UK Retailers Seek Early End to De Minimis on Low-Value Goods

A coalition of major UK general and fashion retailers has written to the Prime Minister and the Chancellor to warn that the government’s timetable for changing how low value imports are treated at the border is far too slow. The group argues that waiting until 2029 to implement the planned change leaves domestic retail exposed for years—particularly now that faster moves in the US and the EU have, in their view, redirected more low-value parcel traffic toward the UK.

The signatories include a broad mix of fashion and mass-market names, alongside industry bodies, signalling a rare alignment across different retail segments. In the letter, the group backs the policy intention set out in the 2025 Budget—closing the “de minimis” threshold that allows low-value parcels to enter with lighter customs treatment—but says the proposed implementation date risks neutralising the benefit.

They wrote that they welcome the decision to close the de minimis threshold, “but we are increasingly concerned about the proposal to implement this by 2029”. The letter adds: “Having taken the decision to do this to support UK retailers and high streets, the Government must accelerate implementation or risk undermining the objective you aim to achieve.”

The plea comes as low value import volumes have continued to rise sharply. The retailers cite dramatic growth in LVI trade, including a jump of more than 50% between 2023/24 and 2024/25. They argue that the de minimis threshold has evolved into a long-term competitive distortion, creating an uneven playing field between UK-based retailers—who employ staff locally, pay UK taxes and incur import duties—and overseas sellers that can ship directly to consumers with fewer border costs.

In their assessment, the UK is now facing heightened exposure because other large markets are tightening sooner. The letter points to the US having acted last year and the EU moving to introduce changes this summer ahead of more comprehensive reforms planned for 2028. With those routes tightening, the group claims the UK has become a more attractive destination for low-value parcel flows, deepening the pressure on domestic retailers.

The retailers argue the shift is already visible rather than hypothetical. They cite a rise in marketing spend targeting UK shoppers, a sharp increase in low-value parcel volumes over the past several years, and more frequent product safety issues. Their warning is that the problem government signalled it wanted to address in late 2025 is now intensifying, making 2029 an inadequate response. In their words: “This is not a future risk, it is already happening… A problem the UK Government recognised and sought to correct in November 2025 is therefore intensifying through 2026, not 2029. There is an urgent need to act now”.

Alongside the competitiveness argument, the group also frames low value imports reform as a revenue opportunity. They suggest a flat fee of £2.60 per parcel aligned to the EU’s proposed €3 charge could generate around £1.7 billion annually. For a government focused on closing fiscal gaps, the retailers present the proposal as a measure that could both rebalance competition and raise funds.

The message from the coalition is that low value imports reform is already time-sensitive. In their view, the longer the UK waits, the more consumer demand, marketing budgets and cross-border logistics will lock in patterns that are harder to unwind—leaving domestic retailers to carry the cost of a loophole that competitors elsewhere are moving to close sooner.