a Customs Officer, if asked, that the goods are for their personal use. If they can’t, the goods may be seized. The guidance levels are:
800 cigarettes, 400 cigarillos, 200 cigars, 1 kg of smoking tobacco, 10 litres of spirits, 20 litres of fortified wine such as port or sherry, 90 litres of wine (of which not more than 60 litres can be sparkling wine) and 110 litres of beer.
The duty free allowances for travellers that end on 30 June are: 200 cigarettes or 100 cigarillos or 50 cigars or 250 gms of tobacco; one litre of spirits or strong liquers, or two litres of fortified wine, sparkling wine or other liquers; two litres of still table wine; 60 cc of perfume; 250 cc of toilet water.
The EU countries are: Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Irish Republic, Italy, Luxembourg, the Netherlands, Portugal, Spain (but not the Canary Islands), Sweden, the UK (but not the Channel Islands).
Media enquiries only to HM Customs & Excise, Communications Division, New King's Beam House, 22 Upper Ground, London SE1 9PJ. Tel: 0171 865 5472/5471 or 0171 620 1313 to contact the duty press officer out of hours.
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