6th March 2026
The £135 de minimis customs duty exemption—the current "minimum limit" for parcels imported into the UK—is scheduled to end by March 2029 at the latest.
Platforms like Shein and Temu have used the £135 threshold to ship billions of items duty-free, giving them a significant price advantage over UK high street stores.
The UK government formally announced this decision in the Autumn Budget 2025. While the full removal is set for 2029, the current exemption is guaranteed to remain in place until at least 31 December 2026.
Why the Limit is Ending
The government is phasing out the duty-free threshold for several key reasons.
Revenue Generation
Removing the exemption could raise an estimated £600 million to £1 billion per year in customs revenue for the Treasury.
Fair Competition
It aims to "level the playing field" for UK-based retailers who currently face a pricing disadvantage against overseas sellers who use the loophole to avoid tariffs.
Combating Fraud
The reform targets the deliberate undervaluation of goods by international sellers (particularly from marketplaces in China) to bypass import duties.
Global Alignment
The move follows a broader international trend; the US effectively eliminated its $800 exemption in August 2025, and the EU plans to remove its €150 threshold starting in 2026.
Consumer Safety: Stricter customs requirements help ensure that imported low-value goods meet UK safety and environmental standards.
Key Timeline
26 November 2025: Official intent to remove the £135 relief announced in the Autumn Budget.
Through 31 December 2026: Current £135 customs duty relief remains active for all goods.
2026 - 2028: Period for public consultation and development of new customs arrangements.
By March 2029: Full removal of the duty-free threshold.
Businesses asking for the limit to end sooner
Major UK retailers and industry bodies are actively calling for the March 2029 deadline to be brought forward, arguing that the three-year wait leaves them at a severe competitive disadvantage.
Key Arguments for an Earlier End
"Level Playing Field": Major firms like Next, Primark (ABF), and Currys argue that foreign e-commerce giants currently enjoy an effective 20% tax discount compared to domestic shops.
Market "Dumping Ground"
The British Retail Consortium (BRC) warns that because the US and EU are ending their exemptions sooner (2025 and 2026 respectively), the UK risks becoming a destination for excess, low-value stock that cannot be sold easily elsewhere.
Exponential Volume
The BRC noted that 1.6 million parcels enter the UK daily under this exemption—double the previous year—meaning delay costs the Treasury and high streets millions every month.
Sustainability and Ethics
Retailers argue the delay allows non-compliant goods that bypass UK safety and environmental standards to continue flooding the market.
Leading Voices for Faster Action
Helen Dickinson (CEO, BRC): Stated the reform "cannot come soon enough" and called the 2029 timeline "simply too long".
Dan Finley (CEO, Debenhams/Boohoo): Argued that the delay means "lost revenue for the UK and continued unfairness" as domestic sales decline.
Andrew Goodacre (CEO, BIRA): Warned that the current loophole is being abused through under-declared values.
Why the Government is Resisting
Despite this pressure, the Treasury maintains that a phased approach is necessary to:
Avoid Customs Gridlock: Prevent the "customs cliff" seen in the US, where abrupt changes caused massive backlogs at airports.
Infrastructure Upgrades: Give HMRC time to build the digital systems required to process millions of individual duty payments per day.
A formal government consultation on the design of the new rules is currently open and is scheduled to close today 6 March 2026.
While high-profile Chinese platforms like Shein and Temu are the primary drivers of this policy change, the removal of the £135 limit will apply to all non-UK sellers globally.
The Main Targets
Chinese E-commerce Giants
The reform is heavily motivated by the "tsunami" of low-cost goods from China.
Market Dominance
Chinese merchants accounted for 51% of all UK online purchases in late 2025.
Exploiting the Loophole
Platforms like Shein and Temu have used the £135 threshold to ship billions of items duty-free, giving them a significant price advantage over UK high street stores.
Concerns Over "Dumping"
UK retailers fear that because the US and EU have already tightened their rules on Chinese imports, the UK will become a "dumping ground" for excess Chinese stock.