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