The British Chambers of Commerce (BCC) has urged caution as ministers weigh whether to end the UK de minimis exemption for low-value imports, warning that a blunt policy shift could fuel price rises, squeeze small firms and ultimately dampen trade activity.
The UK government is reviewing the exemption in the wake of policy changes elsewhere. The United States has already removed its own de minimis relief, and the European Union has signalled it intends to follow suit while also introducing new handling charges on cheaper parcels. Against that backdrop, the BCC argues that any UK response should be carefully calibrated to avoid unintended harm to legitimate businesses and consumers.
The warning is backed by new research from the BCC’s insight unit, based on responses from 608 businesses, of which around 30% import goods. The survey indicates many importers would struggle to absorb higher charges on small consignments. Among UK goods importers, 52% said that if costs on low-value shipments rose by 5% to 10%, they would have little choice but to pass the increase on to customers. Only about one in five said they could swallow the added expense themselves.
The research also suggests a widespread lack of awareness about the proposed changes. Nearly two-thirds of businesses said they either had not heard about the planned reform to the UK de minimis exemption or were unsure whether it would affect them.
Exporters, too, see potential fallout—particularly if other markets tighten their own rules. Almost a quarter of UK goods exporters said that if the removal of overseas de minimis relief increased their costs by 10% to 15%, more than half of their international sales could be put at risk.
Businesses outlined several likely responses if costs rise. Beyond increasing prices or trying to absorb the impact, 21% said they would consider switching suppliers. Another 20% said they would consolidate shipments in an attempt to reduce duty exposure. Meanwhile, 12% said they would reduce activity altogether, signalling the prospect of lower trade volumes if reforms translate into higher friction and higher unit costs.
A government consultation on the proposals closed on 6 March, and the BCC said it has submitted its response. “While the UK must respond to action by the US and EU, to avoid unfair competition from cheaper goods flooding our domestic market, any reforms must be proportionate,” BCC said in its press release.
The organisation argues that reforms should align with international approaches and prioritise enforcement, rather than relying on across-the-board cost increases that could distort business decisions. The BCC is especially concerned about proposals that would introduce a fee per item or per consignment, warning such charges could be inflationary, drive inefficient workarounds, and disproportionately hit small and medium-sized firms—as well as consumers who rely on e-commerce for single-item deliveries.
William Bain, the BCC’s head of trade policy, also singled out VAT treatment as an area where continuity would reduce disruption. “The government should also retain VAT [value-added tax] being charged at point of sale on transactions for these purchases—a practice followed by many countries in global trade. Its retention would avoid unnecessary complications and additional friction on cross-border e-commerce sales,” Bain noted.