The Duty-Free Confederation has criticised Customs and Excise for not giving members enough time to implement the new “unworkable” rules which will replace duty-free on July 1.
Customs and Excise is to distribute 2m leaflets to passengers this week outlining the changes.
For travellers to other European Union countries, prices at UK ports, airports and the Channel Tunnel terminal will include VAT and excise rates at UK rates. Some airports may have separate duty-free and duty-paid shops for travellers to non-EU and EU destinations respectively. Others will have single shops with dual pricing.
On ferries or aircraft, the duty-paid changes depending on which waters or air space is occupied but VAT is due at the rate of the country of departure for the whole journey.
DFC secretary-general Barry Goddard said: “We don’t see how most operators can be expected to implement this by July 1. Take Dover to Calais. On the way out, you would pay a UK duty and UK VAT, then in French waters, you’d suddenly have to pay French duty and UK VAT. On the way back in French waters you would pay French duty and French VAT and as you get to UK waters, UK duty and French VAT. Imagine joining the queue thinking you had one price and getting to the front to find you had another.”
He said the only solution in the short term was for ferries not to open shops in UK waters; in the medium term for a three-month extension to be given to duty-free to iron the problems out; and in the long term to achieve a standard EU rate.