Overview

• The UK government is reviewing the £135 duty-free threshold for imports to address concerns about unfair competition from foreign e-commerce platforms like Shein and Temu.
• Chancellor Rachel Reeves has directed the Trade Remedies Authority (TRA) to increase resources for monitoring and expediting investigations into dumping and unfair trade practices.
• The review follows pressure from major retailers, including Sainsbury’s and Next, who argue that the current tax exemption disadvantages British businesses and allows non-compliant imports to flood the market.
• The move aligns with recent US and EU efforts to phase out similar low-value import exemptions, signaling a shift in global trade policy.
• Trade bodies and retailers have raised safety concerns over unchecked imports, with calls to lower the threshold to £40 to ensure compliance with UK standards.