Agency Sector Management (ASM) is calling on the Chancellor of the Exchequer to use his first Budget to commit to publishing the remaining financial and technical details of the UK’s low value imports (LVI) reforms by 30th June 2027 to allow industry time to prepare.
“The new government must not leave the logistics industry to absorb the cost and risk of an unfinished policy,” said Simon Adams, Program Manager, Agency Sector Management.
The consultation response was published on 13th July, one week before the Chancellor, John Healey, took office, and states that the reforms will be implemented by October 2028 at the latest.
The reforms will remove the existing customs duty relief for consignments valued at GBP 135 or less entering Great Britain and introduce new customs requirements.
Sellers and online marketplaces will be responsible for providing item level data and paying customs duty quarterly, while traders will need to classify goods and apply the appropriate UK Global Tariff rate.
An additional fee will be introduced to cover the cost of administering the new system, but the Government has not yet confirmed the amount or charging basis.
Overseas sellers and online marketplaces without a UK presence will also be required to appoint a UK based fiscal representative responsible for their customs debts.
The final VAT collection model, guidance, technical specifications, and phased implementation and testing timetable remain outstanding.
“The Chancellor should use his first Budget to put a firm deadline on these decisions, because assurances that detail will follow are not enough for businesses facing substantial system and process changes,” said Adams.
ASM will work constructively with the Government on the new LVI reforms to ensure industry is well prepared for the incoming changes.
