BCC warns removal of ‘de minimis’ could increase prices

The British Chambers of Commerce (BCC), which represents more than 50,000 businesses across the UK, have warned that the removal of tariff exemptions for low-value imports could push up prices and reduce trade for small businesses.

In a statement, the BCC said that the removal of the ‘de minimis’ exemption for imported goods, which is currently set at 135 pounds for customs duty, “could risk pushing up prices, harming small businesses and reducing trade intensity”.

The move will see the UK government following in the footsteps of the US and removing the relief, utilised by small businesses, by March 2029. The US removed its own low-import duty relief on August 29, 2025. Prior to this, imported goods into the US worth less than 800 US dollars could enter tariff-free.

The European Union is also scrapping the exemption and will introduce a temporary, 3-euro flat-rate customs duty on all low-value items, under 150 euros, from July 1.

William Bain, head of trade policy at the BCC, said: “E‑commerce matters greatly to the UK economy and global trade. 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 BCC’s warning comes as new research by its Insight Unit found that of 608 businesses, including 30 percent who are goods importers, half of UK goods importers (52 percent) said that if their import costs increased by 5-10 percent on small shipments, they would need to pass this on to consumers. Only one-fifth (20 percent) said they could absorb them.

As well as raising prices or absorbing the costs, 21 percent of businesses added that they would also switch suppliers, and 20 percent would consolidate shipments to reduce duty impact. A further 12 percent would scale down activity, pointing to reduced trade volumes.

In addition, 24 percent of UK goods exporters said an increase in costs of 10-15 percent, due to the removal of other countries’ de minimis, would put more than half of their overseas sales at risk.