The UK has confirmed that it will abolish the de minimis rule that currently allows low-value goods to enter the country without customs duty.

This change, announced as part of the 2025 Autumn Budget, removes the long-standing exemption for items valued under £135 — a mechanism widely used by international e-commerce retailers shipping directly to UK consumers.

Critics of the system argue that the threshold creates an uneven competitive environment. Overseas sellers benefit from duty-free imports on individual parcels, while UK-based businesses importing in bulk typically shoulder duty costs. Ending the exemption is therefore intended to level the playing field and reduce distortions, especially in the retail market.

The government plans to fully implement the system around March 2029. Ministers say the extended timeline is needed to update customs processes and conduct detailed consultation. Industry bodies, however, have voiced concerns that the long transition could encourage a surge in low-value shipments, turning the UK into what some describe as an “e-commerce dumping ground” until the rules are fully tightened.

The move places the UK in step with a global shift away from de minimis regimes. Earlier this year, the United States scrapped its own $800 threshold, while the European Union has agreed to phase out its exemption within the next three years, supported by an interim arrangement that could begin as soon as next year.

The collective actions of these changes are expected to have the greatest effect on high-volume Chinese e-commerce platforms such as Temu and Shein, which rely heavily on the international movement of low-value consumer parcels.

Westbound will be following developments closely.

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