UK Retailers Call on Government to Expedite Closure of Parcel Tariff Loophole

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 27 2025

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Source: Reuters

Government's Customs Duty Decision: British retailers are concerned about the government's plan to implement customs duties on low-value e-commerce parcels by March 2029, arguing that the timeline is too late and could make the UK an international outlier.
Impact of Low-Value Imports: Retailers are facing competition from ultra-low-cost platforms like AliExpress and Shein, which benefit from a customs waiver on parcels under £135, leading to a significant increase in the number of parcels exploiting this exemption.
Comparative International Actions: The U.S. has already removed its customs waiver for low-value parcels, and the EU has accelerated its plans to eliminate a similar waiver by 2026, highlighting the UK's lagging position.
Concerns from Retail Leaders: Industry leaders, including those from Debenhams and Sainsbury's, express disappointment over the delayed implementation, emphasizing that it could result in lost revenue and continued market unfairness for UK retailers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.