US ends de minimis
What has changed ?
The US has confirmed the ending of the current exemption from tariffs for packages valued at less than $800. Currently only packages from China and Hong Kong were covered but the new provisions will apply to goods from anywhere outside the US.
What will this mean for UK retailers?
From August 29th retailers sending packages will be subject to tariffs and the costs of customs clearance. For the first six months, the payment can be made either as the appropriate tariff for the product or as a flat fee, between $80 and $200 depending on the country of origin with a simplified customs procedure. After 6 months, the simplified system will end and the regular tariff and customs clearance will apply to all packages.
What about the UK de minimis exemption?
Clearly, the US decision adds more pressure on the UK Government to resolve our current £135 exemption. The Government has recently reviewed its operation and impact on consumers and industry and the report is now with Treasury Ministers. We wrote to the Chancellor at the end of June urging a swift decision to end the exemption, recognising the Government would need to consider how it impacts on customs checks. We are yet to hear back but are continuing to chase, it is possible the Government could choose to announce changes as part of the budget in November.
Alongside the treatment of customs, we are also involved in work with Government to address the safety and VAT payment for products using the exemption as low value imports.
