Levelling the Field: UK Targets Trade Loopholes and Import Duty Shake-Up

The UK government is proposing significant reforms to its trade remedies framework and customs rules, aiming to enhance fair competition and streamline import processes.​

Trade Remedies Authority (TRA) Reforms

The government plans to expand ministerial oversight of the TRA, the body responsible for investigating unfair trading practices. Proposed changes include:​

• Allowing ministers to request alternative options to the TRA's recommendations.

• Granting ministers the power to override the TRA's Economic Interest Test on public interest grounds.

• Enabling the government to ask the TRA to re-evaluate recommendations.

• Permitting the government to take decisions differing from the TRA's advice. ​

These reforms aim to balance the TRA's independent, evidence-based approach with greater governmental flexibility in decision-making.​

Customs Charges for Low-Value Imports

The government is considering removing the current exemption from customs duties for imported goods valued up to £135. This "de minimis" threshold has allowed foreign e-commerce retailers, particularly from China, to sell goods in the UK without incurring customs duties. Retailers like Sainsbury's and Currys argue that this gives overseas sellers an unfair advantage and undermines UK businesses. They urge the government to close this loophole to ensure a level playing field. 

However, logistics companies warn that eliminating the threshold could lead to customs delays, increased administrative burdens, and higher prices for consumers. They caution that such changes might elevate inflation and hinder international trade efficiency. ​

These proposed changes reflect the UK's efforts to adapt its trade policies post-Brexit, balancing the need for fair competition with the practicalities of international commerce.​The UK government is proposing significant reforms to its trade remedies framework and customs rules, aiming to enhance fair competition and streamline import processes.​

Responding to the Government’s proposals for the Trade Remedies Authority and changes to customs charges for low value imports, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:   

“There are still many twists and turns to go in the trade war between the US and China. It remains to be seen whether cheap Chinese goods will flood the UK as a result.

“But the risk is present. It is sensible for the Trade Remedies Authority (TRA) to have all the necessary tools and resources to take action to prevent the UK being swamped with unfairly cheap products. 

“If domestic production suffers from a surge in imports or dumping of goods it is right that business has clearer access to make their case to the TRA. It must have the resources it needs to enforce a level playing field.  

“Proposals on charging levies for cheaper deliveries of online orders of goods from overseas (de minimis thresholds) are also under various stages of reform by the US and the EU.  

“We will be speaking to Chambers about the implications of this and look forward to engaging in the review. 

“But with economic growth consistently low and trade uncertainty high, we urge government to consider other bold measures. 

“Simplifying rules and processes to make trade easier is vital to weathering the current storm. It should use the EU reset negotiations to remove safety and security declarations for goods and pursue a global pro-growth agenda on trade digitalisation.”

Sources: Gov.uk, The Guardian, British Chambers of Commerce