The discussion around removal of the UK’s ‘de minimis’ threshold returns today (27 May), as retailers call for an interim flat fee to be applied to low-value imports, amid claims the current timeline is too long.
Elsewhere, EU efforts to stop Chinese industrial overcapacity are reportedly under internal strain, while HMRC hopes to plan the next phase of the Single Trade Window (STW) with trader input via a survey.
UK ‘de minimis’
Fifteen UK retailers have written to the government to call for a flat charge on low-value good imports ahead of the planned removal of the UK’s ‘de minimis’ threshold.
Argos, Primark, and Marks & Spencer are among signatories to a letter, seen by the FT, in which firms argued for a flat £2.60 charge to be applied to goods imports under the £135 ‘de minimis’ tax threshold, below which customs charges don’t apply.
The fee would challenge competition from Chinese e-commerce retailers like Shein and Temu, which export cheap goods to consumers around the globe without attracting any customs duties because of the de minimis exemption.
In the UK alone, the value of low-value parcels from China rose from £1.3bn to £3bn between 2024 and 2025.
The US removed its de minimis threshold last year in response to the substantial rise in low-value imports from China. The EU is set to reform its exemption in 2028 but will introduce a €3-per-item charge for imports worth less than €150 from July.
It’s this interim measure that UK retailers are encouraging the government to emulate, as the UK will not be reforming its own exemption until 2029.
“We urge you to accelerate the implementation of customs reform, with meaningful progress delivered by peak 2026 trading.”
“There is an urgent need to act now,” retailers warned.
EU falters in China pushback
Ongoing EU struggles to formulate a plan to counter Chinese industrial overcapacity hit another roadblock today, as reports arose that division among leading members may derail Brussel’s latest attempt.
Over the weekend, a strategy paper signed by France, Spain, Italy and the Netherlands on how to tackle unfair trade practices was shared. Although not explicitly naming China, it highlighted the need to respond to trade partners that impose “new trade barriers” and contribute to “systemic and structural industrial overcapacity”.
The paper set out routes to introducing higher tariffs more quickly and tackling circumvention of trade measures via third parties.
It also suggests tweaking rules on origin for trading partners subject to defence measures, such as increasing the level of value-added content to 40% from 25% and reducing the overall amount of content from such a country to 50%, down from 60%.
However, Politico suggests that Spain, which enjoys a closer relationship with Beijing than other EU members, was caught off-guard by the publication and has even considered revoking its signature.
Belgium is refusing to sign despite taking a stronger stance on retaliatory trade measures and Germany has yet to review the paper.
This comes ahead of an EU Commission debate on Friday (29 May), set to explore trade defence measures.
The future of the Single Trade Window
HMRC is asking traders to offer insight into what they’d like to see from future development of a UK STW, a single portal through which businesses could submit all customs documentation.
Work to develop a UK STW had been ongoing for several years, but the government paused delivery on the project in 2024, with reports that contracts will delivery partners IBM and Deloitte had ended emerging earlier this year.
In an email to members, HMRC’s Joint Customs Consultative Committee (JCCC) said that “internal policy development” has continued and it seeks feedback from industry to ensure the next stage of development works for businesses.
“Your input is invaluable to us, as the questionnaire seeks to understand your experience with current government systems—especially regarding duplicated data, areas where systems or processes cause friction, and aspects that add cost or complexity to your operations.”
The survey is available here, and JCCC asks that feedback be submitted by Wednesday 3 June.
Elsewhere in the headlines
- A UK-Poland defence and security treaty is set to be signed in London
- The government provided an update on reclaiming duty payments on goods brought into Northern Ireland under the Duty Reimbursement Scheme
Yesterday in Trade
- Reports suggested a UK push for single market conditions for EU trade had been rejected by Brussels
- Chancellor Rachel Reeves mandated increased domestic procurement in four key sectors among government departments
- An update on US-Iran peace talks
You can read those stories and more here.
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