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Sail Away

By
EURSOC Three
Published: 
24 November, 2006

The European court of justice has ruled against making it easier for European consumers to buy alcohol and cigarettes from countries where excise duties are low.

This means that shoppers who want to take advantage of low duty rates and VAT in other states will still need to go there and bring back the goods themselves.

Had the ruling gone the other way, consumers of alcohol and tobacco could have gone on the internet for a bargain hunt.

Observers had predicted an end to Britons, Danes, Sweeds and Finns going on "booze cruises" to neighbouring countries to buy cheaper alcohol.

The court has ruled that for products to be exempt from excise duty in the country of purchase: "They must be for the use of the private individual who has bought them."

The real point of the EU decision is that: "Excise duty shall be charged in the member state in which it is acquired."

So, goodbye internet sales delivery. Hello to the old days when you had to board a P&O ferry to get cheaper Grant's whisky and Benson & Hedges.

It is no surprise that the British and Scandinavian ferry companies are delighted by the decision.







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