News / De minimis delay could see UK become an ecommerce 'dumping ground'

ID 35942516 © Robert Hyrons | Dreamstime.com

UK stakeholders have divided opinions on the government’s decision to delay de minimis removal, which could see Britain become an “ecommerce dumping ground”.  

Yesterday, UK chancellor Rachel Reeves announced her budget, and among the many measures was confirmation that the UK’s de minimis threshold of £135 would be removed – but likely not until 2029. 

David Jinks, head of consumer research at UK delivery company ParcelHero, told The Loadstar the decision to delay de minimis removal until 2029 would create a “limbo period”, that could see Britain become “the world’s dumping ground” for low-value ecommerce goods. 

“The US has already abolished its $800 de minimis threshold and the EU is not dawdling on this either… If the decision floated before the budget speech still stands, that the UK won’t phase out our own £135 limit until 2029, then it’s not hard to realise what market Chinese retailers will identify as ripe for targeting in the interim,” he explained.  

And Mr Jinks added that if this happened, UK manufacturers and retailers would be at a disadvantage, unable to compete with lower-priced imports.  

“In an ideal world, the US would never have scrapped its de minimis threshold, forcing others to do the same, to stop dumping from Chinese merchants desperate to find new markets. The de minimis rules bypassed red tape and saved everyone money. By having to process every item at customs, we are all in danger of spending a pound to save a few pence,” he said.  

“But President Trump’s de minimis decision has moved the goalposts. That means the UK has no choice but to call time on our own de minimis limit, with no extra stoppage time. Otherwise, we will be scoring a spectacular own goal.” 

However, some UK forwarders have welcomed the four-year notice period.  

The British International Freight Association (BIFA) noted that while the government’s decision to abolish de minimis will indeed level the playing field for UK businesses “who have long competed with low-cost online sellers disproportionately benefiting from the loophole”, the 2029 timeline allows for ample preparation.  

“The de minimis relief could bring new business for BIFA members that offer customs processing services, but it could also increase customs duties, imports costs, and border-processing burdens, which may create short-term disruption for some freight and parcel operators, and add complexity to small-parcel logistics,” it explained.  

“So BIFA welcomes that this is being delayed until 2029, which gives the trade association’s members and the business community they serve, time to prepare.” 

Gunjan Tripathi, EMEA director of VAT & tax technology at Vertex, agreed and added that companies should take the opportunity “to modernise”. 

She urged: “Once the exemption disappears, every parcel, regardless of value, will require duty and tax assessment upon importation. That means higher processing costs and the likelihood of slower delivery times, as additional checks are built into the workflow.  

“For operators moving high volumes of small, low-margin items, these extra steps can create bottlenecks and raise overall fulfilment costs.”  

She advised that those that “invest early” would be best positioned to handle the “increased data and compliance complexity” once the threshold is removed.