"Rachel Reeves is reportedly planning to close a tax loophole in her budget next month that allows overseas retailers including Shein and Temu to send small packages to the UK without paying any customs duties. The arrangement, central to the business model of the online marketplaces where almost all sellers are based in China, has been criticised by British high street chains that complain it creates an uneven playing field."
"The chancellor said in April that she was reviewing the customs treatment of low-value imports, after similar moves by the US and the EU. Some of Britain's largest retailers including Next, Sainsbury's, Currys, JD Sports and Superdry have called on ministers to change the rules, saying it hands an unfair advantage to their international competitors at a time when domestic companies have to pay to import products to sell to UK consumers."
"This summer the US abolished its de minimis exemption, a similar arrangement to the UK's, under which goods worth less than $800 (600) were allowed to skip import duty, to limit the rise of low-cost online marketplaces such as Temu and Shein. The EU began to tighten controls on low-value imports in July and customs duty is expected to be applied from 2028."
The UK intends to close a tax loophole that allows overseas retailers, notably Shein and Temu, to send small packages into the country without customs duties. Parcels valued up to £135 currently enter duty-free, while goods above that threshold can incur duties up to 25%. The closure is slated for the 26 November budget and is estimated to cost the domestic industry up to £600m annually. The move follows similar measures by the US and EU and responds to complaints from major UK retailers that the exemption gives foreign online marketplaces an unfair competitive advantage.
Read at www.theguardian.com
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