Several of the United Kingdom’s largest retailers have voiced disappointment over the government’s decision to advance the closure of a tax loophole by only six months, describing the move as insufficient to address longstanding concerns. On June 23, ministers announced plans to end the de minimis threshold—which currently exempts imported goods valued at £135 or less from customs duties—in October 2028, accelerating the original timeline by half a year.

The de minimis regime has come under scrutiny for enabling foreign businesses, notably Chinese fast-fashion companies Shein and Temu, to avoid customs charges faced by UK-based retailers. Industry leaders argue this creates an uneven playing field, disadvantaging domestic companies who incur these costs on imported products.

The British Retail Consortium (BRC), a prominent trade association, acknowledged the government’s recognition that the initial three-year timeframe was too lengthy but criticised the modest six-month acceleration as insufficient. “Bringing it forward by just six months does not go far enough,” the BRC stated.

Voices from major retail groups echoed this sentiment. George Weston, chief executive of Associated British Foods—the parent company of Primark—urged ministers to explore ways to hasten the timeline and provide greater support to UK retailers. Similarly, Andrew Murphy, chief executive of toy retailer The Entertainer, said the government’s response, while noted, fell short of expectations. He described the six-month shift as “not material in the context of a wait that remains over two years long.”

The de minimis threshold allows low-value goods to enter the UK market without incurring customs duties, reducing administrative costs and delays. However, since many low-cost items sold online come from overseas sellers benefitting from this exemption, domestic businesses have raised concerns about competitive distortion.

Earlier this month, reports indicated the government was weighing whether the de minimis reforms could be expedited further without disrupting border operations, following lobbying efforts from retail groups. The current announcement stops short of such a move, instead confirming a moderately accelerated schedule for the measure’s implementation.

The decision comes amid broader government efforts to level the regulatory and tax environment for UK retailers in the face of growing online imports, particularly from international fast-fashion and discount platforms. Retailers continue to advocate for swifter action to ensure fair competition and to protect domestic industry interests.