UK: reform of customs treatment of low‑value imports

Summary

The government confirms removal of the £135 customs-duty relief for low-value imports (LVIs), a significant change to how small parcels entering the UK are treated for duty purposes. The consultation seeks views on new customs arrangements to replace the relief, responding to concerns that the current threshold disadvantages domestic retailers and enables undervaluation. Implementation is expected by March 2029 at the latest, giving businesses and platforms substantial lead time to prepare. [gov.uk]
Under the proposed model, sellers and online marketplaces would collect duty and VAT at the point of sale rather than at the border, shifting the compliance burden toward the businesses facilitating cross-border e-commerce. Overseas sellers without a UK establishment would be required to appoint a UK fiscal representative to account for the amounts due. This mirrors approaches used elsewhere to capture revenue efficiently from high-volume, low-value international consignments. [gov.uk]
To support the new regime, the consultation floats a simplified duty-bracket tariff for low-value goods, enhanced data requirements for consignments, and a possible administrative fee to help fund additional border checks and enforcement. HMRC estimates roughly 600 million low-value import consignments entered the UK in 2024, underscoring the fiscal and operational scale involved. Businesses trading in small parcels should engage with the consultation and begin assessing system and process implications. [customs-de…rations.uk]

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