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LONDON (SHARECAST) - Moves to allow the free movement of duty free cigarettes and alcohol across Europe were blocked today after a court rejected the proposal.

The European Court of Justice ruled that only products acquired for private use will be exempt from excise duty, with the stipulation that all products must be transported by individuals.

The news removes the threat hanging over cigarette companies, having been dogged by concerns in recent weeks that the removal of duty restrictions could see consumers in higher taxed countries such as Britain buying cheap cigarettes over the internet.

Imperial Tobacco, which produces Golden Virginia tobacco and Benson & Hedges maker Gallaher both leapt on the news.