UK Retail Titans Demand Urgent Customs Duty to Combat Overseas E-commerce Giants

British retailers urge the UK government to impose a £2.60 customs duty on low-value parcels from overseas. They aim to close a tax loophole favoring Chinese platforms like Shein, which benefit from a customs waiver. Retailers request swift action to maintain fair competition and support UK consumers.

British retail giants, including household names like Next and Marks & Spencer, are pressing the UK government for the urgent imposition of a £2.60 customs duty on overseas parcels of low value. The move aims to close a tax loophole currently benefiting online giants such as China's Shein.

The call for action comes as UK retailers face increasing pressure from ultra-low-cost platforms like Shein, Temu, and AliExpress, which capitalize on a customs waiver by shipping products directly from Chinese factories to customers. The UK government had planned to introduce customs duties on such parcels by March 2029, lagging behind the EU and the US.

Sixteen UK retailers, including big names like Primark and ASOS, have written to Prime Minister Keir Starmer and finance minister Rachel Reeves, urging swift implementation of the reforms by 2026. This, they argue, is necessary to restore fair competition and benefit UK consumers.