The British Independent Retailers Association (Bira) Bira has condemned the Government’s inaction over the “de minimis” import loophole following a Sky News investigation revealing £5.9 billion worth of cheap imports entered Britain last year without paying customs duties.
The investigation found that companies like Shein and Temu have capitalised on the legal clause, which excludes packages worth less than £135 from paying tariffs, representing a 53% increase from the previous year.
Bira CEO Andrew Goodacre said: “The figures are shocking but do not surprise the independent retail sector as we have been raising concerns for years. This is basically £5.9 billion taken from the retail sector and the UK economy, and the figure will be much higher if nothing is done.
“As well as a missed duty opportunity, these imports are often evading many millions of VAT liabilities. Aside from the loss of high street sales, we also have significant concerns about the safety of the products coming into the country. Many of them do not comply with our standards and are downright dangerous. We also do not accept the impact on poorer families because the UK high street offers fantastic value to all shoppers, and the products are safe.
“We have seen the USA remove this loophole. The EU is also planning to close it. After an announcement to review in April by the Chancellor, we are frustrated at the lack of action on this, especially from a government seemingly short of money.”
Bira, which works with 6,000 independent retailers across Britain, argues that an illustrative 20% tariff could raise more than £1 billion for the Treasury
