18th June 2026
The UK is scrapping its £135 de minimis duty relief for imported parcels — meaning by March 2029, every parcel, no matter how cheap, will face customs duties. This is a major shake‑up for online shoppers and small businesses who rely on low‑value imports.
What’s Changing
Current rule: Parcels under £135 enter the UK without customs duty (though VAT is already collected at checkout).
New rule: The relief will be abolished by March 2029. Until 31 December 2026, the exemption remains, but reforms are being phased in.
Global trend: The US removed its $800 threshold in 2025, and the EU will abolish its €150 limit in July 2026. The UK is aligning with these moves.
Why It’s Happening
Revenue boost: Estimated £600m–£1bn per year in new customs revenue.
Fair competition: UK retailers argue overseas sellers (e.g., Shein, Temu) enjoy a 20% tax discount, undercutting domestic shops.
Fraud prevention: Many sellers undervalue parcels to dodge duties.
Consumer safety: Stricter checks ensure imported goods meet UK standards.
Winners and Losers - Group - Impact
UK retailers
Gain a level playing field; less undercutting from overseas
Online shoppers Expect higher prices, more paperwork, and possible delivery delays
Small import businesses Margins squeezed; may need to consolidate shipments
Government Gains significant new revenue
Risks & Challenges
Sudden cost hikes: Consumers may face surprise fees on cheap items.
Supply chain restructuring: SMEs relying on parcel‑by‑parcel imports will need to shift to bulk consolidation models.
Border pressure: Customs systems must handle 1.6 million parcels per day under new rules.
What You Should Do
Shoppers: Expect duties on even small purchases; budget accordingly.
Businesses: Start planning logistics changes now — bulk shipping and better customs compliance will be essential.
Retailers: Push for clarity on timelines; some industry bodies want the relief scrapped sooner than 2029.
The era of duty‑free bargains is ending. By 2029, that £20 gadget from overseas won’t sneak past customs — it’ll come with a bill attached.