Government will review the customs treatment of Low Value Imports and defend the UK against certain unfair international trade practices.
Chancellor of the Exchequer Rachel Reeves announced that she would review the customs treatment of Low Value Imports, which allows goods valued at £135 or less to be imported without paying customs duty.
Chancellor Rachel Reeves stated that an open global economy was crucial for UK growth: “The world has changed, and we are in a new era of global trade.
“We must stand up for free and open trade – crucial to deliver our Plan for Change to make everyone better off. We must help businesses keep their access to trade around the world.
“This Government is meeting the moment to protect fair and open trade. Following recent announcements reducing tariffs and support for the zero-emissions vehicles industry, today’s package will help businesses compete fairly with international exporters, supporting a world economy that provides stability and fairness for working people and businesses alike.”
The support comes in addition to recent action taken by the Government aimed at supporting industry and businesses navigate tough global economic headwinds.
Industry welcomes the review
Helen Dickinson, chief executive of the British Retail Consortium (BRC), commented: “The announcement of the review into the de minimis rules is most welcome and shows that the Government has listened to the concerns and representations of retailers and the BRC and that it is prepared to take swift action to protect consumers from goods being dumped in the UK, many of which fail to meet UK environmental and ethical standards, as a result of global trade turmoil.
“A review of this policy, which was designed to reduce the burden on low-volume, low-value imports, was already needed. With retailers seeing a rise in the number of potentially non-compliant products entering the UK market, it’s even more critical now.”
George Weston, chief executive of Associated British Foods, said: “We welcome the Chancellor’s plan to review the customs treatment of Low Value Imports. The abolition of the favourable tax treatment of low value imports would be a significant step forwards in the Government’s support for British businesses.
“We have long advocated for the closure of this tax loophole which undermines many UK companies that make a substantial contribution to the British economy, to the British high street and to the British Government’s own revenues.”
