You may have a nasty surprise in store if you are planning to pick up Christmas gifts at bargain prices, either on a shopping trip abroad or from foreign vendors over the internet.

Most travellers are aware that you can bring certain amounts of alcohol, tobacco and perfume into the UK from abroad without being charged import duty or VAT. But it may come as a shock to learn that there is a pretty measly £145 limit on goods you can bring in duty and tax-free from countries outside the EU.

This was certainly the case earlier this month for Coleen McLoughlin, fiancée of soccer superstar Wayne Rooney, when she was held by Customs & Excise after attempting to bring thousands of pounds worth of designer shopping from New York into Britain without paying duty and tax.

While her oversight was attributed to ignorance rather than any criminal intent, this didn't rescue the 18-year-old from having to pay a hefty import duty and VAT bill on her purchases - a charge which is typically 20% of the original purchase price.

The onus is on you, the importer, to declare purchases bought outside the EU which exceed the £145 duty-free allowance. That means coming through the red channel when you enter the country or using the red point phone.

If you don't, you are breaking the law and Customs may prosecute you on top of charging you duty and VAT.

For the full low-down on what you can and cannot bring in duty-free and VAT-free from countries outside the EU, check out the Customs & Excise booklet Notice 1: Customs Guide for Travellers Entering the UK before you go abroad. It's available to download at www.hcme.gov.uk If you have any queries, call Customs' advice service on 0845-010-9000.

If you do bring items, including gifts and souvenirs, from outside the EU worth more than £145, you have to pay charges on the full value, not just on the value above this allowance. And, if you are travelling as a family or group, you can't pool your individual allowances towards an item.

Also, if you bring into the country any duty-free or tax-free goods you bought when you left the UK, these will count as part of your allowance.

Keep the receipts for items you buy outside the EU, especially if you have picked up some bargains. If you have no proof of the purchase price, Customs officers will charge duty and VAT on what they deem a realistic price for them - possibly far higher than what you actually paid.

Buying goods from internet vendors outside the EU can be even pricier, because duty-free allowances do not apply. Duty and VAT are payable if you buy goods worth £18 or more from outside the EU.

To clear the package through Customs, the Post Office or other freight forwarder will pay duty and VAT charges on your behalf and then collect the charges from you before handing over the package. Some mailing services may charge you a handling fee on top of the Customs charges.

If you want to identify the exact amount payable on specific items you intend to buy, first find out the 10-digit commodity code for your goods by calling the Tariff Classification Service on 01702-366-077. Then call Customs on 0845-010-9000 quoting the codes and they will tell you the correct rate of import duty, VAT and any Excise duty to be paid.

What you can bring in

What you can bring in from non-EU countries without paying UK tax or duty

· 200 cigarettes; or 100 cigarillos; or 50 cigars; or 250g of tobacco

· 2 litres of still table wine*

· 1 litre of spirits or strong liqueurs; or 2 litres of fortified wine, sparkling wine or other liqueurs*

· 60cc of perfume

· 250cc of eau de toilette

· £145 worth of all other goods including gifts and souvenirs

What you can bring in from the EU without paying UK tax or duty

· Any goods, including any alcohol and tobacco for your own use. BUT, you may be questioned and investigated if Customs officers suspect you are bringing in alcohol and tobacco for a commercial purpose.

· As a guide, you are likely to be questioned if you bring in more than 3,200 cigarettes, 200 cigars, 400 cigarillos, 3kg tobacco, 110 litres of beer, 90 litres of wine, 10 litres of spirits or 20 litres of fortified wine such as port of sherry.

· If you are found to be flouting the "own use" rules and are bringing in goods for a commercial purpose, they will be taken away from you, along with any vehicle you use to bring them in. For a serious offence you can get up to seven years in prison.

Christmas shopping

Items | Price paid | import duty | VAT | Total cost

Two watches............| £350 | £15.75 | £64.00 | £429.75

Music CDs...............| £100 | £3.50 | £18.11 | £121.61

Adult clothing...........| £400 | £48.00 | £84.00 | £532.00

Children's clothing.....| £250 | £30.00 | £49.00 | £329.00

Apple iPod
15GB digital player....| £120 | £2.40 | £21.42 | £143.82

Computer
and console games...| £150 | £5.25 | £27.17 | £184.42

Mini digital
Camcorder...............| £400 | £19.60 | £73.43 | £493.03

Costume jewellery....| £200 | £8.00 | £36.40 | £244.40

Toys.......................| £100 | £4.70 | £25.72 | £130.42

Leather handbag......| £90 £2.70 £16.22 £108.92

Total spent = £2,160
Total duty & VAT = £557.37
Total cost = £2,717.37