(Bloomberg) — British retailers are pushing the UK government to act faster and end a tax loophole that has helped online giants Shein and Temu make significant inroads and gain market share.
Companies including electronics chain Currys Plc and Primark owner Associated British Foods Plc, as well as the British Retail Consortium, want Prime Minister Keir Starmer’s administration to remove the so-called de minimis exemption — which allows goods valued at £135 ($180) or less to be imported into the UK without customs duty — sooner than its March 2029 deadline.
British retailers risk becoming more exposed to the threat of Shein, Temu and others after the European Union introduces a €3 ($3.50) fixed customs duty on small parcels valued under €150 from July. President Donald Trump scrapped de minimis rules in the US last year.
“UK retailers cannot afford to spend another three years competing on an unfair playing field against importers not paying tariffs,” said Andrew Opie, director of food and sustainability at the BRC.
The EU has called its upcoming levy a “temporary solution to an urgent problem,” with a permanent fix expected by 2028.
In their responses to a government consultation that closed this month, Currys and AB Foods urged the government to consider matching the EU’s approach.
The UK Treasury declined to comment.
The government may yet end the de minimis exemption earlier than 2029, but has given itself that deadline so it has time to prepare and implement the new system for charging duty at the border, according to a person familiar with the matter who spoke on condition of anonymity. The system is likely to have to handle a large volume of parcels, which may be difficult, they said.
Temporary Fix
Ministers are also keeping options for potential temporary solutions under review, in light of the rapidly changing global context, the person said.
Bricks-and-mortar retailers have long complained that they are being undercut by online stores using de minimis rules. That’s compounding the burden they face from higher business taxes and an increase to the minimum wage.
“The speed of implementation is the issue,” Currys Chief Executive Officer Alex Baldock said in an interview, about the government’s 2029 pledge.
Exports of low-value parcels from China to the world rose 21% in 2025 from a year earlier. But the value of shipments to the US fell 30%, whereas it increased 178% to Singapore, 40% to Belgium and 26% to the UK, according to China Customs data compiled by Trade Data Monitor.
The EU’s decision risks leaving the UK as an outlier on de minimis rules, according to the BRC.
“Our view is that the UK is going to be out on a limb here compared to both America and the EU,” Opie said. “Certainly some of our members are concerned that that makes the UK market even more attractive for goods which may have gone to Europe, for example, to come here in the UK.”
Online clothing retailer Boohoo Group Plc, which rebranded as Debenhams Group last year and owns brands including PrettyLittleThing and Karen Millen, also said it would welcome a shorter timeline for closing the exemption — though it did not take part in the government consultation.
Given the changes in other markets, the government’s timeline risks ongoing lost revenue for the UK, Debenhams CEO Dan Finley said, adding that ending the tax exemption on parcels would be a step toward leveling the playing field on safety, compliance and tax for British retailers.
“The government’s commitment to level the playing field between UK-based retailers and overseas online competitors is welcome but we need to see rapid action,” a spokesman for AB Foods said. “Delay is unnecessary and further disadvantages UK high streets.”
—With assistance from Joe Mayes and Jinshan Hong
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