The United Kingdom signals the end of its £135 UK de minimis following global trend of EU, US removals

Summary  

The United Kingdom has announced plans to remove its £135 de minimis customs duty exemption, following similar moves by the United States and the European Union. While the UK de minimis threshold will remain in place through at least December 31, 2026, full removal is expected by March 2029 at the latest, fundamentally changing how low-value ecommerce shipments are handled. For cross border sellers and logistics providers, the shift signals a future where every shipment is a formal import event, making compliance, landed cost transparency, and data accuracy more critical than ever. 

Introduction 

Low-value import exemptions are being rolled back across major global markets, following recent policy shifts in the United States and the European Union. The United States has already moved to effectively eliminate its $800 de minimis exemption for many shipments in August 2025. The European Union has confirmed plans to remove its €150 customs duty exemption as part of a broader customs reform agenda in 2028, but temporary measures starting as early as 2026. This is after a volatile year of regulation change globally. Now, the United Kingdom has formally joined this global shift. 

In the Autumn Budget 2025, the UK government announced its intent to remove the £135 customs duty de minimis relief for low-value imports, marking a significant change for cross border ecommerce sellers, carriers, and logistics providers shipping into the UK. While the policy will not take effect immediately, the direction is clear: duty-free low-value imports into the UK are being phased out. 

Global context: why are de minimis exemptions disappearing?

The UK de minimis thresholds shift isn’t happening in isolation, it comes amid a broader global re-evaluation of how low-value imports are treated by customs authorities. In 2025, the United States officially eliminated its longstanding $800 de minimis exemption, a threshold that had allowed low-value parcels to enter duty-free and with minimal customs formalities since it was raised under the Trade Facilitation and Trade Enforcement Act of 2016. Effective August 29, 2025, all commercial shipments into the U.S. regardless of value became subject to formal customs entry and duty assessment, fundamentally altering how brands and logistics providers handle low-value cross-border flows. This removal affects merchants that had structured fulfillment and pricing strategies around the streamlined Section 321 process, making full customs clearance, duty payment, and accurate classification essential for even the smallest parcels.  

In the same year, the European Union has committed to abolishing its €150 de minimis customs duty exemption as part of a sweeping customs reform aimed at modernizing border processes and reducing distortions caused by massive volumes of low-value parcel imports. Under the EU plan, which reached political agreement in late 2025, the exemption for parcels under €150 will be removed through transitional measures beginning in 2026, with full integration into the new customs data infrastructure expected around 2028. This change reflects EU concerns about undervaluation, competitive fairness for local sellers, and the administrative burden of processing billions of e-commerce parcels under preferential rules.  

Together, these developments illustrate a global trend away from de minimis duty exemptions that historically aimed to reduce customs friction for low-value ecommerce shipments. Governments now increasingly view these thresholds as loopholes that can distort markets, erode revenue, and complicate compliance. The UK’s decision to remove the £135 relief follows this international movement, reinforcing that the era of widely accessible duty-free thresholds is coming to an end. 

What is the UK decision and timeline?

Under current UK rules, goods imported with a value of £135 or less benefit from customs duty relief, although VAT may still apply. This threshold has supported the rapid growth of low-value ecommerce shipments, particularly from overseas sellers. 

In the Autumn Budget 2025, published on November 26, 2025, the UK Chancellor confirmed the government’s intention to fully remove the £135 customs duty relief by March 2029 at the latest. The reform is driven by several factors, including: 

• The explosion of low-value ecommerce import volumes 
• Concerns over lost customs revenue 
• The need to protect domestic industries and ensure fair competition 
• Increased administrative strain on UK customs systems 
• To support a measured transition, the government also committed to maintaining the current £135 duty exemption through at least December 31, 2026, with the possibility of extended tariff suspensions for certain critical goods. In official documentation, aluminum frames and food production ingredients were specifically cited as examples. 

Rather than implementing immediate changes, the UK has launched a public consultation to gather feedback on how new customs rules for low-value imports should be designed and implemented. This consultation covers both the future treatment of previously exempt low-value imports and potential new tariff suspensions. 

Key dates to know 

Several milestones now provide clarity for businesses planning their UK cross border strategy: 

• November 26, 2025: UK Autumn Budget 2025 announces intent to remove the £135 de minimis 
• Through December 31, 2026: Existing £135 customs duty relief remains in place for all goods, with certain critical goods potentially extended 
• 2026–2028: Public consultation period and policy development for new customs arrangements 
• By March 2029 (at the latest): Full removal of the £135 customs duty de minimis 
• These dates give sellers and logistics providers time to prepare, but they also confirm that this change is no longer speculative. 

What does this means for cross border sellers and shippers? 

For merchants shipping into the UK, the removal of the £135 de minimis will fundamentally change how low-value orders are handled. 

Once the threshold is removed, every shipment into the UK will become a formal import event, regardless of value. This will increase reliance on accurate HS classification, complete customs data, and clear country-of-origin information. 

Landed cost predictability will also become more critical. As seen in both the EU and the US, the removal of de minimis thresholds often leads to higher consumer sensitivity around unexpected duties and fees at delivery. Sellers relying on DDU models or inconsistent duty handling may see higher refusal rates, increased returns, and reduced conversion. 

Carriers, 3PLs, and ecommerce platforms are also likely to face increased compliance expectations. The UK consultation explicitly seeks input on declaration requirements and implementation models, signaling potential changes to carrier workflows and data submission responsibilities. 

Finally, sellers may need to reassess broader fulfillment strategies, including: 

• Whether low-value SKUs remain economically viable for UK customers 
• If DDP pricing should become the default checkout experience 
• Whether regional inventory or consolidation strategies can reduce duty exposure 

Conclusion 

The UK’s decision to remove its £135 de minimis customs duty relief reinforces a broader global trend already underway in the US and EU. Low-value ecommerce shipments are no longer being treated as low-risk or low-impact by customs authorities. 

Although final implementation details are still being shaped through public consultation, the direction is clear. Merchants that begin preparing now by investing in accurate classification, automated customs workflows, and transparent landed cost models will be better positioned to adapt as the UK transitions to a post-de minimis environment. 

FlavorCloud will continue to monitor official guidance and consultation outcomes and proactively implement product updates to support merchants as these changes take shape. 

If you have questions about how to navigate de minimis changes for your company, talk to one of our experts. We’re here to help.