Richard Bruton (Dublin North Central, Fine Gael)
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Question 85: To ask the Minister for Finance the new level of permitted purchases which a person can bring into Ireland without being subjected to border taxation; the level of revenue collected by the authorities here on goods being brought in that exceeded the old limit in the most recent 12-month period for which data is available; and his views on whether there is a large undetected tax loss in this area. [45690/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the value and the amounts of goods that a person travelling to Ireland from outside the EU may bring into the country free of VAT and excise duties are governed by the European Communities (Tax Exemption for Certain Non-Commercial Goods Imported in the Personal Luggage of Travellers from Third Countries) Regulations 2008 (S.I. No. 480 of 2008) which came into operation on 1 December 2008. These regulations also apply to a person travelling to Ireland from a territory where the Community provisions on VAT or excise duty do not apply. Details of the Regulations are set out in the Revenue Commissioners' Public Notice 1878a, which is available on their website.

Under these Regulations, which transpose Council Directive 2007/74/EC of 20 December 2007, the total value of goods, other than alcohol or tobacco, may not exceed €430, or, in the case of a person under 15 years of age, €215. The allowances apply where the goods are intended for a traveller's own use or as gifts and are not for commercial purposes.

Separate quantitative limits apply in the case of alcohol and tobacco products. In the case of tobacco products, these limits have not been changed by the Regulations. In the case of alcohol products, the limit for wine has increased from 2 to 4 litres, and a new limit of 16 litres has been introduced for beer. Otherwise, the limits for alcohol products are unchanged. Lower quantitative limits apply in the case of crewmembers.

Similar provisions apply in respect of customs duty by virtue of Council Regulation (EC) No. 274/2008.

The revenue collected in the three main airports on goods in excess of the limits which applied prior to 1 December 2008 amounted to €161,539.99 for the period 1 December 2007 to 30 November 2008. Ongoing enforcement action being taken by Revenue's customs service indicates that large-scale smuggling is not taking place and that there is no substantial leakage of customs duty, excise duty or VAT.