§ Mr. MilburnTo ask the Chancellor of the Exchequer, pursuant to his answer of 30 June,Official Report, column 467, what is the expected loss of United Kingdom revenues from tobacco duties arising from the removal of fiscal frontiers; what increased level of tobacco imports this represents; and what action he will take in response to these changes.
§ Sir John Cope[holding answer 5 November 1992]: The removal of fiscal frontiers will improve trade opportunities for both imports and exports. However, commercial imports of tobacco and other excise goods will remain subject to United Kingdom rates of duty before they can be sold in the United Kingdom and there will therefore be no change in the volume of commercial imports or exports arising from the difference between United Kingdom rates of duty and duties in other member states.
The removal of fiscal frontiers is expected to result in an increase in levels of cross border shopping for personal consumption. An estimate of £250 million for the revenue loss associated with personal importation of all excise goods was included in my right hon. Friend's 1992 Budget judgment—see "Budget Report and Financial Statement 1992–93", page 56.
To adapt to the new circumstances of the single market, Customs have developed a new control strategy based on flexible anti-smuggling teams. As the focus of controls on EC trade is moved away from the physical frontiers, these mobile teams acting on intelligence, focused risk assessment and profiling will replace traditional systematic Customs checks at ports and airports.