Business group warns of harm to small firms and trade as it calls for phased end to ‘de minimis’ exemptions

Removing the UK’s tariff exemption for low-value imports could push up prices and harm small companies and trade, a leading business group has said, as it called for a phased-in approach to ending the “de minimis” rules.

The UK government plans to end the tax break on imports of goods worth less than £135, making them subject to customs duty, with the changes to take effect in March 2029 at the latest. The US removed its longstanding de minimis exemption on 29 August. Before that packages valued at less than $800 (£597) were allowed to be shipped into the US tariff-free.

The European Union has said it will do the same, and introduce new handling charges for cheaper packages as well.

British retailers including Primark, Currys and Boohoo have backed the move but have criticised the government for waiting until 2029 to end the tax break they say has allowed Chinese rivals Shein and Temu to undercut them.