Cross-Channel shopping

TOBACCO taxation in Britain is the highest in the world. Hardly surprising, then, that smokers are taking advantage of the enormous savings that can be made by buying tobacco in countries such as France, Belgium, Luxembourg and Spain. After all, why pay up to £3.55 tax on a packet of cigarettes in Britain when you can pay just £0.88 tax in Spain and enjoy a weekend break at the same time?

In an effort to stem the huge loss in revenue (the Government estimates that over £3 billion a year is being lost to smugglers and cross-Channel shoppers) Customs and Excise have repeatedly been urged to clamp down on people bringing tobacco into the UK, even though it is perfectly legal as long as it is for your own personal use.

Although it is only quite recently that the media has taken an interest, this has been going on for years. FOREST had its first whiff of trouble in 1999 when we began to receive calls from people whose goods had been seized by Customs on their return from perfectly legitimate shopping trips. 

Many callers complained about the treatment they had received from officials and the 2000/2001 Annual Report from the Customs and Excise Adjudicator confirmed that complaints against Customs and Excise had increased by 45% to just under 3,000. Likewise, there was a 10% increase in the cases that were upheld. What was emerging was a culture of fear among ordinary cross-Channel shoppers that anything above the ridiculously small 'guideline' of 800 cigarettes or 1kg of rolling tobacco might be subject to seizure. 

Garry Mullen v Customs and Excise

Our campaign to highlight and stop the harassment of ordinary cross-Channel shoppers was launched in November 1999 when we were contacted by Garry Mullen, a 60-a-day smoker from whom officials in Dover had seized 5,000 cigarettes. After taking legal advice (and checking that the cigarettes were indeed for his own personal use), we agreed to underwrite the cost of a solicitor and a barrister so he could contest an application by Customs to destroy his cigarettes. In April 2000, supported by FOREST, Garry Mullen went to court - and won.

Not that you would have known about it. At this point the media was largely indifferent to the fate of cross-Channel shoppers. Even the news, in September 2000, that another smoker - Derek Denovellis - had successfully contested the seizure of 20,000 cigarettes at Luton airport in April that year, went largely unreported.

Meanwhile the calls continued to flood into the FOREST office and in January 2001 we were contacted by two Midlands-based coach operators who complained that their businesses were being put at risk by the heavy-handed tactics employed - on the Government's behalf - by Customs. We gave their story - exclusively - to the Daily Telegraph which ran a full page feature (plus leader) in February 2001. Thereafter the Telegraph adopted the plight of cross-Channel shoppers as part of its 'A Free Country?' campaign.

We also conducted our own research and saw for ourselves the problem that Customs faced. In fact, after sending researchers to Addenkirke in Belgium we briefly developed some sympathy for officials who were clearly being overrun by smugglers, 'amateur' and 'professional'. On purely anecdotal evidence, it seemed that as many as 70% of cross-Channel shoppers, including students and pensioners, were illegally importing cheap tobacco to sell on to their family and friends. Pocket money, perhaps, but the situation was clearly out of control.

Guilty until proven innocent

Whatever the extent of the smuggling, this couldn't possibly excuse the unprecedented harassment of legitimate cross-Channel shoppers and the 'guilty until proven innocent' mentality that seemed to have taken root in the minds of Customs officers. Nor did it excuse the (deliberate?) misinformation that Customs fed the media, a state of affairs that FOREST successfully highlighted in summer 2001 when the Daily Mirror magnanimously agreed to correct misleading information it had been given by Customs officials.

Waking up to what was going on, sections of the media gradually began to highlight individual cases and even condemn what was going on. A further boost was the involvement of the European Commission's internal market commissioner Frits Bolkenstein who threatened to prosecute the UK Government for breaking EU rules. In August 2002, meanwhile, travel operator Hoverspeed sought a judicial review on the legality of some of Customs more dubious practices.

The result of all this pressure was that on 29 October 2002 the Government finally forced announced that the burden of proof no longer lies with the traveller and that the guidelines would be increased, with immediate effect, to a more realistic level: 3200 cigarettes, 200 cigars, 400 cigarillos and 3kg of smoking tobacco. 

Handy hints to cross-Channel shopping

1. A guideline is not a limit, however much the Government and Customs may want you to think otherwise. By law you can bring as much tobacco and alcohol as you like into the UK from the EU as long as it is 'for your own personal use'. However, people who bring quantities in excess of the guidelines are more likely to be questioned and you had better have some evidence that you are the smoker you say you are! (A cigarette lighter and an open packet of cigarettes is a good start. Maybe even a letter from your employer, family or friends confirming the approximate number of cigarettes you smoke each day.)

2. The guidelines only apply to EU countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Irish Republic, Italy, Luxembourg, Netherlands, Portugal, Spain (but not the Canary Islands), Sweden and the UK (but not Gibraltar or the Channel Islands). Important: for the rest of the world duty free regulations apply which limits the amount of cigarettes you can bring into the country to just 200.
 
3. 'For your own personal use' can include gifts for your family and friends. No payment whatsoever can be taken for these gifts. This includes payment in kind, selling them at cost price, or assistance with your travel costs.

4. To avoid attracting unwarranted suspicion from Customs and Excise do not pay for your goods in cash but use a credit or debit card. Cash can look like you're spending other people's money. Also keep your goods visible at all times, like on the back seat of your car, to avoid being accused of hiding something. Finally, don't forget to keep your receipts as they prove that you've paid duty on the Continent rather than using the black market.

5. If Customs and Excise suspect you of smuggling they are likely to question you on the following areas: how frequently you travel, the amount and type of goods you have purchased, your reason for purchasing these goods, your method of payment used and your levels of consumption. They will also take into account whether all your goods were openly displayed or concealed and 'any other relevant circumstances'

6. If you are mistaken for a smuggler stay calm and polite: don't get angry, sarcastic or tell them how to do their job. Ask for the names, ranks and numbers of all officers who deal with you because they may come in useful later and try to make a note of who said what.

7. If you have a complaint ask to see the officer or manager in charge straight away. If the complaint is not resolved you can contact one of Customs' Complaint Units. If you are still not happy you can then request to see the Adjudicator (an impartial referee dealing with mistakes, delay, staff attitude and quality of service) for the Inland Revenue and Customs and Excise to review your complaint (www.adjudictorsoffice.gov.uk). Alternatively you can ask your MP to refer your case to the Parliamentary Ombudsman. 

8. If your goods are seized your vehicle, if you are travelling in one, will also be seized. Ensure you are given a receipt for the seized goods, an explanation of why the items were seized, and seizure form C156. This form details your rights and how to appeal.

9. If you wish to appeal, it should be sent, in writing, within 30 days of the seizure to the address given on form C156. You can hire a solicitor but you will only get the cost of this back if you win the case.

10. If Customs reject your written appeal the case will go to a magistrates' court. The magistrate can order your goods and vehicle to be condemned or returned to you. Both sides can appeal to a Crown Court against this decision.

11. If you win against Customs they will offer you compensation. At this stage it is advisable to hire a solicitor (if you haven't already) as Customs valuation of your vehicle, which will probably have been scrapped or auctioned, is unlikely to match yours.

See also: Sea Change and Tobacco Taxation

Filed 01/02/03