Withdrawal of £135 customs de minimis loophole on parcel imports brought forward to Oct 2028; follows US & EU plans
No plans to replicate EU’s interim €3 fixed customs levy, starting July 2026
On 23 June 2026, the UK Treasury announced an early start to the ending of the current Customs Duties exemption threshold for small import parcels. Instead of the withdrawal on 1 March 2029, it will now take place from 1 October 2028.
This early start is in recognitions to the continued growth in imports, which have trebled in just two years.
UK copies EU – but rejects interim €2 fixed levy
The EU customs de minimis of €150 is set to be withdrawn in July 2026, with an interim €3 duties levy charge to be introduced. The US $800 threshold on Chinese imports was withdrawn in May, and will be extended to all countries imports in August 2025.
But the Treasury also said it would not copy the EU’s €3 flevy.
Separately, there will be an EU €2 Customs Admin Charge fixed fee starting November 2026.
2025 Budget first announced May 2029 launch
The UK Chancellor, Rachel Reeves, had confirmed at the Budget on 26 November 2025 the ending of the customs-free £135 threshold on small parcel imports to UK consumers. This would raise £600 million per annum in much-needed revenues, and level the playing field for UK e-commerce and retailers who must pay the tariffs at import.
There has since been a consultation covering the design of the new arrangements, including what data to collect, how the tariff should be applied, whether to apply an additional fee on LVIs to fund administration, and potential changes to VAT collection to reflect the new arrangements.
UK Low-value de minimis exemption
The Low Value Import (or de minimis) rule allows businesses to import parcels to UK consumers with goods below £135 without paying the tariff on the goods. VAT is still applicable and platforms – see 2021 e-commerce VAT reforms – are expected to collect it and pay it direct to HMRC for businesses registered outside the UK.
