A BATTLE over a North-East businessman's attempt to run an off-licence 13 miles out to sea took a twist last night.

HM Customs and Excise pledged to return an estimated £150,000 worth of alcohol and cigarettes seized from entrepreneur Phil Berriman's yacht, Rich Harvest, but said he will not be able to sell the stock at duty free prices.

The partial climbdown by Customs came as Mr Berriman's barristers prepared to press for the return of the confiscated stock at the High Court, in Birmingham, on Monday.

A Customs spokesman said: "Customs will be returning the excise goods detained from the Rich Harvest so that they may be re-exported.

"They were detained pending further inquiries as they had not been reported to Customs and, in accordance with normal procedures, were removed to the Queen's Warehouse for security."

Re-exporting means Mr Berriman must take his stock of alcohol and cigarettes out of the country.

Mr Berriman, from Norton, Stockton, said he had been legitimately exploiting a loophole in present legislation and said his case was bullet-proof.

Before going into a meeting with lawyers in Birmingham last night, Mr Berriman said: "We can have our stuff back. They have sent a fax to say that.

"We can have our stuff back any time we want, but they (Customs) have not clarified our customer position. We are looking for clarification on whether people can come out and buy from us."

Customs said on that point there was no confusion. The spokesman said: "Any person simply travelling outside the 12-mile limit and purchasing either duty free or EU tax paid goods are not entitled to any allowances. Therefore, any goods acquired by an individual in these circumstances may be seized, along with any vessel being used to transport the goods into the UK.''

Customs have also written to Mr Berriman explaining the position as they see it.

Officials swooped on Rich Harvest when the yacht put in to Hartlepool for minor repairs last weekend, and detained all the stock.

In the first few days of operation, the floating off-licence made £10,000. Mr Berriman's organised shuttle taking customers out to Rich Harvest was fully booked for the next two months, while about 30 fishing charter boats sailing out of Hartlepool were also fully booked.