The government has brought forward plans to scrap customs duty relief on low-value imports as it looks to tackle the tax loophole used by overseas ecommerce giants including Shein and Temu.

Goods worth £135 or less will now become subject to customs import duties from October 2028, six months earlier than the previous March 2029 deadline.

The move is designed to reduce the advantage enjoyed by fast-growing international online retailers, which ship low-cost parcels directly to UK shoppers while avoiding duties faced by domestic retailers importing goods in bulk.

Platforms including Shein, Temu, AliExpress and Amazon Haul have come under growing scrutiny from British retailers, which argue the current rules have created an uneven playing field for the high street.

The Treasury said it had “listened to industry” by accelerating the reforms, adding that the changes would support fairer competition between high street and online retailers.

It is also reviewing how VAT is collected from businesses trading through online marketplaces, amid concerns that some sellers are undercutting UK retailers by failing to meet their tax obligations.

Exchequer Secretary to the Treasury Dan Tomlinson said the measures would tackle “unfair competition” and businesses doing “real damage” to Britain’s high streets.

However, the British Retail Consortium warned that moving the timetable forward by six months “does not go far enough”.

BRC chief executive Helen Dickinson said UK retailers “cannot afford to compete on an unfair playing field against importers not paying tariffs”, and urged ministers to work with the industry on ways to introduce the reforms sooner.

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