BRITAIN'S first offshore off-licence was back doing steady trade off the North-East coast yesterday - and heading for a battle with Customs and Excise officials.

Charter boats are once again travelling to and from maverick mariner Philip Berriman's floating off-licence, which is moored more than 13 miles off Hartlepool's shoreline.

Mr Berriman, 46, from Norton, Stockton, and his business partner, lecturer Trevor Lyons, say all they are doing is exploiting a loophole in the law, which allows them to sell cheap alcohol and cigarettes bought in other EU countries, in international waters.

Mr Berriman has been handing out an information sheet to all visitors to his off-licence, the Cornish Maiden, setting out the legal position as he and his lawyers see it, including that HM Customs' insistence that duty must be paid.

But it did not stop a team of three customs officers, stationed in a people carrier, checking vessels arriving back in Hartlepool Marina yesterday, which was busy with pleasure boats and fishermen.

Mr Berriman said he was leaving it up to his customers to decide whether to contact Customs on their return to the mainland from buying drink or cigarettes from the vessel. Yesterday, he said there had been seven visitors up to midday.

"I think a lot of people are going to wait until the first day is over to see what has happened," he said.

"But it has been steady and we have done all right as far as I can tell.

"I don't know exactly, because getting a signal on the phone out there is difficult."

A marina official - who did not wish to be named - said that as well as the Customs team, Customs also had a cutter out at sea with about six crew on board looking for booze cruisers.

The source said marina users were not admitting to being customers of the new enterprise for fear of losing their boats.

He said: "If you are sailing 12 miles out to sea, having to go 20 or 30 miles down the coast won't put you off."

Mr Berriman said he had approached a number of his customers to see if they would speak to the Press, but they had all declined.

In the first few days of operation, Mr Berriman's off-licence made £10,000.

The yacht was detained and his £150,000 stock of liquor and tobacco confiscated, although only hours later Customs said he was free to sail his yacht - and he could have his supplies back.

A Customs spokesman said: "The legal position here is very clear. People who have not travelled to another country may not purchase excise goods outside of UK territorial waters and return to the UK without paying UK excise duty on the full amount.

"Anyone who attempts to do so is committing an offence and their goods, and any vessel used to transport them, are liable to forfeiture.

"Anyone who knowingly assists someone to commit such an offence are themselves guilty of an offence and may be prosecuted."