The UK government plans to abolish the duty-free threshold for small consignments. Currently, goods worth up to GBP 135 can be imported into the UK duty-free. This rule is set to be abolished by October 2028 at the latest. The government is responding to developments in international online trade and has announced additional requirements for businesses.

Reasons for abolishing the tax-free allowance

The reason behind the planned change is the sharp rise in e-commerce. According to the UK government, the current duty-free allowance for low-value parcels puts UK businesses at a competitive disadvantage.

Furthermore, consumer protection and product safety play an important role. According to the government, there is a risk that products which do not meet British health and environmental standards may be imported via duty-free small consignments. The abolition of the duty-free threshold was first proposed back in 2025 and has now been further fleshed out.

Impact on businesses

The new regulations primarily affect British companies that import small consignments. At the same time, there are also implications for sellers and e-commerce providers outside the UK, as well as for online marketplaces.

For German exporters, the planned change means they will have to adapt to additional customs requirements. Its implementation is likely to involve new requirements regarding data transmission and compliance. Companies should monitor further developments closely and prepare for the specific requirements at an early stage, as soon as these are published by the UK authorities.

Parallels with the European Union

The UK’s plans are modelled on a development that has already begun within the EU. There, a customs duty of three euros currently applies to e-commerce consignments with a total value of less than 150 euros.

Source: GTAI (in German)