The UK government will abolish its £135 tariff exemption for low-value imports, a measure expected to level the playing field for domestic retailers. The EU is fast-tracking similar reforms, signaling a major shift for cross-border e-commerce and sporting goods brands.
Britain’s finance minister Rachel Reeves confirmed plans to scrap the de minimis rule that exempts goods under £135 from customs duties. The change, set to be announced in the Nov. 26 budget, aims to curb unfair competition from overseas sellers and boost revenue by an estimated £500 million per year (approximately €595–715 million).
While the government expects only a “modest” impact on consumer prices, the move closes a loophole widely exploited by platforms like Temu and Shein, which ship low-cost parcels directly to UK consumers without tariffs.
For the sporting goods industry, the implications are significant.
Many low-value items – such as accessories, entry-level footwear, and apparel – are imported via cross-border e-commerce. Tariffs will likely increase costs for these shipments, prompting brands to rethink pricing, logistics, and inventory strategies. Domestic retailers could benefit from a more level playing field, while global brands may accelerate investment in local warehousing to mitigate tariff exposure.
The UK’s decision mirrors similar EU initiatives.
The EU has agreed to abolish its €150 customs duty exemption for low-value imports from non-EU countries, with reforms expected to start in 2026 – two years earlier than planned. The measure is part of a broader customs modernization agenda aimed at reducing fraud, improving compliance, and addressing the surge in small parcels from Asia. EU officials estimate that 91 percent of sub-€150 shipments originate from China, often undervalued to avoid duties.
As both regions tighten rules, sporting goods brands face a new compliance landscape where cost efficiency and supply chain agility will be critical to maintaining competitiveness.
