Half the stock from a floating off-licence was seized by Customs last night when owner Philip Berriman refused to meet a 24-hour deadline to put it into storage.

Mr Berriman is now planning to sue the Government because he claims they have illegally impounded his cut-price cigarettes and alcohol.

Business partner Trevor Lyons agreed to the Customs' demands and hired a lorry to take his £50,000 share of the goods to an approved storage facility.

But Mr Berriman insisted on keeping his half of the stock on board Cornish Maiden after starting security work on the former fishing boat to ensure it was safe.

A team of ten Customs officials moved in at 6pm last night and started a two-hour operation to remove 1,000 litres of spirits and 1.5 million cigarettes from the boat moored at Hartlepool Marina.

Mr Berriman, 46, from Norton, Stockton, said: "This is piracy."

The businessman gave Customs a written pledge that he would reinforce the hatch of Cornish Maiden with bolted grate to prevent anyone breaking in and that the boat would be under 24-hour guard and covered by CCTV.

"Taking my stock is an illegal seizure," he said.

"I will be starting legal action as soon as possible."

Crowds gathered in the rain as the cigarettes and alcohol were removed and counted box by box and bottle by bottle.

Cornish Maiden came into port on Wednesday evening after a five-day stand-off between the business partners and Customs and Excise.

Mr Berriman claims a customs ship moored near his boat 13 miles off the coast was putting people off making trips to buy from him.

Customs warned anyone thinking of going out that they would have their bargain seized if they refused to pay additional UK duty.

Last night, a Customs spokesman said: "Customs advised them of the legal requirement and have taken action accordingly."