Rich Harvest came into port for repairs
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A "floating off-licence", anchored 13 miles off the North East coast, has had its cargo detained by Customs and Excise officials.
The 72ft-long Rich Harvest yacht was moored in international waters off the coast of Hartlepool selling cut price alcohol and cigarettes.
Goods were removed from the vessel when it was brought into Hartlepool marina for minor repairs.
One of the owners, Phil Berriman, 46, has vowed to fight the seizure.
'Hands were tied'
Speaking on Sunday, Mr Berriman said: "Customs came down yesterday and gave us until midnight tonight to leave.
"Then they came down again this morning and said the agreement was null and void.
"They couldn't give us any reason for this, and said they had instructions from above. They said their hands were tied."
Mr Berriman has vowed to fight the seizure of his cargo
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Mr Berriman described the seizure as "intimidation and harassment" and said he would go to court if necessary to get his stock back from Customs.
He said: "What they are trying to do is send a message to other people, regardless of the law, they don't want to let this continue."
In the meantime, he and his partner were "99% certain" they would buy more stock abroad and continue the operation, Mr Berriman said.
A spokesperson for Customs and Excise said: "The vessel Rich Harvest was detained by Customs at Hartlepool on 10 July, along with a quantity of excise goods stored on board.
Bad weather
"The detained excise goods have been removed by Customs in the belief that they are neither declared nor duty paid.
"Customs will make additional inquiries before any further action is taken."
Mr Berriman, from Stockton-on-Tees, had sailed to Germany with his business partner Trevor Lyons, 53, to buy 5,000 boxes of cigarettes and 1,000 litres of spirits.
Customers had to sail out into international waters to buy the goods.
Mr Berriman said he was averaging about eight customers a day before bad weather took hold.