The UK will also eliminate de minimis exemptions on low-value shipments

Undoubtedly, one of the words of the year has been “minimis” (or “de minimis,” if you prefer).

Upon his impactful and turbulent arrival at the White House, Trump launched a forceful, inconsistent, and hesitant global trade war in which these customs duty exemptions for low-value imports played a particularly prominent role. His actions entailed the implementation of structural changes in the way parcel companies worldwide managed their shipments to the United States. And, naturally, introduced new costs for companies exporting to that country. We have explained every detail thoroughly for you in this article.

In fact, this initiative was not an especially original idea. Just a few weeks ago, we explained that the European Union has decided to move forward with the elimination of its own minimis exemptions. The goal? Curbing and regulating the massive importation of goods not exceeding €150, many of which stem from online sales originating in China, with major players such as Shein, Temu or AliExpress.

And, of course, as often happens with any form of escalation, other countries are beginning to join these initiatives. The latest among them is the United Kingdom.

Goodbye to Customs Exemptions before 2029

The government of the United Kingdom, through HM Treasury and HM Revenue & Customs (HMRC), has launched a public consultation that signals the beginning of the end of an era for cross-border eCommerce in the country. At the heart of this reform lies the elimination of the customs duty exemption for so-called Low Value Imports (LVIs), defined as goods valued under 135 pounds (approximately 154 euros at current exchange rates), a measure that shall be enforced before March 2029.

According to the official documentation from the British government, this initiative is a response to the explosion of cross-border eCommerce, which has experienced a tripling in LVIs between 2021 and 2024, reaching approximately 600 million consignments each year. Local retailers have long voiced concerns about what they consider to be unfair competition, as foreign online sellers (particularly from countries like China) have leveraged this exemption to ship low-cost goods without incurring duties.

The new system aims to level the playing field, ensuring that LVIs are subject to customs duties just like other imports. The responsibility for payment will rest with the seller or the online platform facilitating the sale, who must settle their accounts with HMRC on a quarterly basis, in line with VAT payments and broader UK compliance requirements such as obtaining a VAT Number UK.

The debate now centers on technical details: the consultation is analyzing whether foreign sellers should be required to appoint a tax representative physically based in the United Kingdom and assume corresponding responsibility. Additionally, it proposes the collection of detailed data by item (unlike the current simplified system) and considers the option of a simplified tariff bucket system to ease the classification burden for small businesses. Lastly, the imposition of an additional administrative fee is being considered to offset the costs associated with managing the 600 million annual parcels.

The consultation closes on March 6, 2026, and its outcome will shape the next decade of digital trade in Great Britain, with a direct impact on both global giants and the end consumer.

Image: Gemini