UK retailers are urging the government to fast-track the removal of a low-value import duty exemption, saying that it gives Chinese online platforms an unfair edge over domestic businesses.
The government announced in its Autumn Budget in November 2025 that it would end the £135 ($180) de minimis customs duty relief by March 2029 at the latest.
A consultation on how the change should be implemented closed on March 6, and the Treasury has yet to publish its response.
The £135 threshold currently exempts qualifying low-value imports from customs duties, although VAT still applies.
Retailers say platforms such as Shein and Temu have benefited significantly from the arrangement by shipping parcels directly from factories in China to UK consumers.
Pressure for reform has grown as low-value imports have increased.
According to HM Revenue and Customs data cited in the government’s consultation document, the declared trade value of such imports rose from £3.8 billion in 2023–24 to £5.9 billion in 2024–25, while import volumes roughly tripled between 2021 and 2024.
The consultation document notes that both the nature and volume of these imports have changed significantly, with many arriving through direct-to-consumer e-commerce models linked to Chinese exporters.
Retailers say that the current system allows overseas sellers to ship products directly to consumers without paying customs duties that UK-based competitors face on larger imports.
In a letter sent last month, retailers including Primark, Marks & Spencer, and Next called on the government to accelerate the reforms, saying the current arrangements place domestic businesses at a competitive disadvantage.
Concerns over the issue have been building since VAT collection reforms introduced in 2021 shifted more responsibility onto online marketplaces while leaving the customs duty exemption unchanged. The changes were followed by rapid growth in cross-border parcel volumes.
A Treasury spokesperson has previously described the planned reform as a significant measure aimed at supporting British businesses while improving oversight of goods entering the country.
The Treasury said it is reviewing responses to the consultation before finalizing the details of the policy, although no date has been announced for publishing its response.
The UK review comes as other major economies tighten rules on low-value imports. The United States ended its de minimis exemption for low-value shipments, including those from China, with full implementation in 2025.
The European Union plans to introduce a €3 ($3.50) fixed customs duty on parcels valued below €150 ($174) from July 2026 ahead of wider reforms scheduled for 2028. France has introduced additional measures on low-value parcels effective March 1.
As part of the review, the consultation seeks views on possible handling fees, improved data requirements, and other measures designed to modernize border controls while balancing revenue, fairness, and administrative costs.
