THE ferry operator Hoverspeed and cross-Channel day-trippers are celebrating a landmark court ruling over the legality of tactics used by Customs and Excise staff in the fight to stop illegal smuggling of cigarettes and alcohol.

Two High Court judges in London decided that checks carried out on passengers by Customs at Dover Hoverport had been "incompatible" with European law.

It means that customs officers will no longer be able to carry out random searches of vehicles arriving in Britain from the Continent. They will be permitted to stop vehicles only if they have specific intelligence that its occupants may be bootleggers.

James Sherwood, president of Sea Containers Ltd, parent company of Hoverspeed, said: "Hoverspeed does not condone smuggling and has always co-operated with HM Customs and Excise, providing intelligence, information and facilities to assist in tax evasion.

"However, we had no choice but to mount this legal challenge on this important issue not only on behalf of the company but the rest of the ferry industry and the travelling public."

The court has granted Customs and Excise leave to appeal.