UK Sets Course for New Customs Regime

The United Kingdom (UK) government recently published a policy paper and draft legislation that sets the course for abolishing the £135 customs duty relief on low-value goods no later than October 2028.

The documents make up the government’s response to the consultation process on low-value imports, which – in addition to removal of duty de minimis – includes new requirements for data collection, payment, and compliance. The new regime will put responsibility on sellers, or online marketplaces where they facilitate the sale, for accounting for customs duty and paying it to the Treasury (known as His Majesty’s Revenue and Customs) on a quarterly basis.

Other aspects of the new regime:

• The new rules include customs declaration changes, including allowing new categories of authorized persons to make declarations for low-value goods.

• Customs agent restrictions would limit the acts a customs agent may take on behalf of another person (the principal).

• The UK government is also considering the introduction of an additional fee on LVIs.

• The reforms apply to Great Britain only; Northern Ireland remains under the Windsor Framework and not subject to these changes.

With this announcement, the UK government is moving up the effective date by six months from the initial proposed date of March 2029. And there is speculation that the new UK government – which is facing a significant budget shortfall – could push up the date even earlier. Businesses are encouraged to begin preparing early, even as detailed rules are still being developed.