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Dáil Éireann díospóireacht -
Thursday, 18 Apr 1991

Vol. 407 No. 2

Written Answers. - Replacement of 48-Hour Rule.

Michael Noonan

Ceist:

58 Mr. Noonan (Limerick East) asked the Minister for Finance if agreement has been reached between the Government and the EC Commission on a substitute for the 48-hour rule; if not, if he will make an immediate arrangement for the implementation of the decision of the European Court; and if he will make a statement on the matter.

Following endorsement by the EC Commission, the ECOFIN Council on 18 March 1991 confirmed their previous agreement of 17 December 1990 to Ireland's request for a derogation in relation to travellers' allowances as a replacement to the 48-hour rule restrictions.

Under the new arrangements, travellers who have been out of the State for less than 24 hours, and who are not frontier workers, will be entitled to import, free of duty, the following quantities of goods (whether obtained duty-paid in another country or duty free): 150 cigarettes; ¾ litre of alcoholic drinks exceeding 22 per cent volume (e.g. whiskey, brandy, gin, rum, vodka) or 1½ litres of alcoholic drinks not exceeding 22 per cent volume (e.g. some liqueurs, champagne, port, sherry) plus 2½* litres of still wine.

*2 litres if obtained duty free or outside the EC.

In addition, such travellers will also be entitled to import, free of tax, other goods purchased tax paid in other countries of the EC to the value of £85, subject to no single item exceeding £65 in value and to a maximum of 12 litres of beer. The 12 litre beer limitation also applies to frontier workers. The existing value limit of £34 per person for other dutiable goods purchased tax free in the EC or obtained outside the EC will continue to apply, subject to a maximum of 12 litres of beer.

The existing normal entitlements will continue to apply to travellers who have been outside the State for more than 24 hours, subject to a maximum of 25 litres of beer.

The existing normal entitlements will continue to apply to travellers who have been outside the State for more than 24 hours, subject to a maximum of 25 litres of beer.

In line with the further decision taken at the ECOFIN Council on 18 March 1991 in relation to travellers' allowances generally throughout the Community, travellers who have been outside the State for more than 24 hours will be entitled, from 1 July next, to import goods, tax free, to a total value of £460, subject to no single item exceeding a value of £72. The 25 litre beer limitation will continue to apply to such travellers.
I am pleased that the difficulties which had arisen for Ireland in the wake of the European Court's ruling on the 48-hour rule have been resolved satisfactorily. In my view the new arrangements represent a fair balance between giving all travellers reasonable entitlements while continuing to offer a significant safeguard to the interests of the general taxpayer and of domestic producers and traders.
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