UK says goodbye to ‘de minimis’. The British government has confirmed the elimination of the tariff exemption for low-value imports, with the forecast to be implemented by March 2029. The main affected will be Chinese fast fashion platforms, such as Shein or Temu.
Currently, packages with a value of less than 135 pounds (154 euros) are exempt from paying customs duties on entry into the country, as well as being subject to less surveillance.
The move comes after months of calls from British retailers, who had hoped that the Chancellor of the Exchequer, Rachel Reeves, would “act more quickly”, given the need to repeal the “current system, which allows foreign e-commerce giants to undercut domestic prices”, according to UK media reports.
UK received parcels below the ‘de minimis’ limit worth £3 billion in the last year
According to data published by BBC, during the last fiscal year, parcels of this type valued at £3 billion (€3.418 billion) entered the UK from China, mainly through operators such as Shein or Temu, which rely heavily on shipments of items below the imposed limit.
Before implementing this measure, the government announced that it will launch a public consultation to design a replacement system, with the aim of avoiding the saturation of customs infrastructure and delivery networks nationwide.
The British government’s move joins the European Union’s efforts to end the tax exemption as well. In the EU case, the parcel value threshold is €150, below which parcels can freely enter all member states.
Brussels has also taken a step forward to block the entry of this type of goods into the territory. Last week, the European Commission proposed to accelerate the elimination of the €150 threshold. The aim is to shield the competitiveness of local businesses in the 27 Member States.
The two administrations are thus following the example of the United States, which last August eliminated the tax exemption for packages valued at less than 800 euros.