§ Mrs. LaitTo ask the Chancellor of the Exchequer what work is being undertaken by HM Customs and Excise to include seizures at airports, EU diversion fraud and smuggling in freight containers originating outside the EU within the estimates of the revenue from(a) tobacco and (b) alcohol lost as a result of smuggling. [69532]
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§ Dawn PrimaroloHM Customs and Excise's current estimate of the annual revenue lost (excise duty and VAT) through the smuggling of tobacco products by air passengers is £50 million. This estimate is contained in a report laid in the House of Commons on 19 November 1998. There is no estimate of the revenue lost through smuggling by air passengers of alcoholic drinks, but this is not believed to be on a comparable scale.
HM Customs and Excise are currently working with representatives of the trade and other interested parties to establish robust methodologies for the measurement of excise duty evasion as a whole. This work is in keeping with one of the recommendations of the report of the Alcohol and Tobacco Fraud Review, which was published in July 1998.
§ Mrs. LaitTo ask the Chancellor of the Exchequer what is the latest estimate by HM Customs and Excise of the revenue lost on(a) tobacco and (b) alcohol products as a result of smuggling and bootlegging in the current financial year; and what are the final figures for the last financial year. [69531]
§ Dawn PrimaroloHM Customs and Excise estimates for the revenue lost (excise duty and VAT) through smuggling of alcohol and tobacco products are produced on a calendar year basis. Their most recent estimates are contained in a report laid in the House of Commons library on 19 November 1998.
In 1998, Customs estimate that £1,000 million was lost through cross-Channel smuggling of tobacco products, and £220 million through such smuggling of alcoholic drinks. The equivalent estimates for 1997 are £790 million for tobacco products and £180 million for alcoholic drinks. Customs also estimate that the annual revenue currently lost through smuggling of tobacco products by air passengers is about £50 million.
These estimates exclude any amounts for revenue lost through smuggling in very large freight consignments, for which Customs have not published any estimates.
§ Mrs. LaitTo ask the Chancellor of the Exchequer what further resources are planned for HM Customs and Excise to combat smuggling and bootlegging from sources(a) within and (b) outside the EU in addition to those already announced since May 1997. [69553]
§ Dawn PrimaroloCustoms has been allocated £35 million under the Comprehensive Spending Review to tackle evasion of alcohol and tobacco duties. This includes over 100 additional front line staff, both at ports and inland, to combat the smuggling and distribution of illicit goods. The staff will not deal exclusively with goods from within or outside the EU; they will tackle fraudulent activity whatever the source. They will all be in post by 1 April.
§ Mrs. LaitTo ask the Chancellor of the Exchequer what discussions are taking place with customs authorities outside the EU to determine the amount of smuggled alcohol and tobacco products which originate outside the EU. [69529]
§ Dawn PrimaroloHM Customs and Excise are currently working with representatives of the trade and other interested parties to establish robust methodologies28W for the measurement of excise duty evasion as a whole. For measurement purposes, the split between EU and non-EU sourced smuggling is a secondary factor.
Customs and Excise have contact with many non-EU customs authorities for operational purposes.
§ Mrs. LaitTo ask the Chancellor of the Exchequer for what reasons seizures at airports, EU diversion fraud and smuggling in freight containers originating outside the EU are excluded from the official HM Customs and Excise estimate of the revenue lost on(a) tobacco and (b) alcohol products as a result of smuggling. [69528]
§ Dawn PrimaroloHM Customs and Excise's current estimate of the annual revenue lost (excise duty and VAT) through the smuggling of tobacco products by air passengers is £50 million. This estimate is contained in a report laid in the House of Commons on 19 November 1998. There is no estimate of the revenue lost through smuggling by air passengers of alcoholic drinks, but this is not believed to be on a comparable scale.
Customs' published estimates of the scale of cross-Channel smuggling and smuggling by air passengers are based on statistical surveys of returning UK passengers conducted each year by Customs. Due to their hidden nature, and lower incidence, it is not practical directly to measure EU diversion fraud and smuggling in very large freight consignments by such means. However, HM Customs and Excise are currently working with representatives of the trade and other interested parties to establish robust methodologies for the measurement of excise duty evasion as a whole. This work is in keeping with one of the recommendations of the report of the Alcohol and Tobacco Fraud Review, which was published in July 1998.