Removing the UK’s tariff exemption for low value imports could risk pushing up prices, harming small businesses and reducing trade intensity, warns the British Chambers of Commerce (BCC).

The government is considering the move after the US removed its ‘de minimis’ exemption. The EU has also said it will do the same and introduce new handling charges for cheaper packages as well.

A government consultation into the plans closed on 6 March and the BCC has submitted a response.

It said that while the UK must respond to action by the US and EU, to avoid unfair competition from cheaper goods flooding our domestic market, any reforms must be proportionate.
 
William Bain, Head of Trade Policy at the BCC, said:

‘We know the trend globally is to abolish de minimis thresholds and levy duties on low value imports given their huge growth in recent years.

‘The US has scrapped its de minimis threshold, and the EU is planning new charges on cheaper imports from July this year. This will put our exporters’ sales under pressure, and we must respond to ensure we have a level-playing field.

‘But we would urge Ministers not to introduce charges per item or consignment by import. Our research shows the increased costs will feed through into higher prices.

‘The government should also retain VAT being charged at point of sale on transactions for these purchases – a practice followed by many countries in global trade. Its retention would avoid unnecessary complications and additional friction on cross‑border e‑commerce sales.’

Internet link: BCC website