UK retailers urge government to impose small-parcels charge on low-value imports

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UK retailers urge import charge

Highlights

Marks and Spencer, Next, Primark and others urge the UK government to impose a flat fee on currently exempt small-parcel imports, aiming to raise at least £1.7 billion.
UK retailers warn that low-value import problems will intensify by 2026, urging customs reform acceleration before the peak trading period and ahead of EU rule changes.
Goods volumes under the £135 threshold have tripled to 1.6 million parcels a day in three years, benefiting online sellers like Shein and Temu while bypassing local taxes.

Retail push for faster customs reform

As reported by Financial Times, Marks and Spencer, Next and Primark are among 15 signatories that have written to Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves urging them to apply the fee to small parcels currently exempt from import duties and stricter customs checks.

The retailers, which also include Argos, Currys and Halfords, say the existing regime gives overseas online sellers such as Shein and Temu an unfair advantage in the UK market. In the letter, sent last Friday and seen by the FT, they argue that adopting a flat fee based on the European Union’s planned €3 charge could raise at least £1.7 billion for public finances.

The signatories warn that the issue is becoming more urgent because the government’s broader reform of low-value imported goods is expected to take three years to put in place. They say the problem is intensifying through 2026 rather than 2029 and call for meaningful progress before the peak 2026 trading period.

Pressure grows as EU tightens import rules

The appeal comes as the European Union prepares to impose temporary duties from July on online purchases below €150, part of a wider overhaul of its low-value import regime planned from 2028. UK retailers argue Britain risks becoming a bigger target for low-value shipments if other markets tighten customs rules first.

Volumes of goods imported under the UK’s £135 threshold have tripled in the three years to 2024 to about 1.6 million a day, according to the article. Domestic retailers say direct-to-consumer imports may help keep inflation low, but they also argue the model can avoid local taxes and potentially bypass safety standards.

Chinese groups Shein and Temu have expanded rapidly by shipping directly to consumers, generating billions of dollars in revenue worldwide. Their growth has also increased pressure on UK-based online discount fashion retailers including Asos, Matalan and George at Asda, which have also backed the letter.

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