Low value import relief to be removed by October 2028

Summary

On 13 July 2026, HMRC published its policy paper “Reforming the customs treatment of low value imports into the UK,” confirming the removal of the current £135 customs-duty relief (LVI Relief) and new customs arrangements for these goods. UK retailers have long viewed the surge in low-value goods sold by overseas sellers and online marketplaces as an existential threat. The measure follows the EU’s abolition of its €150 de minimis from 1 July 2026. [sanctionsn…kenzie.com], [gov.uk]
Removal is now expected by October 2028 at the latest—brought forward from the previously announced March 2029 deadline given import volumes that have trebled in two years. Below-£135 consignments will fall within a dedicated LVI regime (no opt-in to standard declarations), using a reduced data set and unique reference numbers, with duty payable quarterly. Exclusions cover excise goods, restricted/trade-defence items, GB–NI movements under the Windsor Framework, and consumer-to-consumer parcels worth £39 or less. [sanctionsn…kenzie.com], [hillierhopkins.co.uk]
A key change is the “fiscal representative” concept: a UK-established business assuming joint and several liability for overseas sellers’ customs (and potentially VAT) debts on LVIs. Advisers warn such representatives may be scarce and charge a premium given the liability risk. Unlike the EU, the UK will not replicate the interim €3 duty levy. Businesses have roughly two years to prepare processes and IT for the new data, payment and compliance requirements. [hillierhopkins.co.uk], [vatcalc.com]