UK chancellor to review de minimis rule, mitigate impact of ‘dumped’ goods

Chancellor Rachel Reeves has outlined a plan to mitigate the impact of “practices that undercut fair trade” which will include a review of the customs treatment of Low Value Imports. The law currently allows for goods valued at 135 pounds or less to be imported without paying customs duties. Some retail giants, however, have called for this to be amended, "arguing that it disadvantages them by allowing international companies to undercut them”.

Speaking in Washing DC at the IMF Spring meetings on April 23, Reeves said “free and open trade is good for the UK, but fairness needs to be injected into the global economic system”. The UK government also announced “immediate action” under the Trade Remedies Authority (TRA), an organisation intended to defend the UK against unfair international trade practices.

At the crux of the mission is to address “cheap imports [flooding] our markets and [harming British industries”, business and trade secretary Jonathan Reynolds said in a statement. “That is why I met with the TRA recently to agree urgent steps to tackle these issues in real time to deliver quicker protections for firms,” he added.

Government to address cheap imports flooding market

The “potential future ‘dumping’ of cheap goods into the UK” is also on the radar for Reeves, as she plans to increase support for businesses in reporting unfair practices and improving the monitoring of trade data. It all caters to the wider government priority, Plan for Change, set out at the beginning of Labour’s appointment as milestones that must be met under the party.

As such, the TRA is set to implement resources into its pre-application office, bringing in analysts, lawyers and accountants to back British businesses and advise them in reporting unfair trade practices. The organisation has also agreed to enhance its monitoring of emerging trade risks and plans to reduce the time it takes to carry out investigations to deter harmful imports.

In a release, George Weston, chief executive of Primark parent company, Associated British Foods, said: “We welcome the chancellor’s plan to review the customs treatment of Low Value Imports. The abolition of the favourable tax treatment of low value imports would be a significant step forwards in the government’s support for British businesses. We have long advocated for the closure of this tax loophole which undermines many UK companies that make a substantial contribution to the British economy, to the British high street and to the British Government’s own revenues.”