Autumn Budget 2025: A major shift in UK customs policy
Andrew Thurston · Posted on: November 26th 2025 · read
With the Autumn Budget 2025 announcements, Chancellor Rachel Reeves gave only the briefest mention to a major shift in UK customs policy: the government has launched a consultation on removing the duty de minimis waiver for imports valued under £135. The consultation, now open and closing on 6 March 2026, confirms that the relief will be abolished by March 2029.
Low-value import (LVI) arrangements have grown dramatically since their introduction. HMRC sample data suggests that consignments routed through the BIRDS process have more than tripled in the year to June 2024 compared with 2021, averaging 1.6 million parcels per day. Trade value declared through BIRDS has also surged from £3.8bn in 2023–24 to £5.9bn in 2024–25.
The consultation sets out proposals including:
- Applying full UK Customs Tariff duty rates to all low-value imports
- Use of simplified tariff ‘bucket’ codes to ease compliance for sellers and marketplaces
- A potential additional fee on LVIs alongside duty
- Aligning import VAT collection with the new customs approach
- Replacing BIRDS with a new dedicated LVI system
The development required for a new system is a valid reason for the UK not moving immediately to the model used in the EU and US. Notably, any added administration charge would come on top of existing agent and delivery fees which will also impact the consumer potentially reducing demand.
Online marketplaces are likely to face increased obligations, particularly where non-established sellers are involved, requiring a UK fiscal representative and joint and several liability for customs debts. Under proposed rules, sellers would pay customs duty in quarterly submissions rather than at the point of import, mirroring current VAT processes. Duty collection could be routed via marketplaces or parcel operators but this will be subject to input via the consultation.
Gifts remain outside the scope of the consultation and will not attract UK customs duty.
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