Fast ferry operator Hoverspeed is claiming £50 million damages from Customs and Excise over the treatment of its passengers.

Hoverspeed, which runs a Newhaven Dieppe summer service, is angry at what it claims were heavy handed searches of people at ports.

The company says too many random searches have been carried out when Customs hit squads descended on Newhaven.

Hoverspeed said this was putting cross Channel passengers off making short shopping trips to the continent. The claim is for loss of revenue and passenger goodwill.

Travellers can bring back unlimited amounts of alcohol and cigarettes from the continent providing they are for personal use.

Customs officers say they may stop anyone thought to be carrying goods over what they deem is reasonable personal usage.

They are anxious to stop people selling cheap goods from the continent which duty has not been paid.

There are only a handful of full-time Customs staff based at Newhaven and Customs and Excise rely on random spot checks with officers being bused in from elsewhere.

Hoverspeed and Customs and Excise have been locked in a two year legal dispute over the way passengers are searched at its two South Coast ports, Newhaven and Dover.

Customs and Excise defends its policy saying Hoverspeed services pose a particular threat as they operate fast ferries over short distances which could be easily used to smuggle goods in.

The High Court ruled in 2002 that random stop and searches carried out on Hoverspeed passengers by the Customs and Excise were unlawful.

Much of the ruling was later overturned by the Appeal Court.

Steve Lawrence, a spokesman for Sea Containers, Hoverspeeds parent company, said We got a landmark decision against Customs and Excise for their tactics. At the time we reserved the right to claim for damages.

A spokesman for Customs and Excise said: We are not surprised by Hoverspeeds actions, even though Customs won in the Appeal Court on many aspects of the original ruling. We will contest the claim.