Off-licence ship 'must pay duty'

The Cornish Maiden is moored 12 miles off Hartlepool

Customs and Excise officers have told a boatload of customers from Britain's first offshore off-licence to pay duty on their purchases.

Phil Berriman from Stockton and Trevor Lyons from Newcastle-under-Lyme were selling cut-price alcohol and cigarettes 12 miles off Hartlepool.

The pair say duty has already been paid on the goods they bought abroad.

Customs officials have warned potential customers that purchased goods could be seized if they fail to declare them.

The action cast doubts on the future of the boat, the Cornish Maiden, which sailed on Sunday.

We have made it clear that anyone who buys goods in international waters has to pay excise duty HM Customs spokesman

Customers can buy a carton of 200 cigarettes for £15 - around one third the price in a mainland shop.

Mr Berriman said: "The basic rule in the European Union is that you cannot pay duty or VAT twice for anything.

"We have already paid 11.4 euros duty for every packet of cigarettes on that boat."

Customs confiscated more than £100,000 worth of stock from the off-licence owners' previous vessel Rich Harvest when it had to return to Hartlepool Marina to shelter from a storm.

Mr Berriman said every customer was being given an information sheet to clarify the legal situation.

He said: "The sheet says that Customs tell us that customers should declare the goods, and obviously that they disagree with paying the duty, and that they should give the reasons why - that we shouldn't have to pay duty twice."

A HM Customs spokesman told BBC News Online: "We are aware Mr Berriman and the Cornish Maiden are 12 miles off Hartlepool and in international waters.

"We have made it clear to him and the general public that anyone who buys goods in international waters, but who does not actually travel to another country has to pay excise duty.

"Anyone who fails to do this, or assists anyone to escape paying duty, is committing an offence.

"We are monitoring the situation closely and have flexible forces to deploy where necessary."