John Healey

Ministers have announced a U-turn on unpopular rules governing the import of cigarettes and beers, wines and spirits from the EU.

Shoppers will no longer have to prove that large amounts of alcohol and tobacco brought back from France are for personal use, Treasury minister John Healey said on Tuesday.

Significantly easing existing policy, after criticism from the European Commission, ministers have overhauled the existing approach to the import of items for private consumption.

But there was a warning that those bringing alcohol and tobacco across the Channel for commercial purposes would face tougher action.

"The government recognises, respects and strongly supports the right of UK citizens to shop as they choose across country borders in the EU single market," said Healey.

"Our commitment to this consumer right to bring back as much tobacco and alcohol as they want for their own use, is absolute.

"But our determination to prevent smuggled imports without the duty due to the UK, is also absolute."

The "indicative levels" for personal consumption of tobacco have been increased from 800 to 3200 for cigarettes and from one kilogram to three kilograms for hand-rolled tobacco.

A new appeals and complaints procedure for aggrieved shoppers has also been put in place.

The new regulations, introduced in the Commons on Tuesday, abolish the burden of proof on the individual to show that goods are for their own use.

Customs officials will need to be satisfied that goods are for a commercial purpose in order to impound them.

However, individuals importing large quantities could still be asked to explain why such a significant amount is needed for personal use.

Factors the officers will take in to account when making decisions include:

• The person's reasons for having possession of the goods.

• Whether or not that person is a trader in excise goods.

• The person's conduct, including his intended use of those goods or any refusal to disclose his intended use of those goods.

• The mode of transport used to convey those goods.

• Documentation or other information (eg receipts) relating to the goods.

• The quantity of the goods.

• Whether that person personally financed the purchase of the goods.

Healey, the customs minister, said the government was also building on the success of previous initiatives to crack down on smuggling

He said there had been a 76 per cent cut in cross-Channel smuggling in the past two years.

Healey warned that without action the illicit share of the cigarette market would have reached 31 per cent by the end of March 2002, up from one fifth in 2000/01.

The cost of that tobacco smuggling to UK taxpayers was estimated at £3.5 billion.

This is largely thought to profit organised criminals concealing large volumes of cigarettes in freight consignments in excess of one million at a time .

A smaller proportion was smuggled by cross-Channel passengers - with losses to the Exchequer estimated at £1.7 billion in 2000.

To strengthen the hard line taken against smugglers, Healey promised more prosecutions of large scale and regular smugglers.

And while small-scale first time offenders will now be offered their vehicle back for a fee equivalent to the amount of duty which has been evaded, large scale and repeat offenders will have their vehicle seized, and not restored.

"The package will demonstrate that customs are acting legally, fairly and toughly," pledged Healey.

"We want to reinforce the rights of shoppers and reinforce the regime against smugglers, so that those cheating the system know their smuggling days are numbered."

Shadow chancellor Michael Howard said the "climb down" was welcome.

"Ministers' policies were too heavy handed. Innocent people suffered. It is only a shame that Labour's retreat has happened after thousands of people have been seriously inconvenienced," he said.

"What government must now do is ensure that we have effective action against smuggling while also ensuring that innocent members of the public are fairly treated."