UK retailers face customs squeeze
Emmett Young, key accounts director at Customs support group UK & Ireland, warns that the closure of de minimis import thresholds is driving up costs and complexity for UK retailers. Once a key facilitator of low-value cross-border trade, de minimis rules exempted small shipments from duties and taxes to ease customs burdens. However, tightening post-Brexit regulations and retaliatory tariffs have ended this era of "freewheeling trade" according to Young.
The U.S. recently scrapped its $800 de minimis limit for commercial imports, directly impacting UK exporters. Meanwhile, in the UK, a surge in e-commerce – now 26.1% of retail sales – and pressure from domestic retailers are prompting the government to review its £135 threshold according to Young. If revised, importers could soon face 20% VAT and duties on previously exempt purchases. (js)