UK to End De Minimis Duty Exemption for Low-Value Imports

The UK government has announced plans to eliminate the de minimis customs exemption that currently allows inexpensive goods to enter the country without incurring import duties.

The decision, revealed in the 2025 Autumn Budget, will end the duty-free treatment of parcels valued below £135 — a threshold commonly exploited by overseas online retailers shipping directly to British consumers.

Supporters of the reform argue that the existing rule disadvantages domestic businesses. While foreign sellers can dispatch individual items without paying customs charges, UK companies importing goods in bulk are routinely liable for duties. Removing the exemption is intended to address this imbalance and create fairer conditions across multiple sectors, especially retail.

According to the government, the new regime will not be fully operational until approximately March 2029. Officials say the lengthy lead time is necessary to modernise customs infrastructure and allow for extensive consultation with affected industries.

Trade groups, however, warn that this could leave the UK vulnerable to becoming a destination for excess e-commerce stock.

The UK’s decision aligns with a broader international move away from de minimis thresholds. The United States has already abolished its $800 exemption, and the European Union has committed to ending its own system within the next three years, with transitional measures expected to begin as early as next year.

These policy shifts are likely to significantly impact major Chinese online marketplaces such as Temu and Shein, whose business models depend heavily on shipping large volumes of low-cost items across borders.

Atlantic Pacific will continue to monitor the situation and provide any necessary updates.