Value of small packages sent from China to UK more than doubles

Tommy LumbyBusiness information journalistGetty ImagesThe worth of small parcels shipped from China to the UK underneath an import tax exemption greater than doubled final 12 months to £3bn, unique information obtained by the BBC exhibits.Chinese language e-commerce giants reminiscent of Shein and Temu are regarded as drivers of this improve as gross sales of low-cost items to web shoppers within the UK proceed to rise.The UK authorities is reviewing the foundations that imply imports of small packages value £135 or much less at present keep away from customs duties.However UK enterprise house owners and trade teams say they need swifter motion to guard Excessive Road retailers from being undercut, and shoppers from doubtlessly defective items.Low-value imports despatched from China to the UK totalled round £3bn in 2024-25, in keeping with HM Income & Customs (HMRC) figures obtained by the BBC by way of a Freedom of Data request.That was properly over twice the £1.3bn recorded in the course of the earlier monetary 12 months.The worth of those deliveries from China made up 51% of all of the small parcels shipped to the UK from all over the world final 12 months. That’s up from 35% in 2023-24.Katerina Buchy, director of Sheffield-based giftware wholesaler Historical Knowledge, stated low-value imports have been hitting her firm’s enterprise as a result of it could not compete with the costs on websites like Shein and Temu.”It is affecting our clients as properly. They don’t seem to be ordering from us as a result of they know their clients can get it cheaper on-line,” stated Ms Buchy, who has labored on the agency since 2004.”I feel the federal government mustn’t enable these corporations to export such excessive portions of merchandise underneath these guidelines as a result of it is simply ridiculous.”I would prefer to know the way a lot they’re dropping in taxes. We pay taxes. We make use of greater than 100 folks.”Katerina BuchyKaterina Buchy stated low-value imports have been hitting her enterprise and clientsTemu and Shein have grow to be common amongst UK shoppers lately for promoting inexpensive gadgets together with garments, homeware, electronics and toys.Based in China however now headquartered in Singapore, Shein recorded hovering earnings final 12 months.It has tried to get itself on the New York and London inventory exchanges, however has but to safe an inventory on both.Each corporations have been questioned by MPs earlier this 12 months over labour requirements linked to the making of merchandise offered on their platforms.Natalie Berg, retail analyst at NBK Retail, stated it was no shock that the rise within the worth of small parcels from China had coincided with the enlargement of corporations like Shein and Temu.”They’ve gone from area of interest newcomers to retail powerhouses in a really brief time period,” she stated.However she warned that the elimination of the tax exemption might disproportionately hit lower-income shoppers, and small corporations who use it to import items.She added: “It is a loophole that must be plugged, however the authorities should be sure that any modifications do not finally hurt shoppers or small companies.”‘Important and rising menace’The Treasury introduced a evaluation of low-value imports in April following lobbying from main retailers together with Subsequent and Sainsbury’s, which argued the exemption enabled abroad corporations to undercut them.However the British Retail Consortium (BRC) has known as on ministers to take motion now.Andrew Opie, the BRC’s director of meals and sustainability, stated low-value imports posed “a big and rising menace” to funding in UK Excessive Streets as retailers confronted unfair competitors.He added that in addition they uncovered shoppers to “unregulated, doubtlessly unsafe merchandise” as a result of they didn’t undergo the identical customs verify course of as different items.A spokesperson for Temu stated the corporate aimed to have a minimum of half of the sellers utilizing its UK platform based mostly within the nation by the top of the 12 months.”This strategy helps shoppers entry inexpensive merchandise whereas giving UK companies a low-cost channel to succeed in new clients and develop,” the spokesperson stated.A spokesperson for Shein stated the agency’s “on-demand” enterprise mannequin allowed it to make financial savings that it might go on to its clients.They added: “Distributors are required to adjust to Shein’s code of conduct and stringent security requirements.”Treasury evaluation ongoingThe US just lately ended its so-called “de minimis” exemption on imports of low-cost items from China and Hong Kong, which had allowed these valued at $800 (£596) or much less to enter the nation with out paying any tariffs.It is because of drop the exemption for different international locations on 29 August.The European Union additionally just lately introduced plans to cost a €2 flat charge on small packages value €150 (£129) or much less coming into the bloc.Whereas the worth of small parcels arriving within the UK from China has soared, in the case of the precise variety of gadgets coming into the nation, the image is much less clear.HMRC stated it solely data the variety of customs declarations used for items value £135 or much less, and a number of gadgets might be included underneath one declaration.It recorded round 281,000 customs declarations for low-value imports dispatched from China in 2024-25 – about 12% of the full.A Treasury spokesperson stated Chancellor Rachel Reeves’ evaluation of the customs therapy of low-value imports was ongoing and could be revealed “in the end”.They added: “We’re a pro-business authorities that’s backing Britain’s Excessive Streets by defending and lengthening enterprise charges aid that might have ended with out our motion, completely reducing charges for retailers from subsequent 12 months, and capping company tax on the lowest stage within the G7 to encourage funding and development.”Extra reporting by Kris Bramwell.