UK Customs Duty Relief Ends: Essential Guide for Ecommerce Brands in 2026
If you import goods worth under £135 into the UK, your customs process is about to get a shake-up. The UK Government has announced that the low-value imports (LVIs) customs duty relief will be removed, which means that parcels that were once duty-free may soon carry extra charges.
This change, highlighted in the Autumn Budget 2025, will take effect by March 2029 at the latest.
Why now? The number of LVIs has been rising rapidly over the past few years, and the government has concluded the current £135 exemption needs a reform.
The decision reflects a broader global trend: in the US, the $800 de minimis threshold was removed in August 2025, while the EU has announced plans to eliminate its €150 customs duty exemption threshold from 2026.
So, what does this mean for UK ecommerce brands preparing for 2026 and beyond?
What Are the New Arrangements for LVIs (Low Value Imports) After the UK Customs Duty Relief Removal
Once the low-value import (LVI) relief is removed, all parcels entering the UK, even those under £135, are expected to be subject to customs duties. The government plans to have new arrangements in place by March 2029, though some details are still being finalised.
Here’s what ecommerce brands can expect under the proposed system:
- Customs duties: Sellers and online marketplaces may need to pay additional duties on all orders.
- Item-level reporting: Detailed information may be required for each product, such as product descriptions and values.
- VAT adjustments: Changes to VAT collection could be introduced, potentially affecting pricing and checkout processes.
When the new arrangements come into play, even small parcels may require more paperwork and careful planning. Preparing early can help ecommerce brands avoid delays, unexpected costs, and headaches at the border.
How Will the UK Customs Duty Relief Removal Affect UK Ecommerce Brands?
For UK-based sellers shipping domestically, these changes are unlikely to have a major impact. However, businesses that import goods into the UK from overseas should be aware that duties could soon apply to all orders, regardless of their value. This may affect pricing, margins, and how international shipments are managed.
While the immediate impact may be limited for purely UK-based ecommerce businesses, it’s worth noting that this shift is part of a broader global trend. Countries including the US and EU are reforming their own low-value import rules, meaning that international ecommerce operations may face increasing regulatory complexity in the coming years. Staying informed now can help businesses plan ahead and avoid surprises as these new customs arrangements are introduced.
International Low-Value Import Duty Changes: US De Minimis Removal and EU Duty Exemption Removal
Global ecommerce is changing fast, and UK sellers need to be prepared for new customs rules in both the US and EU.
US De Minimis Removal: In August 2025, the US removed its $800 de minimis threshold, meaning all parcels from the UK – including low-value items – may now be subject to customs duties. Sellers must ensure accurate customs data and use compliant shipping services to avoid delays or extra charges. For a full overview, see our guide on Royal Mail USA 2025 changes for UK sellers and shipping to the USA with DPD.
EU Duty Exemption Removal: From 2026, the EU will remove its €150 duty exemption, meaning all parcels entering the EU may be liable for customs duties. UK sellers should prepare for more detailed customs data requirements and potential additional handling fees. Temporary measures in early 2026 will ease the transition, with a central Customs Data Hub planned by 2028. You can read more in our dedicated blog on EU customs duty changes from 2026.
By understanding both the US and EU changes now, UK ecommerce businesses can plan pricing, workflows, and fulfilment processes to stay compliant, avoid unexpected fees, and continue delivering a smooth international shipping experience.
Planning for UK Customs Duty Changes and International Shipments in 2026
With the UK removing low-value import relief, the US eliminating its de minimis threshold, and the EU removing its €150 exemption, there are some big changes coming to international ecommerce. Businesses shipping across borders will need to account for customs duties, updated VAT collection, and more detailed customs reporting.
To stay ahead, UK ecommerce brands should consider:
- Reviewing pricing and margins: Duties on low-value items may affect profitability, so update pricing strategies and factor duties into product costs.
- Updating workflows and fulfilment processes: Ensure your systems capture accurate customs data, including HS codes, product descriptions, and declared values.
- Automating wherever possible: Shipping software like Zenstores can streamline customs documentation, select compliant services automatically, and reduce errors.
- Monitoring regulatory updates: Rules and temporary measures will evolve in the UK, US, and EU. Staying informed helps avoid surprises and ensures smooth shipping operations.
- Planning for customer communication: Clear messaging around potential duties and delivery expectations will improve customer experience and reduce disputes.
By taking a proactive approach now, businesses can adapt to global changes in customs and duty regulations, protect margins, and maintain a seamless international shipping experience as these reforms come into effect.
How Zenstores Can Help Ecommerce Brands Ship Internationally
Navigating changes to customs duty relief in the UK, the US de minimis removal, and the EU duty exemption can feel complex, but tools like Zenstores make it manageable for ecommerce businesses.
With Zenstores, you can:
- Automate customs documentation: Generate and submit accurate customs forms for every international shipment, including item-level data, HS codes, and declared values.
- Select compliant shipping services: Automatically choose the correct Royal Mail, DPD, or other carrier services for duty-paid shipments, avoiding delays or rejected parcels.
- Streamline fulfilment workflows: Connect all sales channels in one platform, print labels with the required customs data, and reduce manual errors.
- Stay compliant with evolving rules: Zenstores keeps you updated with regulatory changes across the UK, US, and EU, helping you adapt your shipping processes quickly.
By automating these processes, UK ecommerce brands can continue to ship internationally with confidence, minimise administrative overhead, and focus on growing their business.
Preparing Your International Shipments for New Customs Rules
The removal of low-value import relief in the UK, alongside reforms in the US and EU, signals a major shift in the global ecommerce landscape. Businesses that previously relied on exemptions for small parcels may need to rethink pricing, workflows, and international shipping strategies.
While the specifics of each system may continue to evolve, one thing is clear: proactive businesses that stay informed and prepare to adapt now will be better positioned to navigate these changes successfully.
Ship Smarter Internationally with Zenstores
Don’t let changing customs rules slow down your international growth. With Zenstores, you can automate customs documentation, ensure every shipment is compliant with UK, US, and EU regulations, and streamline your fulfilment workflows.
Switch to Zenstores today to simplify international shipping, stay ahead of customs changes, and focus on growing your business with confidence.