UK To Scrap Its Tariff Exemption on Low-Value Imports By 2029

The UK is set to clamp down on the influx of ultra-cheap Chinese fashion imports into the country, though not as quickly as many UK retailers would like.

In the new budget unveiled Wednesday, the Treasury confirmed it will introduce reforms to close the current “de minimis” loophole, exempting imports valued at £135 ($178) or less from customs duties, by March 2029 at the latest.

Retailers had widely expected chancellor Rachel Reeves to move faster after months of pressure from British high-street groups who say the current system allows overseas e-commerce giants to undercut domestic prices.

Chinese platforms Shein and Temu rely heavily on shipments of items under the £135 threshold, sending them directly to consumers while avoiding customs charges. Earlier this year, the BBC reported that £3 billion worth of these parcels entered the UK from China in the most recent financial year.

Regulators and industry groups have warned that the model distorts competition and increases the flow of goods that may not meet UK safety or environmental standards.

The government said it would launch a public consultation to design a replacement system, citing the need to avoid overwhelming customs infrastructure and delivery networks.

The US abruptly ended its own “de minimis” exemption on goods valued under $800 this August, causing disruptions for shipping companies and retailers.

The UK timeline aligns with similar gradual reforms planned in the EU, which plans to eliminate its €150 ($174) threshold for duty-free imports in March 2028, though Brussels has pushed to accelerate the removal to the first quarter of 2026.

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Brussels Wants to Accelerate Crackdown on Cheap Chinese Parcels

Brussels is proposing to accelerate the removal of the €150 ‘de minimis’ customs threshold for parcels entering the EU, mostly from China.