Some of the largest UK retailers are unanimous in their view that the current customs relief threshold for low-value imports should be scrapped. In the last few months, there has been a lot of discussion between different stakeholders on this subject.
One of the current Government’s top priorities is to increase the country’s economic growth by implementing reforms across various sectors. One of the set priorities is to implement measures that will level the playing field between overseas vendors and local UK retailers.
As discussed during the spring months, one of the mandatory measures to be put in place is the reform of the existing tax/customs framework for low-value imports. This November, HMRC issued a final version of the Consultation document, indicating that the “right” path for customs reform regarding low-value imports is the abolition of this customs relief.
The preliminary timeline refers to 2029, as the first year from which this preferential customs framework will be made obsolete. The British Retail Consortium, as the official voice of the UK’s major retailers, is openly expressing concern about the “lateness” of this update.
Given the current situation, with approximately 500 million low-value parcels expected to arrive in the UK by the end of the year, local retailers are continuously losing market share. The import volume for 2025 is expected to be 100% higher than last year’s final number.
The leading overseas vendors for UK shoppers are Chinese e-commerce marketplaces and third-party sellers who sell on these platforms. Leading marketplaces are Shein and Temu.
The Retail Federation is strongly supporting the introduction of a new customs system as soon as possible, given the extent of the changes required and the direct implications it will have for UK customs, administration, and external affairs.
Will the UK abolish its low-value imports threshold before the EU? The first hint we will receive from the Budget Law 2026.
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