Retailers welcome government ‘de minimis’ customs review pledge

Chancellor Rachel Reeves today announced plans to review the rule, which currently allows goods valued at £135 or less to be imported into the UK without paying added customs duty.

She was speaking in Washington DC at the annual IMF Spring meeting on April 23.

While Reeves didn’t set out any timetable for the review, she also promised that the government would step up work by the Trade Remedies Authority (TRA), the body responsible for defending the UK against unfair international trade practices.

The TRA will be able to enhance its monitoring of potential trade risks, and to spot and deter potentially harmful imports into the country.

 “The world has changed, and we are in a new era of global trade.  We must help businesses keep their access to trade around the world… Today’s package will help businesses compete fairly with international exporters,” Reeves said.

Business and trade secretary Jonathan Reynolds also commented: “This government won’t stand idly by while cheap imports flood our markets and harm British industries. This is about standing up for our national interest [and], creating a level playing field where UK businesses can thrive and grow.”

‘A much needed injection of confidence’ for UK retail

Retailers and trade membership bodies alike have welcomed the announcement.

Helen Dickinson, CEO of the British Retail Consortium, said the government had listened to the concerns of retailers and the planned review showed that it “is prepared to take swift action to protect consumers from goods being dumped in the UK, many of which fail to meet UK environmental and ethical standards, as a result of global trade turmoil.”

George Weston, CEO of Associated British Foods, parent company of Primark, said: “The abolition of the favourable tax treatment of low value imports would be a significant step forwards in the Government’s support for British businesses. We have long advocated for the closure of this tax loophole which undermines many UK companies that make a substantial contribution to the British economy, to the British high street and to the British Government’s own revenues.”

Theo Paphitis, owner of lingerie retailer Boux Avenue, added: “This is a much-needed injection of confidence for retailers and a common sense move to protect the UK economy. The sector has been crying out to level the unfair playing field and is a welcome, positive and strong step in the right direction by the Chancellor. This shows the government is listening and responding to UK business.”

Alex Baldock, chief executive of Currys, said: “Today’s Government announcement is encouraging. All retailers selling to UK consumers should play by the same rules. If you want to sell to UK consumers, then abide by UK standards, and pay UK tax, just as UK retailers do.

“Today, low-value shipments delivered from abroad straight to UK consumers avoid import duty, often evade VAT, and can fail to meet safety standards. There’s a growing risk of unsafe and tax-dodging product being dumped in the UK, as tariffs bite and the US and EU close their own import duty loopholes. I’m pleased that the Government is urgently reviewing the low-value shipment loophole, and that they’re committed to levelling the playing field between British and overseas retailers.”

Reeves’ announcement comes after the tariffs policies of US president Donald Trump have caused huge ructions in global markets and bought the issue of global ‘de minimis’ rules into the spotlight.

Earlier this week, international shipping giant DHL announced it had suspended shipments worth more than $800 (£603) to US customers.

It came after Trump removed the US ‘de minimis’ rule on April 5 which also lowered the threshold for import declarations.