The scale of affordable Chinese e-commerce imports entering the UK without tariff charges has been brought to light by a Sky News investigation into this burgeoning multi-billion pound trend.
We have revealed the initial official estimation of the value of «de minimis» imports into the UK, paving the way for an official review on whether this legal provision – which exempts packages valued under £135 from customs charges – should remain in place.
Brands like Shein and Temu have emerged as major players in the British retail landscape, as well as globally, by producing inexpensive goods in China and shipping them directly to consumers, taking advantage of the de minimis regulations.
UK clothing manufacturers argue that de minimis creates a nearly insurmountable obstacle to competing with these Chinese counterparts, casting doubt on the sustainability of domestic textile and apparel production.
On the other hand, economists contend that the primary beneficiaries of the policy excluding low-cost imports from customs duties are lower-income households, enabling them to save on their purchases. Removing this provision, they assert, would disproportionately impact disadvantaged families.
The government has pledged to conduct a review of the regulations, which are also undergoing revisions in the EU and the US, although an official assessment of its magnitude had not been available until now.
According to data from HM Revenue and Customs provided to Sky News following a Freedom of Information request, the total declared trade value of de minimis imports into the UK in the previous fiscal year (2024-25) was £5.9 billion.
This marked a 53% increase from the previous year (£3.9 billion), underscoring the significant growth in e-commerce imports to the UK.
While it is challenging to quantify the revenue forgone by the Treasury, a hypothetical 20% tariff on such levels of trade could generate over £1 billion.
While this amount alone may not cover the financial gap faced by Chancellor Rachel Reeves in the upcoming budget, it would come close to funding the government’s recent reversal on winter fuel allowances.
Sky also gained exclusive television access deep into the supply chain facilitating the entry of these goods into the UK, boarding a flight that had just arrived from Chongqing at Bournemouth Airport.
We filmed inside a plane owned by European Cargo, one of several air cargo companies thriving due to these trade streams.
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The untold narrative surrounding de minimis is not only the impact on shopping trends in the UK or the textiles manufacturing sector but also the transformation of distribution patterns.
Regional airports struggling to recover passenger numbers post-pandemic are now repositioning themselves as cargo hubs.
European Cargo is now the dominant airline at Bournemouth Airport, despite not carrying any passengers.
Other regional airports like East Midlands Airport and Prestwick in Scotland are experiencing rapid growth in trade flows.
All of these factors heighten the importance of the government’s review of the de minimis system.
Currently, there is no set timeline for a decision, but eliminating the provision would have widespread repercussions across the economy.