As part of the 2025 Autumn Budget, the Chancellor has announced that the government will remove the de minimis rule that currently exempts low-value goods entering the UK from customs duty.
Under the existing framework, items priced below £135 can be imported without duty charges — a provision heavily relied upon by overseas e-commerce sellers shipping directly to UK consumers.
According to many, this exemption has created an uneven playing field. International retailers, who benefit from the rule, face lower import costs than UK-based businesses, which typically bring goods in bulk and pay duty. Abolishing the threshold is therefore intended to restore fair competition and tackle long-standing concerns about market distortion, particularly within the retail sector.
The government intends to phase in the changes by March 2029, allowing time for extensive consultation and updates to customs systems. However, the long lead-in period has drawn criticism from industry groups, who argue that the UK could become an “e-commerce dumping ground” in the meantime. They warn that overseas sellers may increase shipments of low-value parcels to exploit the remaining duty-free window.
The UK’s decision aligns with a wider international trend. Earlier this year, the United States removed its own de minimis threshold for goods under $800, and the European Union recently confirmed plans to eliminate its rule within the next three years. However, EU ministers have agreed on an interim system that could come into force as early as next year.
These changes across major markets are expected to have the most significant impact on high-volume Chinese e-commerce platforms such as Temu and Shein, which dominate global low-value parcel flows.
Global Freight Services continues to monitor the situation closely. If you have concerns about how these changes may affect your operations, our team is on hand to provide expert advice and support.