Dáil Éireann Debate, Tuesday - 13 December 2005
57 Mr. Crawford asked the Minister for Finance his views on whether the thresholds for personal purchases overseas are set at unrealistic levels and are unenforceable; and if he will make a statement on the matter. [38967/05]
View answerThe duty free allowances for purchases for personal consumption of goods by persons entering the State from outside the European Union are set down in EU legislation, Council Directive 69/169/EEC. Therefore, the same passenger allowances apply across all EU member states. These thresholds were last increased in March 1994.
For alcohol, tobacco and perfume the allowances are set at certain amounts of the goods in question, while for all other goods, there is a aggregate limit of €175 per adult. In the case of these duty free allowances it should be borne in mind that there are three tax or duty types involved, namely, customs, excise and VAT. From a fiscal viewpoint, the allowances on alcohols and tobacco products are the most sensitive and, therefore, tightly controlled.
The EU Commission is currently examining the issue of the allowance limits and is expected to issue a proposal early next year. As regards the current monetary limit on goods subject to customs duty and VAT on importation, it has not been increased since 1994 and comes under pressure faced with the rising value of goods. In these circumstances, I would not regard a reasonable upward adjustment in the current monetary allowance as unwelcome. However, in this regard we need also to have regard to the concerns of member states bordering non-EU countries.
The Revenue Commissioners maintain an enforcement presence at all the principal points of entry to the State for the purpose of checking compliance with the limits to these duty free allowances. Officers perform checks on both accompanied and unaccompanied luggage or baggage on a selective basis using intelligence and risk assessment methods. In performing such tasks, a balance must, of course, be struck between the need for enforcing controls and not imposing undue burdens on passengers arriving in this country. In the circumstances, the Revenue Commissioners do not consider the enforcement of the allowance limits unduly difficult or onerous.
