UK Sets 2029 Start Date for Low-Value Import Charges

The government has confirmed that consignments valued under £135 will no longer qualify for customs-duty exemption, with the change scheduled to take effect by 2029.

The move means that many goods previously entering the UK tariff-free primarily small parcels will now be subject to customs duties. The change is part of a broader plan to align the UK’s practices with those of the United States and the European Union.

The government estimates that the revision will bring some £6 billion of goods (currently duty-free) into the taxable regime. This is expected to raise at least £500 million annually in revenue for the Exchequer.

According to British Chambers of Commerce (BCC), which commented on the change, some UK retailers currently suffer from unfair competition because overseas firms often selling directly to consumers exploit the low-value exemption. With those firms no longer exempt, competition might become fairer for UK retailers. But the BCC also warns that the policy should form part of wider reforms.

Specifically, the BCC (via its Head of Trade Policy, William Bain) has argued that, alongside removing the exemption, the government should push for a modernised customs framework — including digital trade corridors, a single trade window, and stronger customs cooperation with the US and EU so that trade flows smoothly and all businesses benefit from lower costs and more efficient regulation.

In sum, the abolition of the low-value import duty exemption signals a major shift in UK customs policy one that aims to level the playing field for domestic retailers and capture additional revenue, while pushing for broader structural improvements to the trade system.