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Who is likely to be affected 

Sellers and online marketplaces selling goods valued at £135 or under, known as Low-Value Imports (LVIs), into the United Kingdom (UK), parcel operators and customs intermediaries moving LVIs into the UK, and UK consumers purchasing LVIs.Ìý

General description of the measure 

This measure reforms the customs treatment of LVIs by removing the £135 LVI relief, as set out in Section 5 of the , allowing HMRC and HM Treasury to introduce a new set of customs arrangements for these goods.Ìý 

The changes will define LVIs by reference to consignment value for the purpose of the new customs arrangements, introduce the concept of a fiscal representative (a UK-based business that assumes joint and several liability for any debts incurred by an overseas seller in relation to LVI customs declarations), and amend existing powers to allow HMRC and HM Treasury to provide for the customs arrangements via secondary legislation.

Policy objective 

The government is removing the customs duty relief for low-value imports and reforming the way these goods are declared into the UK to ensure all goods are appropriately controlled and support improved compliance.ÌýThe growing popularity of overseas sellers and online marketplaces has driven a significant rise in the volume of low-value goods entering the UK, which in turn has increased the risks associated with the current arrangements.ÌýThese reforms are intended to support fair competition, improving compliance by bringing the customs treatment of LVI imports closer to that of goods imported as freight.Ìý 

Background to the measure 

At Budget 2025, the government announced the removal of the relief and the introduction of a new set of customs arrangements, in response to the increasing popularity of sellers and online marketplaces selling LVIs into the UK and evidence that some goods are not compliant with the existing arrangements.ÌýThe government ran a 12-week consultation from December 2025 to March 2026, setting out proposals to reform the existing customs arrangements.ÌýA summary of responses was published on 13 July 2026.Ìý  

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Operative date 

The measure will come into force on such day as the Treasury may by regulations made by statutory instrument appoint by October 2028 at the latest.Ìý

Current law  

Current law governing the treatment of LVIs is set out in relevant provisions of the Taxation (Cross-border Trade) Act 2018 and associated secondary legislation.Ìý

Proposed revisions 

This measure will amend the Taxation (Cross-border Trade) Act 2018.Ìý

The measure will: 

• define LVIs by reference to consignment value for the purpose of the new customs arrangements and provide for HMT to amend that definition in secondary legislation  

• introduce the concept of a fiscal representative, who is jointly and severally liable for customs debt arising from LVI customs declaration of another person, and introduce powers for HMRC and HMT to make further provisions about fiscal representatives 

• allow HMRC to provide for new customs arrangements in secondary legislation  

• remove the £135 LVI relief, making LVIs subject to customs duty

This measure also amends existing powers which will be used to make secondary legislation and public notices setting out detailed requirements relating to the operation of the new LVI customs arrangements, including data requirements, compliance and enforcement provisions, and administrative processes.Ìý

Summary of impacts 

Exchequer impact (£ million) 

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The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.Ìý 

Macroeconomic impact 

This measure will be formally assessed once costings have been certified by the Office for Budget Responsibility but is not expected to have any significant macroeconomic impacts.Ìý 

Impact on individuals, households and families 

This measure is expected to affect individuals who purchase low-value goods from overseas sellers.Ìý

Customers may experience changes in how taxes are applied at the point of purchase.Ìý

This measure is expected overall to have no impact on individuals’ experience of dealing with HMRC as the change does not change how they will interact with HMRC.Ìý

The measure is not expected to impact on family formation, stability or breakdown.Ìý

Equalities impacts 

The measure will impact individuals who purchase low-value imported goods.Ìý

This measure may apply to individuals regardless of their protected characteristics. HMRC does not currently hold data on the protected characteristics of individuals impacted by this measure and so cannot assess if there are any disproportionate impacts to protected groups.Ìý

Administrative impact on business including civil society organisations 

This measure will affect businesses importing low-value goods, overseas sellers, and online marketplaces.Ìý

The overall administrative impact of this measure will be provided at a future fiscal event.Ìý 

One-off costs could include changes to trader’s systems to accommodate the data requirements and will be dependent on the extent of changes required.Ìý 

Ongoing costs could include additional data entry requirements, employment of a fiscal representative.Ìý

This measure is not expected to impact civil society organisations.Ìý 

This measure is expected overall to impact businesses’ experience of dealing with HMRC by removing the LVI relief, HMRC will provide clear guidance to advise of the change.Ìý  

Operational impact (£ million) (HMRC or other) 

The measure will have operational impacts for HMRC, including IT system changes, staff recruitment and training, and communications with affected customers.ÌýThe cost of these impacts are still being assessed and are yet to be finalised.Ìý

Other impacts 

Other impacts have been considered and none have been identified.Ìý

Monitoring and evaluation 

The measure will be monitored through information collected from tax returns, customs data, and compliance activity, and kept under review through regular communication with affected businesses and stakeholders.Ìý

Further advice 

If you have any questions about this change, contact the Low-Value Imports Team by email lowvalueimportreform@hmrc.gov.uk.