Bira and BHETA Call for Urgent Action on Import Duty Reform…
The British Independent Retailers Association and the British Home Enhancement Trade Association are jointly expressing concern over the lack of progress following the Chancellor’s announcement to review the de minimis threshold for small packages entering the UK.
Despite the Chancellor Rachel Reeves’ pledge on 23rd April to review the customs treatment of low value imports, no further action has been taken. The current de minimis threshold of £135—below which goods can be imported without incurring customs duties—has created significant challenges for UK businesses and poses risks to consumers.
The Chancellor’s announcement included immediate action by the Trade Remedies Authority (TRA), the body responsible for defending the UK against unfair international trade practices. This was welcomed as a response to growing fears about Chinese products flooding the UK market following US tariffs on China and was positioned as part of broader efforts to support British high streets.
Andrew Goodacre, CEO of Bira:
“We began raising our concerns about this duty loophole with the government last October. While we welcomed the Chancellor’s announcement, we are disappointed that no tangible progress has been made since. Our members strongly believe that government action should extend beyond duty payments to address the systematic avoidance of VAT by foreign internet sellers. This is not merely about duty collection—it’s about ensuring a level playing field where all businesses, including our vital high street retailers, operate under the same tax obligations.”
An estimated that three million parcel shipments per day come into the UK from overseas sellers in 2023, due to the rise of shopping platforms like Temu, Shein, Amazon and eBay. Most of these enter the country with minimal or no checks and frequently bypass UK trade legislation. This includes potentially dangerous electrical products, items containing toxic materials, and bladed articles which undermine Home Office and police campaigns against knife crime.
The inability of Border Force to check most of these small B2C imports has led to danger to consumers from unsafe products, massive losses in VAT revenue for the Government, and huge challenges for UK producers unable to compete on a level playing field.
Will Jones, COO of BHETA:
“Our members are urging us to maintain pressure on the government to implement the promised changes without delay. This issue extends beyond fair taxation. It’s equally about preventing the influx of products that fail to meet UK safety standards, are unfit for purpose, and make fraudulent claims. British consumers deserve confidence that the products they purchase are safe, properly tested, and perform as advertised.”
BIRA and BHETA have been working together alongside GIMA (Garden Industry Manufacturers Association) and RAVAS (Retailers Against VAT Abuse Schemes) since October last year to bring these issues to the government’s attention. The Government has opened a consultation on the issue, which stakeholders can engage with via email.
Both organisations represent thousands of independent retailers and suppliers across the UK. Bira champions the cause of independent traders and shopkeepers, focusing on revitalising high streets and campaigning on issues such as retail crime, business rates, and legislation. BHETA represents manufacturers, suppliers and distributors in the home enhancement, garden, DIY and housewares sectors.
The associations have said they will continue to advocate for urgent action to protect both British businesses and consumers.
