The UK Government has published its response to the consultation on reforming the customs treatment of low-value imports, alongside draft legislation that begins the process of introducing the new rules.
The reforms will remove the current £135 customs duty relief for eligible low-value goods imported into Great Britain and replace it with a new customs framework.
The Government says the changes are intended to create a fairer system for UK businesses, reflecting the significant growth in low-value e-commerce imports while ensuring customs duties are collected more effectively.
The reforms are expected to be introduced by October 2028 at the latest, giving businesses time to prepare for the new arrangements.
What is changing?
Currently, commercial goods valued at £135 or less can benefit from customs duty relief when imported into Great Britain, although VAT continues to apply under the rules introduced in 2021.
Under the proposed reforms, this duty relief will be removed and replaced with a new customs framework for low-value imports.
The Government says the changes are designed to:
- Create a fairer customs system for UK businesses.
- Improve the collection of customs duties on low-value imports.
- Reflect the continued growth of cross-border e-commerce.
- Support efficient border processes while maintaining effective customs controls.
Further operational guidance is expected as implementation progresses.
Consultation response published
Alongside the reforms, the Government has published its response to the consultation, explaining how feedback from businesses, trade bodies and other stakeholders has influenced its final policy decisions.
Draft primary legislation has also been published, marking the first stage in the legislative process required to introduce the reforms.
While the overall direction of the policy has now been confirmed, further legislation and guidance will be published before the new arrangements come into force.
What does this mean for businesses?
Although implementation is still some time away, businesses that regularly import low-value goods should begin considering how the proposed changes could affect their operations.
Businesses may wish to review the following areas:
- Import costs and future duty liabilities.
- Customs declaration processes.
- Supply chain and fulfilment models.
- E-commerce and marketplace sales into the UK.
- Internal customs compliance procedures.
Reviewing existing import processes now will help businesses prepare as further details become available.
Preparing for the future
The removal of the £135 customs duty relief represents a significant change for businesses importing low-value consignments into Great Britain.
Although there is still time before the reforms are introduced, understanding the proposed changes now will help businesses prepare for the new requirements and minimise disruption once they come into effect.
At Beckchoice, we’ll continue to monitor the progress of the legislation and share updates as further guidance is published. If your business imports goods into the UK and you’d like to understand how these future changes could affect your customs processes, our in-house, AEO-accredited customs team is here to help – get in touch.
Further reading
For more information on the proposed reforms, you can read the official Government publications below:
- Consultation outcome: Reforming the customs treatment of low value imports into the United Kingdom – explains the Government’s response to the consultation and how stakeholder feedback has influenced the final policy decisions. Read the consultation outcome
- Draft legislation: Reforming customs rules for low value imports – sets out the draft primary legislation that begins the process of implementing the reforms. View the draft legislation
- Government announcement: Government backs high street with acceleration of cheap import reforms and crackdown on dodgy online sellers – outlines the policy objectives and confirms that the reforms are now expected to be introduced by October 2028 at the latest. Read the Government announcement