Customs sued for £50m by Hoverspeed

Hoverspeed has filed a High Court claim for £50million against Customs and Excise.

The claim follows a civil hearing brought over what the cross-channel carrier saw as heavy-handed action by customs officers in searching passengers.

The company, which operates Dover-Calais and Newhaven-Dieppe services, was victorious in the civil action when it was ruled that officials acted unlawfully in conducting random searches. A preliminary hearing on the new claim is fixed for 25 November.

Hoverspeed announced the new action as the threat of European legal action still hung over the Government because of a wrangle on cheap alcohol and cigarettes.

British customs officials spent twoanda-half hours at the European Commission in Brussels yesterday, explaining their policy of targeting cross-channel smugglers abusing the right to bring in large quantities of drink and tobacco. The Commission says innocent shoppers are being

caught up in over-zealous checks and face hefty fines, the seizure of goods and even the confiscation of their cars. Usually their only offence is to exceed ill-defined and informal limits on how much they can bring back from the continent, for personal use, without being subject to excise duty.

Yesterday's meeting came as a deadline loomed either to ease " disproportionate" penalties or be taken to court for alleged breaches of EU rules on the free movement of goods and people.

Government sources said the Customs delegation told EU officials its aim is to clamp down on the smuggling of goods which cheats the Treasury out of ?3billion a year.

That is not disputed - but the Commission says customs staff are too heavy-handed when dealing with shoppers who bring goods for family and friends on a not-for-profit basis.

Many cross-channel trippers do not realise that the rules on alcohol and cigarettes relate only to items for personal use - and bringing in supplies for friends either as gifts or simply for the cost price is not allowed without paying UK excise duty.