The UK Finance Ministry announced on Tuesday that it will accelerate the closure of a tax loophole affecting low-value imported parcels, moving the implementation date forward by six months to October 2028.
The reform targets the current customs duty waiver for individual parcels valued at less than £135. Currently, this exemption is widely utilized by ultra-low-cost e-commerce platforms, including Shein, Temu, AliExpress, and Amazon Haul, which ship goods directly from overseas factories to British consumers.
Domestic UK retailers have long campaigned for the policy change, arguing that the exemption creates an uneven playing field. The government initially proposed a March 2029 deadline to scrap the relief, but industry feedback suggested this timeline was insufficient to address competitive pressures. By accelerating the transition, the government aims to better protect domestic market parity against international platforms benefiting from the waiver.