Brits could soon be paying up to £21 more for £135 trainers as UK reviews duties on cheap imports
Brits who shop on the likes of Amazon, Shein and Temu could soon be paying more for many products. As the chancellor considers axing the UK’s £135 Low Value Imports duty threshold, cheap Chinese products may soon be a thing of the past, says the international delivery expert Parcelhero.
Chancellor Rachel Reeves is considering options to axe or radically reform the UK’s Low Value Imports rules, which currently allow goods valued at £135 or less to be imported into the country without paying Customs duty. However, the home delivery expert Parcelhero is cautioning the move could have consequences for British consumers and the UK economy.
The review could help protect under-pressure UK retailers as cheap Chinese products, such as clothing, trainers and toys, threaten to flood the market. However, Parcelhero cautions scrapping the duty exemption for Low Value Imports could put up prices for Brits buying Chinese-made products from popular online retailers such as Amazon, Shein, Temu and eBay.
Parcelhero’s head of consumer research, David Jinks MILT, explains: ‘If the UK’s duty exemption for Low Value Imports is abolished, it would mean a pair of trainers costing £135 would be hit with the UK’s full Customs duty for trainers, which is 16%. This could raise their final cost to the shopper to around £156 – a £21 increase.
‘Plans to reform the UK’s Low Value Imports duty exemption, known as the de minimis threshold, are being considered, at least in part, because of the impact of President Trump’s new tariffs on Chinese goods. These could lead Chinese sellers to dump low-cost goods on the UK market that they cannot sell to America.
‘The UK review is good news for UK stores selling British products, whose prices are often undercut by cheap Chinese imports, but it’s not necessarily great news for shoppers. Brits shopping for Chinese-made bargains on popular sites such as Shein and Temu could see the final cost of items rise considerably if the de minimis threshold is scrapped or considerably reduced. As one option, the British Home Enhancement Trade Association (BHETA) is calling on the government to reduce the threshold for duty to £40.
‘There’s no doubt that some UK retailers are suffering because of cheap Chinese imports. Leading British retailers such as Next and Sainsbury’s are calling for a level playing field to avoid being undercut by international companies. In particular, they are concerned the current rule gives preferential tariff treatment to firms that manufacture and warehouse their goods overseas and then ship directly to UK customers – paying no tariffs.
‘However, many of Britain’s smaller online sellers actually benefit from the current regulations, which enable them to sell Chinese-made products to their customers by having them sent directly to the consumer from China. This is a practice known as drop shipping. Some small businesses are arguing that not only could the axing or, at least, reduction of the UK’s de minimis threshold increase prices for Brits but it could ultimately lead to a rise in inflation.
‘For example, The Federation of Small Businesses is cautioning scrapping the UK’s Low Value Imports de minimis limit may “ultimately lead to higher prices for consumers”. It says, “With 16% of goods moved by small firms sitting below the £135 threshold, a decision to scrap it impacts on trading and inflation.”
‘A further concern is that the UK’s de minimis rules may diverge from the EU’s own planned changes to its 150 euro limit, being spearheaded by the European Commission. If the UK goes it alone and introduces different measures to its EU trading partners, this could introduce a whole new level of red tape and Customs checks. This would impact EU-UK cross border e-commerce, which is just beginning to reach a new equilibrium after the upheaval of Brexit.
‘If new UK duties are imposed on low-value goods from China, Hong Kong and potentially globally, then Britain’s sellers and consumers will need to learn more about the tariffs the UK imposes on different products, in order to avoid unwelcome surprises. There’s lots of invaluable information on import duties at: https://www.parcelhero.com/en-gb/support/customs-importduties-taxes