Overview
- Reports citing unnamed officials say the chancellor plans to end the £135 duty‑free threshold for small parcels in the 26 November budget, affecting models used by Shein and Temu.
- A government spokesperson confirmed the customs treatment of low‑value imports is under review after concerns raised by leading UK retailers.
- Current rules allow parcels worth up to £135 to enter without customs duty, while higher‑value goods can face tariffs of up to 25%.
- Retailers and the British Retail Consortium have pressed for reform, with estimates cited of up to £600m a year in industry costs linked to the exemption.
- The potential change would align the UK with recent US and EU crackdowns as the value of sub‑£135 parcels from China rose from about £1.3bn to about £3bn in a year.