UK retailers have been squeezed by rapidly growing ultra-low-cost platforms like Shein, Temu, AliExpress and more recently Amazon Haul, which send packages directly from factories in China to shoppers’ doorsteps, benefiting from a customs waiver on parcels worth less than £135 pounds.

Last November, the UK government said it would start charging customs duties on low-value e-commerce parcels from March 2029 “at the latest” and began a consultation.

However, that puts Britain well behind the EU, which plans a €3 charge from July, and the US, the biggest market for Shein and Temu, which ended its customs waiver, dubbed “de minimis”, on parcels worth less than US$800 in August.

Government needs to move faster, say UK retailers 

In a letter to Prime Minister Keir Starmer and finance minister Rachel Reeves, 16 UK retailers – also including Primark, Argos, ASOS, Kingfisher and Currys – said the government needed to speed-up the process.

“There is an urgent need to act now,” the letter said, noting low value imports trade increased by over 50% between 2023-2024 and 2024-2025.

“We urge you to accelerate the implementation of customs reform, with meaningful progress delivered by peak 2026 trading,” it said.

The letter stated that if that is not possible the government must follow the EU in bringing in an interim measure in the form of a flat charge per parcel.

“This … would begin to restore fair competition between UK retailers and overseas sellers, to the ultimate benefit of UK consumers,” it added.