EUROPE. The European Travel Retail Confederation (ETRC) has urged travel retail businesses to prepare for a new trading regime between the UK and EU countries from 1 January, and to clearly communicate updated allowances to travellers.
As reported, on 24 December the UK and EU reached agreement on their future trading relationship once a transition period that followed the UK’s departure from the EU ends on 31 December.
In a note to partners today, the ETRC confirmed the status of new rules for duty & tax free sales.
As of 1 January 2021, “persons carrying goods in their luggage or otherwise with them are entitled to duty free allowances (meaning goods exempt from VAT and customs duties, and where applicable excise duty) for travels from Great Britain to the EU.”
The current scheme for VAT refunds for goods purchased in the EU [by non-EU visitors] will be extended to visitors from Great Britain. The rules do not apply to travellers between Northern Ireland and the EU, as reported. Likewise, the UK confirmed that travellers from the EU to Great Britain will also be entitled to duty free allowances when entering Great Britain.
The ETRC said: “As a retailer association ETRC encourages responsible retailing including clear communication to passengers of their personal allowances in their country of destination via POS communication. Allowances should be communicated accordingly, e.g. posters in the shop and staff training so that staff can inform passengers at the till and potentially remind them of consequences for exceeding allowances.”
Duty free allowances when entering the European Union:
- Alcohol: a. 4 litres of still wine; and b. 16 litres of beer; and c. a total of 1 litre of spirits over 22 % vol. OR 1 litre of undenatured alcohol (ethyl alcohol) of 80% vol. (or over) OR 2 litres of fortified or sparkling wine.
- Tobacco: 200 cigarettes OR 100 cigarillos OR 50 cigars OR 250 g tobacco;
Other goods up to a value of €300 per traveller or €430 for travellers by air and sea.
Duty free allowances when entering Great Britain (England, Scotland and Wales) from outside the UK:
- Alcohol: a. 18 litres of still wine; and b. 42 litres of beer; and c. a total of 4 litres of spirits and other liquors over 22% alcohol OR 9 litres of fortified wine (for example port, sherry), sparkling wine and alcoholic drinks up to 22% alcohol
- Tobacco: 200 cigarettes OR 100 cigarillos OR 50 cigars OR 250 g tobacco OR 200 sticks of tobacco for heating.
- Other goods worth up to £390 (or up to £270 when arriving by private plane or boat). If a single item’s worth more than the allowance duty or tax must be paid on its full value, not just the value above the allowance.
The UK government has also indicated that from 1 January, travellers can check their allowances, make a declaration and pay any tax using an online service. If travellers go over an allowance, they must make a declaration for all the goods in that category.
On travel between the EU and UK, ETRC noted: “While both parties described the deal as an ambitious one which notably includes zero tariffs and zero quotas on all goods, this will create new barriers to trade in goods and services such as custom and border checks.”
There will be new requirements for imported food, animals and plants and labelling requirements on imported goods. There will also be implications for cross-border mobility as all movements will be subject to the EU and UK immigration legislation applicable to all third country nationals.
Both the EU and the UK have taken the decision to allow visa-free short-term visits of up to 90 days within any 180-day period (subject to reciprocity). The treaty remains subject to final ratification by governments.
