Overview
- Chancellor Rachel Reeves confirmed in the Autumn Budget that customs duty will apply to parcels of any value entering the UK.
- The Treasury set a deadline of March 2029 at the latest and will launch a public consultation to design the replacement system.
- The British Retail Consortium welcomed the change but called the timetable too slow, citing 1.6 million parcels arriving daily and a surge in small-parcel value to £5.9 billion last year.
- UK retailers including Next, Superdry and Primark say the current rules let platforms such as Shein and Temu undercut prices, with industry estimates of up to £600 million in annual costs.
- Analysts say the shift could lift online prices and prompt shoppers to reassess buying habits, particularly affecting premium segments.