UK De Minimis Rule Under Review

The UK government has announced plans to review the longstanding de minimis tax exemption for low-value imports, in a move that has been welcomed by major British retailers.

The rule currently allows goods valued at £135 or less to enter the UK without incurring customs duties; a system critics argue has been exploited by international eCommerce platforms at the expense of UK businesses.

The Latin term “de minimis” translates to “the smallest things” and has traditionally been used to justify the exemption of very low-value goods from burdensome customs procedures. However, as eCommerce volumes have grown and global online platforms increasingly rely on this exemption, its relevance and fairness have come under scrutiny.

Speaking at the IMF Spring Meetings in Washington DC, Chancellor Rachel Reeves signalled the government’s intention to help UK firms compete fairly by closing the loophole that international sellers have used to undercut domestic retailers.

Retailers argue that platforms like Temu and Shein leverage the exemption to ship millions of low-value parcels into the UK each day, often without meeting British environmental, ethical, or consumer safety standards, and are sold duty-free while UK retailers pay full VAT and import taxes.

Helen Dickinson, Chief Executive of the British Retail Consortium, said the review is “most welcome,” emphasising that it could prevent the UK from becoming a dumping ground for substandard goods in the wake of global trade turmoil.

Jonathan Reynolds, the UK’s Business and Trade Secretary, echoed this sentiment, promising “urgent steps to deliver quicker protections” for domestic firms.

The issue mirrors changes in the US, where the government has already lowered its de minimis threshold from $2,500 to $800 and is preparing to end the exemption altogether for China from May 2.

Retailers argue that eliminating the de minimis loophole would not only create a level playing field, but also enhance consumer protection, increase tax revenues, and support the struggling High Street. As the UK prepares to engage with stakeholders in the coming months, the move could reshape how global eCommerce platforms operate within the British market.

As tax exemptions tighten, Metro’s end-to-end airfreight and courier solutions combine speed, cost-efficiency and full regulatory alignment for both parcel and bulk eCommerce shipments.

With strategic block space agreements (BSA) and capacity purchase agreements (CPA) in place, we secure priority capacity and competitive rates across high-demand trade lanes so your products keep moving, even as the rules shift.

EMAIL Elliot Carlile, Operations Director, today to explore how Metro can help you stay compliant and competitive.