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UK to Remove £135 Customs Duty Exemption for Low-Value Imports

  • The UK Government announced in Budget 2025 the removal of the £135 customs duty exemption for low-value imports, with full implementation expected by March 2029.
  • A consultation has been launched regarding a new compliance framework that includes item-level data requirements, shifting compliance responsibilities to marketplaces and sellers, and integrating customs duty collection with VAT processes.
  • This reform aligns the UK with international trends and aims to protect revenue, reduce undervaluation risks, and create a level playing field for domestic retailers, with the consultation open until March 6, 2026.

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