UK Government Confirms End Of Exemption For Low Value Imports

In the 2025 Autumn Budget, the Chancellor confirmed that the government will scrap the current de minimis rule, which exempts low-value imports from UK customs duty.

At present, goods valued at under £135 can enter the UK without duty being applied — a mechanism widely used by overseas e-commerce retailers selling straight to UK consumers.

Critics argue that the rule has tilted the market. Foreign sellers enjoy lower import costs, while UK businesses, which generally import in bulk and pay duty upfront, face higher overheads. Removing the threshold is therefore being positioned as a measure to level the playing field and address long-standing concerns about market distortion, particularly in the retail sector.

The government plans to remove the exemption by March 2029, following a detailed consultation period and necessary upgrades to customs processes. However, several industry bodies have questioned the lengthy timeline, warning that it could leave the UK vulnerable to a surge in low-value imports.

The UK’s move follows a broader global shift. The United States removed its own $800 de minimis exemption earlier this year, and the European Union has confirmed its intention to abolish its rule within the next three years, with a transitional system potentially launching as soon as next year.

These developments are likely to be felt most by major high-volume Chinese e-commerce platforms, which rely heavily on the low-value parcel model.

Croft Cargo will continue to track policy updates as they emerge. If you would like guidance on what this could mean for your supply chain or commercial operations, our specialists are ready to help.

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