A major group of the key names in UK general and fashion retail have united on letter to the Prime Minister and Chancellor to point out that the planned 2029 reform of the customs treatment of Low Value Imports (LVI) is way too late, especially given how faster action from the US and EU has made the UK a bigger target for such goods.
Those retailers include (among others) Monsoon/Accessorize, ASOS, Debenhams, George at Asda, Matalan, M&S, New Look, Next, Primark, River Island, Ver and two industry groups.
In their letter they said they welcome the decision to close the de minimis threshold, set out in the 2025 Budget, “but we are increasingly concerned about the proposal to implement this by 2029”.
It continued: “Having taken the decision to do this to support UK retailers and high streets, the Government must accelerate implementation or risk undermining the objective you aim to achieve.”
The plea comes after LVI trade has increased dramatically in recent years, increasing by more than 50% between the 2023/24 business year and 2024/25 alone.
The group said that the “de minimis threshold has become a structural advantage for overseas retailers without a footprint in the UK, who undermine retailers that employ millions of people across the country, pay local taxes and pay import duties.
“In recognition of the damage such loopholes have caused their domestic sectors, the US and EU are taking action to close their thresholds. The US acted last year, and we saw an immediate switch in overseas retailer focus into the UK and EU, exacerbating this structural disadvantage to UK retail. The EU will act this July ahead of full reforms in 2028”.
We’re told the UK “is becoming an outlier, with a growing share of LVI trade being directed into the market. This is not a future risk, it is already happening, evidenced by increased marketing spend targeting UK customers, LVI volumes tripling between 2021-2024, and more frequent product safety failures. A problem the UK Government recognised and sought to correct in November 2025 is therefore intensifying through 2026, not 2029. There is an urgent need to act now”.
Importantly for a government permanently focused on balancing the books, the group said the benefits of closing this loophole are clear and that a flat fee per parcel of £2.60, mirroring the EU’s €3 charge, would raise £1.7bn a year.
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