Overview
- Customs duty will be applied to parcels of any value entering the UK by March 2029 at the latest, ending the current £135 exemption.
- The Treasury will run a public consultation to design replacement arrangements intended to prevent strain on customs and delivery networks.
- Retailers and the British Retail Consortium welcomed the decision but criticised the 2029 timetable, citing 1.6 million parcels a day and a £5.9 billion surge in small-package value.
- Once implemented, charges will apply to goods sent from Ireland to Great Britain, with Northern Ireland excluded under the Windsor Framework and gifts under £39 between individuals remaining duty-free.
- Experts warn online prices could rise, and the move aligns with US and EU efforts to curb low-value parcel loopholes used by platforms such as Shein and Temu.