A group of 15 UK retailers has urged Prime Minister Keir Starmer and Chancellor Rachel Reeves to impose a £2.60 ($3.50) charge on small parcels imported from overseas, according to a report on the Financial Times.
The group, which includes Argos, Currys, Halfords, Marks & Spencer, Next and Primark, argue the current customs regime gives online rivals such as Shein and Temu an unfair advantage.
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In a letter, the retailers called for the fee to apply to parcels valued below £135, which are currently exempt from import duties and face lighter customs checks.
They said the measure would help close what they describe as a tax loophole and could raise at least £1.7bn for the Treasury.
The intervention comes as UK retailers step up pressure on the government over the rise in low-value imports, particularly from China, and as the EU prepares to introduce a temporary €3 ($3.50) charge on online items worth less than €150 from July.
The signatories warned that the issue is becoming more urgent as volumes rise.
Imports below the UK’s £135 threshold have tripled over the past three years to around 1.6 million parcels a day in 2024.
The retailers said in the letter: “The problem was intensifying through 2026, not 2029. There is an urgent need to act now.
“We urge you to accelerate the implementation of customs reform, with meaningful progress delivered by peak 2026 trading.”
The companies said adopting a charge in line with the EU’s €3 fee, equivalent to approximately £2.60, would create a more level playing field for domestic retailers that face local taxes and more stringent compliance standards.
They also cautioned that the UK could become a bigger destination for low-value shipments if other markets tighten their own import rules first.
The UK Government has already said it will reform its policy on low-value imported goods after repeated complaints from retailers, but a full framework is not expected for another three years.
The debate reflects a broader global shift.
Last year, the US ended a tax exemption on parcels worth less than $800, a move that temporarily disrupted Temu’s direct shipments from China.
Shein and Temu, which have expanded rapidly through direct-to-consumer cross-border sales, did not immediately respond to requests for comment.
