The end of de minimis: what the UK’s 2028 deadline means for international brands

The UK is quickly following in the footsteps of the US and the EU in abolishing the current de minimis rule. Initially planned for 2029, it has now been brought forward to October 2028. But what does it mean for international brands shipping to the UK or gearing up to enter the market?

The background – what is the De Minimis Rule?

The de minimis rule is a trade rule that states (in the UK) that overseas retailers can send packages up to £135 without paying duties or taxes, or having to undergo extensive customs checks.

The aim of the rule was to make cross-border ecommerce simpler, provide better opportunities for SMEs to compete on a global scale, and to reduce shipping costs and times.

The US was the first to get rid of this rule that had been in place since 2016. In a nutshell, the de minimis threshold was $800. But from August 2025, all parcels regardless of value are now subject to duties and taxes, with these additional costs depending on product class and country of origin.

Next was the EU. Their threshold of €150 for small packages ended on 01 July 2026, with customs fees now calculated on products, not packages – an interim flat customs duty of €3 on each different category of item.

Why the changes?

While the initial aim of the rule was to make international trade more streamlined and accessible to smaller businesses, it has seen a rapid influx of cheaper products from large international brands shipped directly to consumers. In the UK, the removal of the rule will make it fairer for local and high street brands to compete with international retailers.

Then there’s the question of lost potential income for HMRC; according to Sky, in 2024/25 there were de minimis imports valued at £5.9bn which could have generated more than £1bn in customs revenue.

And that’s not to mention product safety issues, with de minimis imports largely avoiding checks other products would undergo, or the potential for fraud through the under valuation of products.

It’s also the sheer volume – 600 million small packages every year in the UK and 4.6bn in the EU, according to the European Commission – that is overwhelming border authorities.

Considerations for 2028 – what the changes mean in practice

For international brands already shipping to the UK, or considering it, the implications go beyond a change to customs paperwork.

Every shipment carries a new duty liability

Once the £135 threshold is removed, low-value direct-to-consumer shipments will no longer enter the UK duty-free. The landed cost of every order changes – a shift that feeds directly into pricing, margin, and consumer expectations.

Tariff classification errors now have consequences

Under de minimis, most low-value shipments bypassed the need for precise customs classification. Under the new rules, errors – even unintentional ones – can mean delays at the border, financial penalties, and packages arriving with unexpected charges attached.

Full customs compliance applies at scale

What was a simplified process for low-value parcels becomes standard customs documentation for every single shipment. For brands shipping high volumes direct to UK consumers, that’s a significant operational shift.

Unexpected charges at delivery damage the customer relationship 

Duty surprises at the doorstep are one of the more tangible consumer-facing risks of the change. Brands that can accurately calculate and display the true landed cost – duties, VAT, fees – at the point of purchase are better placed to protect conversion and reduce returns.

Holding inventory in the UK removes the problem at the consumer end

For brands with sufficient UK volume, importing goods in bulk under commercial terms consolidates the customs process to a single inbound shipment. Individual orders are then fulfilled domestically, with no duty friction for the end customer.

It’s a process 

The consultation period running to 2028 means implementation guidance will continue to evolve. Brands operating within the UK market – or with partners embedded in it – will have an easier time adapting as that picture becomes clearer.

Conclusion

The removal of the de minimis threshold is more than a customs change. It reflects a broader shift in how governments are approaching cross-border ecommerce, with greater scrutiny, greater accountability and fewer exemptions for international sellers.

For brands, the challenge is not simply managing new duties and paperwork. It’s building a fulfilment model that remains commercially viable as regulations evolve. Those that continue to rely on direct-to-consumer international shipping may find costs and complexity increasing over time, while brands with inventory positioned closer to their customers will be better placed to adapt.

October 2028 is still several years away, but the decisions made before then could have a lasting impact on profitability, customer experience and long-term growth in the UK market.

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