Good news for bike shops? UK to review ‘De Minimis’ small parcels threshold

In news that may cheer bike shops and distributors on British shores, the UK is set to review the ‘De Minimis’ £135 threshold for import duty. If that goes the way campaigners hope it will, the retail ‘playing field’ will be in part levelled between UK shops and overseas retailers and marketplaces.

The so-called ‘small parcels’ category of imports – when goods can be imported into a country without incurring customs duties – is reportedly a growing area. Overseas retailers and marketplaces are sending through many millions of sub-£135 small parcel shipments – believed to be in the region of 100 million in 2023, including through the likes of Temu, Shein, Amazon and eBay. Many of these small parcels are thought to enter the UK with minimal or no checks, therefore bypassing UK trade legislation. Various groups believe such items to include fake phone chargers and other potentially dangerous products.

Associations from other industries, such as DIY and home improvement focused BHETA, as well as ACT parent Bira, have been lobbying the government and the Trade Remedies Authority (TRA) to reduce the De Minimis level – “ideally to £0”.

The TRA has so far been prepared to shake up British import laws and tariffs – see the cancellation of anti-dumping duties on China-made eBikes as well as the ongoing investigation into duties on (pedal) bikes and accessories from China. The number of bicycle-orientated small parcels arriving from overseas destined for UK cycle consumers is hard to gauge, which is partly the point: In practice, it is likely hard to accurately assess what is arriving through small parcels. Likewise, retailers relying on overseas vendors for sub £135 products may find that avenue closing or set to become more expensive.

Andrew Goodacre, CEO of BIRA, said: “Since our October conference, BIRA has been working closely with BHETA and RAVAS to bring these issues to the government’s attention. It is pleasing that the government has been listening and is now taking action.”

Image by PublicDomainPictures from Pixabay