Chancellor Rachel Reeves has postponed ditching the “de minimis” rule until 2029, the Treasury has confirmed.
Reeves initially said a review of the widely criticised customs rule would take place while speaking at the annual IMF Spring meetings in Washington DC in April. The rule enables items worth £135 or less to be imported into the UK without paying customs duty.
While the Treasury has said it will axe the rule, the changes will not be implemented until at least March 2029, The Times reported.
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Reeves has decided to gradually phase out the “de minimis” rule, rather than scrapping it immediately, after expressing concerns that its removal could impact borders.
The Chancellor has plans to launch a consultation on how to roll out new custom planning for low-value imports.
It comes after the US removed its “de minimis” exemption in August, which allowed packages worth under £593 ($800) to be free from relevant duties.
The move means lower value parcels now face tariffs implemented by the US government depending on their country of origin.
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