Measure
The government has announced the abolition of the £135 de minimis threshold for customs duties relief.
E-commerce businesses with a direct-to-consumer model are the primary users of the relief and will in the future face tariffs on a wide range of products. UK consumers may in due course face higher prices for some items as a result.
Implementation has been set for March 2029 at the latest. A consultation has been launched to explore the technical details and future customs arrangements.
Given the delay until implementation and with no specific date for the new rules to take effect, there will likely be little impact immediately.
In the longer term, if the measure does go ahead, this may be seen as beneficial for some UK-based retailers by ensuring that overseas e-commerce sellers, particularly those operating direct-to-consumer models from low-cost jurisdictions, are subject to the same import duty obligations. The government indicates that it believes this also aligns the UK’s approach more closely with international peers such as the United States and the European Union, both of which have taken steps to tighten low-value import exemptions.
Businesses will need to review the outcomes of the consultation in due course to further understand the cost and compliance impact they face.