A coalition of Britain’s largest retailers including Primark, Currys and Boohoo has urged the government to accelerate its plan to abolish the “de minimis” customs exemption — a tax break that allows low-value parcels to enter the UK without import duties — arguing that the current March 2029 timetable endangers high-street competitiveness.

Under the existing rule, overseas e-commerce platforms exporting goods worth £135 or less can ship directly to UK consumers without paying customs duty, giving them a persistent pricing advantage over domestic retailers.

The exemption has been widely criticised for distorting competition and undercutting UK businesses.

Industry data cited by the trade group British Retail Consortium (BRC) indicates the volume of such parcels has surged — currently around 1.6 million arrive daily, double the number from the previous year.

Retailers say this flood of duty-free imports is displacing local retailers, suppressing wages, and eroding the viability of bricks-and-mortar stores.

The government’s 2025 budget reaffirmed a commitment to end the exemption, with officials estimating the change could generate about £500 million annually in customs revenue.

However, the planned implementation date remains 2029 — a delay that retail leaders criticised sharply.

The head of one major retailer described the four-year wait as “unacceptable,” arguing it prolongs unfair competition and undermines domestic businesses already operating under full duty liability.

Executives from major retailers warn that continuing to allow duty-free low-value imports will further damage the UK high street and hinder the competitiveness of local businesses — especially as similar exemptions have already been eliminated in other major economies.

The United States revoked its equivalent threshold earlier this year, and the European Union is phasing out its own small-parcel duty waiver.

Logistics companies and government officials, however, have cautioned that an abrupt end to the exemption could disrupt supply chains, cause border delays, and potentially push up consumer prices.

They argue the phased approach provides time to modernise customs infrastructure and ensure smooth implementation.

Retail leaders counter that any short-term friction would be outweighed by the long-term benefits: fairer competition, improved product safety standards, and protection for UK jobs.

With the government signalling that the de minimis rule will eventually be scrapped, the question now is not if — but how quickly — the playing field can be levelled.

For many British retailers, the March 2029 target may already be too late.

The longer the delay, the larger the risk that high-street shops will continue to bleed customers to global online-only sellers exploiting the loophole, potentially accelerating closures, lay-offs and decline on local high streets.