Chancellor of the Exchequer Rachel Reeves has confirmed that the UK’s de minimis rule, which exempts parcels worth under £135 from import duties, will remain in place until March 2029.

Reeves was expected to use this week’s budget plan to immediately scrap de minimis, which British retailers have been pressing the government to do. They argue it benefits Chinese ecommerce rivals, such as Shein and Temu, who do not have to pay import duties on shipments less than£135. Parcels above that value can incur customs levies of up to 25 per cent. More than 1.6 million parcels enter the country every day using the current tariff exemption, media reports indicate.

Instead, the government will wait until 2029 to scrap the de minimis threshold. The Times reports that Reeves has decided to phase out the exemption gradually rather than immediately amid concerns that scrapping it straightaway could clog up borders and create chaos for brands and logistics providers.