The End of the £135 Customs Duty Relief? What This Means for UK Importers
If your business imports goods into the UK. or you’re an overseas retailer selling to UK customers, you’ll want to keep an eye on the Government’s latest announcement on low-value imports.
HMRC has confirmed its intention to reform the way low-value imports are treated, with one headline change standing out above the rest: the £135 customs duty relief is set to disappear.
So, what does that mean, and should businesses be concerned?
What Happens Now?
At present, goods imported into the UK with a value of £135 or less are generally exempt from customs duty (although VAT may still be payable). The relief was designed to simplify the customs process for low-value consignments.
Over the last few years, international e-commerce has changed dramatically. Millions more parcels are now arriving directly from overseas sellers, and the Government believes the current rules no longer provide a level playing field for UK businesses.
What’s Changing?
The proposed reforms will remove the customs duty exemption for consignments valued at £135 or below.
Instead, eligible imports will fall under a new customs process specifically designed for low-value goods. While the Government has confirmed the direction of travel, many of the practical details are still to come through secondary legislation.
This leaves several practical questions unanswered, including how declarations will work, what information will be required and who will be responsible for compliance. .
Why is HMRC Making This Change?
The Government has outlined several reasons for the reform, including:
- creating fairer competition between UK retailers and overseas sellers
- improving customs compliance
- strengthening border controls
- reducing opportunities for undervaluation and incorrect declarations.
In short, the aim is to ensure that low-value imports are treated more consistently with other imported goods.
What Does This Mean for Businesses?
For importers, online marketplaces and overseas sellers, the changes are likely to bring additional compliance requirements.
Businesses may need to:
- review their customs processes
- update systems and software
- ensure customs data is accurate and complete
- understand whether they’ll need a UK fiscal representative under the new rules.
Although implementation isn’t expected until (no later than) October 2028, businesses that import significant volumes of low-value goods should start considering how these changes could affect their operations.
Preparing for The Change
Although the reforms aren’t expected to take effect until October 2028 at the latest, the announcement gives businesses time to prepare.
If you import low-value goods into the UK, now is a sensible opportunity to review your customs processes, assess how the proposed changes could affect your supply chain and ensure your customs data, valuation methods and declaration procedures are fit for purpose.
As further details are published through secondary legislation, businesses will have a clearer picture of the new requirements and any changes needed to their systems or processes.
We’ll continue to monitor developments and share updates as more information becomes available. If you’d like to understand what these changes could mean for your business, or review your current customs arrangements, we’re here to help.