UK retailers call for faster action on de minimis import reform

A coalition of UK retailers and trade organisations is calling on the government to speed up the introduction of reforms to low-value imports (LVI), warning that delays are placing mounting pressure on domestic retail and fashion businesses.

In a letter addressed to prime minister Keir Starmer and chancellor Rachel Reeves, signatories including Asos, Primark, Next, Marks & Spencer, River Island and the UK Fashion & Textile Association requested that meaningful customs reform be introduced before the 2026 peak trading season.

The debate centres on the UK’s “de minimis” threshold, which allows low-value parcels imported directly into the country to avoid customs duties. Retailers have argued that the system has become a competitive advantage for overseas marketplaces and sellers without a physical UK presence, like Shein and Temu, enabling them to undercut businesses that pay local taxes, duties and operating costs.

The government confirmed plans in its 2025 Budget to close the loophole, but implementation is currently scheduled for 2029. Industry groups say the timeline is too slow, particularly as low-value imports continue to surge.

According to the letter, LVI trade increased by more than 50 percent between 2023/2024 and 2024/2025, while parcel volumes have tripled since 2021. Retailers also pointed to moves by the US and EU to tighten similar rules, arguing that this has redirected more overseas sellers towards the UK market.

The group said reform would create a more level playing field, improve product safety standards and generate additional tax revenue. It is further estimated that a flat 2.60 pounds charge per parcel, mirroring an EU proposal, could raise 1.7 billion pounds annually.

If full reform cannot be delivered quickly, retailers are instead calling for an interim flat fee on low-value parcels to be introduced as soon as possible.