UK retail groups and major High Street names are pressing the government to remove a customs duty exemption on low-value imports earlier than the current March 2029 target.
According to a Bloomberg report, the parties are arguing that the policy gives an advantage to overseas online sellers, including Shein and Temu.
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The measure in question is the “de minimis” exemption, which allows goods worth £135 ($179.4) or less to enter the UK without customs duty.
Retailers that include Currys, Primark owner Associated British Foods (AB Foods), and the British Retail Consortium (BRC) have called for the exemption to be scrapped sooner, and for the UK to consider an approach closer to the European Union’s planned fixed charge on smaller parcels.
Their push comes as the EU prepares to introduce a €3 ($3.50) customs duty on parcels valued below €150 from July.
The EU has described the levy as “a temporary solution to an urgent problem”, with a longer-term arrangement expected by 2028.
In the US, President Donald Trump ended de minimis rules last year. Retailers say the current UK system creates an uneven market.
BRC director of food and sustainability Andrew Opie was quoted by Bloomberg as saying: “UK retailers cannot afford to spend another three years competing on an unfair playing field against importers not paying tariffs.”
According to submissions made to a government consultation that closed this month, Currys and AB Foods urged ministers to look at mirroring the EU model for smaller parcels.
The UK Treasury declined to comment.
A source familiar with the matter said the government could still decide to bring forward the end date, but that March 2029 was set to allow time to design and roll out a new border duty collection system.
The same source said the process would need to cope with a high number of packages, creating implementation challenges. They added that ministers are also considering whether interim measures might be needed, given shifting global conditions.
Physical retailers have repeatedly argued that de minimis rules allow online rivals to undercut them, adding to pressure they say is already rising due to higher business taxes and an increase in the minimum wage.
