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UK Faces Surge in Low-Value Imports from China as Tax Exemption Loophole Widens
28 Aug
Summary
- Low-value imports from China to UK more than doubled in 2024-25
- £3 billion worth of small parcels shipped from UK to China last year
- Chinese retailers like Shein and Temu exploit duty-free imports
According to new figures, the UK has faced a surge in low-value imports from China over the past year. A Freedom of Information request from the BBC found that the value of these imports more than doubled in 2024-25, rising from £1.3 million the previous year to £3 billion.
The sharp increase in small package imports from China is largely attributed to Chinese fast fashion retailers like Shein and Temu. These companies are understood to regularly distribute products to the UK in small packages, which then face no customs duty due to a heavily criticized import tax exemption.
The data, supplied by HM Revenue & Customs (HMRC), has prompted politicians to consider axing the tax exemption. Earlier this year, the Government announced a review of the current rules, which mean imports of packages valued at £135 or less avoid customs duties. The move comes amid concerns that the exemption is allowing Chinese e-commerce firms to undercut UK high street businesses, who face significant business rate tax payments.
The situation in the UK mirrors a similar move in the US, where President Donald Trump scrapped the "de minimis" duty exemption on low-value packages, leading to reports that Chinese-based companies were "dumping" products affected by the change and higher tariffs. The EU has also said it will introduce a charge on shipments that had previously received the tax exemption.
