UK to review low value imports exemption for fairer competition

The UK government has announced immediate action to tackle unfair international trade practices, led by the Trade Remedies Authority (TRA). The move aims to protect British businesses from unfair competition in the global market. Chancellor Rachel Reeves has also revealed plans to review the customs treatment of low value imports, which currently exempts goods valued at £135 (~$179.76) or less from customs duty.

Major UK retailers like Next and Sainsburys have called for changes to this rule, arguing it puts them at a disadvantage by allowing international companies to undercut domestic prices, the UK government said in a press release.

UK government has taken action to tackle unfair international trade practices, led by the Trade Remedies Authority.
The government also plans to review the customs treatment of low value imports, which currently exempts goods under £135 (~$179.76) from customs duty.
UK retailers like Next and Sainsburys have pushed for changes, citing unfair competition.

Speaking at the annual IMF Spring meetings in Washington D.C., Chancellor Reeves emphasised the importance of maintaining an open global economy for UK growth, aligning with the government’s overarching Plan for Change. She stressed that while free trade benefits the UK, fairness must be prioritised in the global economic system to address the uneven distribution of growth.

“This government is meeting the moment to protect fair and open trade. Following recent announcements reducing tariffs and support for the zero-emissions vehicles industry, today’s [April 23] package will help businesses compete fairly with international exporters, supporting a world economy that provides stability and fairness for working people and businesses alike,” said Reeves.

This latest move builds on previous government actions, including a strategic approach to supporting British steelmaking and initiatives to bolster zero-emission vehicles. The recent suspension of tariffs on 89 foreign products and ongoing efforts to support British industries in the face of global economic challenges were also highlighted.

Business and trade secretary Jonathan Reynolds reinforced the government’s commitment to safeguarding UK businesses from unfair competition. “This government won’t stand idly by while cheap imports flood our markets and harm British industries,” Reynolds stated. “That is why I met with the TRA recently to agree urgent steps to tackle these issues in real time to deliver quicker protections for firms.”

Responding to the announcement, Helen Dickinson, chief executive of the British Retail Consortium, said: “The announcement of the review into the de minimis rules is most welcome and shows that the government has listened to the concerns and representations of retailers and the BRC and that it is prepared to take swift action to protect consumers from goods being dumped in the UK, many of which fail to meet UK environmental and ethical standards, as a result of global trade turmoil. A review of this policy, which was designed to reduce the burden on low volume, low value imports, was already needed. With retailers seeing a rise in the number of potentially non-compliant products entering the UK market, it’s even more critical now.”

Theo Paphitis, retail entrepreneur, said: “This is a much-needed injection of confidence for retailers and a common sense move to protect the UK economy. The sector has been crying out to level the unfair playing field and is a welcome, positive and strong step in the right direction by the Chancellor. This shows the government is listening and responding to UK business.”

Fibre2Fashion News Desk (KD)

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