Reforming low value imports in the UK: What shippers and LSPs should expect.

Overview of the UK low value imports customs consultation

The consultation confirms that the UK will remove the existing customs duty relief for individual consignments valued at £135 or less. VAT will continue to apply, as it already does following reforms in 2021.

The Government is now consulting on how the new low value imports customs model should work, including:

• What data traders and intermediaries will need to provide
• How tariffs should be applied to low value imports
• Whether an additional fee should be charged on low value imports to fund administration
• How VAT collection should be aligned with the new customs arrangements

In short, the decision to remove the duty relief has been taken, but the operational design and detailed rules are still open for input.

For shippers and LSPs operating cross border flows into the UK, this presents both uncertainty and opportunity.

Why UK low value imports reform matters for shippers and LSPs

Although the consultation focuses on low value imports, the operational impact can extend far beyond this category. Leaders responsible for customs performance, cost efficiency and customer experience will immediately recognise the potential ripple effects.

1. More demanding customs data requirements into the UK

Any move toward more granular or earlier data submission will require stronger product master data, more robust classification, and better integration between systems and partners.

2. Changes to UK import declaration processes

New models could alter how declarations are submitted, when they are required, or which parties in the chain are responsible for making them and paying any duty.

3. Potential shifts in duty and VAT handling

The consultation explores how tariffs should be applied, and how VAT collection should be aligned with the new model. That may affect the timing and mechanics of tax and duty settlement.

4. Higher expectations on risk management and customs compliance

If the UK adopts a different assessment methodology for low value imports, LSPs and shippers may need to adjust compliance frameworks, audit trails and internal controls to maintain assurance.

5. Impact on service performance and customer commitments

New processes can influence transit times, workload distribution, resource planning and contractual service levels, particularly where the LSP carries responsibility for customs performance.

For LSPs, where reliability and predictability drive reputation, and for shippers seeking visibility and cost control, early preparation is essential.

Three UK low value imports reform scenarios supply chain leaders should plan for

Because the detailed design is still being consulted on, the most pragmatic approach is to prepare for three broad scenarios. These do not assume any specific outcome but reflect the types of reforms that consultations of this nature typically explore.

Scenario 1: More detailed customs data for low value imports into the UK

Under this scenario, the UK retains the basic structure of the model but requires:

• Richer data sets on consignments and product attributes
• Earlier data submission before arrival
• Tighter alignment between commercial, logistics and customs data

Impact areas

• Data quality and master data governance
• Upstream classification and valuation controls
• Integration between shippers, LSPs and parcel operators
• Amendments to interfaces and document flows

Who is most affected

• LSPs processing volumes at scale through automated channels
• Shippers with decentralised data or high SKU variation

Scenario 2: Simplified or consolidated UK low value import declarations

Here, the UK introduces a more streamlined declaration model that aims to reduce administrative burdens while improving control.

Impact areas

• New simplified declaration types and processes
• Changes to representation models between sellers, LSPs and intermediaries
• Adjusted service level expectations during transition and stabilisation

Who is most affected

• LSPs providing multi market clearance services into the UK
• Shippers integrating UK and EU supply chain flows and centralising customs

Scenario 3: Structural change to the UK low value import customs model

In this scenario, the UK adopts a more fundamental redesign of the model, for example more data led and potentially with different tariff application principles or additional fees.

Impact areas

• Financial forecasting and landed cost models
• VAT and duty processes, including timing of settlement
• End to end operational redesign and technology enablement
• Business cases for automation and control tower structures

Who is most affected

• Complex supply chains with high volume and product diversity
• LSPs managing multi channel customs networks into the UK
• Organisations managing seasonal or fluctuating volume patterns

Across all three scenarios, the common themes are clear: integrated data, structured processes and strong governance will be essential to navigate the transition.

How shippers and LSPs can prepare for UK low value imports changes

Even before any final decisions are made on the detailed model, there are practical steps that create immediate value and build resilience for future changes.

Strengthen customs data foundations for UK flows

Review:

• Product master data and tariff classification
• Accuracy of valuation and origin data
• Completeness of supporting documentation
• Mapping between commercial, logistics and customs data sets

Map UK low value import flows across your supply chain

Identify:

• Which flows and products regularly fall under the £135 threshold
• Variations in process between regions, partners and modes
• Where manual workarounds or local exceptions exist

Stress test operational readiness with customs partners

Assess whether:

• Your customs providers can scale and adapt to model changes
• Your teams understand their roles in any new data or process model
• You have the capacity to manage transition without service disruption

Review customs compliance frameworks and controls

Confirm:

• The robustness of your audit trails and document retention
• Alignment of internal policies with best practice expectations
• How you will evidence compliance if HMRC scrutiny increases on low value imports

Engage early with customs and trade experts

Specialist advisory support can:

• Translate consultation proposals into concrete business impacts
• Help you quantify risk exposure and opportunity
• Design transition roadmaps and operating models that are ready for change

How Gaston Schul supports LSPs and shippers through the UK’s low value import reforms

Shippers and LSPs rely on us for proactive support when regulation evolves. Through our advisory teams, Control Tower capabilities and 180 years of customs expertise, we help organisations stay compliant, maintain operational continuity and make confident trade decisions across the UK and Europe.

Our support typically includes:

• Continuous monitoring of regulatory developments and consultations
• Clear, practical communication of what changes mean in real terms
• Structured impact assessments grounded in your trade and customs data
• End to end operational support for UK customs flows
• Strategic guidance to manage risk, cost and visibility across your network

Customers choose us because they want reliable daily operations today and the confidence to adapt tomorrow as customs rules change.

If you would like help assessing what this consultation may mean for your flows or operations, our experts are ready to support.