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| EU alcohol ruling cheers traders | |
| (40 minutes later) | |
| Retailers have responded with relief to a European Court ruling allowing consumers to buy drinks and cigarettes online at lower duties from abroad. | |
| The decision means shoppers buying cheaper goods abroad will still have to accompany the goods back themselves. | The decision means shoppers buying cheaper goods abroad will still have to accompany the goods back themselves. |
| Shopkeepers said a different ruling allowing an internet bargain hunt would have hit them hard, while the Treasury said it was a victory for commonsense. | |
| The UK loses duty of more than £1bn per year because of "booze cruises". | |
| And it would have lost a lot more if the ruling had gone the other way and more shoppers had turned to buying low-duty goods online. | |
| "This clear win for the government is a victory for commonsense," said a Treasury source. | "This clear win for the government is a victory for commonsense," said a Treasury source. |
| Q&A: Buying from low-duty countries | Q&A: Buying from low-duty countries |
| The decision will disappoint shoppers hoping to stock up on alcohol and cigarettes for Christmas but it has cheered retailers. | |
| Ken Patel, national spokesman for Retailers Against Smuggling, and a Leicester retailer, said it was a critical decision for corner shops. | Ken Patel, national spokesman for Retailers Against Smuggling, and a Leicester retailer, said it was a critical decision for corner shops. |
| "Tobacco accounts for a huge proportion of the sales of many corner shopkeepers and to have lost these valuable sales plus the add-on purchases a shopper often makes at the same time - like a daily paper or a pint of milk - would have been unsustainable for many retailers," he said. | "Tobacco accounts for a huge proportion of the sales of many corner shopkeepers and to have lost these valuable sales plus the add-on purchases a shopper often makes at the same time - like a daily paper or a pint of milk - would have been unsustainable for many retailers," he said. |
| The European Court of Justice (ECJ) judges ruled that "only products acquired and transported personally by private individuals are exempt from excise duty in the member state of importation". | The European Court of Justice (ECJ) judges ruled that "only products acquired and transported personally by private individuals are exempt from excise duty in the member state of importation". |
| The case was brought by a Dutch wine club who objected to being charged duty on a lorry-load of wine delivered from France. | The case was brought by a Dutch wine club who objected to being charged duty on a lorry-load of wine delivered from France. |
| Armchair shopping | Armchair shopping |
| The Dutch Supreme Court had asked the European Court to interpret its own directive, which said: "As regards products acquired by private individuals for their own use and transported by them... excise duty shall be charged in the member state in which they are acquired." | The Dutch Supreme Court had asked the European Court to interpret its own directive, which said: "As regards products acquired by private individuals for their own use and transported by them... excise duty shall be charged in the member state in which they are acquired." |
| If the Dutch case had been considered lawful it would have been disastrous for the health of Britons and other Europeans Deborah ArnottASH | If the Dutch case had been considered lawful it would have been disastrous for the health of Britons and other Europeans Deborah ArnottASH |
| An interim ruling from the court last year suggested it would be possible for shoppers to order goods from their armchair and have them delivered to their door as long as the goods were for personal consumption and transported themselves. | An interim ruling from the court last year suggested it would be possible for shoppers to order goods from their armchair and have them delivered to their door as long as the goods were for personal consumption and transported themselves. |
| The UK had stood to lose more than most countries by a change in the law, whereas a country like France would have benefited from the extra business. | The UK had stood to lose more than most countries by a change in the law, whereas a country like France would have benefited from the extra business. |
| But this may be a short term reprieve for the UK Treasury because planned draft legislation could reverse this decision in the future. | But this may be a short term reprieve for the UK Treasury because planned draft legislation could reverse this decision in the future. |
| Deborah Arnott, director of the health campaigning charity ASH, said: "Thankfully the ECJ has taken into account the broader health and economic implications of this case. | Deborah Arnott, director of the health campaigning charity ASH, said: "Thankfully the ECJ has taken into account the broader health and economic implications of this case. |
| "If the Dutch case had been considered lawful it would have been disastrous for the health of Britons and other Europeans living in countries where tobacco taxes are high." | "If the Dutch case had been considered lawful it would have been disastrous for the health of Britons and other Europeans living in countries where tobacco taxes are high." |
| A P&O Ferries spokeswoman said the company had been ready to adapt its business to a change in the law, but would now carry on as normal. | A P&O Ferries spokeswoman said the company had been ready to adapt its business to a change in the law, but would now carry on as normal. |
| Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros per 75cl in Ireland. | Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros per 75cl in Ireland. |