Britain between three rulebooks
Outside the EU, Britain sets its own customs timetable, but it sells into Brussels and Washington on their terms and still courts Beijing. It will close its £135 gap only by October 2028, which leaves the UK as the soft landing for direct parcels while its own exporters face tougher terms in both main markets.
From geopolitics to the parcel
- 2025-05-08
The UK-US Economic Prosperity Deal delivered sector access, but its paperless trade and customs work is rated as stalled.137
- 2026-01-29
Keir Starmer made the first prime ministerial visit to Beijing in eight years and won a cut in China's whisky tariff.138
- 2026-07-20
Andy Burnham became Prime Minister after Starmer's resignation, and the EU-UK summit planned for 22 July was postponed.139140
- 2021-01-01in force
VAT on consignments of £135 or less is charged at the point of sale, with online marketplaces as deemed suppliers.141
- 2026-07-13adopted
The Treasury confirmed removal of the £135 relief by October 2028, with full tariff classification, a per-consignment handling fee and UK fiscal representatives with joint liability.8142
- 2026-07-24in force
British goods pay a 10% Section 301 tariff on top of normal duties in the United States, while the EU's combined rate is capped.143144
- 2026-11-01adopted
British web shops selling into the EU pay the €3 duty per tariff line and, from 1 November, the €2 handling fee per item.669
- 2025-12
Ofcom recorded a 19.8% rise in inbound international parcels in 2024-25, mainly from China.145
- 2026-05
Shein opened its automated centre at Cannock as platforms move part of their UK stock onshore.72
- 2026-06
Bloomberg analysis put UK low-value imports from December to April at about $1.8 billion, more than France and Germany combined but 11% lower than a year earlier.146
- 2026-07-13
Evri passed 1 billion parcels a year after merging with DHL eCommerce UK.147
- ↕ Volume
Fewer direct parcels overall, but a larger share of Europe's remaining direct flow lands in Britain until 2028.145146
- ↑ Cost
From 2028 direct parcels carry full classification, a handling fee per consignment and the cost of a fiscal representative.8
- ↑ Compliance
Non-UK sellers and marketplaces must appoint UK fiscal representatives with joint and several liability for customs debts.8142
- ↑ Network
Bulk imports into UK warehouses shift the fight to domestic last mile and locker density rather than international gateways.72148
Our reading: the timing of the closure, not the principle, decides who gains, and every month of delay keeps the UK the last large Western market where the direct model works on its original economics. British exporters face the worst of both borders, which pushes EU-bound and US-bound stock into the EU or third countries and away from UK outbound gateways.
What comes next
- 2026-10-28Autumn Budget: watch the low-value import timetable and handling fee
- 2026-11-01EU €2 handling fee per item applies to British online sellers too
- 2028-10-01Latest date for removal of the £135 low-value import relief (October 2028)
The lens behind the decisions
Companies visibly affected
Solution landscape
Read the full analysis
The UK's £135 gap: British parcels caught between Washington, Brussels and Beijing
Britain will end duty-free entry for low-value parcels only in October 2028, after the United States and the EU have already closed their doors. Until then the UK is the soft landing for direct Chinese parcels, while British exporters face tougher terms in both of their biggest markets.
UK £135 gapEnd of de minimisTrade · Global e-commerceThe small-parcel door closes: who pays, who declares, and where volume goes
The US, the EU, the UK and Japan are ending duty-free treatment for low-value e-commerce parcels, while Brazil has just reopened its door. For carriers and platforms, the question is no longer whether a small parcel pays, but who declares it, on what data and from which warehouse.
End of de minimisEU customs reformRegulation · European UnionEurope now charges every parcel. Who absorbs the bill?
Since 1 July a €3 duty applies to every tariff line in a low-value parcel, and from 1 November a €2 handling fee follows. Volumes into the main EU gateways have roughly halved, and the fight is now over who pays, who carries the liability and who owns the data.
EU customs reformEnd of de minimisSources
- Ensuring fairness and safety: €3 customs duty for low-value parcels · European Commission
- Reforming the customs treatment of low value imports: consultation response · HM Treasury / HMRC (GOV.UK)
- Tax on small parcels from third countries: Commission completes EU arrangements with customs handling fee set at EUR 2 · Agence Europe
- Shein strengthens its logistics muscle in Europe with a new centre in the UK · Modaes
- UK-US Economic Prosperity Deal: one-year progress review · BritishAmerican Business
- UK-China relations hit reset following Starmer visit · China Briefing (Dezan Shira)
- Andy Burnham becomes UK's next prime minister · ABC News
- EU-UK: Summit to be held in 2026 · British Agriculture Bureau
- VAT and overseas goods sold directly to customers in the UK · HMRC (GOV.UK)
- UK Low Value Import Relief to be Removed by October 2028 · Baker McKenzie Global Import Blog
- Section 122 tariffs expire for many imports, but new Section 301 tariffs take effect · Honigman
- US administration rebuilds global tariff program under Section 301 · Morgan Lewis
- Post monitoring report: postal services in the financial year 2024-25 · Ofcom
- UK lags rivals in curbing influx of cheap parcels from China (Bloomberg) · FashionNetwork
- Evri Group delivers over one billion parcels in record year · Parcel and Postal Technology International
- InPost UK volumes surge 220% as Yodel integration weighs on profit · Retail Gazette