Managed to google a little article.
uty-free limit doubles
Sean Poulter, Daily Mail
29 November 2006
The duty-free rules are to be relaxed, allowing holidaymakers travelling outside the EU to bring back double the value of goods without penalty.
The current allowance of £145 is to increase to £290 under measures thrashed out by finance ministers in Brussels yesterday.
Although the decision will benefit the increasing number of Britons taking holidays or shopping trips to the US and the Far East, the new limits fall a long way short of what Gordon Brown wanted.
The Chancellor has been arguing for two years to have the duty-free limit raised to £1,000. Such a move would have made a huge difference to British holidaymakers, allowing them greater bargains on designer clothes, computer games, beauty products, CDs and DVDs.
It might also have allowed UK Internet shoppers massively to increase the number and value of purchases made outside the EU.
But the fact that control of tax policy in this area has now been shifted to Brussels means Britain has had to go along with a compromise that suits other EU states.
It is understood that the new EU members, particularly Poland, have been arguing against the level favoured by the UK.
Governments in poorer member states were worried that a higher duty-free threshold would encourage their citizens to spend their money in other countries, rather than within national borders. This would harm their retailers, manufacturers and economic growth.
The £290 limit is due to come into effect at some point early in the New Year, meaning that Christmas shoppers heading to New York for bargains will miss out. But it will be in force in time for next year's summer holidays.