{"id":91849,"date":"2025-08-28T22:20:56","date_gmt":"2025-08-28T22:20:56","guid":{"rendered":"https:\/\/sotnews.agency\/?p=91849"},"modified":"2025-08-28T22:20:56","modified_gmt":"2025-08-28T22:20:56","slug":"value-of-small-parcels-sent-from-china-to-uk-hits-3bn","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=91849","title":{"rendered":"Value of small parcels sent from China to UK hits \u00a33bn"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>4 Minute, 40 Second <\/div>\n\n <\/div>
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Small parcels shipped from China to the UK that aren\u2019t subject to import taxes more than doubled in value last year, as British businesses complain of unfair competition.<\/p>\n

These small packages rose in value from \u00a31.3bn in 2023-24 to around \u00a33bn in the latest financial year, exclusive data obtained by the BBC shows.<\/p>\n

Chinese e-commerce giants such as Shein and Temu are thought to be drivers of this increase as sales of cheap goods to online shoppers in the\u00a0UK continue to rise.<\/p>\n

The UK government is reviewing the rules on so-called low-value imports, but industry groups want swifter action to protect retailers from being undercut, and consumers from potentially faulty goods.<\/p>\n

Low-value imports, which are worth \u00a3135 or less, are currently exempt from customs duties.<\/p>\n

The \u00a33bn worth of these parcels from China made up 51% of all the small parcels shipped to the UK from around the world last year.<\/p>\n

That was up from 35% in 2023-24, according to HM Revenue & Customs (HMRC) figures obtained by the BBC via a Freedom of Information request.<\/p>\n

Katerina Buchy, director of Sheffield-based giftware wholesaler Ancient Wisdom, said low-value imports were hitting her company\u2019s business because it couldn\u2019t compete with the prices on sites like Shein and Temu.<\/p>\n

\u201cIt\u2019s affecting our customers as well. They\u2019re not ordering from us because they know their customers can get it cheaper online,\u201d said Ms Buchy, who has worked at the firm since 2004.<\/p>\n

\u201cI think the government should not allow these companies to export such high quantities of products under these rules because it\u2019s just ridiculous.<\/p>\n

\u201cI\u2019d like to know how much they are losing in taxes. We pay taxes. We employ more than 100 people.\u201d<\/p>\n

Katerina Buchy said low-value imports were hitting her business and clients<\/figcaption><\/figure>\n

Temu and Shein have become popular among UK consumers in recent years for selling affordable items, including clothes, homeware, electronics and toys.<\/p>\n

Founded in China but now headquartered in Singapore,\u00a0Shein recorded soaring profits last year.<\/p>\n

It has tried to get itself on the New York and London stock exchanges, but has yet to secure a listing on either.<\/p>\n

Both companies were\u00a0questioned by MPs\u00a0earlier this year over labour standards linked to the making of products sold on their platforms.<\/p>\n

Natalie Berg, retail analyst at NBK Retail, said it was no surprise that the increase in the value of small parcels from China had coincided with the expansion of companies like Shein and Temu.<\/p>\n

\u201cThey\u2019ve gone from niche newcomers to retail powerhouses in a very short period of time,\u201d she said.<\/p>\n

But she warned that the removal of the tax exemption could disproportionately hit lower-income consumers and small firms who use it to import goods.<\/p>\n

She added: \u201cThis is a loophole that needs to be plugged, but the government must ensure that any changes don\u2019t ultimately harm consumers or small businesses.\u201d<\/p>\n

\u2018Significant and growing threat\u2019<\/h2>\n

The Treasury\u00a0announced a review of low-value imports in April\u00a0following lobbying from major retailers, including Next and Sainsbury\u2019s, which argued the exemption enabled overseas companies to undercut them.<\/p>\n

But the British Retail Consortium (BRC) has called on ministers to take action now.<\/p>\n

Andrew Opie, the BRC\u2019s director of food and sustainability, said low-value imports posed \u201ca significant and growing threat\u201d to investment in UK High Streets as retailers faced unfair competition.<\/p>\n

He added that they also exposed consumers to \u201cunregulated, potentially unsafe products\u201d because they did not go through the same customs check process as other goods.<\/p>\n

A spokesperson for Temu said the company aimed to have at least half of the sellers using its UK platform based in the country by the end of the year.<\/p>\n

\u201cThis approach helps consumers access affordable products while giving UK businesses a low-cost channel to reach new customers and grow,\u201d the spokesperson said.<\/p>\n

A spokesperson for Shein said the firm\u2019s \u201con-demand\u201d business model allowed it to make savings that it could pass on to its customers.<\/p>\n

They added: \u201cVendors are required to comply with Shein\u2019s code of conduct and stringent safety standards.\u201d<\/p>\n

Treasury review ongoing<\/h2>\n

The US has already ended\u00a0its so-called \u201cde minimis\u201d exemption\u00a0on imports of low-cost goods from China, but the policy will now be applied to the rest of the world from Friday.<\/p>\n

The previous rule had allowed goods valued at $800 (\u00a3596) or less to enter the country without paying any tariffs.<\/p>\n

The European Union also recently\u00a0announced plans to charge a \u20ac2 flat fee on small packages\u00a0worth \u20ac150 (\u00a3129) or less entering the bloc.<\/p>\n

While the value of small parcels arriving in the UK from China has soared, when it comes to the actual number of items entering the country, the picture is less clear.<\/p>\n

HMRC said it only records the number of customs declarations used for goods worth \u00a3135 or less, and multiple items can be included under one declaration.<\/p>\n

It recorded around 281,000 customs declarations for low-value imports dispatched from China in 2024-25 \u2013 about 12% of the total.<\/p>\n

A Treasury spokesperson said Chancellor Rachel Reeves\u2019 review of the customs treatment of low-value imports was ongoing and would be published \u201cin due course\u201d.<\/p>\n

They added: \u201cWe are a pro-business government that is backing Britain\u2019s High Streets by protecting and extending business rates relief that would have ended without our action, permanently lowering rates for retailers from next year, and capping corporation tax at the lowest level in the G7 to encourage investment and growth.\u201d<\/p>\n<\/div>\n

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