EU Enlargement (Tobacco Products)

HC Deb 01 April 2004 vol 419 cc106-7WS

The Economic Secretary to the Treasury (John Healey)

I am today laying regulations confirming the introduction of quantitative restrictions on travellers bringing tobacco products from those new EU member states taking advantage of a derogation allowing them to delay meeting minimum duty levels on certain tobacco products.

The restrictions will apply from 1 May to the following: cigarettes bought duty-paid in the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia; manufactured tobacco products¹ bought duty-paid in the Czech Republic; and smoking tobacco² bought duty-paid in Estonia.

Where new member states take advantage of the derogation, existing member states are entitled to maintain the same restrictions on the import of cigarettes and some other tobacco products bought in those countries for a traveller's own use, as are currently applied to travellers arriving from third countries, including the new member states.

The Excise Duty Points (Etc.)(New Member States) Regulations 2004, the Customs and Excise Duties (Travellers' Allowances and Personal Reliefs) Order 2004 and the Channel Tunnel (Alcoholic Liquor and Tobacco Products)(Amendment) Order 2004 allow the UK to maintain these restrictions.

After Accession on May 1, travellers to the UK bringing in tobacco products from the countries covered by the regulations will be restricted, as they are currently, to a limit of 200 cigarettes, or, in the case of Estonia, to a limit of 200 cigarettes or 250 grams of smoking tobacco; or, in the case of the Czech Republic, to a limit of 200 cigarettes or 50 cigars or 100 cigarillos or 250 grams of smoking tobacco.

While the EU minimum duty rates are not met, uncertainties over the impact of EU Enlargement on excise smuggling and cross-border shopping are also heightened.

The Government will therefore review both the operational and principled justification for retention of quantitive restrictions after 12 months in light of developments in smuggling and shopping patterns, and in light of progress made by the new member states to comply with the minimum duty levels.

Customs and Excise has plans in place to explain the restrictions to the travel industry and general public.

¹ Manufactured tobacco products includes cigars, cigarillos and smoking tobacco.

² Smoking tobacco is hand rolling tobacco (HRT) and pipe tobacco.