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Duty-free to your door ruling due | Duty-free to your door ruling due |
(20 minutes later) | |
UK shoppers may be able to buy alcohol and cigarettes from Europe over the internet at bargain prices if the EU Court of Justice backs the move. | UK shoppers may be able to buy alcohol and cigarettes from Europe over the internet at bargain prices if the EU Court of Justice backs the move. |
The court will decide this month if goods from EU states can be delivered to them in Britain free of UK duty. | The court will decide this month if goods from EU states can be delivered to them in Britain free of UK duty. |
An adviser to the court has already backed the change, which could mean reduced tax income for the UK Treasury. | An adviser to the court has already backed the change, which could mean reduced tax income for the UK Treasury. |
But the Treasury, which wants the court to reject the earlier ruling, says the way it interprets duty laws is correct. | But the Treasury, which wants the court to reject the earlier ruling, says the way it interprets duty laws is correct. |
Booze cruise | Booze cruise |
An advocate-general, Francis Jacob, gave his independent legal advice and opinion to the EU court last December. | An advocate-general, Francis Jacob, gave his independent legal advice and opinion to the EU court last December. |
This is usually a good indication of the court's eventual decision, although it is not obliged to follow the advice. The judges will make their decision on 23 November. | This is usually a good indication of the court's eventual decision, although it is not obliged to follow the advice. The judges will make their decision on 23 November. |
If it follows its legal adviser it means shoppers will be able to order alcohol and cigarettes from overseas using their keyboard or phone. | If it follows its legal adviser it means shoppers will be able to order alcohol and cigarettes from overseas using their keyboard or phone. |
It is very important to remember that the advocate-general's opinion is just that - an opinion Treasury spokesman | It is very important to remember that the advocate-general's opinion is just that - an opinion Treasury spokesman |
There are large potential savings to be made from shopping for alcohol on mainland Europe, where there are lower alcohol and tobacco duty rates in many countries. | There are large potential savings to be made from shopping for alcohol on mainland Europe, where there are lower alcohol and tobacco duty rates in many countries. |
The big UK supermarkets have tried to cater for the British customer abroad - opening shops aimed specifically at the "booze cruise" market. | The big UK supermarkets have tried to cater for the British customer abroad - opening shops aimed specifically at the "booze cruise" market. |
And the Wine and Spirits Trade Association said UK based retailers may "struggle to compete" on wine sales against nations such as France, where duty was minimal. | |
They could suffer under the new rules - but the Treasury could suffer more through loss of revenue. | They could suffer under the new rules - but the Treasury could suffer more through loss of revenue. |
Dutch action | Dutch action |
The case comes down to where excise duty on alcohol and cigarettes should be charged. In general, it is chargeable in the member state of final destination. | The case comes down to where excise duty on alcohol and cigarettes should be charged. In general, it is chargeable in the member state of final destination. |
However, a provision allows for excise duty on products "acquired by private individuals for their own use and transported by them" to be charged in the member state of purchase. | However, a provision allows for excise duty on products "acquired by private individuals for their own use and transported by them" to be charged in the member state of purchase. |
In the present case a private individual, resident in the Netherlands, purchased duty-paid wine in France for his own use. He did not transport the wine himself, but engaged a transport company to do so. | In the present case a private individual, resident in the Netherlands, purchased duty-paid wine in France for his own use. He did not transport the wine himself, but engaged a transport company to do so. |
The Dutch tax authorities now wish to levy excise duty on the wine, and the UK government is supporting them in its action. | The Dutch tax authorities now wish to levy excise duty on the wine, and the UK government is supporting them in its action. |
"We are confident that our interpretation of the law is the correct one," said a Treasury spokesman. | "We are confident that our interpretation of the law is the correct one," said a Treasury spokesman. |
"Obviously we are watching the outcome of this case with great interest along with all the other interested parties. | "Obviously we are watching the outcome of this case with great interest along with all the other interested parties. |
"However, it is very important to remember that the advocate-general's opinion is just that - an opinion." | "However, it is very important to remember that the advocate-general's opinion is just that - an opinion." |
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