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Christmas customs crackdown on dollar shoppers
Last updated at 11:37am on 05.12.06
Caught out: Coleen McLoughlin was stopped by Customs in 2004
Bargain-hunters flocking to New York will be met with a Customs crackdown when they fly back with their goods.
The strength of the pound against the dollar means huge savings for transatlantic Christmas shoppers.
BA has put on extra flights as Britons snap up iPods, jewellery and half-price jeans at Bloomingdales, Saks and Tiffany.
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• Woolies disappointed with pre-Christmas sales
• Christmas shoppers 'still paying last year's bills'
• Today's the day we'll spend £183m
Many are unaware of the £145 allowance above which they have to pay import duties and VAT which could add 20 per cent to the bill on their return.
Customs officials at Heathrow, Gatwick and other major airports are preparing for their homecoming.
A senior Customs source said: "We are fed up with people thinking they can walk through the nothingto-declare areas loaded up with goods and evading paying duties.
"We have been urged to step up our stop and searches of people and where they have been too greedy, take appropriate action. That could mean seizing the goods, levying fines or even prosecution."
The Customs source admitted: "There are many, many people who are simply ignorant of having to pay duty - it is not a question of wilfully avoiding paying up."
He added: "We don't wish to be Scrooges but these people rip off the rest of the law-abiding travellers and push up costs for everybody in the travel industry and those who travel. Shoppers have been warned and they can try their luck if they want."
The £145 limit is in contrast to the £1,000 limit for purchases brought from within the European Union.
Coleen McLoughlin fell foul of the US duty rules when she returned from New York. She walked through the green channel with four suitcases full of purchases and was presented with a £3,000 bill.
Regulations say 20 per cent duty must be paid on goods, including gifts and souvenirs worth more than £145 - although some are exempt. Anything which is subject to VAT at 17.5 per cent if sold in Britain will also have it levied.
The complicated system means that while iPods attract duty of two per cent, handbags vary in rate from three per cent to 9.7 per cent and digital cameras are exempt from all duty - except VAT.
A shopping bag containing electrical items and fashion accessories costing up to £700 could attract a tariff of as much as £134.
The boom in transatlantic shopping has been triggered by the favourable exchange rate triggered by the collapse of the dollar in recent weeks.
British Airways have put on an extra flight a day to JFK to cope with rising demand. A spokeswoman for Virgin Atlantic said bookings to America were up 20 per cent on last year in the past fortnight.
Hotels in New York are reporting record levels of bookings and have increased prices to take advantage of demand.
In Bloomingdales, businesswoman Lorraine Hansen, 32, of Willesden Green, spent £700 on clothing for herself and boyfriend Jack.
She said a pair of DKNY jeans had cost her £18, adding: "Where in the world can you buy these jeans for that kind of money? I also bought Hugo Boss jeans for £30 which had 30 per cent off and a Polo Ralph Lauren jumper for £25. For myself, my bag is full of Clinique cosmetics. Some cost £10 and in Selfridges they would have cost double."
Nursery manager Deborah Potter from Ashford, Middlesex, spent £500 on shoes. "I love shoes and this place is paradise for shoppers like me. I have saved £500 and it is a great time to be here with all the Christmas decorations."
Many British shoppers paid their respects at Ground Zero and then headed for the Century 21 department store immediately opposite the former site of the Twin Towers.
Jacqueline Robinson, 48, of Streatham, said: "Seven friends and me got on a flight last night for New York as we thought it was the best place to do Christmas shopping.
"Normally we would hit Oxford Street, the Galleria at Hatfield or Lakeside, but this place is unbelievably better.
"Our husbands are going to be quite angry when we get back, but at least they and our children will be spoilt this Christmas."
Michael Burrows, 47, of Wembley, said: "There are so many Londoners here and my flight was packed. It is just like being on Oxford Street when you see all these Brits scrambling for presents. I recommend anybody who can get here to do so."
Reader views (13)
Customs can and will stop everyone. These flights have been advertised as shopping flights. Gordon Brown awaits in gleeful anticipation.
- Michael Riley, London
I am going to New York having saved through the year to get there. I will be shopping there and I will have no issues with bringing anything back. I think the customs crack down is awful. I work hard, have never claimed dole money or any other benefit, quite frankly if I save to spend my money on a trip then I think I should be allowed to enjoy that rather than all the money I earn going to support the lazy who sit around all day watching sky and drinking special brew.
- Fr, Peterborough
I understand how this can have a negative effect on the economy and jobs generally. But to say that "We don't wish to be Scrooges but these people rip off the rest of the law-abiding travellers and push up costs for everybody in the travel industry and those who travel" as your Customs source is quoted as saying seems a load of rubbish to me.
- Owen Goodspeed, London
As someone who isn't rich and had their handbag recently stolen by petty theives with all of my belongings in, I would just like to say, if I could afford to go to NY to replace my iPod (a very special Christmas present several years ago), and the make up that was in my bag (some of which I had saved and saved for) I would. But then I guess that would just make me someone who would be enjoying a benefit for once instead of just working my life away in my public sector job.
Apologies to all those who enjoy paying high duty on things and never try and enjoy a break from it every once in awhile.
- S-M Hearmon, London
Mr S-M Hearmon should realise that this isn't a new tax - just the first time you've probably heard of it. Duties on goods being brought into the country have been in place for hundreds of years, as buying goods abroad takes money out of our economy making us all poorer - this kind of tax just recoups a fraction of the loss.
But interesting to note from the other comments that petty thieves and posh people aren't as far away from each other as you'd think - all trying to scam as much as they can out of the system.
- Claire, London
Jennifer, I'm not, I'm just thinking about all those that are and can. After all, isn't that what caring about your neighbour is all about-hoping they can enjoy life's little bonuses when they arise?
- S-M Hearmon, London, UK
I'm off to NY on Saturday and looking forward to it all the more having read this article. Now there's a chance I'll spend a little more time seeing the sights, and a little less time traipsing around Macey's, Saks and the rest.
- Phil, London, UK
£500 on shoes?! £500!
And here I am, wondering whether I can stretch to a value fake Xmas tree from Woolies.
How the other half live! Perhaps the customs officers are jealous!
I agree with a previous comment though - if you can afford to do your shopping in NY with all its additional expense (flight, hotel etc) then you really are not that poor.
- Sjh, London, UK
I hope customs massacres these pretentious idiots with taxes. Flight to New York plus the expensive hotels would surely defeat any saving on the price of the goods.
I have been to New York and to be quite honest the designer labels are usually the same price. Anyway give them money as presents. They can make a killing on the post Christmas sales.
- Michael Riley, London
Sorry but you can't claim poverty if you're going to New York to do your Christmas shopping S-M Hearmon!
- Jennifer, Netherlands, ex-UK
Isn't it typical, just when we English think that finally we won't have to pay the government even more money than we normally do, enjoying a short, yet fun shopping trip, will see us still have to pay some of the savings we've made, back to our greedy money wasting government. What with their wages, the government probably don't have to worry about bargains and penny pinching. And can the customs offical who said this please tell me what they mean, after all, if we're enjoying this then where is the problem?
"We don't wish to be Scrooges but these people rip off the rest of the law-abiding travellers and push up costs for everybody in the travel industry and those who travel".
- S-M Hearmon, London, UK
Yeah, take all the labels off of clothes and wear new stuff if you can. My grandmother once came through customs with two watches on each wrist!
- Paul, London
Make sure you post your recepts home! Do not be too obvious! Travel out with old battered [empty] luggage which isn't massive and do not be too greedy... customs cannot stop eveybody... good luck!
- James Ritchie, London, UK.
