A new open consultation is being launched, announcing the removal of the £135 customs duty relief for low-value imports and seeking views on certain elements of a new set of customs arrangements for these goods. The consultation ends 6 March 2026.

Currently, low value imports (LVIs), goods with a value of £135 or less being imported into the UK, can claim a customs duty relief. VAT is due on these goods following reforms in 2021.

Following a significant increase in LVI volumes over recent years, the government has reviewed the existing customs arrangements for LVIs and concluded that these require reform. At the Autumn Budget 2025, the Chancellor announced the removal of the relief from March 2029 at the latest.

This consultation covers the design of the new arrangements, including what data to collect, how the tariff should be applied, whether to apply an additional fee on LVIs to fund administration, and potential changes to VAT collection to reflect the new arrangements.

Dan Tomlinson, exchequer secretary to the treasury, commented:

“The Government is aware that these new arrangements will require significant adjustments for businesses engaged in low value trade”.

He added that getting the technical details right will call for input from “consumers and businesses of all sizes and all levels of international trading experience, from high-volume traders to small and medium sized businesses”.

You can respond on-line or via email here