Britain accelerates plan to end low value parcel tariff loophole
UK Government Moves to Close Tax Loophole on Low Value Imports
Background on the Low Value Parcel Tariff
LONDON, June 23 (Reuters) - Britain's finance ministry will bring forward changes to low value imports by six months to October 2028, it said on Tuesday, closing a tax loophole that benefits online players like China's Shein.
Impact on UK Retailers
UK retailers have been squeezed by rapidly growing ultra-low-cost platforms like Shein, Temu, AliExpress and more recently Amazon Haul, which send packages directly from factories in China to shoppers' doorsteps, benefiting from a customs waiver on parcels worth less than £135 ($178).
Government's Previous Announcement
Last November, the UK government said it would scrap the relief.
Retailers' Criticism of the Timeline
However, the timeline of March 2029 "at the latest" was criticised by UK retailers as too slow, saying it risked making the UK an international outlier.
Accelerated Reform Timeline
"The government has since listened to industry and chosen to accelerate delivery of the reforms by six months to October 2028," the finance ministry said.
Additional Information
($1 = 0.7574 pounds)
(Reporting by James Davey, editing by Sam Tabahriti)
