UK Government Moves to Scrap De Minimis Customs Rule
The UK government has set out proposals to scrap the de minimis customs relief that currently permits low-value goods to be imported without paying duties.
Outlined in the 2025 Autumn Budget, the measure would remove the duty-free status for parcels worth under £135 — a limit frequently used by overseas e-commerce sellers that ship items directly to UK customers.
Advocates of the change say the current framework places UK businesses at a competitive disadvantage. Overseas retailers are able to send individual products into the country without incurring customs charges, while domestic firms importing stock in bulk typically face import duties. Ending the exemption is designed to correct this disparity and level the playing field, particularly within the retail sector.
The government has indicated that the new system is unlikely to be implemented before March 2029. Officials say the extended timeline reflects the need for upgrades to customs systems and detailed engagement with businesses likely to be affected.
Industry bodies have raised concerns that the delay could allow the UK to become a dumping ground for surplus online retail inventory in the meantime.
The move also reflects a wider global trend away from de minimis thresholds. The US has already removed its $800 exemption, while the EU has confirmed plans to phase out its own scheme within the next few years, with interim arrangements potentially starting as early as next year.
These developments are expected to have a notable effect on large Chinese online platforms such as Temu and Shein, which rely heavily on cross-border shipping of low-priced goods.
Killick Martin will continue to track developments and share updates as further details emerge.
