The value of small parcels shipped from China to the UK under an import tax exemption has increased significantly, rising to £3 billion last year, according to data obtained by the BBC. This surge is attributed to Chinese e-commerce platforms like Shein and Temu, which offer affordable products to UK consumers. Currently, packages valued at £135 or less can enter the UK without incurring customs duties, but the UK government is reviewing these regulations.
Industry insiders express concern about the impact of these low-value imports on UK retailers. Business owners and industry representatives argue that the exemption allows foreign companies to underprice local businesses, leading to unfair competition and potential consumer exposure to unregulated goods. Katerina Buchy, a director at a Sheffield-based wholesaler, highlighted that her company struggles to compete with the pricing of these imports, affecting sales and customer behavior.
In the fiscal year 2024-25, low-value imports from China constituted 51% of all small parcels shipped to the UK, a noticeable increase from 35% the previous year. The British Retail Consortium has urged the government to act swiftly to address the challenges presented by these imports, which they argue pose a growing threat to UK High Streets and consumer safety.
As authorities conduct this review, international developments are also noteworthy. The US plans to end its “de minimis” exemption for low-cost imports, similar to the UK’s current rules. Meanwhile, the European Union has announced a flat fee for small packages entering the bloc, reflecting a broader trend aimed at regulating low-value imports.
A Treasury spokesperson confirmed that the review of the customs treatment of low-value imports is ongoing and outcomes will be released in due course.
Source: https://www.bbc.com/news/articles/cnv78eey8plo?at_medium=RSS&at_campaign=rss