KEY POINTS:
Europe's "booze cruises" were saved yesterday when the top European Union court ruled that individuals must pay domestic customs duty if they order alcohol in another EU state and have it delivered home.
The ruling came as a relief to cash-conscious finance ministries in about nine EU countries with high excise duties, which had feared a potential loss of revenue from the key test case brought by a club of Dutch wine lovers.
The European Court of Justice (ECJ) upheld a 1992 EU law that duty is charged in the EU state where goods are bought for personal use - but only if transported by the purchaser.
"The court points out that, in order for products to be exempt from excise duty in the state of importation, the directive requires that those products be intended for the personal use of the private individual who has acquired them and that it therefore excludes products acquired by a private individual for the use of other private individuals," it said. "Furthermore, the products in question must be transported personally by the private individual who purchased them."
That means drinkers from Britain, Denmark, Sweden and Finland will have to continue to sail or drive to neighbouring countries with cheaper alcohol to benefit from the lower duty on personal imports.
The court said that, if a group was importing the wine, the home country duty should be paid, minus the duty paid in the country where the wine was bought.
Hordes of British travellers hop on to ferries to France each year to stock up on beer and wine with lower duty, saving themselves millions of euros.
Britain expects to collect £16 billion ($30.5 billion) in duties from domestic tobacco and alcohol sales this financial year.
The ECJ decision went partially against the opinion of the court's adviser, who had suggested individuals be allowed to buy alcohol in another country, have it delivered to their home and pay the duty only of the country where the alcohol was bought.
- REUTERS
