Business data journalist
Exclusive data received by the BBC show, the value of small parcel sent from China to Britain under more import tax exemption last year.
Chinese e-commerce giants such as Shin and Temu are considered the driver of this growth because online shopkeepers are sold as cheap goods The UK continues to grow.
The UK government is reviewing the rules that mean import of small packages of £ 135 or less currently avoids customs duty.
But the UK business owners and industry groups say they want to protect high road retailers from being undercurved, and consumers from possible faulty accessories.
According to HM Revenue and Customs (HMRC), according to data received by BBC through information request by BBC, a total import of low-value imports sent to UK from China in 2024–25 came out in total.
It was doubled from £ 1.3BN recorded during the last financial year.
The value of these delivery from China was 51% of all small parcels sent to Britain from around the world last year. It is above 35% in 2023-24.
Shefield-based giftware wholesaler Katerina Buchi, director of ancient knowledge, said low-value imports were killing their company’s business as it could not compete with prices on sites such as Shin and Temu.
“It is also affecting our customers. They are not ordering us because they know that their customers can get it cheaper online,” Ms. Buchi said, who has worked in the firm since 2004.
“I think the government should not allow these companies to export such high amounts of products under these rules as it is just ridiculous.
“I want to know how much they are losing taxes. We pay taxes. We employ more than 100 people.”
Temu and Shin have become popular among the UK consumers in recent years to sell cheap items including clothes, homeware, electronics and toys.
Established in China but now it is headquarters in Singapore, Shin increased profits last year,
This has tried to achieve itself on New York and London stock exchanges, but has not yet secured a list.
Both were companies Inquired by MPs Earlier this year, labor standards were associated with the manufacture of products sold on their platforms.
Natalist Berg, retail analyst of NBK Retail, said it was not surprising that the price of small parcels from China had increased with the expansion of companies such as Sheen and Temu.
“They have moved to retail powerhouse from top new people in a very short time,” he said.
But he warned that it can be used to import goods using low -income consumers and small firms by removing tax exemption.
He said: “This is a flaw that needs to be plugged, but the government should ensure that no changes eventually harm consumers or small businesses.”
‘Important and increasing threat’
Treasure Announced a review of low-value imports in April After advocating from major retailers, including Next and Sensbari, who argued that the discount enabled foreign companies to reduce them.
But the British Retail Consortium (BRC) has now called upon the ministers to take action.
Andrew OP, director of BRC’s food and stability, stated that low-value imports faced “a significant and growing threat” for investment in high roads of the UK as retailers faced unfair competition.
He said that he also highlighted consumers to “irregular, potentially unsafe products” as they did not go through the customs test process similar to other goods.
A Temu spokesman said that the company has targeted at least half of the sellers using its UK platforms in the country by the end of the year.
The spokesperson said, “This approach helps consumers to reach the UK businesses to reach new customers and reach cheap products, giving low -cost channels to grow.”
A spokesperson of Shin said that the “on-demand” business model of the firm has allowed it to be saved that it can pass to its customers.
He said: “The vendors are required to follow the code of conduct and strict security standards of the shin.”
Treasury review is underway
America will Eliminate its so -called “de minimis” discount From Friday on the import of lower cost goods from China and Hong Kong. This allowed those to enter the country without paying $ 800 (£ 596) or less.
This is due to leaving exemption for other countries on August 29.
European Union is also recently Announced plans to charge € 2 flat fees on small packages Prices € 150 (£ 129) or entering less blocks.
While the value of small parcels coming from China to the UK has increased, the picture is less clear when it comes to the actual number of items entering the country.
HMRC stated that it records the number of customs announcements used for only £ 135 or less goods, and many items can be included under an announcement.
It recorded about 281,000 customs declarations for low-value imports sent from China in 2024-25-about 12%of the coal.
A spokesperson to the Treasury said that the review of customs treatment for the low -price import of Chanel Raves was going on and would be published “in the appointed time”.
He said: “We are a pro -business government that is supporting the high roads of Britain, protecting and expanding trade rates, which would have been finished without our action, from next year, being permanently lowering rates for retailers, and capping the corporation taxing at the lowest level in G7 to encourage investment and development.”
Additional reporting by Chris Bramwell.