Written answers

Tuesday, 28 February 2006

Department of Finance

Duty Free Allowances

11:00 pm

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 65: To ask the Minister for Finance his views on whether the thresholds for personal purchases overseas are set at unrealistic levels and are unenforceable; and if he will make a statement on the matter. [7980/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The duty-free allowances for purchases for personal consumption of goods by persons entering the State from outside the European Union are set down in EU legislation — Council Directive 69/169/EEC. Therefore, the same passenger allowances apply across all EU member states. These thresholds were last increased in March 1994 and are set out in the table below.

For alcohol, tobacco and perfume the allowances are set at certain amounts of the goods in question, while for all other goods, there is an aggregate limit of €175 per adult. In the case of these duty-free allowances it should be borne in mind that there are three tax or duty types involved, namely, customs, excise and VAT. From a fiscal viewpoint, the allowances on alcohols and tobacco products are the most sensitive and, therefore, tightly controlled.

I am informed by the Revenue Commissioners that they maintain an enforcement presence at all the principal points of entry to the State for the purpose of checking compliance with the limits to these duty-free allowances. Officers perform checks on both accompanied and unaccompanied luggage or baggage on a selective basis using intelligence and risk assessment methods. In performing such tasks, a balance must be struck between the need for enforcing controls and not imposing undue burdens on passengers arriving in this country. In the circumstances, the commissioners do not consider the enforcement of the allowance limits unduly difficult or onerous.

The Deputy might wish to note that the European Commission has, only in the last week, published a proposal with respect to revising the exemptions from VAT and excise duty applying to goods when imported by persons travelling from non-EU countries. Part of this proposal involves the €175 limit referred to above being increased to €500 in the case of air travellers. While we have yet to fully tease out all the elements contained in this Commission proposal, entitled COM 76 (2006), the proposed increase from €175 to €500 seems reasonable. Discussions on the Commission proposal will in the normal way commence at EU working group level.

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