CUSTOMS officials have won their latest battle over a consignment of cigarettes and alcohol seized from a ship that was anchored off the North-East.

The court clash began when Customs officials seized a haul of cigarettes and drink from a vessel called the Cornish Maiden when it put into port at Hartlepool.

The boat's owner Philip Berriman, of Norton, near Stockton, and his business partner Trevor Lyons, had been selling the haul duty-free outside UK territorial waters.

When the boat docked, customs officials demanded the stock be placed in temporary storage. When Mr Berriman refused, the goods were seized.

Mr Berriman appealed the decision, which was overturned by a judge and two magistrates at Teesside Crown Court in April last year.

Now customs have successfully challenged the ruling in the High Court.

Lord Justice Gage and Mrs Justice Rafferty, said the Crown Court's decision had been "flawed".

Lord Justice Gage said he had not lost sight of Judge Fox's finding that part of Revenue and Customs' motive had been "to nip Mr Berriman's venture in the bud".

However, ruling on the central issue in the appeal, the judge said Revenue and Customs had been entitled to demand that, when the ship put into port, the goods could not be kept on board, but had to be stored in a location approved by the authorities.

The question over whether the goods should have been seized is still to be decided.

Lord Justice Gage said that, in principle, once Mr Berriman had refused Revenue and Customs demand that the goods be stored in an approved location, they became "liable to forfeiture"

The judge said the Crown Court would have to carefully consider that and other factors when deciding whether condemnation of the goods is a "proportionate" response.