UK Faces Calls To Act Faster On Low Value Import Loophole
The UK government is coming under increasing pressure from domestic retailers to fast-track plans to abolish the import duty exemption that has contributed to the rapid growth of international e-commerce giants.
At the heart of the issue is the “de minimis” rule, which currently allows goods valued at £135 or less to enter the UK without incurring customs duty.
Retailers argue that this policy has created an uneven playing field, allowing overseas sellers to undercut UK-based businesses that must account for tariffs.
The European Union has already confirmed it will remove its own de minimis threshold from 1 July 2026, applying duties to all imports regardless of value and introducing a €3 flat duty fee on low-value shipments. The United States, meanwhile, eliminated its exemption last year.
By comparison, the UK government has set a March 2029 deadline to phase out its system, citing the need to implement new systems and processes.
Against this backdrop, British retailers warn that delaying reform for a further three years risks causing lasting harm to the UK’s e-commerce sector. They argue that immediate action is needed to ensure fair competition, protect domestic businesses, and curb the growing dominance of low-cost international sellers.
The UK government has yet to issue an official response. Killick Martin continue to monitor developments.
