UK Government Moves to Scrap De Minimis Customs Rule
The UK government is in open consultation to reform customs treatment of low-value imports (LVIs) into the United Kingdom. Their proposals are to scrap the ‘de minimis’ customs relief that currently permits low-value goods to be imported without paying duties.
Currently, low value imports – goods with a value of £135 or less being imported into the UK – can claim a customs duty relief. VAT is due on these goods following reforms in 2021. Goods worth more than £135 can incur a duty of up to 25%.
Following a significant increase in LVI volumes over recent years, the government has reviewed the existing customs arrangements for LVIs and concluded that these require reform.
As set out in the 2025 Autumn Budget, the measure would remove the duty-free status for parcels worth under £135 — a limit frequently used by overseas e-commerce sellers that ship items directly to UK customers. The Chancellor announced in the budget the removal of the relief could be expected from March 2029 at the latest.
Retailers had expected chancellor Rachel Reeves to move faster after months of pressure from British high-street groups who say the current system allows overseas e-commerce giants to undercut domestic prices.
Find out more from www.gov.uk >
“Instead of nurturing the green shoots of economic recovery, the government risks stamping them out. The increase in fuel duty announced in the Budget will mean hundreds of millions in increased taxes for logistics businesses, much of which will be passed onto households and businesses, as well as hitting motorists directly – fuelling inflation across the economy. It is a short-sighted decision that fails to appreciate logistics’ role in the economy – logistics costs are embedded in all products from food and medicines to construction materials and consumer goods: increasing logistics taxes mean increased costs for everyone.
Speaking at a function today (20 November 2025) at the port to celebrate the event, Clemence Cheng, Executive Director of Hutchison Ports and Port of Felixstowe CEO, said:
In an unusual pre-Budget speech in Downing Street, Reeves did not rule out a U-turn on Labour’s general election manifesto pledge not to hike income tax, VAT or National Insurance.
Launched Tuesday 21 October at Logistics UK’s Digital Transformation in Logistics conference in Birmingham, the roadmap challenges innovators to develop creative and technological solutions to real world problems that will have material benefits for the logistics sector and wider UK economy.