Key changes
- Removal of Customs Duty Relief for goods valued at £135 or less.
- Introduction of a simplified customs processes for LVIs, potentially including:
- a streamlined declaration process;
- revised tariff structures; and
- enhanced data requirements with a focus on digitalisation and automation to reduce the administrative burden.
- The consultation is open until 6 March 2026.
Impact on businesses and consumers
- Increased Costs: Customs duties and possible administrative fees will raise import costs.
- Compliance Burden: New data and reporting requirements may require system upgrades and staff training.
- Operational Disruption: Businesses and consumers relying on fast, low-cost imports may face delays during transition.
- Competitive Pressure: UK-based retailers may benefit, but import-heavy businesses could lose price advantage and see consumers face slight price increases.
Recommended actions/considerations for business
- Assess Potential Exposure: Identify all imports under £135 and map supply chains to identify who has the liability – the seller, online marketplace or another party – and consider the need for contractual protections.
- Plan to upgrade systems and communicate with supply chain: Ensure customs software is fit for new requirements and communicate with stakeholders in the supply chain.
- Budget for Change: Factor in new duties, fees, and compliance costs.
- Consider participating in consultation: Submit feedback before 6 March 2026.
Next steps
Please contact Caroline Colliston, Nina Basra or your usual DWF contact if you wish to discuss the consultation or the potential impact of this change for your business.
